Salesforce, Inc. · NYSE:CRM
Salesforce — Salesforce.Com — Investor Day (September 2021)
52 slides from Salesforce's investor day presentation, Sep 24, 2021
Slide 1: Investor Day 2021
Exhibit 99.1 Investor Day 2021
Slide 2: Agenda FY22 Investor Day
Agenda FY22 Investor Day CFO 8:00 - 9:00 Finance Presentation and Q&A 9:15 - 10:00 COO Q&A 10:00 - 10:30 Slack Discussion and Q&A 10:45 - 11:15 CRO Q&A 11:30 - 12:30 Chair and CEO Q&A Footer is eighteen point Salesforce Sans in Salesforce Neutral.
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements about the Company’s financial and operating results, which may include expected GAAP and non-GAAP financial and other operating and non-operating results, including revenue, net income, earnings per share, operating cas
Slide 4: New World, New Model
New World, New Model Amy Weaver, President & Chief Financial Officer Evan Goldstein, SVP, Investor Relations
Slide 5: Yo 8cacey
ha | Yo 8cacey gis ai we ow
Slide 6: Slide 6
Slide 7: Time of Uncertainty
Time of Uncertainty Pandemic Sustainability Workforce Inequality Trust
Slide 8: We're in a new world
We’re in a new world
Slide 9: New World is a Massive Opportunity
Spend on Digital Transformation from 2019 to 2024 — growing at $10T+ 1 a 15% 5 year CAGR New World is a Massive Opportunity % 57 of total technology spend will be on Digital Transformation in 2024 — up from 42% 1 in 2020 Spending on Future of Work $1T+ Technologies in 2024 Source: IDC Worldwide Futu
Slide 10: The Playbook for the Trusted Enterprise
The Playbook for the Trusted Enterprise Trust Customer-first Sustainability Health & Digital Safety HQ
Slide 11: Salesforce Customer 360 Health
Salesforce Customer 36O Health
Slide 12: Today's Discussion
Today’s Discussion #1 CRM New Model Subscription Power of Culture Economics Customer 360 Driving Customer Revenue & Margin Trust, Innovation, ESG Success Growth Long Term Durability Core Strength & Growth in New Clouds
Slide 13: #1 CRM: Customer Success
#1 CRM New Model Subscription Power of Culture Economics Customer 360 Driving Customer Success
Slide 14: Expanding TAMs
Expanding TAMs Total Addressable Market growth from CY21 - CY25 2 4 Year CAGR $248B $250B 11% CY25 Total Addressable 1 Market 12% 16% 13% CY21-CY25 2 4YR CAGR 11% 12% CY21 CY22 CY23 CY24 CY25 Sales Calculations performed by Salesforce and graphics created by Salesforce based on Gartner research. 1.
Slide 15: A Leader in the Gartner Magic Quadrant
A Leader in the Gartner Magic Quadrant for Sales Force Automation Leaders in Adnan Zijadic, Ilona Hansen, Melissa Hilbert, Steve Rietberg, 4 August 2021. Product A Leader in the Gartner Magic Quadrant for CRM Customer Engagement Center Nadine LeBlanc, Jim Davies, Varun Agarwal, 15 June 2021. A Leade
Slide 16: Strongest Product Portfolio
Strongest Product Portfolio Building Customer 360 with organic innovation and strategic M&A FY22 Q2 Revenue Annualized $6.4B $5.9B 23% Growth 15% Growth $3.9B $3.8B $3.7B 19% Growth 28% Growth 31% Growth Service Sales Platform Marketing and Mulesoft and Commerce Tableau Note: Revenue shown as Q2 FY2
Slide 17: Innovation in All Clouds
New Product Revenue GA | Summer ‘22 Intelligence Innovation in All Clouds All-Digital GA | Winter ‘22 Contact Center Salesforce GA | Winter ‘22 CDP NEW Salesforce CDP GA | Winter ‘22 Sustainability Cloud 2.0 for Commerce NEW Analytics Apps GA | Winter ‘22 for Every Cloud Health Cloud 2.0 MuleSoft Co
Slide 18: Hyperforce
Hyperforce Live in 15 regions by end of 2022 Hyper-compliant | Hyper-scalable | Hyper-secure Hyper-compatible | Hyper-commerce | Hyper-builder NEW EU Operating Zone Canada Germany France US Japan India 100% renewable Singapore energy Brazil Australia Net Zero
Slide 19: Strategic M&A Success
Strategic M&A Success Prioritizing customer needs with best in class technology Date Revenue at Growth at Revenue Growth Success 1 2 3 3 Acquired Acquisition Acquisition Today Today Story Slack ExactTarget 8x July 2013 $286M 30% $2,300M 29% $2.5B in eight years 1x Revenue 9x Revenue Demandware Susta
Slide 20: Slack is your Digital HQ
Slack is your Digital HQ A more flexible, inclusive and connected way to work Connects your people Connects your customers & partners Connects your systems
Slide 21: Salesforce: #1 CRM
Salesforce: #1 CRM Worldwide CRM applications 2020 revenue market share by IDC 19.5% 4.8% 4.8% 4.0% 3.8% 2016 2017 2018 2019 2020 Source: IDC, Worldwide Semiannual Software Tracker, April 2021. CRM market includes the following IDC-defined functional markets: Sales Force Productivity and Management,
Slide 22: Revenue & Margin Growth
#1 CRM New Model Subscription Power of Culture Economics Customer 360 Revenue & Margin Growth
Slide 23: Outstanding Revenue Performance
Outstanding Revenue Performance $50M Track record of consistently driving revenue growth Raise in FY22 guidance $26.35B YoY ~24% Growth 26% FY14 to FY22E CAGR $4.1B Revenue $s FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E High end of FY22E revenue guide of $26.25B to $26.35B as of September 23rd, 20
Slide 24: Improving Operating Margin Performance
Improving Operating Margin Performance Expanding margins while investing in organic and inorganic opportunities 20% 10% Non-GAAP Operating Income $s 0% Non-GAAP Operating Margin FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E GAAP Operating Margin FY22E GAAP and Non-GAAP Operating Margin based upon gu
Slide 25: Strong Cash Flow Generation
Strong Cash Flow Generation Business model enables durable cash flow growth A+ ~$5.5B $8B Bond Offering $0.9B OCF $s Free Cash Flow $s FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E Capex $s FY22E operating cash flow growth guide of 14-15% as of August 25th, 2021. FY22E free cash flow based upon FY22
Slide 26: Profitable Growth in the New World
Profitable Growth in the New World Driving disciplined growth FY22 Revenue Guidance $800M Strong New Business Raise since initiation 4 out of 5 4 of the last 5 quarters with >20% Revenue growth +20% Success from Anywhere Disciplined Decision Making FY22 Non-GAAP Operating Margin 80 bps Guidance Rais
Slide 27: Fastest Growing Enterprise Software Company Ever
Fastest Growing Enterprise $50B+ FY26 Target* Software Company Ever Initiating FY23 revenue guidance $ Fastest to 31.8B FY23 Guidance YoY ~21% Growth Fastest to $ 20B $19.7B Fastest to $ 10B $10.9B $ Fastest to 5B $2.2B 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Years Since Company Founded Note: S
Slide 28: Committed to Profitable Growth
Committed to Profitable Growth Initiating FY23 Non-GAAP operating margin guidance FY22E Non-GAAP FY23 Core Margin FY23 Slack FY23E Non-GAAP Operating Margin Expansion Headwind Operating Margin ~125-150 bps 20% Non-GAAP Operating Margin is the proportion of non-GAAP income from operations as a percen
Slide 29: Long Term Durability
#1 CRM New Model Subscription Power of Culture Economics Customer 360 Long Term Durability
Slide 30: Unit Economic Margins
1 Unit Economic Margins Attrition, Cost to Book, and Cost to Serve What’s the expected lifetime revenue from $1 ARR? Attrition Lifetime Revenue (LTR) = $1 ARR / attrition rate Cost to Book What does it “cost to book” $1 of incremental ARR? CTB = Sales & Marketing cost per dollar of incremental ARR (
Slide 31: Unit Economic Margin
Unit Economic Margin CTB, CTS, and Attrition all benefit from our disciplined growth strategy Cost to Book Cost to Serve Attrition FY18 FY22 Unit Economic margins are calculations based on assumptions regarding unit lifetime revenue and subscription economics, including cost to book, cost to serve, a
Slide 32: Unit Economic Margin Greater than 40%
Unit Economic Margin Greater than 40% for the first time in company history 41% FY22 Unit 1 Economic Margin Cost to Book Unit Economic Margin 200+ bps improvement YoY Cost to Serve Attrition Unit Economic Margin FY18 FY22 1 Unit Economic margins are calculations based on assumptions regarding unit li
Slide 33: Core Strength & Growth in New Clouds
#1 CRM New Model Subscription Power of Culture Economics Customer 360 Core Strength & Growth in New Clouds
Slide 34: Salesforce Customer 360 Health
Salesforce Customer 36O Health
Slide 35: Increasing Multi-Cloud Adoption
Increasing Multi-Cloud Adoption 3x growth in 4+ clouds ARR from FY18 to FY22 FY18 97x growth in 6+ clouds ARR from FY18 to FY22 FY22 1 Cloud 2 Clouds 3 Clouds 4 Clouds 5 Clouds 6 Clouds 7 Clouds ARR represents Annual Recurring Revenue shown as Q2 of each Fiscal Year noted.
Slide 36: Innovation Drives Enterprise Expansion
Innovation Drives Enterprise Expansion Rapid expansion in transformational customer relationships 40% 4 year CAGR in $10M+ Annual $7B+ Recurring Revenue New in FY21 7.5x 5+ 4x Average cloud count in FY22 for $10M+ customers 3x Annual Recurring Revenue $100M+ $50M-$100M $25M-50M $10M-$25M FY18 FY19 F
Slide 37: Expanding Industries Focus
Expanding Industries Focus Scaled Industries business 12 Industry Clouds + Enterprise-scale Industries Industry Common Solutions on the Business, Public Sector & Components, Security & Customer 360 salesforce.org Compliance Intelligence Automation ~$2.9B 1 Annual Recurring Revenue Accelerating inves
Slide 38: Land and Expand Customer Story
Land and Expand Customer Story New clouds become part of customer expansion strategy $77M Technology Customer Added Marketing Cloud in FY13 Started with Sales Cloud in FY06 $2M FY06 FY22 Customer Example starting with their first purchase in FY’06. Annualized Recurring Revenue for each year shown is
Slide 39: Accelerated Land and Expand Customer Story
Accelerated Land and Expand Customer Story Initial Multi-Cloud adoption $90M Public Sector Customer $20M FY19 FY22 Customer Example starting with their first purchase in FY’19. Annualized Recurring Revenue for each year shown is as of July 31 (fiscal Q2). Starting point of bars is illustrative. Annu
Slide 40: Consistent Execution
Consistent Execution Strategic relevance FY20 FY21 FY22 Note: Includes Tableau Land and Expand 21% 23% % of Incremental Annualized Revenue 24% New Logos Existing Logos 76% 77% 79% 8% Multi-Cloud Adoption 7% 5% % of Annualized Recurring Revenue 92% Multi-Cloud Single Cloud 93% 95% 33% International E
Slide 41: Trust, Innovation, ESG
#1 CRM New Model Subscription Power of Culture Economics Customer 360 Trust, Innovation, ESG
Slide 42: Trusted: Core Values
Trusted Core Values TRUST CUSTOMER SUCCESS INNOVATION EQUALITY
Slide 43: ESG Leadership
ESG Leadership Planet Equality Philanthropy Innovation Net-Zero Company Sustainability $200M 6.2M+ 100% renewable energy Committed to Volunteer Hours Cloud 2.0 organizations advancing Net Zero-as-a-Service $475M+ 1t.org racial equality and justice Total Grants 100M trees by 2030 $1.5B Racial Equalit
Slide 44: Doing Well & Doing Good
Doing Well & Doing Good Leader In Leader In Leader In Philanthropy Culture Innovation TOP 100 ONE OF THE ONE OF THE FORTUNE COMPANIES BEST WORKPLACES 100 BEST COMPANIES THAT CARE IN TECHNOLOGY TO WORK FOR 5 YEARS IN A ROW 5 YEARS IN A ROW People, 2021 Fortune, 2021 Fortune, 2021 MOST WORLD’S WORLD’S
Slide 45: Salesforce Isn't Just a Business. It's an Economy
Salesforce Isn’t 15 M Just a Business. Trailblazers It’s an Economy 90 Countries of Trust. 1300 Global Jobs Community Groups new Salesforce * economy jobs 9.3M by 2026 Global Economic Impact new business * revenue by $1.6T 2026 Source: IDC white paper sponsored by Salesforce, The Salesforce Economic
Slide 46: Closing Thoughts
Vee Closing Thoughts
Slide 47: $50B+ FY26 Target
$50B+ FY26 Target* Profitable Growth $31.8B FY23 Guidance* $26.3B FY22 Guidance* $21.25B FY21 % $17.1B 20 FY20 FY23 Non-GAAP Operating Margin Guidance $13.3B FY19 $10.5B FY18 $8.4B FY17 $6.7B FY16 FY22: High end of FY22 revenue guide of $26.25B to $26.35B as of September 23, 2021. $5.4B FY23: High e
Slide 48: Welcome to the new world
(iy ¥ Welcome to the new world ahalt ;
Slide 49: Thank You
U U O O Y Y K K N N A A H H T T
Slide 50: Gartner Content Details
Gartner Content Details The Gartner Report(s) described herein, (the Gartner Report(s) ) represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ( Gartner ), and are not representations of fact. Each Gartner Report speaks as of its origin
Slide 51: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes information about non-GAAP income from operations, non-GAAP operating margin, and free cash flow (collectively the “non-GAAP financial measures”). These non-GAAP financial measures are measurements of financial performance that are not prepared in a
Slide 52: Non-GAAP Reconciliation Table
Non-GAAP Reconciliation Table (in millions) ASC 606 ASC 605 Fiscal Year 2023 Non-GAAP income from operations FY14 Guidance FY20 FY21 FY19 FY18 FY17 FY16 FY15 GAAP income from operations $455 $297 $535 $454 $64 $115 $(146) $(286) GAAP Operating Margin ~3.0% - 3.5% Plus: Amortization of purchased inta