Slide 1: Financial Update Q3 FY21
Financial Update Q3 FY21 NYSE: CRM @Salesforce_ir
Slide 2: Safe Harbor
Safe Harbor "Safe harbor" statement under the Private Securities Litigation Reform Act of 1995. 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 resu
Slide 3: Additional Information and Where to Find It
Additional Information and Where to Find It In connection with the proposed transaction, the Company intends to file with the SEC a registration statement on Form S-4 that will include a proxy statement of Slack Technologies Inc. and that also constitutes a prospectus of the Company. Each of the Com
Slide 4: Company Overview
Company Overview Delivering durable growth at scale - Salesforce is the #1 CRM software provider worldwide by revenue for 7 consecutive years1 - Consistently delivering durable revenue growth, more than doubling from $8.4 billion in FY17 to $17.1 billion in FY20 - Fastest growing top five enterprise
Slide 5: Financial Overview
Financial Overview Quarterly Results 5
Slide 6: Q3 FY21 Results Highlights
Q3 FY21 Results Highlights Durable top-line growth • Revenue of $5.42 Billion, up 20% year-over-year, 19% in constant currency1 • Operating Cash Flow of $0.34 Billion, up 14% year-over-year • Current Remaining Performance Obligation of approximately $15.3 Billion, up 20% year-over-year, 19% in const
Slide 7: Q3 FY21 Financial Summary
Q3 FY21 Financial Summary GAAP Non-GAAP1 Quarterly Results Increase (Decrease) Y/Y Quarterly Results Increase Y/Y Revenue $5,419M 20% $5,373M 19% Current Remaining Performance Obligation $15.3B 20% N/A 19% Total Remaining Performance Obligation $30.3B 17% N/A N/A Operating Margin 4.1% 270 bps 19.8%2
Slide 8: Total Quarterly Revenue and Operating Margin
Total Quarterly Revenue and Operating Margin Q3 FY21 Y/Y Growth + 20% / +19% CC 1 Revenue +270 bps GAAP Operating Margin +40 bps 2 Non-GAAP Operating Margin2 1Refer to slide 9 for an explanation of non-GAAP revenue CC growth rate as compared to the comparable prior period. 2Non-GAAP Operating Margin
Slide 9: Q3 FY21 Disaggregation of Revenue
Q3 FY21 Disaggregation of Revenue Complete portfolio of CRM products +12% Y/Y +21% Y/Y +24% Y/Y +25% Y/Y Sales Service Platform & Other Marketing & Commerce Note: growth rates are based on non-rounded reported results in USD 9
Slide 10: Q3 FY21 Revenue by Region
Q3 FY21 Revenue by Region Incremental investments in international markets driving growth $3,758M $1,149M $512M +17% Y/Y +31% Y/Y +23% Y/Y +17% Y/Y CC1 +26% Y/Y CC1 +20% Y/Y CC1 1Non-GAAP revenue CC growth rates as compared to the comparable prior period. We present CC information for revenue to pro
Slide 11: Remaining Performance Obligation
Remaining Performance Obligation Represents future revenue under contract $30.3B Q3 FY21 $25.9B Y/Y Growth $21.2B + 20% / +19% CC 2 Current RPO (cRPO) + 17% Total RPO Remaining Performance Obligation (RPO) is a metric disclosed with the adoption of Topic 6061. RPO represents all future revenue under
Slide 12: Quarterly Operating Cash Flow
Quarterly Operating Cash Flow Delivered $339 million in operating cash flow in Q3 Q3 FY21 Y/Y Growth 68% 14% FCF1 OCF Our fourth quarter has historically been our strongest quarter for new business and renewals and we generally invoice our customers annually. As a result, our first quarter and, incr
Slide 13: Cash, Cash Equivalents, and Marketable Securities
Cash, Cash Equivalents, and Marketable Securities Strengthening Cash Balances $9.5B Q3 FY21 Y/Y Growth 45% $6.5B Total Cash and Marketable Securities Y/Y Growth $3.5B Note: Growth rate based on reported actuals, not the rounded figures shown in the graph. 13
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Slide 15: Appendix
Appendix 15
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes information about non-GAAP diluted earnings per share, non-GAAP income from operations, non-GAAP operating margin, free cash flow, and constant currency revenue and constant currency current remaining performance obligation growth rates (collect
Slide 17: GAAP to Non-GAAP Financial Reconciliation
GAAP to Non-GAAP Financial Reconciliation (in millions) Three Months Ended October 31, Non-GAAP income from operations 1 2018 2019 2020 GAAP income from operations $ 92 $ 65 $ 224 Plus: Amortization of purchased intangibles 129 266 283 Stock-based expense 351 543 566 Non-GAAP income from operations