Salesforce, Inc. · NYSE:CRM
Salesforce — Investor Day (September 2022)
37 slides from Salesforce's investor day presentation, Sep 21, 2022
Slide 1: Investor Day 2022
ream force Investor Day 2022 pga Ss aA yo
Slide 2: Agenda
1:00PM - 1:05PM Opening Remarks from Mike Spencer Agenda 1:05PM - 1:45PM A View from Our CEOs - Marc Benioff & Bret Taylor Wednesday, 1:45PM - 2:30PM Finance Presentation with Amy Weaver September 21 2:30PM - 3:00PM ESG at Salesforce with Suzanne DiBianca 3:00PM - 3:15PM Break 3:15PM - 4:00PM Custom
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements about, among other things, trend analyses and future events, future financial performance, anticipated growth, industry prospects, environmental, social and governance goals, and the anticipated benefits of acquired com
Slide 4: A New Day for Profitable Growth
A New Day for Profitable Growth Amy Weaver President and Chief Financial Officer
Slide 5: Thank you
Thank y u
Slide 6: Profitable Growth at Scale
Pro table Growth at Scale A new day for A new day for A new day for Customer 36O profitability shareholders fi
Slide 7: A new day for Customer 360
A new day for Customer 36O
Slide 8: Large and Expanding TAM
Large and Expanding TAM Total Addressable Market growth from CY22 - CY26 $300B $290B+ 13% CAGR1 2026 Total Addressable Market2 Q2 FY23 Subs & Support Sales Revenue Run Rate Service 3 Digital 4 Platform Data5 2022 2023 2024 2025 2026 Calculations performed by Salesforce and graphics created by Salesf
Slide 9: Growth Pillars
Growth Pillars Key strategic initiatives drive durable top-line growth Customer 36O Geographic Advantage Industries Expansion Trailblazer Ecosystem
Slide 10: Salesforce Customer 360
Salesforce Customer 360 cDP % MuleSoft
Slide 11: Salesforce Customer 360
Salesforce Customer 36O geographically dispersed Where Who across industries and segments
Slide 12: Salesforce Customer 360 Advantage
Salesforce Customer 36O Advantage Average ARR1 per customer vs. single cloud customer Attrition2 3x 2 cloud customer 0% 20% 9x 3 cloud customer 0% 20% 24x 4 cloud customer 0% 20% 72x 5 cloud customer 0% 20% 220x 6 cloud customer 0% 20% + 300x 7 cloud customer 0% 20% Excludes Small Business customers
Slide 13: Multi-Cloud Adoption
Multi-Cloud Adoption Signi cant room to continue land and expand motion Customers with 4+ clouds represent 20% of total customers, driving ~85% of total ARR 7 Clouds per customer 6 20% of 85% customers of ARR 5 4 3 2 1 # customers $ Annual Recurring Revenue Excludes Small Business customers ARR and
Slide 14: Land and Expand Track Record
00000000 Land and Expand Track Record Predictable value creation through accelerated land and expand motion 00000000 ARR Starting Current Growth Cloud Count Cloud Count FY22 1.2x 2.3 2.8 00000000 Total ARR FY17 3.0x 1.7 4.1 00000000 FY12 9.0x 1.4 5.1 FY07 47.7x 1.2 5.8 FY07 Cohort based on year of i
Slide 15: Industries Business Fuels Growth
Industries Business Fuels Growth 12 Industry Clouds + Solutions built on Customer 360 Consumer Financial Healthcare & Goods Services Life Sciences $3.8B Media Public Sector Nonprofit Annual Recurring Travel & Revenue1 Retail Hospitality Manufacturing Enterprise-scale Industries Business, Public Sect
Slide 16: Geographic Expansion
Geographic Expansion Untapped total addressable market potential driving new opportunities $120B 21% North America Annual Recurring Revenue 4 Year CAGR 27% International Annual Recurring Revenue 4 Year CAGR North America ARR 2, 3 North America TAM 1, 2 International ARR 2, 3 International TAM 1, 2 H
Slide 17: Strategic Growth Goals
Strategic Growth Goals Continued execution on key growth pillars fuels durable growth FY21 FY22 FY23 Land and Expand 77% 23% 79% 21% 82% 18% % of Incremental Annualized Revenue Installed Base New Logo Multi-Cloud Adoption 93% 7% 95% 5% 96% 4% % of Annualized Recurring Revenue Multi-cloud Single-clou
Slide 18: It's a Trailblazer Economy
It’s a Trailblazer Economy 9.3M new Salesforce economy jobs by 2026* $1.6T new business revenue by 2026* Mustafa Akil Jhabuawala Brad Ringer Jennifer Cole Dohrinii Technologies AT&T 908 Devices Source: IDC White Paper, sponsored by Salesforce, “The Salesforce Economic Impact,” doc #US48214821, Septe
Slide 19: Path to 50B
Path to 50B $ Long-term secular trends continue, $50B o set by near-term macro & FX FY26 Target* 17% CAGR Represents growth driven by current portfolio $31B FY23 Guidance* $ ~ 2B FY26 Foreign Exchange $26.5B FY22 Headwind to Revenue $21.3B since last Investor Day FY21 $17.1B FY20 $13.3B FY19 $10.5B
Slide 20: Profitable Growth at Scale
Pro table Growth at Scale A new day for A new day for A new day for Customer 36O profitability shareholders fi
Slide 21: A new day for profitability
A new day for profitability
Slide 22: Margin Progression
Margin Progression Durable growth with recent margin expansion $31B 270 bps 2-Year Non-GAAP Operating Margin improvement Revenue $ inclusive of M&A FY16 FY23E FY23E GAAP and Non-GAAP Operating Margin based upon guidance provided August 24th, 2022. Non-GAAP operating margin is a non-GAAP Non-GAAP Ope
Slide 23: Driving Leverage
Driving Leverage Operating leverage across our business drives margin expansion Operating Category FY23 Leverage FY26 Leverage Opportunity Drivers Increase self-serve and partner- Sales Low High led sales, Rep Productivity, Land and expand Top-line leverage through Product Low Medium continued organ
Slide 24: Driving Leverage
Driving Leverage Operating leverage across our business drives margin expansion Operating Category FY23 Leverage FY26 Leverage Opportunity Drivers Increase self-serve and partner- Sales Low High led sales, Rep Productivity, Land and expand Channel Sales rep diversi cation productivity Digital and se
Slide 25: Driving Leverage
Driving Leverage Operating leverage across our business drives margin expansion Operating Category FY23 Leverage FY26 Leverage Opportunity Drivers Increase self-serve and partner- Process and system automation, Sales G&A Low Medium High led sales, Rep Productivity, Land hybrid workforce strategy and
Slide 26: Profitable Growth at Scale
Pro table Growth at Scale Disciplined operating framework drives accelerating margin expansion Sales and Marketing Drive Non-GAAP S&M as a % of revenue below 35% by FY26 Research and Continue to invest in organic innovation Development Best-in-class acquisition integration General and Automation and
Slide 27: Profitable Growth at Scale
Pro table Growth at Scale A new day for A new day for A new day for Customer 36O profitability shareholders fi
Slide 28: A new day for shareholders
A new day for shareholders
Slide 29: Track Record of Innovation
Track Record of Innovation Hyperforce CDP Slack Industry Clouds Tableau Net Zero Datorama MuleSoft Demandware Cloud Craze Einstein Quip Trailhead Analytics Salesforce ExactTarget Lightning Platform IOT Salesforce Site.com Mobile Heroku Salesforce Platform Service Chatter Sales Cloud & AppExchange fo
Slide 30: Organic Innovation
175B Organic Innovation Sales Bots GA | Summer ‘23 Einstein predictions a day New Contact Center GA | Winter ‘23 Salesforce Genie Genie Real-Time Journey Pilot | Now Orchestration Composable GA | Winter ‘23 Storefront New Net Zero Marketplace Instant Analytics GA | Spring ‘23 New Anypoint Code Publi
Slide 31: Inorganic Innovation
Inorganic Innovation Date Revenue at Revenue Growth since Acquired Acquisition1 Today3 close3 Deal Strategy Slack $1.5B Established digital HQ to create $27.7B July 2021 $1.1B 1.4x success from anywhere 18x Revenue 27x Revenue Tableau $2B Enhanced BI/analytics platform helping $15.7B August 2019 $1.
Slide 32: Customer 360 M&A Framework
Customer 36O M&A Framework Accelerates Customer 360 product differentiation strategy Customer Best-in-breed asset with unmatched ecosystem Success Represents an attractive customer opportunity Strong ability to increase monetization Acceleration Cultural and organizational alignment Opportunities to
Slide 33: First-Ever Share Repurchase
First-Ever Share Repurchase $10B 30-40% Share Repurchase Average Free Cash Authorization1 Flow Return2 Implemented Programmatic Approach 1$10B share repurchase authorization without expiration date 2Avg. Free Cash Flow represents an average over time.
Slide 34: Profitable Growth at Scale
Pro table Growth at Scale $50B ~17% 25 %+ FY26 Revenue FY26 Revenue FY26 Non-GAAP Target2 CAGR Operating Margin2 $10B 30-40 % Share Repurchase Average Free Cash Authorization1 Flow Return2 Amounts reflect our operating priorities, not specific targets or guidance. Non- 1$10B share repurchase authori
Slide 35: Thank you
Thank you CORE VALUES TRUST CUSTOMER SUCCESS INNOVATION EQUALITY SUSTAINABILITY
Slide 36: Appendix: Non-GAAP Reconciliation Table
Appendix Where applicable “Excludes Small Business customers” is defined as excluding businesses that have fewer than 200 employees in the Americas and fewer than 100 employees in EMEA and APAC regions. Where applicable ARR refers to Annual Recurring Revenue. Non-GAAP Reconciliation Table (in millio
Slide 37: 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