salesforce has presented the results for the last quarter of its fiscal year 2023, which concluded on January 31, as well as the entire year. In both cases, his figures have been characterized by their solidity, achieving a year-on-year growth in revenue of 14% in the last three monthsand of 18% throughout the year. Thus, between November and January, the company has entered 8,380 million dollars, and 31,400 million dollars during the full year.
Salesforce’s operating margins have been the highest in the company’s history: 29.2%. Of course, its net losses have risen, from 28 million dollars a year ago, to 98 million dollars. Just a few weeks ago, the CEO of the company, Marc Benioff, announced that he was going to reduce the Salesforce workforce by 10%, which implies the layoff of more than 7,000 people. This step is part of a restructuring strategy with which only during the last quarter they have managed to save 828 million dollars in costs.
This also leads to better forecasts for the current quarter, in which they have slightly improved their revenue forecasts from $8.16 billion to $8.18 billion, and earnings of $1.61 per share. As for what he expects for his current fiscal year, 2024, he places his income between 34.5 and 34.7 billion dollars, with a rise in his shares of between 7.12 and 7.14 dollars per title.
In addition, the forecasts indicate that there will be no improvements in sales cycles in the longer term, nor in the additional requirements on spending and reduction of agreements that the company has been noticing in the last three quarters. On the other hand, Salesforce has assured that it will expand its share buyback program up to 20,000 million dollars. Last August it announced a first repurchase commitment, with up to 10,000 million earmarked for it.
Benioff has indicated, when presenting the results, that in their full fiscal year 2023 they have achieved “$31.4 billion in revenue, up 18% year-over-year, or 22% in constant currency, one of the best performances for a software company for companies our size«.
The manager has also highlighted that they have closed fiscal year 2023 with an operating cash flow that has reached 7,100 million dollars, “an increase of 19% year-over-year, the highest operating cash flow in company history, and one of the highest cash flows of any enterprise software company our size«.
For his part, Amy Weaver, President and CFO of Salesforcehas pointed out that “The firm focus on execution and proactive management of the current environment have enabled us to close a strong quarter and prepare for a transformative fiscal year 2024«.
