Raises FY23 Revenue Guidance to $32.0 Billion to $32.1 Billion

Fourth Quarter Revenue of $7.33 Billion, up 26% Year-Over-Year, 27% in Constant Currency
FY22 Revenue of $26.49 Billion, up 25% Year-Over-Year, 24% in Constant Currency
Current Remaining Performance Obligation of Approximately $22.0 Billion, up 22% Year-Over-Year, 24% in Constant Currency
FY22 GAAP Operating Margin of 2.1%, and Non-GAAP Operating Margin of 18.7%
FY22 Operating Cash Flow of $6.0 Billion, up 25% Year-Over-Year
Raises First Quarter FY23 Revenue Guidance to $7.37 Billion to $7.38 Billion, up Approximately 24% Year-Over-Year
Raises FY23 GAAP Operating Margin Guidance to Approximately 3.6% and Reiterates Non-GAAP Operating Margin Guidance of Approximately 20%

Salesforce (NYSE:CRM), the global leader in CRM, today announced results for its fourth quarter and full year fiscal 2022 ended January 31, 2022.

"We had another phenomenal quarter and full-year of financial results," said Marc Benioff, Chair and Co-CEO of Salesforce. "As we continue to see tremendous demand from customers, we're raising our FY23 revenue guidance to $32.1 billion at the high-end of range, with non-GAAP operating margin of 20%, and operating cash flow growth of 22% year-over-year."

"With our customers' success driving our financial success, we're generating disciplined, profitable growth at scale quarter after quarter," said Bret Taylor, Co-CEO of Salesforce. "Our Customer 360 platform has never been more strategic or relevant in driving the growth and resilience of our customers around the world."

"Fiscal 2022 was a remarkable year for Salesforce. I am particularly pleased with our focus on discipline and profitable growth which drove record levels of revenue, margin, and cash flow," said Amy Weaver, President and CFO. "I'm confident in the momentum of the business as we build an even stronger company in FY23 and beyond."

Salesforce delivered the following results for its fiscal fourth quarter and full fiscal year:

Revenue: Total fourth quarter revenue was $7.33 billion, an increase of 26% year-over-year, and 27% in constant currency. Subscription and support revenues for the quarter were $6.83 billion, an increase of 25% year-over-year. Professional services and other revenues for the quarter were $0.50 billion, an increase of 46% year-over-year.

Total fiscal 2022 revenue was $26.49 billion, up 25% year-over-year, and 24% in constant currency. Subscription and support revenues for the year were $24.66 billion, up 23% year-over-year. Professional services and other revenues for the year were $1.84 billion, up 44% year-over-year.

Operating Margin: Fourth quarter GAAP operating margin was (2.4)%. Fourth quarter non-GAAP operating margin was 15.0%.

Fiscal 2022 GAAP operating margin was 2.1%. Fiscal 2022 non-GAAP operating margin was 18.7%.

Earnings per Share: Fourth quarter GAAP diluted loss per share was $(0.03), and non-GAAP diluted earnings per share was $0.84. Mark-to-market accounting of the company's strategic investments benefited GAAP diluted earnings per share by $0.03 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.03 based on a non-GAAP tax rate of 21.5%.

Fiscal 2022 GAAP diluted earnings per share was $1.48, and non-GAAP diluted earnings per share was $4.78. Mark-to-market accounting of the company's strategic investments benefited GAAP diluted earnings per share by $0.93 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.98 based on a non-GAAP tax rate of 21.5%

Cash: Cash generated from operations for the fourth quarter was $1.98 billion, a decrease of (9)% year-over-year. Total cash, cash equivalents and marketable securities ended the fourth quarter at $10.54 billion.

Cash generated from operations for fiscal 2022 was $6.0 billion, an increase of 25% year-over-year.

Remaining Performance Obligation: Remaining performance obligation ended the fourth quarter at approximately $43.7 billion, an increase of 21% year-over-year. Current remaining performance obligation ended the fourth quarter at approximately $22.0 billion, an increase of 22% year-over-year, 24% in constant currency.

As of March 1, 2022, the company is initiating its first quarter and full fiscal year 2023 GAAP and non-GAAP earnings per share guidance, its first quarter current remaining performance obligation growth guidance, and its full fiscal year 2023 operating cash flow growth guidance. As of March 1, 2022, the company is raising its revenue guidance previously updated on November 30, 2021 for its first quarter and full fiscal year 2023. As of March 1, 2022 the company is raising its GAAP operating margin guidance and reiterating its non-GAAP operating margin guidance previously updated on November 30, 2021 for its full fiscal year 2023.

Management will provide further commentary around these guidance assumptions on its earnings call, which is expected to occur on March 1, 2022 at 2:00 PM Pacific Time.

Our guidance assumes no change to the value of the company's strategic investment portfolio as it is not possible to forecast future gains and losses. In addition, the guidance below is based on estimated GAAP tax rates that reflect the company's currently available information, and excludes forecasted discrete tax items such as excess tax benefits from stock-based compensation. The GAAP tax rates may fluctuate due to future acquisitions or other transactions.

	Q1 FY23 Guidance	Full Year FY23 Guidance
Revenue⁽¹⁾	$7.37 - $7.38 Billion	$32.0 - $32.1 Billion
Y/Y Growth	~24%	~21%
GAAP operating margin	N/A	~3.6%
Non-GAAP operating margin	N/A	~20%
GAAP earnings (loss) per share	($0.05) - ($0.04)	$0.46 - $0.48
Non-GAAP earnings per share	$0.93 - $0.94	$4.62 - $4.64
Operating Cash Flow Growth (Y/Y)	N/A	~21% - 22%
Current Remaining Performance Obligation Growth (Y/Y)	~21%	N/A
⁽¹⁾Full Year FY23 revenue guidance includes contributions from Slack Technologies, Inc. of approximately $1.5 billion and contributions from Traction on Demand of approximately $75 million, net of purchase accounting.

The following is a reconciliation of GAAP operating margin guidance to non-GAAP operating margin guidance for the full year:

		Full Year FY23 Guidance
GAAP operating margin⁽¹⁾		~3.6%
Plus
Amortization of purchased intangibles⁽²⁾		6.0%
Stock-based expense⁽²⁾		10.4%
Non-GAAP operating margin⁽¹⁾		~20%
⁽¹⁾ GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. ⁽²⁾ The percentages shown above have been calculated based on the midpoint of the low and high ends of the revenue guidance for full year FY23.

The following is a per share reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share guidance for the next quarter and the full year:

	Fiscal 2023
	Q1			FY23
GAAP earnings (loss) per share range⁽¹⁾⁽²⁾	($0.05) - ($0.04		)	$0.46 - $0.48
Plus
Amortization of purchased intangibles	$	0.50		$	1.88
Stock-based expense	$	0.76		$	3.24
Less
Income tax effects and adjustments⁽³⁾	$	(0.28	)	$	(0.96	)
Non-GAAP diluted earnings per share⁽²⁾	$0.93 - $0.94			$4.62 - $4.64
Shares used in computing basic GAAP net income per share (millions)		992			1,003
Shares used in computing diluted Non-GAAP net income per share (millions)		1,013			1,024
⁽¹⁾The Company's GAAP tax provision is expected to be approximately 40% for the three months ended April 30, 2022, and approximately 40% for the year ended January 31, 2023. The GAAP tax rates may fluctuate due to discrete tax items and related effects in conjunction with certain provisions in the Tax Cuts and Jobs Act, future acquisitions or other transactions. ⁽²⁾The Company's projected GAAP and Non-GAAP diluted earnings (loss) per share assumes no change to the value of our strategic investment portfolio as it is not possible to forecast future gains and losses. While historically the company's strategic investment portfolio has had a positive impact on the company's financial results, that may not be true for future periods, particularly in periods of significant market fluctuations that affect the publicly traded companies within the company's strategic investment portfolio. The impact of future gains or losses from the company's strategic investment portfolio could be material. ⁽³⁾The Company's Non-GAAP tax provision uses a long-term projected tax rate of 22.0%, which reflects currently available information and could be subject to change.

For additional information regarding non-GAAP financial measures see the reconciliation of results and related explanations below.

Quarterly Conference Call

Salesforce plans to host a conference call at 2:00 p.m. (PT) / 5:00 p.m. (ET) to discuss its financial results with the investment community. A live webcast and replay details of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor.

About Salesforce

Salesforce, the global CRM leader, empowers companies of every size and industry to digitally transform and create a 360° view of their customers. For more information about Salesforce (NYSE:CRM), visit: www.salesforce.com.

"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release 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 cash flow growth, operating margin, expected revenue growth, expected current remaining performance obligation growth, expected tax rates, stock-based compensation expenses, amortization of purchased intangibles, shares outstanding, market growth, environmental, social and governance goals, expected capital allocation, including mergers and acquisitions, capital expenditures and other investments, and expected contributions from acquired companies. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the company's results could differ materially from the results expressed or implied by the forward-looking statements it makes.

The risks and uncertainties referred to above include -- but are not limited to -- risks associated with the impact of, and actions we may take in response to, the COVID-19 pandemic, related public health measures and resulting economic downturn and market volatility; our ability to maintain security levels and service performance meeting the expectations of our customers, and the resources and costs required to avoid unanticipated downtime and prevent, detect and remediate performance degradation and security breaches; the expenses associated with our data centers and third-party infrastructure providers; our ability to secure additional data center capacity; our reliance on third-party hardware, software and platform providers; the effect of evolving domestic and foreign government regulations, including those related to the provision of services on the Internet, those related to accessing the Internet, and those addressing data privacy, cross-border data transfers and import and export controls; current and potential litigation involving us or our industry, including litigation involving acquired entities such as Tableau Software, Inc. and Slack Technologies, Inc., and the resolution or settlement thereof; regulatory developments and regulatory investigations involving us or affecting our industry; our ability to successfully introduce new services and product features, including any efforts to expand our services; the success of our strategy of acquiring or making investments in complementary businesses, joint ventures, services, technologies and intellectual property rights; our ability to complete, on a timely basis or at all, announced transactions; our ability to realize the benefits from acquisitions, strategic partnerships, joint ventures and investments, including our July 2021 acquisition of Slack Technologies, Inc., and successfully integrate acquired businesses and technologies; our ability to compete in the markets in which we participate; the success of our business strategy and our plan to build our business, including our strategy to be a leading provider of enterprise cloud computing applications and platforms; our ability to execute our business plans; our ability to continue to grow unearned revenue and remaining performance obligation; the pace of change and innovation in enterprise cloud computing services; the seasonal nature of our sales cycles; our ability to limit customer attrition and costs related to those efforts; the success of our international expansion strategy; the demands on our personnel and infrastructure resulting from significant growth in our customer base and operations, including as a result of acquisitions; our ability to preserve our workplace culture, including as a result of our decisions regarding our current and future office environments or work-from-home policies; our dependency on the development and maintenance of the infrastructure of the Internet; our real estate and office facilities strategy and related costs and uncertainties; fluctuations in, and our ability to predict, our operating results and cash flows; the variability in our results arising from the accounting for term license revenue products; the performance and fair value of our investments in complementary businesses through our strategic investment portfolio; the impact of future gains or losses from our strategic investment portfolio, including gains or losses from overall market conditions that may affect the publicly traded companies within our strategic investment portfolio; our ability to protect our intellectual property rights; our ability to develop our brands; the impact of foreign currency exchange rate and interest rate fluctuations on our results; the valuation of our deferred tax assets and the release of related valuation allowances; the potential availability of additional tax assets in the future; the impact of new accounting pronouncements and tax laws; uncertainties affecting our ability to estimate our tax rate; uncertainties regarding our tax obligations in connection with potential jurisdictional transfers of intellectual property, including the tax rate, the timing of the transfer and the value of such transferred intellectual property; uncertainties regarding the effect of general economic and market conditions; the impact of geopolitical events; uncertainties regarding the impact of expensing stock options and other equity awards; the sufficiency of our capital resources; our ability to comply with our debt covenants and lease obligations; the impact of climate change, natural disasters and actual or threatened public health emergencies; and our ability to achieve our aspirations and projections related to our environmental, social and governance initiatives..

Further information on these and other factors that could affect the company's financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings it makes with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Financials section of the company's website at http://investor.salesforce.com/financials/.

salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

salesforce.com, inc. Consolidated Statements of Operations (in millions, except per share data) (Unaudited)

	Three Months Ended January 31,						Fiscal Year Ended January 31,
		2022			2021			2022			2021
Revenues:
Subscription and support	$	6,828		$	5,476		$	24,657		$	19,976
Professional services and other		498			341			1,835			1,276
Total revenues		7,326			5,817			26,492			21,252
Cost of revenues (1)(2):
Subscription and support		1,456			1,115			5,059			4,154
Professional services and other		558			364			1,967			1,284
Total cost of revenues		2,014			1,479			7,026			5,438
Gross profit		5,312			4,338			19,466			15,814
Operating expenses (1)(2):
Research and development		1,291			939			4,465			3,598
Marketing and sales		3,464			2,632			11,855			9,674
General and administrative		733			574			2,598			2,087
Total operating expenses		5,488			4,145			18,918			15,359
Income (loss) from operations		(176	)		193			548			455
Gains on strategic investments, net		34			260			1,211			2,170
Other expense		(55	)		(28	)		(227	)		(64	)
Income (loss) before benefit from (provision for) income taxes		(197	)		425			1,532			2,561
Benefit from (provision for) income taxes (3)		169			(158	)		(88	)		1,511
Net income (loss)	$	(28	)	$	267		$	1,444		$	4,072
Basic net income (loss) per share	$	(0.03	)	$	0.29		$	1.51		$	4.48
Diluted net income (loss) per share	$	(0.03	)	$	0.28		$	1.48		$	4.38
Shares used in computing basic net income (loss) per share		986			916			955			908
Shares used in computing diluted net income (loss) per share		986			939			974			930
(1) Amounts include amortization of intangible assets acquired through business combinations, as follows:
	Three Months Ended January 31,						Fiscal Year Ended January 31,
		2022			2021			2022			2021
Cost of revenues	$	273		$	168		$	897		$	662
Marketing and sales		236			115			727			459
(2) Amounts include stock-based expense, as follows:
	Three Months Ended January 31,						Fiscal Year Ended January 31,
		2022			2021			2022			2021
Cost of revenues	$	106		$	61		$	386		$	241
Research and development		272			172			918			703
Marketing and sales		287			223			1,104			941
General and administrative		98			86			371			305
(3) During the second quarter of fiscal 2021, the Company recorded approximately $2.0 billion of a one-time benefit from a discrete tax item related to the recognition of deferred tax assets resulting from an intra-entity transfer of intangible property.

salesforce.com, inc. Consolidated Statements of Operations (As a percentage of total revenues) (Unaudited)

	Three Months Ended January 31,				Fiscal Year Ended January 31,
	2022		2021		2022		2021
Revenues:
Subscription and support	93	%	94	%	93	%	94	%
Professional services and other	7		6		7		6
Total revenues	100		100		100		100
Cost of revenues (1)(2):
Subscription and support	20		19		19		20
Professional services and other	7		6		8		6
Total cost of revenues	27		25		27		26
Gross profit	73		75		73		74
Operating expenses (1)(2):
Research and development	18		16		17		17
Marketing and sales	47		46		44		45
General and administrative	10		10		10		10
Total operating expenses	75		72		71		72
Income (loss) from operations	(2	)	3		2		2
Gains on strategic investments, net	0		4		5		10
Other expense	(1	)	0		(1	)	0
Income (loss) before benefit from (provision for) income taxes	(3	)	7		6		12
Benefit from (provision for) income taxes	3		(2	)	(1	)	7
Net income (loss)	0	%	5	%	5	%	19	%
(1) Amounts include amortization of intangible assets acquired through business combinations as a percentage of total revenues, as follows:
	Three Months Ended January 31,				Fiscal Year Ended January 31,
	2022		2021		2022		2021
Cost of revenues	4	%	3	%	3	%	3	%
Marketing and sales	3		2		3		2
(2) Amounts include stock-based expense as a percentage of total revenues, as follows:
	Three Months Ended January 31,				Fiscal Year Ended January 31,
	2022		2021		2022		2021
Cost of revenues	1	%	1	%	1	%	1	%
Research and development	4		3		4		4
Marketing and sales	4		4		4		4
General and administrative	1		1		1		1

salesforce.com, inc. Consolidated Balance Sheets (in millions)

	January 31, 2022			January 31, 2021
Assets	(unaudited)
Current assets:
Cash and cash equivalents	$	5,464		$	6,195
Marketable securities		5,073			5,771
Accounts receivable, net		9,739			7,786
Costs capitalized to obtain revenue contracts, net		1,454			1,146
Prepaid expenses and other current assets		1,120			991
Total current assets		22,850			21,889
Property and equipment, net		2,815			2,459
Operating lease right-of-use assets, net		2,880			3,204
Noncurrent costs capitalized to obtain revenue contracts, net		2,342			1,715
Strategic investments		4,784			3,909
Goodwill		47,937			26,318
Intangible assets acquired through business combinations, net		8,978			4,114
Deferred tax assets and other assets, net		2,623			2,693
Total assets	$	95,209		$	66,301
Liabilities and stockholders' equity
Current liabilities:
Accounts payable, accrued expenses and other liabilities	$	5,474		$	4,355
Operating lease liabilities, current		686			766
Unearned revenue		15,628			12,607
Total current liabilities		21,788			17,728
Noncurrent debt		10,592			2,673
Noncurrent operating lease liabilities		2,703			2,842
Other noncurrent liabilities		1,995			1,565
Total liabilities		37,078			24,808
Stockholders' equity:
Common stock		1			1
Additional paid-in capital		50,919			35,601
Accumulated other comprehensive loss		(166	)		(42	)
Retained earnings		7,377			5,933
Total stockholders' equity		58,131			41,493
Total liabilities and stockholders' equity	$	95,209		$	66,301

salesforce.com, inc. Consolidated Statements of Cash Flows (in millions) (Unaudited)

	Three Months Ended January 31,						Fiscal Year Ended January 31,
		2022			2021			2022			2021
Operating activities:
Net income (loss)	$	(28	)	$	267		$	1,444		$	4,072
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		931			869			3,298			2,846
Amortization of costs capitalized to obtain revenue contracts, net		356			290			1,348			1,058
Stock-based expense		763			542			2,779			2,190
Gains on strategic investments, net		(34	)		(260	)		(1,211	)		(2,170	)
Tax benefit from intra-entity transfer of intangible property		0			0			0			(2,003	)
Changes in assets and liabilities, net of business combinations:
Accounts receivable, net		(5,719	)		(4,429	)		(1,824	)		(1,556	)
Costs capitalized to obtain revenue contracts, net		(1,060	)		(672	)		(2,283	)		(1,645	)
Prepaid expenses and other current assets and other assets		115			1			114			(133	)
Accounts payable and accrued expenses and other liabilities		1,343			1,096			507			1,100
Operating lease liabilities		(194	)		(214	)		(801	)		(830	)
Unearned revenue		5,509			4,684			2,629			1,872
Net cash provided by operating activities		1,982			2,174			6,000			4,801
Investing activities:
Business combinations, net of cash acquired		(60	)		0			(14,876	)		(1,281	)
Purchases of strategic investments		(785	)		(127	)		(1,718	)		(1,069	)
Sales of strategic investments		37			366			2,201			1,051
Purchases of marketable securities		(1,165	)		(865	)		(5,674	)		(4,833	)
Sales of marketable securities		414			630			4,179			1,836
Maturities of marketable securities		267			239			2,069			1,035
Capital expenditures		(167	)		(149	)		(717	)		(710	)
Net cash provided by (used in) investing activities		(1,459	)		94			(14,536	)		(3,971	)
Financing activities:
Proceeds from issuance of debt, net of issuance costs		0			(20	)		7,906			(20	)
Repayments of Slack Convertible Notes, net of capped call proceeds		(17	)		0			(1,197	)		0
Proceeds from employee stock plans		259			216			1,289			1,321
Principal payments on financing obligations		(38	)		(19	)		(156	)		(103	)
Repayments of debt		(1	)		(1	)		(4	)		(4	)
Net cash provided by financing activities		203			176			7,838			1,194
Effect of exchange rate changes		(15	)		27			(33	)		26
Net increase (decrease) in cash and cash equivalents		711			2,471			(731	)		2,050
Cash and cash equivalents, beginning of period		4,753			3,724			6,195			4,145
Cash and cash equivalents, end of period	$	5,464		$	6,195		$	5,464		$	6,195

salesforce.com, inc. Additional Metrics (Unaudited)

	January 31, 2022	October 31, 2021	July 31, 2021	April 30, 2021	January 31, 2021	October 31, 2020
Full time equivalent headcount (1)	73,541	69,530	65,595	59,895	56,606	54,557
Financial data (in millions):
Cash, cash equivalents and marketable securities	$ 10,537	$ 9,391	$ 9,650	$ 15,023	$ 11,966	$ 9,492
Strategic investments	4,784	4,004	4,105	3,944	3,909	3,927
Principal due on the Company's outstanding debt obligations	10,686	10,698	11,551	2,689	2,690	2,691
(1) Full time equivalent headcount includes 2,814 from the second quarter fiscal 2022 acquisition of Slack.

Supplemental Revenue Analysis

Remaining Performance Obligation

Remaining performance obligations ("RPO") represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. RPO is influenced by several factors, including seasonality, the timing of renewals, average contract terms and foreign currency exchange rates. Unbilled portions of RPO denominated in foreign currencies are revalued each period based on the period end exchange rates.

The portion of RPO that is unbilled is not recorded on the balance sheet. RPO consisted of the following (in billions):

	Current	Noncurrent	Total
As of January 31, 2022 (1)	$ 22.0	$ 21.7	$ 43.7
As of October 31, 2021 (2)	18.8	17.5	36.3
As of July 31, 2021 (3)	18.7	17.5	36.2
As of April 30, 2021	17.8	17.2	35.0
As of January 31, 2021	18.0	18.1	36.1
(1) Includes approximately $1.2 billion of RPO related to Slack. (2) Includes approximately $0.9 billion of RPO related to Slack. (3) Includes approximately $0.8 billion of RPO related to Slack.

Unearned Revenue

Unearned revenue represents amounts that have been invoiced in advance of revenue recognition and is recognized as revenue when transfer of control to customers has occurred or services have been provided. The change in unearned revenue was as follows (in millions):

	Three Months Ended January 31,						Fiscal Year Ended January 31,
		2022			2021			2022			2021
Unearned revenue, beginning of period	$	10,116		$	7,923		$	12,607		$	10,662
Billings and other (1)		12,992			10,598			29,011			23,096
Contribution from contract asset		(157	)		(97	)		110			28
Revenue recognized over time		(6,771	)		(5,361	)		(24,841	)		(19,955	)
Revenue recognized at a point in time		(555	)		(456	)		(1,651	)		(1,297	)
Unearned revenue from business combinations		3			0			392			73
Unearned revenue, end of period	$	15,628		$	12,607		$	15,628		$	12,607
(1) Other includes, for example, the impact of foreign currency translation.

Disaggregation of Revenue

Subscription and Support Revenue by the Company's service offerings

Subscription and support revenues consisted of the following (in millions):

	Three Months Ended January 31,		Fiscal Year Ended January 31,
	2022	2021	2022	2021
Sales	$ 1,586	$ 1,356	$ 5,989	$ 5,191
Service	1,710	1,446	6,474	5,377
Platform and Other (1)	1,350	885	4,509	3,324
Marketing and Commerce	1,046	869	3,902	3,133
Data (2)	1,136	920	3,783	2,951
	$ 6,828	$ 5,476	$ 24,657	$ 19,976
(1) Platform and Other includes approximately $308 million and $584 million of Slack subscription and support revenues for the three and twelve months ended January 31, 2022, respectively. (2) Data is comprised of revenue from Analytics, which includes Tableau, and Integration, which includes Mulesoft, which were reclassified from Platform and Other beginning in the third quarter of fiscal 2022.

Total Revenue by Geographic Locations

Revenues by geographical region consisted of the following (in millions):

	Three Months Ended January 31,		Fiscal Year Ended January 31,
	2022	2021	2022	2021
Americas	$ 4,939	$ 4,012	$ 17,983	$ 14,736
Europe	1,717	1,248	6,016	4,501
Asia Pacific	670	557	2,493	2,015
	$ 7,326	$ 5,817	$ 26,492	$ 21,252

Constant Currency Growth Rates

The Company presents constant currency information to provide a framework for assessing how the Company's underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the weighted average exchange rate for the quarter being compared to for growth rate calculations presented, rather than the actual exchange rates in effect during that period.

Revenue constant currency growth rates were as follows:

	Three Months Ended January 31, 2022 compared to Three Months Ended January 31, 2021	Three Months Ended October 31, 2021 compared to Three Months Ended October 31, 2020	Three Months Ended January 31, 2021 compared to Three Months Ended January 31, 2020
Americas	23%	23%	18%
Europe	40%	35%	20%
Asia Pacific	28%	29%	21%
Total growth	27%	26%	19%

The Company presents constant currency information for current remaining performance obligation to provide a framework for assessing how the Company's underlying business performed excluding the effects of foreign currency rate fluctuations. To present the information, the Company converted the current remaining performance obligation balances in local currencies in previous comparable periods using the United States dollar currency exchange rate as of the most recent balance sheet date.

Current remaining performance obligation constant currency growth rates were as follows:

	January 31, 2022 compared to January 31, 2021	October 31, 2021 compared to October 31, 2020	January 31, 2021 compared to January 31, 2020
Total growth	24%	23%	18%

salesforce.com, inc. GAAP Results Reconciled to non-GAAP Results The following table reflects selected GAAP results reconciled to non-GAAP results. (in millions, except per share data) (Unaudited)

	Three Months Ended January 31,						Fiscal Year Ended January 31,
		2022			2021			2022			2021
Non-GAAP income from operations
GAAP income (loss) from operations	$	(176	)	$	193		$	548		$	455
Plus:
Amortization of purchased intangibles (1)		509			283			1,624			1,121
Stock-based expense (2)		763			542			2,779			2,190
Non-GAAP income from operations	$	1,096		$	1,018		$	4,951		$	3,766
Non-GAAP operating margin as a percentage of revenues
Total revenues	$	7,326		$	5,817		$	26,492		$	21,252
GAAP operating margin (3)		(2.4	) %		3.3	%		2.1	%		2.1	%
Non-GAAP operating margin (3)		15.0	%		17.5	%		18.7	%		17.7	%
Non-GAAP net income
GAAP net income (loss)	$	(28	)	$	267		$	1,444		$	4,072
Plus:
Amortization of purchased intangibles (1)		509			283			1,624			1,121
Stock-based expense (2)		763			542			2,779			2,190
Income tax effects and adjustments		(401	)		(117	)		(1,188	)		(2,803	)
Non-GAAP net income	$	843		$	975		$	4,659		$	4,580

	Three Months Ended January 31,				Fiscal Year Ended January 31,
	2022		2021		2022		2021
Non-GAAP diluted net income per share
GAAP diluted net income (loss) per share	$ (0.03	)	$ 0.28		$ 1.48		$ 4.38
Plus:
Amortization of purchased intangibles	0.51		0.30		1.67		1.21
Stock-based expense	0.76		0.58		2.85		2.35
Income tax effects and adjustments	(0.40	)	(0.12	)	(1.22	)	(3.02	)
Non-GAAP diluted net income per share	$ 0.84		$ 1.04		$ 4.78		$ 4.92
Shares used in computing Non-GAAP diluted net income per share	1,003		939		974		930

Reported GAAP loss per share for the three months ended January 31, 2022 was calculated using the basic share count. Non-GAAP diluted earnings per share was calculated using the diluted share count which includes approximately 17 million shares of dilutive securities related to employee stock awards.

(1) Amortization of purchased intangibles was as follows:

	Three Months Ended January 31,		Fiscal Year Ended January 31,
	2022	2021	2022	2021
Cost of revenues	$ 273	$ 168	$ 897	$ 662
Marketing and sales	236	115	727	459
	$ 509	$ 283	$ 1,624	$ 1,121

(2) Stock-based expense was as follows:

	Three Months Ended January 31,		Fiscal Year Ended January 31,
	2022	2021	2022	2021
Cost of revenues	$ 106	$ 61	$ 386	$ 241
Research and development	272	172	918	703
Marketing and sales	287	223	1,104	941
General and administrative	98	86	371	305
	$ 763	$ 542	$ 2,779	$ 2,190

(3) GAAP operating margin is the proportion of GAAP income from operations as a percentage of GAAP revenue. Non-GAAP operating margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. Non-GAAP income from operations excludes the impact of the amortization of purchased intangibles and stock-based expense.


salesforce.com, inc. Computation of Basic and Diluted GAAP and non-GAAP Net Income (Loss) Per Share (in millions, except per share data) (Unaudited)

	Three Months Ended January 31,			Fiscal Year Ended January 31,
	2022		2021	2022	2021
GAAP Basic Net Income (Loss) Per Share
Net income (loss)	$ (28	)	$ 267	$ 1,444	$ 4,072
Basic net income (loss) per share	$ (0.03	)	$ 0.29	$ 1.51	$ 4.48
Shares used in computing basic net income (loss) per share	986		916	955	908

	Three Months Ended January 31,			Fiscal Year Ended January 31,
	2022		2021	2022	2021
Non-GAAP Basic Net Income Per Share
Non-GAAP net income	$ 843		$ 975	$ 4,659	$ 4,580
Non-GAAP basic net income per share	$ 0.85		$ 1.06	$ 4.88	$ 5.04
Shares used in computing Non-GAAP basic net income per share	986		916	955	908

	Three Months Ended January 31,			Fiscal Year Ended January 31,
	2022		2021	2022	2021
GAAP Diluted Net Income (Loss) Per Share
Net income (loss)	$ (28	)	$ 267	$ 1,444	$ 4,072
Diluted net income (loss) per share	$ (0.03	)	$ 0.28	$ 1.48	$ 4.38
Shares used in computing diluted net income (loss) per share	986		939	974	930

	Three Months Ended January 31,			Fiscal Year Ended January 31,
	2022		2021	2022	2021
Non-GAAP Diluted Net Income Per Share
Non-GAAP net income	$ 843		$ 975	$ 4,659	$ 4,580
Non-GAAP diluted net income per share	$ 0.84		$ 1.04	$ 4.78	$ 4.92
Shares used in computing Non-GAAP diluted net income per share	1,003		939	974	930

Supplemental Cash Flow Information Free cash flow analysis, a non-GAAP measure (in millions)
	Three Months Ended January 31,				Fiscal Year Ended January 31,
	2022		2021		2022		2021
GAAP net cash provided by operating activities	$ 1,982		$ 2,174		$ 6,000		$ 4,801
Capital expenditures (1)	(167	)	(149	)	(717	)	(710	)
Free cash flow	$ 1,815		$ 2,025		$ 5,283		$ 4,091
(1) Capital expenditures for the fiscal year ended January 31, 2021 includes the Company's purchase of the property located at 450 Mission St. in San Francisco ("450 Mission") in March 2020 for approximately $150 million.

Non-GAAP Financial Measures: This press release includes information about non-GAAP operating margin, non-GAAP diluted earnings per share, non-GAAP tax rates, free cash flow, constant currency revenue and constant currency current remaining performance obligation growth rates (collectively the "non-GAAP financial measures"). These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. Management uses both GAAP and non-GAAP measures when planning, monitoring and evaluating the company's performance.

The primary purpose of using non-GAAP measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the company's results in the same way management does. Management believes that supplementing GAAP disclosure with non-GAAP disclosure provides investors with a more complete view of the company's operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the company's business. Further to the extent that other companies use similar methods in calculating non-GAAP measures, the provision of supplemental non-GAAP information can allow for a comparison of the company's relative performance against other companies that also report non-GAAP operating results.

Non-GAAP Operating Margin is the proportion of non-GAAP income from operations as a percentage of GAAP revenue. Non-GAAP income from operations excludes the impact of the following items: stock-based compensation and amortization of acquisition-related intangibles. Non-GAAP diluted earnings per share excludes, to the extent applicable, the impact of the following items: stock-based compensation, amortization of purchased intangibles, and income tax adjustments. These items are excluded because the decisions that give rise to them are not made to increase revenue in a particular period, but instead for the company's long-term benefit over multiple periods.

As described above, the company excludes or adjusts for the following in its non-GAAP results and guidance:

Stock-Based Expenses: The company's compensation strategy includes the use of stock-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, stock-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.

Amortization of Purchased Intangibles: The company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company's research and development efforts, trade names, customer lists and customer relationships, and in some cases, acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, which is not typically affected by operations during any particular period. Although the Company excludes the amortization of purchased intangibles from these non-GAAP measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

Gains on Strategic Investments, net: The company records all fair value adjustments to its equity securities held within the strategic investment portfolio through the statement of operations. As it is not possible to forecast future gains and losses, the company assumes no change to the value of its strategic investment portfolio in its GAAP and non-GAAP estimates for future periods, including its guidance. Gains on Strategic Investments, net, are included in its GAAP financial statements.

Income Tax Effects and Adjustments: The company utilizes a fixed long-term projected non-GAAP tax rate in order to provide better consistency across the interim reporting periods by eliminating the effects of items such as changes in the tax valuation allowance and tax effects of acquisition-related costs, since each of these can vary in size and frequency. When projecting this long-term rate, the company evaluated a three-year financial projection that excludes the direct impact of the following non-cash items: stock-based expenses and the amortization of purchased intangibles. The projected rate also considers factors including the company's expected tax structure, its tax positions in various jurisdictions and key legislation in major jurisdictions where the company operates. For fiscal 2021 and 2022, the company used a projected non-GAAP tax rate of 22.0% and 21.5%, respectively. For fiscal 2023, the company uses a projected non-GAAP tax rate of 22%, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the company's geographic earnings mix due to acquisition activity, or other changes to the company's strategy or business operations. The company will re-evaluate its long-term rate as appropriate.

The company defines the non-GAAP measure free cash flow as GAAP net cash provided by operating activities, less capital expenditures. For this purpose, capital expenditures includes the cash consideration related to the purchase of 450 Mission in March 2020, but does not include its strategic investments.

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Salesforce Announces Record Fourth Quarter and Full Year Fiscal 2022 Results