Salesforce Inc stock price jumped nearly 10 per cent after posting healthy first quarter fiscal 2023 results and showing improved guidance in the quarters ahead. Salesforce (CRM) closed at $176.07 yesterday while the pre market quote was higher by 0.73 per cent on Thursday before the market opens.

“There is no greater measure of our resilience and the momentum in our business than the $42 billion we have in remaining performance obligation, representing all future revenue under contract. While delivering incredible growth at scale, we’re committed to consistent margin expansion and cash flow growth as part of our long-term plan to drive both top and bottom line performance,” says Marc Benioff, Co-CEO, Salesforce.

Salesforce Financials

Salesforce recorded the first quarter revenue of $7.41 Billion, up 24% Year-Over-Year, 26% in Constant Currency while the current remaining performance obligation of $21.5 Billion is up 21% Year-Over-Year. The first quarter Operating Cash Flow is $3.68 Billion, up 14% Year-Over-Year. What improved the sentiments was the fact that the company initiated Second Quarter FY23 Revenue Guidance of $7.69 Billion to $7.70 Billion, up nearly 21% Year-Over-Year. And, Full Year FY23 Revenue Guidance has been put at $31.7 Billion to $31.8 Billion, up approximately 20% Year-Over-Year.

As far as the EPS – Earnings per Share – is concerned, first quarter GAAP diluted earnings per share was $0.03, and non-GAAP diluted earnings per share was $0.98. The Mark-to-market accounting of the company’s strategic investments benefited GAAP diluted earnings per share by $0.01 based on a U.S. tax rate of 25% and non-GAAP diluted earnings per share by $0.01 based on a non-GAAP tax rate of 22%. Cash generated from operations for the first quarter was $3.68 billion, an increase of 14% year-over-year. Total cash, cash equivalents and marketable securities ended the first quarter at $13.50 billion.

Salesforce Inc. is an American cloud-based software company headquartered in San Francisco, California. It provides customer relationship management software and applications focused on sales, customer service, marketing automation, analytics, and application development.