On this page of StockholderLetter.com we present the latest annual shareholder letter from Salesforce, Inc. — ticker symbol CRM. Reading current and past CRM letters to shareholders can bring important insights into the investment thesis.

 •  5/16/2024 Letter Continued (Full PDF)
 •  4/27/2023 CRM Stockholder Letter
 •  More "Application Software" Category Stockholder Letters
 •  CRM Benford's Law Stock Score = 88

CRM Shareholder/Stockholder Letter Transcript:

FY24 Annual Report
Asking More of

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25th anniversary, the future has never looked brighter for
Salesforce. Thanks to a transformative year, we are uniquely
positioned for continued profitable growth and leadership.
In the face of economic challenges, we promised to reinvent
our company, and we delivered. Our commitment
to restructuring, productivity, innovation, and stronger
relationships with you, our stockholders, has propelled
us to impressive fiscal year 2024 results.
And it   s not just about numbers     it   s about embracing the
AI revolution the right way. Companies are now turning
to AI to drive productivity, customer relationships, and
profitability. As the #1 AI CRM, we are leading the way.
We   re empowering businesses to transform and connect
with customers in new ways by encouraging them
to ask more of AI.
Trusted AI is fueling solutions like Einstein 1 Platform,
Data Cloud, and Einstein Copilot, and helping our
customers reach new levels of innovation and growth.
It   s what we do. And it wouldn   t be possible without
partners and stakeholders like you. Thank you.
FY24
Highlights
$34.9 billion
30.5%
$56.9 billion
90%+
$10.2 billion
8.7 million
Revenue, up 11% year over year
Remaining Performance Obligation,1 up 17% year over year
Operating Cash Flow, up 44% year over year
Non-GAAP Operating Margin2
of the Fortune 500 are Salesforce customers
Hours contributed to the community since inception
1     Remaining Performance Obligation    represents future revenues that are under contract but have not yet been recognized.
2 Non-GAAP operating margin is a non-GAAP financial measure. Refer to page 6 for a reconciliation of GAAP to non-GAAP financial measures.
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The AI era has arrived. And as we celebrate our
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Fellow stockholders,
As we celebrate our 25th year, I   ve never been more excited about the future
of our company and our industry. We had another incredible year at Salesforce
in fiscal year 2024, and we   re exceptionally well-positioned to continue
delivering profitable growth and leading our customers into this new AI era.
Salesforce brings together best-in-class CRM apps for sales, service, marketing,
commerce and more, with trusted AI and data all on one integrated platform.
This has been a remarkable year of transformation for our company    
restructuring our business for the short and long term; increasing productivity,
profitability and operational excellence across the board; doubling down on
innovation and making our core products even better; and strengthening
our relationships with all of you     our stockholders. Our transformation
is reflected in the strong results you saw throughout fiscal year 2024.
As the world   s
#1 CRM and
now the #1 AI
CRM, Salesforce
is uniquely
positioned to help
our customers
harness the
unprecedented
power of AI...
For the full year, we delivered $34.9 billion in revenue, up 11% year-overyear. With our continued disciplined approach to margin expansion, nonGAAP operating margin for fiscal year 2024 was 30.5%, up 800 basis points
year-over-year. We closed fiscal year 2024 with operating cash flow reaching
$10.2 billion, up 44% year-over-year. For the fiscal year, total capital returned
in the form of share repurchases was $7.7 billion, or more than 80% of the
fiscal year free cash flow, which more than fully offset dilution of our stockbased compensation. Since the inception of the repurchase program,
we have returned $11.7 billion to stockholders. Additionally, our board
approved a $10 billion increase to our share repurchase plan, bringing the
total authorization to $30 billion. We also enhanced our capital return strategy
with the initiation of our first-ever cash dividend, which began in fiscal year 2025.
It has been a year of transformation not only at Salesforce but across our
industry. Companies are now looking to AI to increase productivity, build
deeper customer relationships and achieve higher profitability. We believe
that this is the single most important moment in the history of the technology
industry. As the world   s #1 CRM and now the #1 AI CRM, Salesforce is
uniquely positioned to help our customers harness the unprecedented
power of AI to connect with their customers in a whole new way.

Every AI transformation begins with data, and that   s why Data Cloud    
the heart of our Einstein 1 Platform     has become the fastest-growing
organic product in the history of Salesforce. Data Cloud ingests, unifies
and harmonizes any data type from any product and system, creating a
360-degree view of customers and powering AI, automation and analytics
across the Salesforce applications that business users use every day.
Data Cloud    
the heart of
our Einstein 1
Platform     has
become the
fastest-growing
organic product
in the history
of Salesforce.
Our Einstein 1 Platform brings together Sales Cloud, Service Cloud, Marketing
Cloud and Commerce Cloud, as well as Slack, Tableau and MuleSoft,
in a single, integrated fabric with unified data and metadata that enables
customers to build richer, more personalized and intelligent customer
and employee experiences for businesses of any size across industries.
Companies want AI they can trust. Powered by Data Cloud, Einstein Copilot
    our customizable, conversational, AI assistant     generates responses from
natural language prompts using a company   s own private and trusted data,
while maintaining strict privacy and data governance, without requiring
expensive AI model training. Einstein Copilot can answer questions, create
content, interpret complex conversations and dynamically automate tasks
on behalf of a user, all from a single, consistent user experience embedded
directly within Salesforce   s industry-leading CRM applications.
Combining CRM, AI, data and trust, Einstein 1 is opening the door
to the next level of innovation and growth for our customers.
Einstein 1 Studio makes it easy for companies to build an entirely new
generation of AI-powered apps with custom prompts, actions and
AI models to close sales deals faster, streamline customer service,
auto-create websites and perform hundreds of other business tasks.

...19 million
Trailblazers across
100 countries
is the heart of
the Salesforce
ecosystem...
Our community of 19 million Trailblazers across 100 countries is the heart of the
Salesforce ecosystem, which is projected to create 11.6 million new jobs and
$2 trillion in new business revenue worldwide by 2028. We   re proud that more
than 6 million people around the world have used Trailhead, our free online
learning platform, to upskill and meet the growing demand for digital talent.
As always, we   re also achieving success by staying true to our values. I   m proud
that over the last 25 years we   ve been able to give more than $700 million in
grants, perform over 8.7 million hours of volunteer service and support 56,000
nonprofit and higher-education customers with our software. And nearly
20,000 companies have adopted our 1-1-1 corporate philanthropy model.
As we close out fiscal year 2024, we thank Sanford Robertson and Alan Hassenfeld,
our long-standing Salesforce directors who left the board during the year. They were
instrumental in building Salesforce from a small cloud-based software company
to an industry leader as the #1 AI CRM. We were also thrilled to welcome three
new board members: Arnold Donald, former President and Chief Executive
Officer of Carnival Corporation & plc; Sachin Mehra, Chief Financial Officer of
Mastercard; and Mason Morfit, co-Chief Executive Officer and Chief Investment
Officer of ValueAct Capital. Each of these leaders brings valuable experience
and a diverse skill set to our board to advance our value creation initiatives.
We are deeply grateful to our entire board and to you for your trust
and support. Guided by our core values of trust, customer success,
innovation, equality and sustainability, we look forward to continuing
our partnership with you, delivering on our commitments for profitable
growth and leading our customers and industry through this AI revolution.
With gratitude,
Marc



 5/16/2024 Letter Continued (Full PDF)