2023 Q1 Form 10-K Financial Statement

#000110852423000011 Filed on March 08, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2023 2022
Revenue $8.384B $31.35B $26.49B
YoY Change 14.44% 18.35% 24.66%
Cost Of Revenue $2.100B $8.360B $7.026B
YoY Change 4.27% 18.99% 29.2%
Gross Profit $6.284B $22.99B $19.47B
YoY Change 18.3% 18.11% 23.09%
Gross Profit Margin 74.95% 73.34% 73.48%
Selling, General & Admin $3.748B $15.16B $14.45B
YoY Change -5.38% 4.91% 22.89%
% of Gross Profit 59.64% 65.95% 74.25%
Research & Development $1.128B $5.055B $4.465B
YoY Change -12.63% 13.21% 24.1%
% of Gross Profit 17.95% 21.99% 22.94%
Depreciation & Amortization $1.032B $3.786B $678.0M
YoY Change 10.85% 458.41% 17.1%
% of Gross Profit 16.42% 16.47% 3.48%
Operating Expenses $5.099B $21.13B $18.92B
YoY Change -7.09% 11.71% 23.17%
Operating Profit $1.185B $1.858B $548.0M
YoY Change -773.3% 239.05% 20.44%
Interest Expense -$314.0M -$239.0M $1.046B
YoY Change 912.9% -122.85% -50.33%
% of Operating Profit -26.5% -12.86% 190.88%
Other Income/Expense, Net -$10.00M -$131.0M -$11.00M
YoY Change -162.5% 1090.91%
Pretax Income $33.00M $660.0M $1.532B
YoY Change -116.75% -56.92% -40.18%
Income Tax $131.0M $452.0M $88.00M
% Of Pretax Income 396.97% 68.48% 5.74%
Net Earnings -$98.00M $208.0M $1.444B
YoY Change 250.0% -85.6% -64.54%
Net Earnings / Revenue -1.17% 0.66% 5.45%
Basic Earnings Per Share $0.21 $1.51
Diluted Earnings Per Share -$0.10 $0.21 $1.48
COMMON SHARES
Basic Shares Outstanding 1.000B shares 992.0M shares 955.0M shares
Diluted Shares Outstanding 997.0M shares 974.0M shares

Balance Sheet

Concept 2023 Q1 2023 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $12.51B $12.51B $10.54B
YoY Change 18.71% 18.71% -11.94%
Cash & Equivalents $7.016B $7.016B $5.464B
Short-Term Investments $5.492B $5.492B $5.073B
Other Short-Term Assets $1.356B $1.356B $1.120B
YoY Change 21.07% 21.07% 13.02%
Inventory
Prepaid Expenses
Receivables $12.53B $12.53B $11.19B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $26.40B $26.40B $22.85B
YoY Change 15.51% 15.51% 4.39%
LONG-TERM ASSETS
Property, Plant & Equipment $6.592B $6.592B $5.695B
YoY Change 15.75% 15.75% 0.57%
Goodwill $48.57B
YoY Change 1.32%
Intangibles $7.125B
YoY Change -20.64%
Long-Term Investments $4.672B $4.672B $4.784B
YoY Change -2.34% -2.34% 22.38%
Other Assets $2.800B $2.800B $2.544B
YoY Change 6.75% 10.06% -4.04%
Total Long-Term Assets $72.45B $72.45B $72.36B
YoY Change 0.13% 0.13% 62.93%
TOTAL ASSETS
Total Short-Term Assets $26.40B $26.40B $22.85B
Total Long-Term Assets $72.45B $72.45B $72.36B
Total Assets $98.85B $98.85B $95.21B
YoY Change 3.82% 3.82% 43.6%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.743B $6.743B $5.360B
YoY Change 23.18% 25.8% 24.07%
Accrued Expenses $590.0M $590.0M $686.0M
YoY Change -13.99% -13.99% -10.44%
Deferred Revenue $17.38B
YoY Change 11.19%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.182B $1.182B $114.0M
YoY Change 29450.0% 936.84% 225.71%
Total Short-Term Liabilities $25.89B $25.89B $21.79B
YoY Change 18.83% 18.83% 22.9%
LONG-TERM LIABILITIES
Long-Term Debt $9.419B $9.419B $10.86B
YoY Change -11.07% -13.29% 292.73%
Other Long-Term Liabilities $5.180B $5.180B $4.427B
YoY Change 159.65% 17.01% 2.62%
Total Long-Term Liabilities $14.60B $14.60B $15.29B
YoY Change 15.98% -4.52% 115.96%
TOTAL LIABILITIES
Total Short-Term Liabilities $25.89B $25.89B $21.79B
Total Long-Term Liabilities $14.60B $14.60B $15.29B
Total Liabilities $40.49B $40.49B $37.08B
YoY Change 9.2% 9.2% 49.46%
SHAREHOLDERS EQUITY
Retained Earnings $7.585B
YoY Change 2.82%
Common Stock $55.05B
YoY Change 8.11%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $58.36B $58.36B $58.13B
YoY Change
Total Liabilities & Shareholders Equity $98.85B $98.85B $95.21B
YoY Change 3.82% 3.82% 43.6%

Cashflow Statement

Concept 2023 Q1 2023 2022
OPERATING ACTIVITIES
Net Income -$98.00M $208.0M $1.444B
YoY Change 250.0% -85.6% -64.54%
Depreciation, Depletion And Amortization $1.032B $3.786B $678.0M
YoY Change 10.85% 458.41% 17.1%
Cash From Operating Activities $2.788B $7.111B $6.000B
YoY Change 40.67% 18.52% 24.97%
INVESTING ACTIVITIES
Capital Expenditures $218.0M $798.0M $717.0M
YoY Change -230.54% 11.3% 0.99%
Acquisitions $439.0M $14.88B
YoY Change -97.05% 1061.28%
Other Investing Activities $530.0M -$1.191B -$13.82B
YoY Change -141.02% -91.38% 323.77%
Cash From Investing Activities $312.0M -$1.989B -$14.54B
YoY Change -121.38% -86.32% 266.05%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$2.150B -$3.139B
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -2.221B -3.562B $7.838B
YoY Change -1194.09% -145.45% 556.45%
NET CHANGE
Cash From Operating Activities 2.788B 7.111B $6.000B
Cash From Investing Activities 312.0M -1.989B -$14.54B
Cash From Financing Activities -2.221B -3.562B $7.838B
Net Change In Cash 879.0M 1.560B -$731.0M
YoY Change 21.07% -313.41% -135.66%
FREE CASH FLOW
Cash From Operating Activities $2.788B $7.111B $6.000B
Capital Expenditures $218.0M $798.0M $717.0M
Free Cash Flow $2.570B $6.313B $5.283B
YoY Change 19.59% 19.5% 29.14%

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CY2023 crm Noncash Or Part Noncash Acquisition Noncash Financial Or Equity Instrument Consideration
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CY2023 us-gaap Fiscal Period
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<div style="margin-top:9pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Fiscal Year</span></div><div style="margin-top:5pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s fiscal year ends on January 31. References to fiscal 2023, for example, refer to the fiscal year ended January 31, 2023.</span></div>
CY2023 crm Capitalized Contract Cost Renewals And Success Fees Amortization Term
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CY2023 us-gaap Use Of Estimates
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<div style="margin-top:9pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:5pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s consolidated financial statements and notes thereto.</span></div><div style="margin-top:5pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Significant estimates and assumptions made by management include the determination of:</span></div><div style="margin-top:3.25pt;padding-left:40.5pt;text-indent:-13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:10pt">the fair value of assets acquired and liabilities assumed for business combinations;</span></div><div style="margin-top:3.25pt;padding-left:40.5pt;text-indent:-13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:10pt">the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations;</span></div><div style="margin-top:3.25pt;padding-left:40.5pt;text-indent:-13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:10pt">the valuation of privately-held strategic investments, including impairments;</span></div><div style="margin-top:3.25pt;padding-left:40.5pt;text-indent:-13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:10pt">the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions;</span></div><div style="margin-top:3.25pt;padding-left:40.5pt;text-indent:-13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:10pt">the average period of benefit associated with costs capitalized to obtain revenue contracts; </span></div><div style="margin-top:3.25pt;padding-left:40.5pt;text-indent:-13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:10pt">the useful lives of intangible assets; and</span></div><div style="margin-top:3.25pt;padding-left:40.5pt;text-indent:-13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:10pt">the fair value of certain stock awards issued.</span></div>Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, which forms the basis for making judgments about the carrying values of assets and liabilities.
CY2023 us-gaap Number Of Operating Segments
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CY2023 us-gaap Number Of Operating Segments
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CY2023 us-gaap Concentration Risk Credit Risk
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<div style="margin-top:5pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentrations of Credit Risk, Significant Customers and Investments</span></div><div style="margin-top:5pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. The Company’s investment portfolio consists primarily of investment-grade securities, and per the Company’s policy, limits the amount of credit exposure to any one issuer. The Company monitors and manages the overall exposure of its cash balances to individual financial institutions on an ongoing basis. The Company does not require collateral for accounts receivable. The Company maintains an allowance for its doubtful accounts receivable due to estimated credit losses. This allowance is based upon historical loss patterns, the number of days that billings are past due, an evaluation of the potential risk of loss associated with delinquent accounts and current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss patterns. The Company records the allowance against bad debt expense through the consolidated statements of operations, included in general and administrative expense, up to the amount of revenues recognized to date. Any incremental allowance is recorded as an offset to unearned revenue on the consolidated balance sheets. Receivables are written off and charged against the recorded allowance when the Company has exhausted collection efforts without success. </span></div><div style="margin-top:5pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">No single customer accounted for more than five percent of accounts receivable at January 31, 2023 and January 31, 2022. No single customer accounted for five percent or more of total revenue during fiscal 2023, 2022 and 2021. As of January 31, 2023 and January 31, 2022, assets located outside the Americas were 15 percent and 13 percent of total assets, respectively. As of January 31, 2023 and January 31, 2022, assets located in the United States were 83 percent and 86 percent of total assets, respectively.</span></div>The Company is also exposed to concentrations of risk in its strategic investment portfolio, including within specific industries, as the Company primarily invests in enterprise cloud companies, technology startups and system integrators.
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CY2023 us-gaap Prior Period Reclassification Adjustment Description
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<div style="margin-top:9pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Reclassifications</span></div><div style="margin-top:5pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">A reclassification to the fiscal 2022 consolidated balance sheet was made to conform to the current period presentation of current debt. This reclassification did not impact the Company's key metrics including Total Assets, Total Revenues, Income From Operations, Net Income or Operating Cash Flows.</span></div>
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UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
12000000 usd
CY2022 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
7000000 usd
CY2021 us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
UnrecognizedTaxBenefitsReductionsResultingFromLapseOfApplicableStatuteOfLimitations
19000000 usd
CY2023 us-gaap Unrecognized Tax Benefits Decreases Resulting From Foreign Currency Translation
UnrecognizedTaxBenefitsDecreasesResultingFromForeignCurrencyTranslation
30000000 usd
CY2022 us-gaap Unrecognized Tax Benefits Decreases Resulting From Foreign Currency Translation
UnrecognizedTaxBenefitsDecreasesResultingFromForeignCurrencyTranslation
6000000 usd
CY2021 us-gaap Unrecognized Tax Benefits Increases Resulting From Foreign Currency Translation
UnrecognizedTaxBenefitsIncreasesResultingFromForeignCurrencyTranslation
8000000 usd
CY2023Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1975000000 usd
CY2022Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1822000000 usd
CY2021Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1479000000 usd
CY2023 us-gaap Unrecognized Tax Benefits Increases Resulting From Acquisition
UnrecognizedTaxBenefitsIncreasesResultingFromAcquisition
153000000 usd
CY2022 us-gaap Unrecognized Tax Benefits Increases Resulting From Acquisition
UnrecognizedTaxBenefitsIncreasesResultingFromAcquisition
343000000 usd
CY2021 us-gaap Unrecognized Tax Benefits Increases Resulting From Acquisition
UnrecognizedTaxBenefitsIncreasesResultingFromAcquisition
46000000 usd
CY2023Q1 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
1500000000 usd
CY2022Q1 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
1300000000 usd
CY2021Q1 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
1300000000 usd
CY2023 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
49000000 usd
CY2022 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
21000000 usd
CY2021 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Expense
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestExpense
25000000 usd
CY2023Q1 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
107000000 usd
CY2022Q1 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
58000000 usd
CY2021Q1 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
37000000 usd
CY2023 us-gaap Net Income Loss
NetIncomeLoss
208000000 usd
CY2022 us-gaap Net Income Loss
NetIncomeLoss
1444000000 usd
CY2021 us-gaap Net Income Loss
NetIncomeLoss
4072000000 usd
CY2023 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
992000000 shares
CY2022 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
955000000 shares
CY2021 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
908000000 shares
CY2023 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
5000000 shares
CY2022 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
19000000 shares
CY2021 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
22000000 shares
CY2023 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
997000000 shares
CY2022 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
974000000 shares
CY2021 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
930000000 shares

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crm-20230131.htm Edgar Link pending
crm-20230131.xsd Edgar Link pending
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crm-20230131_cal.xml Edgar Link unprocessable
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