Salesforce Inc. announced its fiscal Q4 and 2024 results on Feb. 28, leveraging the opportunity to highlight its latest generative AI, multi-cloud and ecommerce integration offerings. The ecommerce platform provider’s revenue growth was in the double digits for its fiscal Q4 and 2024 ended Jan. 31, 2024.
“We’ve had just an incredible quarter, well, actually we’ve just had an incredible year here at Salesforce with strong performance across all of our key metrics — revenue, margin,” and others, including earnings per share and cash flow, said Salesforce Inc. CEO Marc Benioff on a Feb. 28 earnings call with investors.
In North America, 76 of the top 2000 online retailers use Salesforce as their ecommerce platform, according to Digital Commerce 360 data. In 2022, those 76 online retailers combined for more than $116.97 billion in web sales.
Salesforce said in January that global online sales during the holiday season reached $1.17 trillion. The ecommerce software provider defined the holiday season as Nov. 1 through Dec. 31.
Salesforce revenue sources
In Q4, Salesforce revenue grew to $9.29 billion. That’s 11% growth over $8.38 billion in Q4 FY2023. Salesforce subscription and support accounted for $8.75 billion in Q4 revenue. That’s 12% year-over-year growth. Professional services and other revenues decreased 9% year over year in Q4, to $539 million from $595 million.
For the full fiscal 2024, Salesforce revenue increased to $34.86 billion. That’s 11% growth from $31.35 billion in FY 2023.
“Pretty awesome at our size and scale — incredible,” Benioff said.
Salesforce subscription and support revenue totaled $32.54 billion, up 12% from 29.02 billion in FY 2023. Meanwhile, Salesforce professional and other revenues remained mostly flat at $2.32 billion, versus $2.33 billion in 2022.
The number of Salesforce deals worth more than $10 million grew 78% year over year. Salesforce closed 86,000 multi-cloud deals. Additionally, Salesforce closed 1,300 deals for its Einstein 1 Platform.
Salesforce had cut 10% of its staff in January 2023. The job cuts cost the company $1.4 billion to $2.1 billion. As much as $1 billion of that came in its fiscal fourth quarter.
Salesforce strengthens its tech stack
The ecommerce platform provider announced an integration to offer Amazon’s Buy with Prime for Salesforce Commerce Cloud.
In August, Salesforce expanded Commerce Cloud for sales, service and marketing. Three key additions:
- Reorder Portal
- Order Support
- Pay Now
It also began rolling out generative AI technology in 2023. And in January, it released a new lineup of generative AI tools at the National Retail Federation’s Big Show. As part of the new rollout, Salesforce debuted Page Designer, a tool that allows retailers to build web pages through text prompts. Retailers can customize the design or specify that it mirrors existing branded web pages.
Benioff said Salesforce’s “rich set of applications” is filling its platform “with the data and the metadata that our customers need to be successful. And there is no other time in the history of our industry that that rich data and metadata together in one place is so important, because that is what you’re going to need to drive this artificial intelligence.”
Salesforce earnings summary
For the fiscal fourth quarter ended Jan. 31:
- Salesforce revenue grew to $9.29 billion. That’s up 11% from $8.38 billion in the prior Q4.
- Gross profit increased year over year to $7.14 billion, from $6.28 billion in the year-ago period.
For the fiscal year ended Jan. 31:
- Salesforce revenue increased to $34.86 billion. That’s 11% growth from $31.35 billion in FY 2023.
- Gross profit grew year over year to $26.32 billion from $22.99 billion.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.
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