First quarter revenue came in at $11.1bn ($11.1bn expected), up 12% ignoring currency moves. Within that, subscription and support revenue rose 12% to $10.6bn, including a $428mn contribution from the recently acquired Informatica.
Underlying operating profit rose to $3.9bn, up around 22% year on year.
Free cash flow rose 4% to $6.6bn. Net debt, including leases, was $30.0bn at the period end.
Salesforce returned $27.5bn to shareholders in the quarter, and announced a new $25bn accelerated buyback, expected to be completed by the third quarter.
Second quarter revenue is expected to be $11.27-11.35bn, implying 10% growth year on year. Full year revenue guidance of $45.9-46.2bn implies around 10-11% growth. Free cash flow growth is now expected to be around 4-5% (previously 9-10%).
The shares were down 1.2% in after-hours trading.
Our view
HL view to follow.
Salesforce key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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