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SAN FRANCISCO, April 15, 2019 / PRNewswire / – Salesforce (NYSE: CRM), a global leader in CRM, today announced the integration of Salesforce.org, a social, nonprofit, social, business-to-business organization. social. With Salesforce.org, Salesforce will resize its philanthropic efforts and create strategic synergies and operational simplicity that will enable the company to generate even greater success for its nonprofit, education and corporate customers. philanthropy.
When Salesforce was created in 1999, the company had developed the 1-1-1 model of integrated corporate philanthropy, giving 1% of its equity, products, and time to business. employed in communities around the world. To date, Salesforce and Salesforce.org have provided free or discounted technology to more than 40,000 nonprofit and training institutions and donated more than $ 260 million in scholarships1. Salesforce and Salesforce.org employees spent 3.8 million hours of their time in their communities.
The combination of Salesforce and Salesforce.org in a new vertical nonprofit and educational sector strengthens the strength of Salesforce's philanthropic model. Salesforce will extend this model by continuing to provide free, cost-effective software to non-profit organizations and educational institutions around the world and investing in local communities through employee volunteerism, strategic grants and employee reconciliation. $ 5000 per employee annually.
Details about the business combination
In the combining process of both organizations, Salesforce.org will convert a California public utility company in a California company and Salesforce will pay a single cash purchase price of 300 million dollars for all actions of Salesforce.org. the 300 million dollars will be distributed to the independent Salesforce.com Foundation, a California A non-profit organization and a 501 (c) (3) organization for subsequent distribution by the Foundation for future philanthropic purposes. The company will make additional contributions to the Salesforce Foundation.
Salesforce will create a new vertical nonprofit sector and in the education sector led by the CEO of Salesforce.org Rob Acker. This new area will be responsible for the sales, marketing and customer success of the Salesforce Customer Success platform to educational and non-profit communities, as well as the development of cloud-based, non-profit cloud applications. 39 Education and Philanthropy Cloud from Salesforce.org.
The closing of the amalgamation is subject to the approval of the Attorney General of California and other customary closing conditions. At the conclusion of the transaction, Salesforce will terminate its current reseller agreement between Salesforce and Salesforce.org. Salesforce will incur extraordinary non-cash bookkeeping fees in the fiscal quarter in which the transaction is closed. Salesforce currently estimates that these non-cash charges will be approximately $ 200 millionbut the final amount will not be determined until the closing of the transaction, and this estimate is subject to change. Non-cash special charges will be recorded as operating expenses for the Company's GAAP and non-GAAP results.
As a result of this consolidation, Salesforce updates its instructions for the full year 2020, previously provided in March 4, 2019.
Business figure of the exercise 20: The merger with Salesforce.org is expected to increase the company's revenue for the fiscal year 2020 from around $ 150 million at $ 200 million, depending on the closing date of the transaction.
FY20 EPS: Guidance updates for GAAP GAAP are not available for the reasons noted below and the Company expects to provide applicable updates after the closing of the transaction. The Company now expects non-GAAP EPS for fiscal 2010 from $ 2.54 at $ 2.56. This estimate reflects the expected impact of the non-cash one-off accounting costs mentioned above.
Operating cash flow of the year 20: The company is still expecting growth in cash flow from operations for FY2020 from 20% to 21% year-on-year.
These estimates assume a reporting date of the second quarter or the beginning of the third quarter of the year, and actual results could differ materially based on the closing date of the last transaction. At this time, the company is not able to prepare a forecast of the impact of the merger on GAAP earnings per share for the full year, and is not expected to be a full year. therefore not able to provide a reconciliation for these amounts. Salesforce expects to be able to provide this update after the closing of the transaction. The impact on BPA GAAP is expected to be greater than for non-GAAP EPS due to additional stock-based compensation costs and various other non-cash items, including income tax adjustments.
The above guidance also does not assume any change in the value of the company's strategic investment portfolio resulting from the ASU 2016-01, as it is not possible to predict future gains and losses.
Management conference call
Salesforce will schedule a conference call to 2:00 p.m.. (PT) / 17:00. (AND) today to discuss the combination with the investor community. A live webcast of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor. Direct access is available in the country at 866-901-SFDC or at 866-901-7332 and internationally at 706-902-1764, access code 7897903. A retransmission will be available at 800-585-8367 or 855-859-2056 until midnight (ET) May 15, 2019.
Non-GAAP financial measures
This news release contains information on the tax rates of non-GAAP EPS and GAAP (collectively, "Non-GAAP Financial Measures"). The primary purpose of using non-GAAP financial measures is to provide additional information that may be useful to investors and enable them to evaluate the results of the company in the same manner as management. Non-GAAP EPS estimates exclude the impact of: stock-based compensation, amortization of intangible assets related to acquisitions, future gains and losses on strategic investments, and income tax adjustments. A fixed and long-term non-GAAP fixed income tax rate is used; it excludes the direct impact of the non-cash items excluded above, eliminates the effects of items such as changes in the provision for tax loss and the tax consequences of the cost of the acquisition , and reflects the information currently available, as well as other factors and assumptions. The method used to produce the non-GAAP financial measures is not calculated in accordance with US generally accepted accounting principles and may differ from methods used by other companies. Non-GAAP financial measures should not be considered in isolation or as a substitute for comparable measures as defined by GAAP; they should only be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
Forward-looking statements
This communication contains forward-looking statements about the Company, Salesforce.org, and the business combination that involve significant risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements in this document include, but are not limited to, statements regarding the potential benefits of the proposed business combination, the Company's projects, objectives, expectations and intentions, financial condition, results of operations and operations. society, as well as the outlook. the moment of closure of the proposed combination.
Risks and uncertainties include, but are not limited to, the risks associated with the Company's ability to close the proposed combination in a timely manner or at all; satisfaction of the conditions precedent to the closing of the proposed combination; the ability of the Company to obtain regulatory approvals on the terms and conditions in a timely manner or at all; the company's ability to implement its plans, forecasts and other expectations with Salesforce.org after the completion of the combination and achieve the expected synergies; the ability to realize the expected benefits of the proposed combination, including the possibility that the expected benefits of the proposed combination will not materialize in the expected time period, if at all; the negative effects of the announcement of the proposed combination on the market price of the common shares of the company or on the results of operations of the company; transaction costs; unknown liabilities; the risk of litigation or regulatory actions related to the proposed combination; risks related to the effects of economic and market conditions in general; the impact of geopolitical events; the impact of exchange rates and interest rate fluctuations on the company's results; the company's business strategy and its intention to expand its business, including its strategy to be the leading provider of enterprise cloud applications and platforms; the pace of change and innovation in enterprise cloud services; the competitive nature of the market in which the company participates; the international expansion strategy of the company; the performance and security of the company's services, including the resources and costs necessary to prevent, detect and correct potential security breaches; expenses associated with new data centers and third-party infrastructure providers; additional capacity of the data center; real estate and offices; the operating results and cash flows of the company; new services and product features; the company's strategy of acquiring or investing in complementary activities, joint ventures, services, technologies and intellectual property rights; the performance and fair value of the Company's investments in complementary businesses through its strategic investment portfolio; the company's ability to leverage strategic partnerships, joint ventures and investments; the ability of the company to successfully integrate the businesses and technologies acquired; the Company's ability to continue to grow its unearned revenue and remaining performance obligation; the ability of the company to protect its intellectual property rights; the ability of the company to develop its brands; the company's dependence on third-party hardware, software and platform vendors; the company's dependence on the development and maintenance of the Internet infrastructure; the evolution of national and foreign regulations, including those relating to the provision of services on the Internet, those relating to Internet access and those dealing with data confidentiality, cross-border data transfers and import and export controls; exports; the valuation of the Company's deferred tax assets and changes in the related valuation allowance; the potential availability of additional tax assets in the future; the impact of new accounting statements and tax laws; uncertainties affecting the ability of the company to estimate its tax rate; uncertainties in the Company's ability to estimate the extraordinary non-financial accounting charges that will be incurred as part of the proposed combination of Salesforce.org; the impact of future gains or losses from the Company's strategic investment portfolio, including gains or losses resulting from general market conditions that may impact publicly traded companies in the portfolio. strategic investments of the company; the impact of the stock options underwritten and other awards of shares; the sufficiency of the capital resources of the company; the factors related to the outstanding amount of the company, the revolving credit facility, the term loan and the loan associated with 50 Fremont; compliance with debt covenants and obligations under capital leases; current and potential litigation involving the company; and the impact of climate change.
About Salesforce.org
Salesforce.org was founded on the idea that the business world improves the situation in the world. Based on the 1-1-1 model, Salesforce.org restores the community's investment in education to ensure that young people are ready for the future.
Everyone who wants to change the world should have the necessary tools and technology. Technology is the most powerful equalizer of our time, providing access to data, knowledge and, most importantly, connections. Salesforce.org makes technology available to non-profit organizations, educational institutions, and philanthropic organizations so they can connect with others and do more good.
About Salesforce
Salesforce, the world leader in CRM, enables businesses to connect in a whole new way to their customers. For more information on Salesforce (NYSE: CRM), visit: www.salesforce.com.
Any unverified services or features referenced in this release or in other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase Salesforce apps must make their purchasing decisions based on the features currently available. Salesforce is headquartered in San Francisco, with offices at Europe and Asiaand trades on the New York Stock Exchange under the symbol "CRM". For more information, visit https://www.salesforce.com or call 1-800-NO-SOFTWARE.
1 Grants made by Salesforce.org and Salesforce.com Foundation.
SOURCE Salesforce
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