Salesforce Announces Record Results for Second Quarter of Fiscal Year 2020

The following is a reconciliation per share of diluted earnings per share (under GAAP) to non-GAAP diluted earnings per share guidance for the next quarter and full year:

For more information on non-GAAP financial measures, see the reconciliation of results and related explanations below.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Quarterly conference call
Salesforce will schedule a conference call to 2:00 p.m.. (PT) / 17:00. (AND) today to discuss its financial results with the investor community. & nbsp; A live webcast of the event will be available on the Salesforce Investor Relations website at the address www.salesforce.com/investor. & nbsp; & nbsp; A live call is available nationally at 866-901-SFDC or at 866-901-7332 and internationally at 706-902-1764, access code 2492128. & nbsp; A replay will be available at 855-859-2056 or 404-537-3406, access code 2492128, until midnight (ET). September 22, 2019"data-reactid =" 49 ">Quarterly conference call
Salesforce will schedule a conference call to 2:00 p.m.. (PT) / 17:00. (AND) today to discuss its financial results with the investor community. A live webcast of the event will be available on the Salesforce Investor Relations website at www.salesforce.com/investor. A live call is available in Canada at 866-901-SFDC or 866-901-7332 and internationally at 706-902-1764, access code 2492128. A retransmission will be available at 855-859-2056 or at 404-537-3406, code 2492128, until midnight (ET) September 22, 2019.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "About Salesforce
Salesforce, the world leader in CRM, enables businesses to communicate with their customers in a whole new way. & Nbsp; Salesforce is headquartered in & nbsp; San Francisco, with offices in & nbsp; Europe & nbsp; and & nbsp; Asia and trades on the New York Stock Exchange & nbsp; ; under the symbol "CRM". & nbsp; For more information on Salesforce, visit: & nbsp;www.salesforce.com. & nbsp; "data-reactid =" 50 ">About Salesforce
Salesforce, the world leader in CRM, enables businesses to connect with their customers in a whole new way. Salesforce is headquartered in San Francisco, with offices in Europe and Asia, and trades on the New York Stock Exchange under the symbol "CRM". For more information on Salesforce, visit: www.salesforce.com.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = ""Security port" declaration under the Private Securities Litigation Reform Act, 1995: & nbsp; This press release contains forward-looking statements with respect to the financial and operating results of the Company, which may include the financial results and other operating and non-operating results anticipated by GAAP and non-GAAP, including revenues, net income, diluted earnings per share and growth in operating cash flow. , improved operating margin, expected revenue growth, expected growth in the current residual performance obligation, expected tax rates, non-cash accounting non-cash charge incurred as part of the combination & Salesforce.org & nbsp; Salesforce.org; stock-based compensation expense, amortization of intangible assets acquired, outstanding shares, market growth and sustainable development objectives. & nbsp; The achievement or achievement of the objectives covered by these forward-looking statements involve risks, uncertainties and assumptions. & Nbsp; If such risks or uncertainties materialize or if any of the assumptions prove incorrect, the results of the Company could differ materially from the results expressed or implied by the forward-looking statements made by the Company. "Data-reactid =" 51 ">"Security port" Statement under the Securities Litigation Reform Act, 1995: This press release contains forward-looking statements about the Company's financial and operating results, which may include expected financial and other operating and non-operating results, both GAAP and non-GAAP, including revenues, net income and loss. , diluted earnings per share and operating cash flow. growth, improved operating margin, expected revenue growth, expected growth in the current residual performance obligation, expected tax rates, one-time undisbursed accounting expense incurred in connection with the Salesforce.org reconciliation; stock-based compensation expense, amortization of acquired intangibles, outstanding shares, market growth and sustainability objectives. The achievement or success of the matters covered by these forward-looking statements involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or if any of the assumptions prove incorrect, the results of the Company could differ materially from the results expressed or implied by the forward-looking statements made by the Company.

The risks and uncertainties mentioned above include, but are not limited to, the risks associated with the effect of economic and market conditions; the impact of geopolitical events; the impact of exchange rates and interest rate fluctuations on our results; our business strategy and development plan for our business, including our strategy to be the leading provider of enterprise cloud applications and platforms; the pace of change and innovation in enterprise cloud services; the seasonality of our sales cycles; the competitive nature of the market in which we participate; our strategy of international expansion; the demands placed on our staff and infrastructure as a result of significant growth in our customer base and operations, including as a result of acquisitions; the performance and security of our services, including the resources and costs necessary to avoid unplanned downtime, and 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; our operating results and cash flow; new services and product features, including any effort to expand our services beyond the CRM market; our strategy of acquiring or investing in complementary activities, joint ventures, services, technologies and intellectual property rights; the return and fair value of our investments in complementary businesses through our strategic investment portfolio; our ability to leverage strategic partnerships, joint ventures and investments; the impact of future gains or losses in our strategic investment portfolio, including gains or losses arising from general market conditions that may impact publicly traded companies in our strategic investment portfolio; our ability to execute our business plans; our ability to successfully integrate businesses and technologies acquired, including delays related to Tableau's integration due to a regulatory review conducted by the Competition Authority and the Kingdom's markets -United; our ability to continue to grow our unearned income and our remaining performance obligation; our ability to protect our intellectual property rights; our ability to develop our brands; our reliance on third party hardware, software and platform vendors; our 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 our deferred tax assets and the release of related valuation allowances; the potential availability of additional tax assets in the future; the impact of new accounting statements and tax laws; the uncertainties affecting our ability to estimate our tax rate; the impact of the stock options underwritten and other awards of shares; the sufficiency of our capital resources; factors related to our outstanding debt, our revolving credit facility, our term loan and our 50 Fremont loan; compliance with our debt covenants and leases; current and potential litigation concerning us; and the impact of climate change.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Additional information on these and other factors affect The financial results of the Company are included in the Form 10-K, 10-Q and 8-K reports and other documents filed from time to time with the Securities and Exchange Commission. & nbsp; These documents are available in the SEC Documents section of the Investor Information section of the Company's website at www.salesforce.com/investor"data-reactid =" 53 "> Additional information on these factors, as well as other factors that may affect the financial results of the company, can be found in the reports on the forms 10- K, 10-Q and 8-K and other documents filed with the Securities and Exchange Commission from time to time. These documents are available in the SEC Filings section of the Investor Information section of the Securities and Exchange Commission. company website at www.salesforce.com/investor.

Salesforce.com, inc. does not assume any obligation and does not intend to update these forward-looking statements, except as required by law.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "© 2019 & nbsp;salesforce.com, inc. & nbsp; All rights reserved. & Nbsp; Salesforce and other marks are trademarks of & nbsp;salesforce.com, inc. & nbsp; Other marks mentioned in this document may be trademarks of their respective owners. "Data-reactid =" 55 "> © 2019 salesforce.com, Inc. All Rights Reserved Salesforce and other trademarks are trademarks of salesforce.com, Inc. may be trademarks of their respective owners.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Analyse des revenus supplémentaires"data-reactid =" 77 ">Analyse des revenus supplémentaires

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Obligation d&#39;exécution restante"data-reactid =" 78 ">Obligation d&#39;exécution restante

Le prix de transaction affecté aux obligations d&#39;exécution restantes représente les produits du contrat qui n&#39;ont pas encore été comptabilisés, ce qui comprend les produits non gagnés et les montants non facturés qui seront comptabilisés à titre de produit dans les périodes futures. Le prix de transaction attribué à l&#39;obligation d&#39;exécution restante est influencé par plusieurs facteurs, notamment la saisonnalité, le calendrier des renouvellements, les conditions contractuelles moyennes et les taux de change. Les parties non facturées du prix de transaction restant libellé en monnaies étrangères sont réévaluées à chaque période en fonction des taux de change en vigueur à la fin de la période.

La partie de l&#39;obligation de performance restante non facturée n&#39;est pas inscrite au bilan. L’obligation de prestation restante est composée des éléments suivants (en milliards):

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Revenu non gagné"data-reactid =" 85 ">Revenu non gagné

Les produits non gagnés représentent les montants facturés avant la comptabilisation des produits et sont comptabilisés en produits lorsque le transfert de contrôle aux clients a eu lieu ou que les services ont été fournis. La variation des revenus non gagnés est la suivante (en millions):

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Ventilation des revenus
Revenu d&#39;abonnement et de support par les offres de services de la société
Les revenus d&#39;abonnement et de support comprennent les éléments suivants (en millions): "data-reactid =" 91 ">Ventilation des revenus
Revenu d&#39;abonnement et de support par les offres de services de la société
Les revenus d&#39;abonnement et de support comprennent (en millions):

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Les revenus d&#39;abonnement et de support ci-dessus comprennent environ 51 millions de dollars of revenue contributed from the acquisition of Salesforce.org for the period June 3, 2019 through July 31, 2019." data-reactid="95">The above subscription and support revenue includes approximately $51 million of revenue contributed from the acquisition of Salesforce.org for the period June 3, 2019 through July 31, 2019.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Total Revenue by Geographic Locations" data-reactid="96">Total Revenue by Geographic Locations

Revenues by geographical region consisted of the following (in millions):

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Constant Currency Growth Rates" data-reactid="100">Constant Currency Growth Rates

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Company presents constant currency information to provide a framework for assessing how the Company&#39;s underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the weighted average exchange rate for the quarter being compared to for growth rate calculations presented, rather than the actual exchange rates in effect during that period." data-reactid="101">The Company presents constant currency information to provide a framework for assessing how the Company&#39;s underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the weighted average exchange rate for the quarter being compared to for growth rate calculations presented, rather than the actual exchange rates in effect during that period.

Revenue constant currency growth rates were as follows:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Company presents constant currency information for current remaining performance obligation to provide a framework for assessing how the Company&#39;s underlying business performed excluding the effects of foreign currency rate fluctuations.&nbsp;To present the information, the Company converted the current remaining performance obligation balances in local currencies in previous comparable periods using the United States dollar currency exchange rate as of the most recent balance sheet date." data-reactid="105">The Company presents constant currency information for current remaining performance obligation to provide a framework for assessing how the Company&#39;s underlying business performed excluding the effects of foreign currency rate fluctuations. To present the information, the Company converted the current remaining performance obligation balances in local currencies in previous comparable periods using the United States dollar currency exchange rate as of the most recent balance sheet date.

Current remaining performance obligation constant currency growth rates was as follows:

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Supplemental Strategic Investment Information
Gains on strategic investments, net" data-reactid="109">Supplemental Strategic Investment Information
Gains on strategic investments, net

All fair value adjustments of the Company&#39;s publicly traded and privately held equity investments are recorded through the statement of operations.  Therefore, the Company anticipates additional volatility to the Company&#39;s statements of operations in future periods, due to changes in market prices of the Company&#39;s investments in publicly held equity investments and the valuation and timing of observable price changes and impairments of the Company&#39;s investments in privately held securities. These changes could be material based on market conditions and events. The results for the current fiscal period are not indicative of the results to be expected for any subsequent quarter or fiscal year.

Gains and losses recognized on strategic investments were as follows (in millions):

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Supplemental Debt Information" data-reactid="114">Supplemental Debt Information

The carrying values of the Company&#39;s borrowings were as follows (in millions):

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Non-GAAP Financial Measures:& nbsp; This press release includes information about non-GAAP diluted earnings per share, non-GAAP tax rates and constant currency revenue and constant currency current remaining performance obligation growth rates (collectively the "non-GAAP financial measures"). These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the company&#39;s consolidated financial statements prepared in accordance with GAAP. Management uses both GAAP and non-GAAP measures when planning, monitoring, and evaluating the company&#39;s performance." data-reactid="129">Non-GAAP Financial Measures: This press release includes information about non-GAAP diluted earnings per share, non-GAAP tax rates and constant currency revenue and constant currency current remaining performance obligation growth rates (collectively the "non-GAAP financial measures"). These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the company&#39;s consolidated financial statements prepared in accordance with GAAP. Management uses both GAAP and non-GAAP measures when planning, monitoring, and evaluating the company&#39;s performance.

The primary purpose of using non-GAAP measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the company&#39;s results in the same way management does. Management believes that supplementing GAAP disclosure with non-GAAP disclosure provides investors with a more complete view of the company&#39;s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the company&#39;s business. Further, to the extent that other companies use similar methods in calculating non-GAAP measures, the provision of supplemental non-GAAP information can allow for a comparison of the company&#39;s relative performance against other companies that also report non-GAAP operating results.

Non-GAAP diluted earnings per share excludes, to the extent applicable, the impact of the following items:  stock-based compensation, amortization of acquisition-related intangibles, and previously the net amortization of debt discount on the company&#39;s convertible senior notes, as well as income tax adjustments.  These items are excluded because the decisions that give rise to them are not made to increase revenue in a particular period, but instead for the company&#39;s long-term benefit over multiple periods.

Specifically, management is excluding the following items from its non-GAAP earnings per share, as applicable, for the periods presented in the Q2 FY20 financial statements and for its non-GAAP estimates for Q3 and FY20:

• Stock-Based Expenses: The company&#39;s compensation strategy includes the use of stock-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, stock-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.
• Amortization of Purchased Intangibles: The company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company&#39;s research and development efforts, trade names, customer lists and customer relationships, and in some cases, acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, which is not typically affected by operations during any particular period. Although we exclude the amortization of purchased intangibles from these non-GAAP measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.
• Gains on Strategic Investments, net: Upon the adoption of Accounting Standards Update 2016-01 on February 1, 2018, the company is required to record all fair value adjustments to its equity securities held within the strategic investment portfolio through the statement of operations. As it is not possible to forecast future gains and losses, the company assumes no change to the value of its strategic investment portfolio in its GAAP and non-GAAP estimates for future periods.
• Income Tax Effects and Adjustments: The company utilizes a fixed long-term projected non-GAAP tax rate in order to provide better consistency across the interim reporting periods by eliminating the effects of items such as changes in the tax valuation allowance and tax effects of acquisition-related costs, since each of these can vary in size and frequency. When projecting this long-term rate, the company evaluated a three-year financial projection that excludes the direct impact of the following non-cash items: stock-based expenses and the amortization of purchased intangibles. The projected rate also assumes no new acquisitions in the three-year period, and considers other factors including the company&#39;s expected tax structure, its tax positions in various jurisdictions and key legislation in major jurisdictions where the company operates. For fiscal 2020, the company uses a projected non-GAAP tax rate of 22.5%, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate could be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the company&#39;s geographic earnings mix due to acquisition activity, or other changes to the company&#39;s strategy or business operations. The company will re-evaluate its long-term rate as appropriate.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="View original content to download multimedia:http://www.prnewswire.com/news-releases/salesforce-announces-record-second-quarter-fiscal-2020-results-300906115.html" data-reactid="150">View original content to download multimedia:http://www.prnewswire.com/news-releases/salesforce-announces-record-second-quarter-fiscal-2020-results-300906115.html