Executive Summary

• Salesforce reported fiscal 1Q20 revenues of $3.74 billion, up 24.3% and beating the $3.69 billion consensus estimate. Adjusted EPS was $0.93, which includes a $0.27 per share gain for marking investments to market, compared to the $0.61 consensus estimate.
• The category “Salesforce platform and other” was the fastest-growing segment, with revenues up 46.4% in the quarter, followed by the marketing and commerce cloud, whose revenues grew 32.9%.
• The company reaffirmed fiscal 2020 revenue guidance of $16.10-16.25 billion (up 21-22% year over year) and raised adjusted EPS guidance to $2.88-2.90 (up 5% year over year) from $2.54-2.56. The company hopes to organically double revenue over the next four years, targeting revenues of $26-28 billion in fiscal 2023.