Common-Size Income Statement
Quarterly Data
Salesforce Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2025-04-30), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-Q (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-K (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30).
- Revenue composition trends
- Subscription and support consistently represent the majority of revenues, fluctuating narrowly around 92.3% to 94.6% of total revenues over the periods analyzed. This indicates a stable primary revenue source with minor variation. Conversely, professional services and other revenues offset subscription revenues, generally constituting between approximately 5.4% and 7.7% of total revenues, showing slight volatility but with an overall tendency to decrease towards the later periods.
- Cost of revenues and gross profit
- Cost of revenues as a percentage of total revenues shows a gradual decline from around 25.1% to approximately 22.2%-23.0% in the most recent quarters, suggesting improved cost efficiencies or changes in cost structure. Correspondingly, gross profit margins improve from mid-70% levels early on to upper 70% levels near the end of the period, reflecting enhanced profitability at the gross level.
- Operating expenses development
- Research and development expenses consistently range between 13.5% and 17.8%, with minor fluctuations but a slight decline in recent quarters to about 14.2% to 14.9%. Sales and marketing expenses show a more notable downward trend, decreasing from peaks near 49% to mid-34% levels over the timeframe, suggesting increased operating discipline or efficiency in customer acquisition and retention costs. General and administrative expenses also decline steadily from around 10.5% down to roughly 7.1%, reinforcing the trend of tighter expense management.
- Operating income and related items
- Income from operations shows marked variability, initially fluctuating between positive and negative values but trending positively from early 2021 onward, peaking near 20% of revenues in recent quarters. This denotes a significant improvement in core operational profitability.
- Non-operating items impact
- Gains and losses on strategic investments exhibit substantial volatility, with occasional large gains early in the period and generally smaller or slightly negative impacts in later periods, which occasionally dampen overall income. Other income/expense items are relatively minor but trend slightly positive in recent quarters. Tax provisions show fluctuating negative and positive effects, reflecting variable tax circumstances; these have had both enhancing and reducing effects on net income at various times.
- Net income performance
- Net income as a percentage of revenues demonstrates considerable volatility early on, with losses during some quarters. However, from approximately 2020 onward, net income trends consistently positive and improves steadily, reaching levels above 15% in recent periods. This strong profitability enhancement aligns with improved gross margins, declining operating expenses, and controlled costs.
- Special and one-time charges
- The introduction of restructuring charges in recent periods, though relatively small and fluctuating, indicates some operational changes or cost realignments. An isolated loss related to a reseller agreement settlement occurred early but did not persist. Overall, these items have not significantly impaired profitability trends.