Salesforce CRM · USD

Revenues Disaggregation of Revenue Subscription and Support Revenue by the Company's Service Offerings Subscription and support revenues consisted of the following (in millions): Fiscal Year Ended January 31, 2025 2024 2023 Sales $ 8,322 $ 7,580 $ 6,831 Service 9,054 8,245 7,369 Platform and Other 7,247 6,611 5,967 Marketing and Commerce 5,281 4,912 4,516 Integration and Analytics (1) 5,775 5,189 4,338 $ 35,679 $ 32,537 $ 29,021 (1) In the fourth quarter of fiscal 2024, the Company renamed the service offering previously referred to as Data to Integration and Analytics, which includes MuleSoft and Tableau. Total Revenue by Geographic Locations Revenues by geographical region consisted of the following (in millions): Fiscal Year Ended January 31, 2025 2024 2023 Americas $ 25,143 $ 23,289 $ 21,250 Europe 8,891 8,128 7,163 Asia Pacific 3,861 3,440 2,939 $ 37,895 $ 34,857 $ 31,352 Revenues by geography are determined based on the region of the Company's contracting entity, which may be different than the region of the customer. Americas revenue attributed to the United States was approximately 93 percent during fiscal 2025, 2024 and 2023, respectively. No other country represented more than ten percent of total revenue during fiscal 2025, 2024 and 2023. Contract Balances Contract Assets The Company records a contract asset when revenue recognized on a contract exceeds the billings. Contract assets were $724 million as of January 31, 2025 as compared to $758 million as of January 31, 2024, and are included in prepaid expenses and other current assets and deferred tax assets and other assets, net on the consolidated balance sheets. Unearned Revenue Unearned revenue represents amounts that have been invoiced in advance of revenue recognition and is recognized as revenue when transfer of control to customers has occurred or services have been provided. The unearned revenue balance does not represent the total contract value of annual or multi-year, noncancellable subscription agreements. The unearned revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter.

Leases and Other Commitments Leases The Company has operating leases for corporate offices, data centers and equipment under noncancellable operating and finance leases with various expiration dates. The leases have noncancellable remaining terms of 1 year to 15 years, some of which include options to extend for up to 5 years, and some of which include options to terminate within 1 year. The components of lease expense were as follows (in millions): Fiscal Year Ended January 31, 2025 2024 2023 Operating lease cost $ 684 $ 1,041 $ 986 Finance lease cost: Amortization of right-of-use assets $ 303 $ 264 $ 198 Interest on lease liabilities 28 29 10 Total finance lease cost $ 331 $ 293 $ 208 Supplemental cash flow information related to operating and finance leases was as follows (in millions): Fiscal Year Ended January 31, 2025 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 628 $ 716 $ 769 Operating cash outflows for finance leases 27 29 10 Financing cash outflows for finance leases 380 347 180 Right-of-use assets obtained in exchange for lease obligations: Operating leases 345 456 915 Supplemental balance sheet information related to operating and finance leases was as follows (in millions): As of January 31, 2025 2024 Operating leases: Operating lease right-of-use assets $ 2,157 $ 2,366 Operating lease liabilities, current $ 579 $ 518 Noncurrent operating lease liabilities 2,380 2,644 Total operating lease liabilities $ 2,959 $ 3,162 Finance leases: Computers, equipment and software $ 1,520 $ 1,579 Accumulated depreciation (708) (525) Property and equipment, net $ 812 $ 1,054 Accrued expenses and other liabilities $ 337 $ 372 Other noncurrent liabilities 341 602 Total finance lease liabilities $ 678 $ 974 Other information related to leases was as follows: As of January 31, 2025 2024 Weighted average remaining lease term Operating leases 7 years 7 years Finance leases 3 years 3 years Weighted average discount rate Operating leases 3.2 % 2.9 % Finance leases 3.8 % 3.

Debt The components of the Company's borrowings were as follows (in millions): Instrument Date of Issuance Maturity Date Contractual Interest Rate Outstanding Principal as of January 31, 2025 Carrying Value as of January 31, 2025 Carrying Value as of January 31, 2024 2024 Senior Notes (1) July 2021 July 2024 0.625 % 0 0 999 2028 Senior Notes April 2018 April 2028 3.70 1,500 1,496 1,495 2028 Senior Sustainability Notes July 2021 July 2028 1.50 1,000 995 994 2031 Senior Notes July 2021 July 2031 1.95 1,500 1,491 1,490 2041 Senior Notes July 2021 July 2041 2.70 1,250 1,236 1,235 2051 Senior Notes July 2021 July 2051 2.90 2,000 1,979 1,978 2061 Senior Notes July 2021 July 2061 3.05 1,250 1,236 1,235 Total carrying value of debt 8,500 8,433 9,426 Less current portion of debt 0 (999) Total noncurrent debt $ 8,433 $ 8,427 (1) The Company repaid in full the 2024 Senior Notes in the second quarter of fiscal 2025. The Company was in compliance with all debt covenants as of January 31, 2025. The total estimated fair value of the Company's outstanding senior unsecured notes (the “Senior Notes”) above was $6.6 billion and $7.8 billion as of January 31, 2025 and January 31, 2024 , respectively. The fair value was determined based on the closing trading price per $100 of the Senior Notes as of the last day of trading of fiscal 2025 and fiscal 2024, and are deemed Level 2 liabilities within the fair value measurement framework. The contractual future principal payments for all borrowings as of January 31, 2025 were as follows (in millions): Fiscal Period: Fiscal 2026 $ 0 Fiscal 2027 0 Fiscal 2028 0 Fiscal 2029 2,500 Fiscal 2030 0 Thereafter 6,000 Total principal outstanding $ 8,500 Interest expense primarily from out debt instruments for fiscal 2025, 2024 and 2023 was $272 million, $283 million and $300 million, respectively, and is included in other income (expense) in the consolidated statements of operations. Revolving Credit Facility In October 2024, the Company entered into a Credit Agreement with the lenders and issuing lenders party thereto, and Bank of America, N.A., as administrative agent (the “Revolving Loan Credit Agreement”). The Revolving Loan Credit Agreement replaced the Credit Agreement, dated December 23, 2020 (as amended, the “Prior Credit Agreement”), among the Company, the lenders and the issuing lenders party thereto, and Citibank, N.A., as administrative agent, which provided for a $3.

Income Taxes The domestic and foreign components of income before provision for (benefit from) income taxes consisted of the following (in millions): Fiscal Year Ended January 31, 2025 2024 2023 Domestic $ 5,119 $ 4,045 $ 398 Foreign 2,319 905 262 $ 7,438 $ 4,950 $ 660 The provision for (benefit from) income taxes consisted of the following (in millions): Fiscal Year Ended January 31, 2025 2024 2023 Current: Federal $ 1,284 $ 940 $ 173 State 245 199 216 Foreign 925 417 397 Total 2,454 1,556 786 Deferred: Federal (982) (640) (134) State (167) (182) (203) Foreign (64) 80 3 Total (1,213) (742) (334) Provision for (benefit from) income taxes $ 1,241 $ 814 $ 452 A reconciliation of income taxes at the statutory federal income tax rate to the provision for (benefit from) income taxes included in the accompanying consolidated statements of operations is as follows (in millions): Fiscal Year Ended January 31, 2025 2024 2023 U.S. federal taxes at statutory rate $ 1,562 $ 1,040 $ 139 State, net of the federal benefit 106 19 29 Effects of non-U.S. operations (1) 315 29 287 Tax credits (270) (332) (239) Non-deductible expenses 100 43 94 Foreign-derived intangible income deduction (2) (373) (56) (55) (Windfall)/shortfall related to share-based compensation (215) (36) 31 Change in valuation allowance 51 101 171 Other, net (35) 6 (5) Provision for (benefit from) income taxes $ 1,241 $ 814 $ 452 (1) Fiscal 2024 effects of non-U.S. operations included tax benefits from foreign tax credits attributable to IRS notices. (2) Fiscal 2025 foreign-derived intangible income deduction included tax benefits related to an adjustment for fiscal 2023 and 2024. Deferred Income Taxes Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

Business Combinations Fiscal Year 2025 Spiff, Inc. In February 2024, the Company acquired all outstanding stock of Spiff, Inc. (“Spiff”), an incentive compensation management platform company. The acquisition date fair value of the consideration transferred for Spiff was $419 million, which consisted primarily of $374 million in cash. The Company recorded $323 million of goodwill which is primarily attributed to the assembled workforce and expanded market opportunities. The goodwill associated with the acquisition of Spiff has no basis and is not deductible for U.S. income tax purposes. The Company also recorded approximately $52 million of intangible assets for developed technology and customer relationships with useful lives of nine Zoomin Software Ltd. In November 2024, the Company acquired all outstanding stock of Zoomin Software Ltd. (“Zoomin”), a data management company. The acquisition date fair value of the consideration transferred for Zoomin was $374 million, which consisted primarily of $344 million in cash. The Company recorded $284 million of goodwill which is primarily attributed to the assembled workforce and expanded market opportunities. The goodwill associated with the acquisition of Zoomin has no basis and is not deductible for U.S. income tax purposes. The Company also recorded approximately $94 million of intangible assets for developed technology with a useful life of three years. The fair values assigned to assets acquired and liabilities assumed are based on management’s estimates and assumptions and may be subject to change as additional information is received and certain tax returns are finalized. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. The Company has included the financial results of Zoomin, which were not material, in its consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were also not material. Own Data Company Ltd. In November 2024, the Company acquired all outstanding stock of Own Data Company Ltd. (“Own”), a leading provider of data protection and data management solutions. The Company has included the financial results of Own, which were not material, in the consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition were not material.

The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the date of acquisition (in millions): Fair Value Cash and cash equivalents $ 44 Accounts receivable 32 Operating lease right-of-use assets, net 35 Goodwill 1,812 Intangible assets 597 Other assets 10 Accounts payable, accrued expenses and other liabilities, current and noncurrent (16) Unearned revenue (125) Operating lease liabilities (35) Deferred tax liability (211) Net assets acquired $ 2,143

Management Oversight and Governance The CTrO, reporting to the Company’s Chief Engineering & Customer Success Officer (“C/E”), is responsible for designing and implementing a security program and strategy based on the mandate provided by the Board and senior management. The CTrO has extensive experience in the management of cybersecurity risk programs, having served in various leadership roles in information technology and information security for over 15 years, including serving as the Chief Security Officer of two other large public technology companies. He also holds an undergraduate and master’s degree in computer science. We believe the Company’s business leaders, including our CEO, CFO, C/E and CLO, who have experience managing cybersecurity risk at the Company and at similar companies, have the appropriate expertise, background and depth of experience to manage risks arising from cybersecurity threats. The CTrO, in coordination with other members of senior management, works collaboratively across the Company to implement a program designed to help protect the Company’s information systems from cybersecurity threats and to promptly respond to cybersecurity incidents in accordance with the Company’s incident response and recovery plans. To facilitate the success of the Company’s cybersecurity program, cross-functional teams throughout the Company are tasked with addressing cybersecurity threats and responding to cybersecurity incidents. Through ongoing communications with these teams, the CTrO and senior management are able to be informed promptly about, and monitor the prevention, detection, investigation, mitigation and remediation of, cybersecurity threats. These teams are expected to operate pursuant to documented plans and playbooks that include processes for escalation of incidents to leadership and to the Committee and Board, as appropriate, based on the severity level of a cybersecurity incident. In addition, the Company periodically consults with outside advisors and experts to assist with assessing, identifying and managing cybersecurity risks, including to anticipate future threats and trends, and their impact on the Company’s risk management environment. Specifically, management implements the Company’s cybersecurity and risk management strategy across several areas: • Identification and Reporting . The Company has implemented a robust, cross-functional approach to identifying, assessing and managing cybersecurity threats and risks.

Portions of the Registrant’s definitive proxy statement for its 2025 Annual Meeting of Stockholders (the “Proxy Statement”), to be filed within 120 days of the Registrant’s fiscal year ended January 31, 2025, are incorporated by reference in Part III of this Annual Report on Form 10-K. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K.