SALESFORCE, INC., 10-Q filed on 8/31/2023
Quarterly Report
v3.23.2
Cover - shares
shares in Millions
 6 Months Ended
Jul. 31, 2023
Aug. 28, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jul. 31, 2023  
Document Transition Report false  
Entity File Number 001-32224  
Entity Registrant Name Salesforce, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 94-3320693  
Entity Address, Address Line One Salesforce Tower  
Entity Address, Address Line Two 415 Mission Street, 3rd Fl  
Entity Address, City or Town San Francisco  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94105  
City Area Code 415  
Local Phone Number 901-7000  
Title of 12(b) Security Common Stock, par value $0.001 per share  
Trading Symbol CRM  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   973
Amendment Flag false  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Current Fiscal Year End Date --01-31  
Entity Central Index Key 0001108524  
v3.23.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Jul. 31, 2023
Jan. 31, 2023
Current assets:    
Cash and cash equivalents $ 6,772 $ 7,016
Marketable securities 5,625 5,492
Accounts receivable, net 5,400 10,755
Costs capitalized to obtain revenue contracts, net 1,781 1,776
Prepaid expenses and other current assets 1,560 1,356
Total current assets 21,138 26,395
Property and equipment, net 3,876 3,702
Operating lease right-of-use assets, net 2,575 2,890
Noncurrent costs capitalized to obtain revenue contracts, net 2,352 2,697
Strategic investments 4,778 4,672
Goodwill 48,566 48,568
Intangible assets acquired through business combinations, net 6,182 7,125
Deferred tax assets and other assets, net 2,980 2,800
Total assets 92,447 98,849
Current liabilities:    
Accounts payable, accrued expenses and other liabilities 5,059 6,743
Operating lease liabilities, current 510 590
Unearned revenue 14,237 17,376
Debt, current 999 1,182
Total current liabilities 20,805 25,891
Noncurrent debt 8,424 9,419
Noncurrent operating lease liabilities 2,867 2,897
Other noncurrent liabilities 2,269 2,283
Total liabilities 34,365 40,490
Stockholders’ equity:    
Common stock 1 1
Treasury stock, at cost (8,057) (4,000)
Additional paid-in capital 57,345 55,047
Accumulated other comprehensive loss (258) (274)
Retained earnings 9,051 7,585
Total stockholders’ equity 58,082 58,359
Total liabilities and stockholders’ equity $ 92,447 $ 98,849
v3.23.2
Condensed Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Jul. 31, 2022
Jul. 31, 2023
Jul. 31, 2022
Revenues:        
Total revenues $ 8,603 $ 7,720 $ 16,850 $ 15,131
Cost of revenues:        
Total cost of revenues [1],[2] 2,113 2,127 4,238 4,172
Gross profit 6,490 5,593 12,612 10,959
Operating expenses:        
Research and development [1],[2] 1,220 1,329 2,427 2,647
Marketing and sales [1],[2] 3,113 3,424 6,267 6,796
General and administrative [1],[2] 632 647 1,270 1,303
Restructuring 49 0 760 [1],[2] 0 [1],[2]
Total operating expenses [1],[2] 5,014 5,400 10,724 10,746
Income from operations 1,476 193 1,888 213
Gains (losses) on strategic investments, net (29) 45 (170) 52
Other income (expense) 45 (57) 100 (113)
Income before provision for income taxes 1,492 181 1,818 152
Provision for income taxes (225) (113) (352) (56)
Net income $ 1,267 $ 68 $ 1,466 $ 96
Basic net income per share (in dollars per share) $ 1.30 $ 0.07 $ 1.50 $ 0.10
Diluted net income per share (in dollars per share) $ 1.28 $ 0.07 $ 1.49 $ 0.10
Shares used in computing basic net income per share (in shares) 975 997 977 994
Shares used in computing diluted net income per share (in shares) 986 1,001 987 1,001
Subscription and support        
Revenues:        
Total revenues $ 8,006 $ 7,143 $ 15,648 $ 13,999
Cost of revenues:        
Total cost of revenues [1],[2] 1,515 1,490 3,025 2,930
Professional services and other        
Revenues:        
Total revenues 597 577 1,202 1,132
Cost of revenues:        
Total cost of revenues [1],[2] $ 598 $ 637 $ 1,213 $ 1,242
[1] Amounts include amortization of intangible assets acquired through business combinations, as follows:
Three Months Ended July 31,Six Months Ended July 31,
2023202220232022
Cost of revenues$250 $260 $498 $535 
Marketing and sales222 232 445 469 
[2] Amounts include stock-based compensation expense, as follows:
 Three Months Ended July 31,Six Months Ended July 31,
 2023202220232022
Cost of revenues$112 $130 $215 $242 
Research and development256 297 497 576 
Marketing and sales277 326 540 617 
General and administrative79 98 152 192 
Restructuring 0 0 16 0 
v3.23.2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Jul. 31, 2022
Jul. 31, 2023
Jul. 31, 2022
Stock-based expenses $ 724 $ 851 $ 1,420 $ 1,627
Cost of revenues        
Amortization of intangibles acquired through business combinations 250 260 498 535
Stock-based expenses 112 130 215 242
Marketing and sales        
Amortization of intangibles acquired through business combinations 222 232 445 469
Stock-based expenses 277 326 540 617
Research and development        
Stock-based expenses 256 297 497 576
General and administrative        
Stock-based expenses 79 98 152 192
Restructuring        
Stock-based expenses $ 0 $ 0 $ 16 $ 0
v3.23.2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Jul. 31, 2022
Jul. 31, 2023
Jul. 31, 2022
Statement of Comprehensive Income [Abstract]        
Net income $ 1,267 $ 68 $ 1,466 $ 96
Other comprehensive income (loss), net of reclassification adjustments:        
Foreign currency translation and other gains (losses) 5 (40) 11 (109)
Unrealized gains (losses) on marketable securities and privately held debt securities (5) (6) 11 (102)
Other comprehensive income (loss), before tax 0 (46) 22 (211)
Tax effect (3) 1 (6) 22
Other comprehensive income (loss), net (3) (45) 16 (189)
Comprehensive income (loss) $ 1,264 $ 23 $ 1,482 $ (93)
v3.23.2
Condensed Consolidated Statements of Stockholders’ Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Treasury Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Loss
Retained Earnings
Beginning balance (in shares) at Jan. 31, 2022   989        
Beginning balance at Jan. 31, 2022 $ 58,131 $ 1   $ 50,919 $ (166) $ 7,377
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued (in shares)   5        
Common stock issued 85     85    
Stock-based compensation expense 776     776    
Other comprehensive income, net of tax (144)       (144)  
Net income 28         28
Ending balance (in shares) at Apr. 30, 2022   994        
Ending balance at Apr. 30, 2022 58,876 $ 1   51,780 (310) 7,405
Beginning balance (in shares) at Jan. 31, 2022   989        
Beginning balance at Jan. 31, 2022 58,131 $ 1   50,919 (166) 7,377
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Other comprehensive income, net of tax (189)          
Net income 96          
Ending balance (in shares) at Jul. 31, 2022   999        
Ending balance at Jul. 31, 2022 60,098 $ 1   52,979 (355) 7,473
Beginning balance (in shares) at Apr. 30, 2022   994        
Beginning balance at Apr. 30, 2022 58,876 $ 1   51,780 (310) 7,405
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued (in shares)   5        
Common stock issued 348     348    
Stock-based compensation expense 851     851    
Other comprehensive income, net of tax (45)       (45)  
Net income 68         68
Ending balance (in shares) at Jul. 31, 2022   999        
Ending balance at Jul. 31, 2022 60,098 $ 1   52,979 (355) 7,473
Beginning balance (in shares) at Jan. 31, 2023   1,009        
Beginning balance at Jan. 31, 2023 58,359 $ 1 $ (4,000) 55,047 (274) 7,585
Beginning balance (in shares) at Jan. 31, 2023     (28)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued (in shares)   7        
Common stock issued 283     283    
Common stock repurchased (in shares)     (11)      
Common stock repurchased (2,144)   $ (2,144)      
Stock-based compensation expense 696     696    
Other comprehensive income, net of tax 19       19  
Net income 199         199
Ending balance (in shares) at Apr. 30, 2023   1,016        
Ending balance at Apr. 30, 2023 57,412 $ 1 $ (6,144) 56,026 (255) 7,784
Ending balance (in shares) at Apr. 30, 2023     (39)      
Beginning balance (in shares) at Jan. 31, 2023   1,009        
Beginning balance at Jan. 31, 2023 58,359 $ 1 $ (4,000) 55,047 (274) 7,585
Beginning balance (in shares) at Jan. 31, 2023     (28)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Other comprehensive income, net of tax 16          
Net income 1,466          
Ending balance (in shares) at Jul. 31, 2023   1,023        
Ending balance at Jul. 31, 2023 58,082 $ 1 $ (8,057) 57,345 (258) 9,051
Ending balance (in shares) at Jul. 31, 2023     (48)      
Beginning balance (in shares) at Apr. 30, 2023   1,016        
Beginning balance at Apr. 30, 2023 57,412 $ 1 $ (6,144) 56,026 (255) 7,784
Beginning balance (in shares) at Apr. 30, 2023     (39)      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued (in shares)   7        
Common stock issued 595     595    
Common stock repurchased (in shares)     (9)      
Common stock repurchased (1,913)   $ (1,913)      
Stock-based compensation expense 724     724    
Other comprehensive income, net of tax (3)       (3)  
Net income 1,267         1,267
Ending balance (in shares) at Jul. 31, 2023   1,023        
Ending balance at Jul. 31, 2023 $ 58,082 $ 1 $ (8,057) $ 57,345 $ (258) $ 9,051
Ending balance (in shares) at Jul. 31, 2023     (48)      
v3.23.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Jul. 31, 2022
Jul. 31, 2023
Jul. 31, 2022
Operating activities:        
Net income $ 1,267 $ 68 $ 1,466 $ 96
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization [1] 890 907 2,144 1,813
Amortization of costs capitalized to obtain revenue contracts, net 476 408 946 802
Stock-based compensation expense 724 851 1,420 1,627
(Gains) losses on strategic investments, net 29 (45) 170 (52)
Changes in assets and liabilities, net of business combinations:        
Accounts receivable, net (768) (790) 5,355 5,015
Costs capitalized to obtain revenue contracts, net (331) (505) (606) (904)
Prepaid expenses and other current assets and other assets (52) 113 (343) (296)
Accounts payable and accrued expenses and other liabilities (376) 326 (1,779) (896)
Operating lease liabilities (167) (186) (335) (388)
Unearned revenue (884) (813) (3,139) (2,807)
Net cash provided by operating activities 808 334 5,299 4,010
Investing activities:        
Business combinations, net of cash acquired 0 (25) 0 (439)
Purchases of strategic investments (182) (208) (287) (431)
Sales of strategic investments 13 38 22 83
Purchases of marketable securities (1,798) (1,152) (2,166) (3,724)
Sales of marketable securities 533 451 802 892
Maturities of marketable securities 462 722 1,247 1,167
Capital expenditures (180) (203) (423) (382)
Net cash used in investing activities (1,152) (377) (805) (2,834)
Financing activities:        
Repurchases of common stock (1,949) 0 (4,003) 0
Proceeds from employee stock plans 362 181 811 455
Principal payments on financing obligations (282) (44) (392) (116)
Repayments of debt (181) (1) (1,182) (2)
Net cash provided by (used in) financing activities (2,050) 136 (4,766) 337
Effect of exchange rate changes 11 (21) 28 (46)
Net increase (decrease) in cash and cash equivalents (2,383) 72 (244) 1,467
Cash and cash equivalents, beginning of period 9,155 6,859 7,016 5,464
Cash and cash equivalents, end of period 6,772 6,931 6,772 6,931
Cash paid during the period for:        
Interest 90 92 136 138
Income taxes, net of tax refunds $ 129 $ 96 $ 251 $ 277
[1]     Includes amortization of intangible assets acquired through business combinations, depreciation of fixed assets and amortization and impairment of right-of-use assets.
v3.23.2
Summary of Business and Significant Accounting Policies
 6 Months Ended
Jul. 31, 2023
Accounting Policies [Abstract]  
Summary of Business and Significant Accounting Policies Summary of Business and Significant Accounting Policies
Description of Business
Salesforce, Inc. (the “Company”) is a global leader in customer relationship management technology that brings companies and customers together. With the Customer 360 platform, the Company delivers a single source of truth, connecting customer data across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. Since its founding in 1999, Salesforce has pioneered innovations in cloud, mobile, social, analytics and artificial intelligence, enabling companies of every size and industry to transform their businesses in the all-digital, work-from-anywhere era.
Fiscal Year
The Company’s fiscal year ends on January 31. References to fiscal 2024, for example, refer to the fiscal year ending January 31, 2024.
Basis of Presentation
The accompanying condensed consolidated balance sheet as of July 31, 2023 and the condensed consolidated statements of operations, condensed consolidated statements of comprehensive income (loss), condensed consolidated statements of stockholders' equity and condensed consolidated statements of cash flows for the three and six months ended July 31, 2023 and 2022, respectively, are unaudited.
These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, the unaudited condensed consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of July 31, 2023, and its results of operations, including its comprehensive income (loss), stockholders' equity and its cash flows for the three and six months ended July 31, 2023 and 2022. All adjustments are of a normal recurring nature. The results for the three and six months ended July 31, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2024.
These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on March 8, 2023.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s condensed consolidated financial statements and notes thereto.
Significant estimates and assumptions made by management include the determination of:
•the fair value of assets acquired and liabilities assumed for business combinations;
•the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations;
•the valuation of privately-held strategic investments;
•the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions;
•the average period of benefit associated with costs capitalized to obtain revenue contracts;
•the useful lives of intangible assets; and
•the fair value of certain stock awards issued.
Actual results could differ materially from these estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, which forms the basis for making judgments about the carrying values of assets and liabilities as well as income and expenses to be recognized.
Principles of Consolidation
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Segments
The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. Over the past few years, the Company has completed a number of acquisitions which have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, and operates in multiple countries, the Company’s business operates in one operating segment because most of the Company's service offerings operate on the Customer 360 Platform and are deployed in a nearly identical manner, and the Company’s CODM evaluates the Company’s financial information and resources, and assesses the performance of these resources, on a consolidated basis.
Concentrations of Credit Risk, Significant Customers and Investments
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. The Company monitors and manages the overall exposure of its cash balances to individual financial institutions on an ongoing basis. The Company’s marketable securities portfolio consists primarily of investment-grade securities, and the Company’s policies limit the amount of credit exposure to any one issuer. The Company does not require collateral for accounts receivable. The Company maintains an allowance for its doubtful accounts receivable for estimated credit losses. This allowance is based upon historical loss patterns, the number of days that billings are past due, an evaluation of the potential risk of loss associated with delinquent accounts and current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss patterns. The Company records the allowance against bad debt expense through the condensed consolidated statements of operations, included in general and administrative expense, up to the amount of revenues recognized to date. Any incremental allowance is recorded as an offset to unearned revenue on the condensed consolidated balance sheets. Receivables are written off and charged against the recorded allowance when the Company has exhausted collection efforts without success.
No single customer accounted for more than five percent of accounts receivable as of July 31, 2023 and January 31, 2023. No single customer accounted for five percent or more of total revenue during the six months ended July 31, 2023 and 2022. As of July 31, 2023 and January 31, 2023, assets located outside the Americas were 15 percent of total assets. As of July 31, 2023 and January 31, 2023, assets located in the United States were 84 percent and 83 percent of total assets, respectively.
The Company is also exposed to concentrations of risk in its strategic investment portfolio, including within specific industries, as the Company primarily invests in enterprise cloud companies, technology startups and system integrators. As of July 31, 2023, the Company held two investments, both privately held, with carrying values that were individually greater than five percent of its total strategic investments portfolio and represented 16 percent of the portfolio in aggregate. As of January 31, 2023, the Company held two investments, both privately held, with carrying values that were individually greater than five percent of its strategic investment portfolio and represented 16 percent of the portfolio in aggregate.
Revenue Recognition
The Company derives its revenues from two sources: (1) subscription and support revenues and (2) professional services and other revenues. Subscription and support revenues include subscription fees from customers accessing the Company’s enterprise cloud computing services (collectively, “Cloud Services”), software license revenues from the sales of term and perpetual licenses and support revenues from the sales of support and updates beyond the basic subscription or software license sales. Professional services and other revenues include professional and advisory services for process mapping, project management and implementation services and training services.
Revenue is recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, for example, overage fees, contingent fees or service level penalties, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur.
The Company determines the amount of revenue to be recognized through the application of the following steps:
•identification of the contract, or contracts, with a customer;
•identification of the performance obligations in the contract;
•determination of the transaction price;
•allocation of the transaction price to the performance obligations in the contract; and
•recognition of revenue when or as the Company satisfies the performance obligations.
Subscription and Support Revenues
Subscription and support revenues are comprised of fees that provide customers with access to Cloud Services, software licenses and related support and updates during the term of the arrangement.
Cloud Services allow customers to use the Company's multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. Substantially all of the Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions.
Subscription and support revenues also include revenues associated with term and perpetual software licenses that provide the customer with a right to use the software as it exists when made available. Revenues from term and perpetual software licenses are generally recognized at the point in time when the software is made available to the customer. Revenue from software support and updates is recognized as the support and updates are provided, which is generally ratably over the contract term.
The Company typically invoices its customers annually and its payment terms provide that customers pay within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control to customers has occurred.
Professional Services and Other Revenues
The Company’s professional services contracts are either on a time and materials, fixed price or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services contracts. Other revenues consist primarily of training revenues recognized as such services are performed.
Significant Judgments - Contracts with Multiple Performance Obligations
The Company enters into contracts with its customers that may include promises to transfer multiple performance obligations such as Cloud Services, software licenses, support and updates and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are concluded to be distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment.
Cloud Services, software licenses and support and updates services are generally concluded to be distinct because such offerings are often sold separately. In determining whether professional services are distinct, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription start date and the contractual dependence of the service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that professional services included in contracts with multiple performance obligations are distinct.
The Company allocates the transaction price to each performance obligation on a relative SSP basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation.
The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, the Company's go-to-market strategy, historical and current sales and contract prices. In instances where the Company does not sell or price a product or service separately, the Company determines SSP using information that may include market conditions or other observable inputs. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP.
In certain cases, the Company is able to establish SSP based on observable prices of products or services sold or priced separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when indicated by the distribution of its observable prices.
Alternatively, the Company uses a range of amounts to estimate SSP when the pricing practices or distribution of the observable prices are highly variable. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography.
Costs Capitalized to Obtain Revenue Contracts
The Company capitalizes incremental costs of obtaining revenue contracts related to non-cancelable Cloud Services subscription, ongoing Cloud Services support and license support and updates. For contracts with on-premises software licenses where revenue is recognized upfront when the software is made available to the customer, costs allocable to those licenses are expensed as they are incurred. Capitalized amounts consist primarily of sales commissions paid to the Company’s direct sales
force. Capitalized amounts also include (1) amounts paid to employees other than the direct sales force who earn incentive payouts under annual compensation plans that are tied to the value of contracts acquired, (2) commissions paid to employees upon renewals of subscription and support contracts, (3) the associated payroll taxes and fringe benefit costs associated with the payments to the Company’s employees and (4) to a lesser extent, success fees paid to partners in emerging markets where the Company has a limited presence.
Costs capitalized related to new revenue contracts are amortized on a straight-line basis over four years, which is longer than the typical initial contract period, but reflects the estimated average period of benefit, including expected contract renewals. In arriving at this average period of benefit, the Company evaluates both qualitative and quantitative factors which included the estimated life cycles of its offerings and its customer attrition. Additionally, the Company amortizes capitalized costs for renewals and success fees paid to partners over two years.
The capitalized amounts are recoverable through future revenue streams under all non-cancelable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment.
Amortization of capitalized costs to obtain revenue contracts is included in marketing and sales expense in the accompanying condensed consolidated statements of operations. There were no impairments of costs to obtain revenue contracts for the three and six months ended July 31, 2023 and 2022.
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value.
Marketable Securities
The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the condensed consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the condensed consolidated statements of comprehensive income (loss) until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of the excess, if any, is caused by expected credit losses. Expected credit losses on securities are recognized in other income (expense) on the condensed consolidated statements of operations, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders' equity. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is included as a component of investment income within other income (expense) on the condensed consolidated statements of operations.
Strategic Investments
The Company holds strategic investments in privately held debt and equity securities and publicly held equity securities in which the Company does not have a controlling interest.
Privately held equity securities where the Company lacks a controlling financial interest but does exercise significant influence are accounted for under the equity method. Privately held equity securities not accounted for under the equity method are recorded at cost and adjusted only for observable transactions for same or similar investments of the same issuer or impairment events (referred to as the measurement alternative). All gains and losses on privately held equity securities, realized and unrealized, are recorded through gains (losses) on strategic investments, net on the condensed consolidated statements of operations. Privately held debt securities are recorded at fair value with changes in fair value recorded through accumulated other comprehensive loss on the condensed consolidated balance sheet.
Valuations of privately held securities are inherently complex and require judgment due to the lack of readily available market data. In determining the estimated fair value of its strategic investments in privately held companies, the Company utilizes the most recent data available to the Company. The Company assesses its privately held debt and equity securities in its strategic investment portfolio at least quarterly for impairment. The Company’s impairment analysis encompasses an assessment of both qualitative and quantitative factors, including the investee's financial metrics, market acceptance of the investee's product or technology and the rate at which the investee is using its cash. If the investment is considered impaired, the Company estimates the fair value of the investment and recognizes any resulting impairment through the condensed consolidated statements of operations.
Publicly held equity securities are measured at fair value with changes recorded through gains (losses) on strategic investments, net on the condensed consolidated statements of operations.
The Company may enter into strategic investments or other investments that are considered variable interest entities (“VIEs”). If the Company is a primary beneficiary of a VIE, it is required to consolidate the entity. To determine if the Company is the primary beneficiary of a VIE, the Company evaluates whether it has (1) the power to direct the activities that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The assessment of whether the Company is the primary beneficiary of its VIE investments requires significant assumptions and judgments. VIEs that are not consolidated are accounted for under the measurement alternative, equity method, amortized cost, or other appropriate methodology based on the nature of the interest held.
Fair Value Measurement
The Company measures its cash and cash equivalents, marketable securities, publicly held equity securities and foreign currency derivative contracts at fair value. In addition, the Company measures certain of its strategic investments, including its privately held debt securities and privately held equity securities, at fair value on a nonrecurring basis when there has been an observable price change in a same or similar security or an impairment. The additional disclosures regarding the Company’s fair value measurements are included in Note 4 “Fair Value Measurement.”
Derivative Financial Instruments
The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk associated with intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. The Company uses forward currency derivative contracts, which are not designated as hedging instruments, to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Canadian Dollar, Australian Dollar, Brazilian Real and Japanese Yen. The Company’s derivative financial instruments program is not designated for trading or speculative purposes. The Company generally enters into master netting arrangements with the financial institutions with which it contracts for such derivatives, which permit net settlement of transactions with the same counterparty, thereby reducing risk of credit-related losses from a financial institutions' nonperformance. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties. The notional amount of foreign currency derivative contracts as of July 31, 2023 and January 31, 2023 was $5.0 billion and $6.0 billion, respectively.
Outstanding foreign currency derivative contracts are recorded at fair value on the condensed consolidated balance sheets. Unrealized gains or losses due to changes in the fair value of these derivative contracts, as well as realized gains or losses from their net settlement, are recognized as other income (expense) consistent with the offsetting gains or losses resulting from the remeasurement or settlement of the underlying foreign currency denominated receivables and payables.
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:
Buildings and building improvements
10 to 40 years
Computers, equipment and software
3 to 5 years
Furniture and fixtures5 years
Leasehold improvements
Shorter of the estimated lease term or 10 years
The Company estimates the useful lives of property and equipment upon initial recognition and periodically evaluates the useful lives and whether events or changes in circumstances warrant a revision to the useful lives.
When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses.
Leases
The Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s condensed consolidated balance sheets. Assets (also referred to as ROU assets) and liabilities recognized from finance leases are included in property and equipment, accrued expenses and other liabilities and other noncurrent liabilities, respectively, on the Company’s condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term. The corresponding lease liabilities represent its obligation to make lease payments arising from the lease. The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less for any asset classes.
Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement, net of any future tenant incentives. The Company has lease agreements which contain both lease and non-lease components, which it has elected to combine for all asset classes. As such, minimum lease payments include fixed payments for non-lease components within a lease agreement, but exclude variable lease payments not dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation from period to period. The Company’s lease terms may include options to extend or terminate the lease. Periods beyond the noncancellable term of the lease are included in the measurement of the lease liability only when it is reasonably certain that the Company will exercise the associated extension option or waive the termination option. The Company reassesses the lease term if and when a significant event or change in circumstances occurs within the control of the Company. As most of the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. The Company's incremental borrowing rate is an estimate of the interest rate the Company would have to pay to borrow on a collateralized basis with similar terms and payments, in the economic environment where the leased asset is located.
The lease ROU asset is recognized based on the lease liability, adjusted for any rent payments or initial direct costs incurred or tenant incentives received prior to commencement.
Lease expense for operating leases, which includes amortization expense of ROU assets, is recognized on a straight-line basis over the lease term. Amortization expense of finance lease ROU assets is recognized on a straight-line basis over the lease term, and interest expense for finance lease liabilities is recognized based on the incremental borrowing rate. Expense for variable lease payments are recognized as incurred.
On the lease commencement date, the Company also establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are included in property and equipment, net and are amortized over the lease term.
The Company has entered into subleases or has made decisions and taken actions to exit and sublease certain unoccupied leased office space. Similar to other long-lived assets discussed below, management tests ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. For leased assets, such circumstances would include the decision to leave a leased facility prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease.
Intangible Assets Acquired through Business Combinations
Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization.
Impairment Assessment
The Company evaluates intangible assets and other long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.
The Company evaluates and tests the recoverability of its goodwill for impairment at least annually during its fourth quarter of each fiscal year or more often if and when circumstances indicate that goodwill may not be recoverable.
Business Combinations
The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions, tax-related valuation allowances and pre-acquisition contingencies are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s condensed consolidated statements of operations.
In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will generally recognize a gain or loss to settle that relationship as of the acquisition date within operating income on the condensed
consolidated statements of operations. In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the strategic investment is recorded as a gain or loss and recorded within net gains (losses) on strategic investments in the condensed consolidated statements of operations.
Restructuring
The Company generally recognizes employee severance costs when payments are probable and amounts are estimable or when notification occurs, depending on the region an employee works. Costs related to contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs are recognized as incurred.
Stock-Based Compensation Expense
Stock-based compensation expense is measured based on grant date at fair value using the Black-Scholes option pricing model for stock options and the grant date closing stock price for restricted stock awards. The Company recognizes stock-based compensation expense related to stock options and restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years. The estimated forfeiture rate applied is based on historical forfeiture rates.
Stock-based compensation expense related to the Company’s Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) is measured based on grant date at fair value using the Black-Scholes option pricing model. The Company recognizes stock-based compensation expense related to shares issued pursuant to the 2004 Employee Stock Purchase Plan on a straight-line basis over the offering period, which is 12 months. The ESPP allows employees to purchase shares of the Company's common stock at a 15 percent discount from the lower of the Company’s stock price on (i) the first day of the offering period or on (ii) the last day of the purchase period and also allows employees to reduce their percentage election once during a six-month purchase period (December 15 and June 15 of each fiscal year), but not to increase that election until the next one-year offering period. The ESPP also includes a reset provision for the purchase price if the stock price on the purchase date is less than the stock price on the offering date.
The Company, at times, grants performance share awards to executive officers and other members of senior management, which may include a market condition or performance condition, or both. Stock-based compensation expense related to awards with a market condition are measured at fair value using a Monte Carlo simulation model and stock-based compensation expense related to these awards is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term. Stock-based compensation expense related to awards with a performance condition are measured based on the grant date closing stock price and stock-based compensation expense related to these awards is recognized based on the requisite service period elapsed, as well as the probability of achievement and estimated attainment of the performance condition as of the end of our reporting period.
The Company, at times, grants unvested restricted shares to employee stockholders of certain acquired companies in lieu of cash consideration. These awards are generally subject to continued post-acquisition employment. Therefore, the Company accounts for them as post-acquisition stock-based compensation expense. The Company recognizes stock-based compensation expense equal to the grant date fair value of the restricted stock awards, based on the closing stock price on grant date, on a straight-line basis over the requisite service period of the awards, which is generally four years. 
Income Taxes
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws is recognized in the condensed consolidated statements of operations in the period that includes the enactment date.
The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, solely based on its technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision.
Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income,
the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed.
Foreign Currency Translation
The functional currency of the Company’s major foreign subsidiaries is generally the local currency. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the condensed consolidated statements of comprehensive income (loss). Foreign currency transaction gains and losses are included in other income (expense) in the condensed consolidated statements of operations for the period.
Warranties and Indemnification
The Company’s enterprise cloud computing services are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company’s online help documentation under normal use and circumstances.
The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any material liabilities related to such obligations in the accompanying condensed consolidated financial statements.
The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions.
v3.23.2
Revenues
 6 Months Ended
Jul. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Disaggregation of Revenue
Subscription and Support Revenue by the Company's Service Offerings
Subscription and support revenues consisted of the following (in millions):
 Three Months Ended July 31,Six Months Ended July 31,
 2023202220232022
Sales $1,895 $1,695 $3,705 $3,327 
Service 2,049 1,828 4,013 3,589 
Platform and Other 1,638 1,478 3,205 2,897 
Marketing and Commerce1,238 1,121 2,408 2,210 
Data (1) 1,186 1,021 2,317 1,976 
$8,006 $7,143 $15,648 $13,999 
(1) Data is comprised of revenue from Analytics, which includes Tableau, and Integration, which includes Mulesoft.
Total Revenue by Geographic Locations
Revenues by geographical region consisted of the following (in millions):
 Three Months Ended July 31,Six Months Ended July 31,
 2023202220232022
Americas$5,769 $5,261 $11,251 $10,232 
Europe1,974 1,745 3,925 3,483 
Asia Pacific860 714 1,674 1,416 
$8,603 $7,720 $16,850 $15,131 
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 and 92 percent during the three months ended July 31, 2023 and 2022. Americas’ revenue attributed to the United States was approximately 93 percent during the six months ended July 31, 2023 and 2022. No other country represented more than ten percent of total revenue during the three and six months ended July 31, 2023 and 2022.
Contract Balances
Contract Assets
The Company records a contract asset when revenue recognized on a contract exceeds the billings. Contract assets were $700 million as of July 31, 2023 as compared to $648 million as of January 31, 2023, and are included in prepaid expenses and other current assets and deferred tax assets and other assets, net on the condensed 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, non-cancelable 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.
The change in unearned revenue was as follows (in millions):
Three Months Ended July 31,Six Months Ended July 31,
2023202220232022
Unearned revenue, beginning of period$15,121 $13,636 $17,376 $15,628 
Billings and other (1)7,723 6,884 13,660 12,212 
Contribution from contract asset(4)23 51 112 
Revenue recognized over time(8,178)(7,336)(16,015)(14,392)
Revenue recognized at a point in time(425)(384)(835)(739)
Unearned revenue from business combinations0 2 0 4 
Unearned revenue, end of period$14,237 $12,825 $14,237 $12,825 
(1) Other includes, for example, the impact of foreign currency translation.
The majority of revenue recognized for these services in the period was included in the unearned revenue balance as of the beginning of the period.
Revenue recognized over time primarily includes Cloud Services subscription and support revenue, which is generally recognized ratably over time, and professional services and other revenue, which is generally recognized ratably or as delivered.
Revenue recognized at a point in time substantially consists of on-premises software licenses.
Remaining Performance Obligation
Remaining performance obligation represents contracted revenue that has not yet been recognized and includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to the remaining performance obligation is based on SSP. Remaining performance obligation is influenced by several factors, including seasonality, the timing of renewals, the timing of software license deliveries, average contract terms and foreign currency exchange rates. Remaining performance obligation is also impacted by acquisitions. Unbilled portions of the remaining performance obligation denominated in foreign currencies are revalued each period based on the period end exchange rates.
Remaining performance obligation is subject to future economic risks, including bankruptcies, regulatory changes and other market factors.
The Company excludes amounts related to performance obligations from professional services contracts that are billed and recognized on a time and materials basis.
The majority of the Company's noncurrent remaining performance obligation is expected to be recognized in the next 13 to 36 months.
Remaining performance obligation consisted of the following (in billions):
 CurrentNoncurrentTotal
As of July 31, 2023$24.1 $22.5 $46.6 
As of January 31, 2023 $24.6 $24.0 $48.6 
v3.23.2
Investments
 6 Months Ended
Jul. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Marketable Securities
At July 31, 2023, marketable securities consisted of the following (in millions):
Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair Value
Corporate notes and obligations$3,199 $2 $(79)$3,122 
U.S. treasury securities550 0 (13)537 
Mortgage-backed obligations261 0 (13)248 
Asset-backed securities1,199 1 (17)1,183 
Municipal securities129 0 (5)124 
Commercial paper150 0 0 150 
Covered bonds90 0 (5)85 
Other179 0 (3)176 
Total marketable securities$5,757 $3 $(135)$5,625 
At January 31, 2023, marketable securities consisted of the following (in millions):
Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair Value
Corporate notes and obligations$3,442 $4 $(92)$3,354 
U.S. treasury securities381 0 (11)370 
Mortgage-backed obligations190 0 (12)178 
Asset-backed securities1,004 1 (20)985 
Municipal securities175 0 (6)169 
Commercial paper278 0 0 278 
Covered bonds105 0 (4)101 
Other59 0 (2)57 
Total marketable securities$5,634 $5 $(147)$5,492 
The contractual maturities of the investments classified as marketable securities were as follows (in millions):
 As of
 July 31, 2023January 31, 2023
Due within 1 year$2,221 $2,380 
Due in 1 year through 5 years3,395 3,104 
Due in 5 years through 10 years9 8 
$5,625 $5,492 
Strategic Investments
Strategic investments by form and measurement category as of July 31, 2023 were as follows (in millions):
 Measurement Category
 Fair ValueMeasurement AlternativeOtherTotal
Equity securities$52 $4,519 $138 $4,709 
Debt securities and other investments 0 0 69 69 
Balance as of July 31, 2023
$52 $4,519 $207 $4,778 
Strategic investments by form and measurement category as of January 31, 2023 were as follows (in millions):
 Measurement Category
 Fair ValueMeasurement AlternativeOtherTotal
Equity securities$48 $4,479 $76 $4,603 
Debt securities and other investments0 0 69 69 
Balance as of January 31, 2023
$48 $4,479 $145 $4,672 
The Company holds investments in, or management agreements with, VIEs which the Company does not consolidate because it is not considered the primary beneficiary of these entities. The carrying value of VIEs within strategic investments was $419 million and $354 million, as of July 31, 2023 and January 31, 2023, respectively.
Gains (Losses) on Strategic Investments, Net
The components of gains and losses on strategic investments were as follows (in millions):
2Three Months Ended July 31,Six Months Ended July 31,
2023202220232022
Unrealized gains (losses) recognized on publicly traded equity securities, net$2 $(29)$2 $(103)
Unrealized gains recognized on privately held equity securities, net13 60 51 117 
Impairments on privately held equity and debt securities(80)(42)(257)(53)
Unrealized losses, net(65)(11)(204)(39)
Realized gains on sales of securities, net36 56 34 91 
Gains (losses) on strategic investments, net$(29)$45 $(170)$52 
Unrealized gains and losses recognized on privately held equity securities, net includes upward and downward adjustments from equity securities accounted for under the measurement alternative, as well as gains and losses from private equity securities in other measurement categories. For privately held securities accounted for under the measurement alternative, the Company recorded upward adjustments of $6 million and $52 million and impairments and downward adjustments of $81 million and $20 million for the three months ended July 31, 2023 and 2022, respectively, and upward adjustments of $52 million and $130 million and impairments of $256 million and $30 million for the six months ended July 31, 2023 and 2022, respectively.
Realized gains on sales of securities, net reflects the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.
v3.23.2
Fair Value Measurement
 6 Months Ended
Jul. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1.    Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2.    Significant other inputs that are directly or indirectly observable in the marketplace.
Level 3.    Significant unobservable inputs which are supported by little or no market activity.
All of the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are classified within Level 1 or Level 2 because the Company’s cash equivalents, marketable securities and foreign currency derivative contracts are valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs.
The following table presents information about the Company’s assets and liabilities that were measured at fair value as of July 31, 2023 and indicates the fair value hierarchy of the valuation (in millions):
DescriptionQuoted Prices in
Active Markets
for Identical Assets
(Level 1)		Significant Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Fair Value
Cash equivalents (1):
Time deposits$0 $866 $0 $866 
Money market mutual funds3,276 0 0 3,276 
Cash equivalent securities 0 656 0 656 
Marketable securities:
Corporate notes and obligations0 3,122 0 3,122 
U.S. treasury securities0 537 0 537 
Mortgage-backed obligations0 248 0 248 
Asset-backed securities0 1,183 0 1,183 
Municipal securities0 124 0 124 
Commercial paper0 150 0 150 
Covered bonds0 85 0 85 
Other0 176 0 176 
Strategic investments:
Equity securities52 0 0 52 
Total assets$3,328 $7,147 $0 $10,475 
(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $2.0 billion of cash, as of July 31, 2023.
The following table presents information about the Company’s assets and liabilities that were measured at fair value as of January 31, 2023 and indicates the fair value hierarchy of the valuation (in millions):
DescriptionQuoted Prices in
Active Markets
for Identical Assets
(Level 1)		Significant Other
Observable Inputs (Level 2)		Significant
Unobservable
Inputs
(Level 3)		Fair Value
Cash equivalents (1):
Time deposits$0 $1,877 $0 $1,877 
Money market mutual funds1,795 0 0 1,795 
Cash equivalent securities0 794 0 794 
Marketable securities:
Corporate notes and obligations0 3,354 0 3,354 
U.S. treasury securities0 370 0 370 
Mortgage-backed obligations0 178 0 178 
Asset-backed securities0 985 0 985 
Municipal securities0 169 0 169 
Commercial paper0 278 0 278 
Covered bonds0 101 0 101 
Other0 57 0 57 
Strategic investments:
Equity securities48 0 0 48 
Total assets$1,843 $8,163 $0 $10,006 
(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $2.6 billion of cash, as of January 31, 2023.
Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring Basis
Substantially all of the Company's privately held debt and equity securities and other investments are recorded at fair value on a non-recurring basis. The estimation of fair value for these investments requires the use of significant unobservable inputs, and as a result, the Company deems these assets as Level 3 within the fair value measurement framework. For privately held equity investments without a readily determinable fair value, the Company applies valuation methods based on information available, including the market approach and option pricing models (“OPM”). Observable transactions, such as the issuance of new equity by an investee, are indicators of investee enterprise value and are used to estimate the fair value of the privately held equity investments. An OPM may be utilized to allocate value to the various classes of securities of the investee, including classes owned by the Company. Such information, available to the Company from investee companies, is supplemented with estimates such as volatility, expected time to liquidity and the rights and obligations of the securities the Company holds. When indicators of impairment are observed for privately held equity securities, the Company generally uses the market approach to estimate the fair value of its investment, giving consideration to the latest observable transactions, as well as the investee's current and projected financial performance and other significant inputs and assumptions, including estimated time to exit, selection and analysis of guideline public companies and the rights and obligations of the securities the Company holds. The Company's privately held debt and equity securities and other investments amounted to $4.7 billion and $4.6 billion as of July 31, 2023 and January 31, 2023.
v3.23.2
Leases and Other Commitments
 6 Months Ended
Jul. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Leases and Other Commitments Leases and Other Commitments
Leases
The Company has leases for corporate offices, data centers and equipment under non-cancelable operating and finance leases with various expiration dates.
Total operating lease costs were $191 million and $220 million for the three months ended July 31, 2023 and 2022, respectively, and were $660 million and $453 million for the six months ended July 31, 2023 and 2022, respectively. Included in operating lease costs are amounts related to restructuring charges, which are discussed in Note 8 “Restructuring”.
As of July 31, 2023, the maturities of lease liabilities under non-cancelable operating and finance leases were as follows (in millions):
Operating Leases Finance Leases
Fiscal Period:
Remaining six months of fiscal 2024$243 $184 
Fiscal 2025657 378 
Fiscal 2026585 312 
Fiscal 2027518 198 
Fiscal 2028462 29 
Thereafter1,303 0 
Total minimum lease payments3,768 1,101 
Less: Imputed interest(391)(52)
Total$3,377 $1,049 
As of July 31, 2023, the Company has additional operating and finance leases that have not yet commenced totaling $268 million, which are not reflected on the condensed consolidated balance sheets or the tables above. These leases will commence between fiscal year 2024 and fiscal year 2025 with lease terms of 4 to 17 years.
Other Balance Sheet Accounts
Accounts payable, accrued expenses and other liabilities as of July 31, 2023 included approximately $1.6 billion of accrued compensation as compared to $2.6 billion as of January 31, 2023.
v3.23.2
Intangible Assets Acquired Through Business Combinations and Goodwill
 6 Months Ended
Jul. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Acquired Through Business Combinations and Goodwill Intangible Assets Acquired Through Business Combinations and Goodwill
Intangible Assets Acquired Through Business Combinations
Intangible assets acquired through business combinations were as follows (in millions):
Intangible Assets, GrossAccumulated AmortizationIntangible Assets, NetWeighted
Average
Remaining Useful Life (Years)
January 31, 2023Additions and retirements, net July 31, 2023January 31, 2023Expense and retirements, netJuly 31, 2023January 31, 2023July 31, 2023July 31, 2023
Acquired developed technology$4,844 $0 $4,844 $(2,471)$(498)$(2,969)$2,373 $1,875 2.5
Customer relationships6,691 0 6,691 (2,162)(420)(2,582)4,529 4,109 5.2
Other (1)303 0 303 (80)(25)(105)223 198 4.0
Total$11,838 $0 $11,838 $(4,713)$(943)$(5,656)$7,125 $6,182 4.4
(1) Included in other are in-place leases, trade names, trademarks and territory rights.
Amortization of intangible assets resulting from business combinations for the three months ended July 31, 2023 and 2022 was $472 million and $492 million, respectively, and for the six months ended July 31, 2023 and 2022 was $943 million and $1.0 billion, respectively.
The expected future amortization expense for intangible assets as of July 31, 2023 was as follows (in millions):
Fiscal Period:
Remaining six months of fiscal 2024$924 
Fiscal 20251,597 
Fiscal 20261,355 
Fiscal 2027990 
Fiscal 2028620 
Thereafter696 
Total amortization expense$6,182 
Goodwill
Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired.
The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions):
Balance as of January 31, 2023$48,568 
Adjustments (1)(2)
Balance as of July 31, 2023$48,566 
(1) Adjustments include the effect of foreign currency translation.
v3.23.2
Debt
 6 Months Ended
Jul. 31, 2023
Debt Disclosure [Abstract]  
Debt Debt
The components of the Company's borrowings were as follows (in millions):
InstrumentDate of IssuanceMaturity DateContractual Interest Rate
Outstanding Principal as of July 31, 2023
Carrying Value as of July 31, 2023Carrying Value as of January 31, 2023
2023 Senior Notes (1) April 2018April 20233.25 %$0 $0 $1,000 
Loan assumed on 50 Fremont (2) February 2015June 20233.75 0 0 182 
2024 Senior NotesJuly 2021July 20240.625 1,000 999 998 
2028 Senior NotesApril 2018April 20283.70 1,500 1,494 1,493 
2028 Senior Sustainability NotesJuly 2021July 20281.50 1,000 993 992 
2031 Senior NotesJuly 2021July 20311.95 1,500 1,490 1,489 
2041 Senior NotesJuly 2021July 20412.70 1,250 1,235 1,235 
2051 Senior NotesJuly 2021July 20512.90 2,000 1,977 1,977 
2061 Senior NotesJuly 2021July 20613.05 1,250 1,235 1,235 
Total carrying value of debt$9,500 9,423 10,601 
Less current portion of debt(999)(1,182)
Total noncurrent debt$8,424 $9,419 
(1) The Company repaid in full the 2023 Senior Notes in the first quarter of fiscal 2024.
(2) The Company repaid in full the Loan assumed on 50 Fremont in the second quarter of fiscal 2024.
The Company was in compliance with all debt covenants as of July 31, 2023.
The total estimated fair value of the Company's outstanding senior unsecured notes (the “Senior Notes”) above was $7.6 billion and $8.8 billion as of July 31, 2023 and January 31, 2023, 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 the second quarter of fiscal 2024 and the last day of trading of fiscal 2023, respectively, and are deemed Level 2 liabilities within the fair value measurement framework.
The contractual future principal payments for all borrowings as of July 31, 2023 were as follows (in millions):
Fiscal Period:
Remaining six months of fiscal 2024$0 
Fiscal 20251,000 
Fiscal 20260 
Fiscal 20270 
Fiscal 20280 
Thereafter8,500 
Total principal outstanding$9,500 
Revolving Credit Facility
In December 2020, the Company entered into a Credit Agreement with Citibank, N.A., as administrative agent, and certain other institutional lenders (the “Revolving Loan Credit Agreement”) that provides for a $3.0 billion unsecured revolving credit facility (“Credit Facility”) and matures in December 2025. The Company may use the proceeds of future borrowings under the Credit Facility for general corporate purposes, which may include, without limitation, financing the consideration for, fees, costs and expenses related to any acquisition. The Company amended the Revolving Loan Credit Agreement in April 2022 and May 2023, in each case to reflect certain administrative changes.
There were no outstanding borrowings under the Credit Facility as of July 31, 2023.
v3.23.2
Restructuring
 6 Months Ended
Jul. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring RestructuringIn January 2023, the Company announced a restructuring plan (the “Restructuring Plan”) intended to reduce operating costs, improve operating margins, and continue advancing the Company’s ongoing commitment to profitable growth. This plan included a reduction of the Company’s workforce, and select real estate exits and office space reductions within certain markets. The actions associated with the employee restructuring under the Restructuring Plan are expected to be substantially complete by the end of the Company’s fiscal 2024, subject to local law and consultation requirements. The actions associated with the real estate restructuring under the Restructuring Plan are expected to be fully complete in fiscal 2026.
The following table summarizes the activities related to the Restructuring Plan for the three and six months ended July 31, 2023 (in millions):
Three Months Ended July 31, 2023Six Months Ended July 31, 2023
Workforce ReductionOffice Space ReductionsTotalWorkforce ReductionOffice Space ReductionsTotal
Liability, beginning of the period$614 $0 $614 $607 $0 $607 
Charges45 4 49 389 371 760 
Payments(540)(2)(542)(860)(2)(862)
Non-cash items(2)(2)(4)(19)(369)(388)
Liability, end of the period$117 $0 $117 $117 $0 $117 
As of July 31, 2023, the liability for restructuring charges, which is related to workforce reductions, is included in accounts payable, accrued expenses and other liabilities on the condensed consolidated balance sheet. The charges reflected in the table above related to workforce reduction included charges for employee transition, severance payments, employee benefits and share-based compensation.
v3.23.2
Stockholders' Equity
 6 Months Ended
Jul. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders’ Equity
Stock option activity for the six months ended July 31, 2023 was as follows:
 Options Outstanding
 Outstanding
Stock
Options
(in millions)		Weighted-
Average
Exercise Price		Aggregate
Intrinsic Value (in millions)
Balance as of January 31, 202323 $175.23 
Exercised(4)131.54 
Plan shares expired or canceled(1)203.61 
Balance as of July 31, 202318 $182.12 $2,162 
Vested or expected to vest18 $181.03 $2,088 
Exercisable as of July 31, 202311 $168.73 $1,435 
Restricted stock activity for the six months ended July 31, 2023 was as follows:
 Restricted Stock Outstanding
 Outstanding
(in millions)		Weighted-Average Grant Date Fair ValueAggregate
Intrinsic
Value (in millions)
Balance as of January 31, 202329 $204.62 
Granted - restricted stock units and awards12 192.96 
Granted - performance-based stock units1 192.55 
Canceled(4)201.46 
Vested and converted to shares(7)205.09 
Balance as of July 31, 202331 $199.82 $7,016 
Expected to vest26 $5,931 
The aggregate expected stock-based compensation expense remaining to be recognized as of July 31, 2023 was as follows (in millions):
Fiscal Period:
Remaining six months of fiscal 2024$1,424 
Fiscal 20252,253 
Fiscal 20261,619 
Fiscal 2027775 
Thereafter132 
Total stock-based compensation expense$6,203 
The aggregate expected stock-based compensation expense remaining to be recognized reflects only outstanding stock awards as of July 31, 2023 and assumes no forfeiture activity and no changes in the expected level of attainment of performance share grants based on the Company’s financial performance relative to certain targets.
Share Repurchase Program
In August 2022, the Board of Directors authorized a program to repurchase up to $10.0 billion of the Company’s common stock (the “Share Repurchase Program”). In February 2023, the Board of Directors authorized an additional $10.0 billion in repurchases under the Share Repurchase Program for an aggregate total authorization of $20.0 billion. The Share Repurchase Program does not have a fixed expiration date and does not obligate the Company to acquire any specific number of shares. Under the Share Repurchase Program, shares of common stock may be repurchased using a variety of methods, including privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as part of accelerated share repurchases and other methods. The timing, manner, price and amount of any repurchases are determined by the Company in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions.
The Company accounts for treasury stock under the cost method.
During the three and six months ended July 31, 2023, the Company repurchased approximately 9 million and 20 million shares of its common stock for approximately $1.9 billion and $4.1 billion, at an average price per share of $211.83 and $198.63, respectively. All repurchases were made in open market transactions. As of July 31, 2023, the Company was authorized to purchase a remaining $11.9 billion of its common stock under the Share Repurchase Program.
v3.23.2
Income Taxes
 6 Months Ended
Jul. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Effective Tax Rate
The Company computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pretax income or loss and adjusts the provision for discrete tax items recorded in the period. For the six months ended July 31, 2023, the Company reported a tax provision of $352 million on pretax income of $1.8 billion, which resulted in an effective tax rate of 19 percent. The Company’s effective tax rate differed from the U.S. statutory rate of 21 percent primarily due to discrete benefits from foreign tax credits attributable to the IRS Notice 2023-55 and certain adjustments resulted from a transfer pricing agreement in a foreign tax jurisdiction, partially offset by profitable jurisdictions outside of the United States subject to tax rates greater than 21 percent and withholding taxes.
For the six months ended July 31, 2022, the Company reported a tax provision of $56 million on pretax income of $152 million, which resulted in an effective tax rate of 37 percent. The Company’s effective tax rate differed from the U.S. statutory rate of 21 percent primarily due to profitable jurisdictions outside of the United States subject to tax rates greater than 21 percent and withholding taxes, offset by certain adjustments resulting from a transfer pricing agreement with a major tax jurisdiction.
Unrecognized Tax Benefits and Other Considerations
The Company records liabilities related to its uncertain tax positions. Tax positions for the Company and its subsidiaries are subject to income tax audits by multiple tax jurisdictions throughout the world. Certain prior year tax returns are currently being examined by various taxing authorities in countries including the United States, Germany, and Israel. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. As the outcome of the tax audits cannot be predicted with certainty, if any issues arising in the Company’s tax audits progress in a manner inconsistent with management's expectations, the Company could adjust its provision for income taxes in the future. In addition, the Company anticipates it is reasonably possible that an insignificant decrease of its unrecognized tax benefits may occur in the next 12 months, as the applicable statutes of limitations lapse, ongoing examinations are completed, or tax positions meet the conditions of being effectively settled.
v3.23.2
Net Income Per Share
 6 Months Ended
Jul. 31, 2023
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the fiscal period. Diluted earnings per share is computed by giving effect to all potential weighted average dilutive common stock, including options and restricted stock units. The dilutive effect of outstanding awards is reflected in diluted earnings per share by application of the treasury stock method.
A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in millions):
2Three Months Ended July 31,Six Months Ended July 31,
 2023202220232022
Numerator:
Net income$1,267 $68 $1,466 $96 
Denominator:
Weighted-average shares outstanding for basic earnings per share975 997 977 994 
Effect of dilutive securities:
Employee stock awards11 4 10 7 
Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share986 1,001 987 1,001 
The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of the following potentially outstanding common stock. The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive (in millions):
 Three Months Ended July 31,Six Months Ended July 31,
 2023202220232022
Employee stock awards13 44 18 33 
v3.23.2
Legal Proceedings and Claims
 6 Months Ended
Jul. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings and Claims Legal Proceedings and Claims
In the ordinary course of business, the Company is or may be involved in various legal or regulatory proceedings, claims or purported class actions related to alleged infringement of third-party patents and other intellectual property rights, commercial, corporate and securities, labor and employment, wage and hour and other claims. The Company has been, and may in the future be, put on notice or sued by third parties for alleged infringement of their proprietary rights, including patent infringement.
In general, the resolution of a legal matter could prevent the Company from offering its service to others, could be material to the Company’s financial condition or cash flows, or both, or could otherwise adversely affect the Company’s reputation and future operating results.
The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. The outcomes of legal proceedings and other contingencies are, however, inherently unpredictable and subject to significant uncertainties. At this time, the Company is not able to reasonably estimate the amount or range of possible losses in excess of any amounts accrued, including losses that could arise as a result of application of non-monetary remedies, with respect to the contingencies it faces, and the Company’s estimates may not prove to be accurate.
In management’s opinion, resolution of all current matters, including those described below, is not expected to have a material adverse impact on the Company’s financial statements. However, depending on the nature and timing of any such dispute, payment or other contingency, the resolution of a matter could materially affect the Company’s current or future results of operations or cash flows, or both, in a particular quarter.
Slack Litigation
Beginning in September 2019, seven purported class action lawsuits were filed against Slack, its directors, certain of its officers and certain investment funds associated with certain of its directors, each alleging violations of securities laws in connection with Slack’s registration statement on Form S-1 (the “Registration Statement”) filed with the SEC. All but one of these actions were filed in the Superior Court of California for the County of San Mateo, though one plaintiff originally filed in the County of San Francisco before refiling in the County of San Mateo (and the original San Francisco action was dismissed). The remaining action was filed in the U.S. District Court for the Northern District of California (the “Federal Action”). In the
Federal Action, captioned Dennee v. Slack Technologies, Inc., Case No. 3:19-CV-05857-SI, Slack and the other defendants filed a motion to dismiss the complaint in January 2020. In April 2020, the court granted in part and denied in part the motion to dismiss. In May 2020, Slack and the other defendants filed a motion to certify the court’s order for interlocutory appeal, which the court granted. Slack and the other defendants filed a petition for permission to appeal the district court’s order to the Ninth Circuit Court of Appeals, which was granted in July 2020. Oral argument was heard in May 2021. On September 20, 2021, the Ninth Circuit affirmed the district court’s ruling. Slack filed a petition for rehearing with the Ninth Circuit on November 3, 2021, which was denied on May 2, 2022. Slack filed a petition for a writ of certiorari with the U.S. Supreme Court on August 31, 2022, which was granted on December 13, 2022. On June 1, 2023, the Supreme Court issued a unanimous decision vacating the Ninth Circuit’s decision and remanded for further proceedings. The Ninth Circuit ordered the parties to submit additional briefing in light of the Supreme Court’s decision. The state court actions were consolidated in November 2019, and the consolidated action is captioned In re Slack Technologies, Inc. Shareholder Litigation, Lead Case No. 19CIV05370 (the “State Court Action”). An additional state court action was filed in San Mateo County in June 2020 but was consolidated with the State Court Action in July 2020. Slack and the other defendants filed demurrers to the complaint in the State Court Action in February 2020. In August 2020, the court sustained in part and overruled in part the demurrers, and granted plaintiffs leave to file an amended complaint, which they filed in October 2020. Slack and the other defendants answered the complaint in November 2020. Plaintiffs filed a motion for class certification on October 21, 2021, which remains pending. On October 26, 2022, the court stayed the State Court Action pending resolution of Slack’s petition for a writ of certiorari in the Federal Action. The State Court Action remains stayed. The Federal Action and the State Court Action seek unspecified monetary damages and other relief on behalf of investors who purchased Slack’s Class A common stock issued pursuant and/or traceable to the Registration Statement.
v3.23.2
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Apr. 30, 2023
Jul. 31, 2022
Apr. 30, 2022
Jul. 31, 2023
Jul. 31, 2022
Pay vs Performance Disclosure            
Net income $ 1,267 $ 199 $ 68 $ 28 $ 1,466 $ 96
v3.23.2
Insider Trading Arrangements
 3 Months Ended 6 Months Ended
Jul. 31, 2023
shares
Jul. 31, 2023
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Srinivas Tallapragada [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   On June 5, 2023, Srinivas Tallapragada, President and Chief Engineering Officer, adopted a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 261,145 shares of the Company’s common stock, subject to certain conditions, from September 5, 2023 through April 30, 2024.
Name Srinivas Tallapragada  
Title President and Chief Engineering Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date June 5, 2023  
Arrangement Duration 238 days  
Aggregate Available 261,145 261,145
Marc Beniofff [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   On June 8, 2023, Marc Benioff, Chair and Chief Executive Officer, adopted a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 945,000 shares of the Company’s common stock, subject to certain conditions, from October 2, 2023 through December 29, 2023.
Name Marc Benioff  
Title Chair and Chief Executive Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date June 8, 2023  
Arrangement Duration 88 days  
Aggregate Available 945,000 945,000
Amy Weaver [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement   On June 28, 2023, Amy Weaver, President and Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 189,204 shares of the Company’s common stock, subject to certain conditions, from September 27, 2023 through December 29, 2023.
Name Amy Weaver  
Title President and Chief Financial Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date June 28, 2023  
Arrangement Duration 93 days  
Aggregate Available 189,204 189,204
v3.23.2
Summary of Business and Significant Accounting Policies (Policies)
 6 Months Ended
Jul. 31, 2023
Accounting Policies [Abstract]  
Fiscal Year
Fiscal Year
The Company’s fiscal year ends on January 31. References to fiscal 2024, for example, refer to the fiscal year ending January 31, 2024.
Basis of Presentation
Basis of Presentation
The accompanying condensed consolidated balance sheet as of July 31, 2023 and the condensed consolidated statements of operations, condensed consolidated statements of comprehensive income (loss), condensed consolidated statements of stockholders' equity and condensed consolidated statements of cash flows for the three and six months ended July 31, 2023 and 2022, respectively, are unaudited.
These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, the unaudited condensed consolidated financial statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of July 31, 2023, and its results of operations, including its comprehensive income (loss), stockholders' equity and its cash flows for the three and six months ended July 31, 2023 and 2022. All adjustments are of a normal recurring nature. The results for the three and six months ended July 31, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending January 31, 2024.
These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on March 8, 2023.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions in the Company’s condensed consolidated financial statements and notes thereto.
Significant estimates and assumptions made by management include the determination of:
•the fair value of assets acquired and liabilities assumed for business combinations;
•the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations;
•the valuation of privately-held strategic investments;
•the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions;
•the average period of benefit associated with costs capitalized to obtain revenue contracts;
•the useful lives of intangible assets; and
•the fair value of certain stock awards issued.
Actual results could differ materially from these estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, which forms the basis for making judgments about the carrying values of assets and liabilities as well as income and expenses to be recognized.
Principles of Consolidation
Principles of Consolidation
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Segments SegmentsThe Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. Over the past few years, the Company has completed a number of acquisitions which have allowed the Company to expand its offerings, presence and reach in various market segments of the enterprise cloud computing market. While the Company has offerings in multiple enterprise cloud computing market segments, including as a result of the Company's acquisitions, and operates in multiple countries, the Company’s business operates in one operating segment because most of the Company's service offerings operate on the Customer 360 Platform and are deployed in a nearly identical manner, and the Company’s CODM evaluates the Company’s financial information and resources, and assesses the performance of these resources, on a consolidated basis.
Concentrations of Credit Risk, Significant Customers and Investments Concentrations of Credit Risk, Significant Customers and InvestmentsThe Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable. The Company monitors and manages the overall exposure of its cash balances to individual financial institutions on an ongoing basis. The Company’s marketable securities portfolio consists primarily of investment-grade securities, and the Company’s policies limit the amount of credit exposure to any one issuer. The Company does not require collateral for accounts receivable. The Company maintains an allowance for its doubtful accounts receivable for estimated credit losses. This allowance is based upon historical loss patterns, the number of days that billings are past due, an evaluation of the potential risk of loss associated with delinquent accounts and current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss patterns. The Company records the allowance against bad debt expense through the condensed consolidated statements of operations, included in general and administrative expense, up to the amount of revenues recognized to date. Any incremental allowance is recorded as an offset to unearned revenue on the condensed consolidated balance sheets. Receivables are written off and charged against the recorded allowance when the Company has exhausted collection efforts without success.
Revenue Recognition
Revenue Recognition
The Company derives its revenues from two sources: (1) subscription and support revenues and (2) professional services and other revenues. Subscription and support revenues include subscription fees from customers accessing the Company’s enterprise cloud computing services (collectively, “Cloud Services”), software license revenues from the sales of term and perpetual licenses and support revenues from the sales of support and updates beyond the basic subscription or software license sales. Professional services and other revenues include professional and advisory services for process mapping, project management and implementation services and training services.
Revenue is recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, for example, overage fees, contingent fees or service level penalties, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur.
The Company determines the amount of revenue to be recognized through the application of the following steps:
•identification of the contract, or contracts, with a customer;
•identification of the performance obligations in the contract;
•determination of the transaction price;
•allocation of the transaction price to the performance obligations in the contract; and
•recognition of revenue when or as the Company satisfies the performance obligations.
Subscription and Support Revenues
Subscription and support revenues are comprised of fees that provide customers with access to Cloud Services, software licenses and related support and updates during the term of the arrangement.
Cloud Services allow customers to use the Company's multi-tenant software without taking possession of the software. Revenue is generally recognized ratably over the contract term. Substantially all of the Company’s subscription service arrangements are non-cancelable and do not contain refund-type provisions.
Subscription and support revenues also include revenues associated with term and perpetual software licenses that provide the customer with a right to use the software as it exists when made available. Revenues from term and perpetual software licenses are generally recognized at the point in time when the software is made available to the customer. Revenue from software support and updates is recognized as the support and updates are provided, which is generally ratably over the contract term.
The Company typically invoices its customers annually and its payment terms provide that customers pay within 30 days of invoice. Amounts that have been invoiced are recorded in accounts receivable and in unearned revenue or revenue, depending on whether transfer of control to customers has occurred.
Professional Services and Other Revenues
The Company’s professional services contracts are either on a time and materials, fixed price or subscription basis. These revenues are recognized as the services are rendered for time and materials contracts, on a proportional performance basis for fixed price contracts or ratably over the contract term for subscription professional services contracts. Other revenues consist primarily of training revenues recognized as such services are performed.
Significant Judgments - Contracts with Multiple Performance Obligations
The Company enters into contracts with its customers that may include promises to transfer multiple performance obligations such as Cloud Services, software licenses, support and updates and professional services. A performance obligation is a promise in a contract with a customer to transfer products or services that are concluded to be distinct. Determining whether products and services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting may require significant judgment.
Cloud Services, software licenses and support and updates services are generally concluded to be distinct because such offerings are often sold separately. In determining whether professional services are distinct, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription start date and the contractual dependence of the service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that professional services included in contracts with multiple performance obligations are distinct.
The Company allocates the transaction price to each performance obligation on a relative SSP basis. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation.
The Company determines SSP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the customer demographic, the geographic area where services are sold, price lists, the Company's go-to-market strategy, historical and current sales and contract prices. In instances where the Company does not sell or price a product or service separately, the Company determines SSP using information that may include market conditions or other observable inputs. As the Company’s go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to SSP.
In certain cases, the Company is able to establish SSP based on observable prices of products or services sold or priced separately in comparable circumstances to similar customers. The Company uses a single amount to estimate SSP when indicated by the distribution of its observable prices.
Alternatively, the Company uses a range of amounts to estimate SSP when the pricing practices or distribution of the observable prices are highly variable. The Company typically has more than one SSP for individual products and services due to the stratification of those products and services by customer size and geography.
Costs Capitalized to Obtain Revenue Contracts
The Company capitalizes incremental costs of obtaining revenue contracts related to non-cancelable Cloud Services subscription, ongoing Cloud Services support and license support and updates. For contracts with on-premises software licenses where revenue is recognized upfront when the software is made available to the customer, costs allocable to those licenses are expensed as they are incurred. Capitalized amounts consist primarily of sales commissions paid to the Company’s direct sales
force. Capitalized amounts also include (1) amounts paid to employees other than the direct sales force who earn incentive payouts under annual compensation plans that are tied to the value of contracts acquired, (2) commissions paid to employees upon renewals of subscription and support contracts, (3) the associated payroll taxes and fringe benefit costs associated with the payments to the Company’s employees and (4) to a lesser extent, success fees paid to partners in emerging markets where the Company has a limited presence.
Costs capitalized related to new revenue contracts are amortized on a straight-line basis over four years, which is longer than the typical initial contract period, but reflects the estimated average period of benefit, including expected contract renewals. In arriving at this average period of benefit, the Company evaluates both qualitative and quantitative factors which included the estimated life cycles of its offerings and its customer attrition. Additionally, the Company amortizes capitalized costs for renewals and success fees paid to partners over two years.
The capitalized amounts are recoverable through future revenue streams under all non-cancelable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment.
Amortization of capitalized costs to obtain revenue contracts is included in marketing and sales expense in the accompanying condensed consolidated statements of operations.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value.
Marketable Securities
Marketable Securities
The Company considers all of its marketable debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classifies these securities within current assets on the condensed consolidated balance sheets. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the condensed consolidated statements of comprehensive income (loss) until realized. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. Securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of the excess, if any, is caused by expected credit losses. Expected credit losses on securities are recognized in other income (expense) on the condensed consolidated statements of operations, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders' equity. For the purposes of computing realized and unrealized gains and losses, the cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is included as a component of investment income within other income (expense) on the condensed consolidated statements of operations.
Strategic Investments
Strategic Investments
The Company holds strategic investments in privately held debt and equity securities and publicly held equity securities in which the Company does not have a controlling interest.
Privately held equity securities where the Company lacks a controlling financial interest but does exercise significant influence are accounted for under the equity method. Privately held equity securities not accounted for under the equity method are recorded at cost and adjusted only for observable transactions for same or similar investments of the same issuer or impairment events (referred to as the measurement alternative). All gains and losses on privately held equity securities, realized and unrealized, are recorded through gains (losses) on strategic investments, net on the condensed consolidated statements of operations. Privately held debt securities are recorded at fair value with changes in fair value recorded through accumulated other comprehensive loss on the condensed consolidated balance sheet.
Valuations of privately held securities are inherently complex and require judgment due to the lack of readily available market data. In determining the estimated fair value of its strategic investments in privately held companies, the Company utilizes the most recent data available to the Company. The Company assesses its privately held debt and equity securities in its strategic investment portfolio at least quarterly for impairment. The Company’s impairment analysis encompasses an assessment of both qualitative and quantitative factors, including the investee's financial metrics, market acceptance of the investee's product or technology and the rate at which the investee is using its cash. If the investment is considered impaired, the Company estimates the fair value of the investment and recognizes any resulting impairment through the condensed consolidated statements of operations.
Publicly held equity securities are measured at fair value with changes recorded through gains (losses) on strategic investments, net on the condensed consolidated statements of operations.
The Company may enter into strategic investments or other investments that are considered variable interest entities (“VIEs”). If the Company is a primary beneficiary of a VIE, it is required to consolidate the entity. To determine if the Company is the primary beneficiary of a VIE, the Company evaluates whether it has (1) the power to direct the activities that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The assessment of whether the Company is the primary beneficiary of its VIE investments requires significant assumptions and judgments. VIEs that are not consolidated are accounted for under the measurement alternative, equity method, amortized cost, or other appropriate methodology based on the nature of the interest held.
Fair Value Measurement Fair Value MeasurementThe Company measures its cash and cash equivalents, marketable securities, publicly held equity securities and foreign currency derivative contracts at fair value. In addition, the Company measures certain of its strategic investments, including its privately held debt securities and privately held equity securities, at fair value on a nonrecurring basis when there has been an observable price change in a same or similar security or an impairment.
Derivative Financial Instruments
Derivative Financial Instruments
The Company enters into foreign currency derivative contracts with financial institutions to reduce foreign exchange risk associated with intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. The Company uses forward currency derivative contracts, which are not designated as hedging instruments, to minimize the Company’s exposure to balances primarily denominated in the Euro, British Pound Sterling, Canadian Dollar, Australian Dollar, Brazilian Real and Japanese Yen. The Company’s derivative financial instruments program is not designated for trading or speculative purposes. The Company generally enters into master netting arrangements with the financial institutions with which it contracts for such derivatives, which permit net settlement of transactions with the same counterparty, thereby reducing risk of credit-related losses from a financial institutions' nonperformance. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties. The notional amount of foreign currency derivative contracts as of July 31, 2023 and January 31, 2023 was $5.0 billion and $6.0 billion, respectively.
Outstanding foreign currency derivative contracts are recorded at fair value on the condensed consolidated balance sheets. Unrealized gains or losses due to changes in the fair value of these derivative contracts, as well as realized gains or losses from their net settlement, are recognized as other income (expense) consistent with the offsetting gains or losses resulting from the remeasurement or settlement of the underlying foreign currency denominated receivables and payables.
Property and Equipment
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:
Buildings and building improvements
10 to 40 years
Computers, equipment and software
3 to 5 years
Furniture and fixtures5 years
Leasehold improvements
Shorter of the estimated lease term or 10 years
The Company estimates the useful lives of property and equipment upon initial recognition and periodically evaluates the useful lives and whether events or changes in circumstances warrant a revision to the useful lives.
When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses.
Leases
Leases
The Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Operating leases are included in operating lease right-of-use (“ROU”) assets and current and noncurrent operating lease liabilities on the Company’s condensed consolidated balance sheets. Assets (also referred to as ROU assets) and liabilities recognized from finance leases are included in property and equipment, accrued expenses and other liabilities and other noncurrent liabilities, respectively, on the Company’s condensed consolidated balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term. The corresponding lease liabilities represent its obligation to make lease payments arising from the lease. The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less for any asset classes.
Lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement, net of any future tenant incentives. The Company has lease agreements which contain both lease and non-lease components, which it has elected to combine for all asset classes. As such, minimum lease payments include fixed payments for non-lease components within a lease agreement, but exclude variable lease payments not dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuation from period to period. The Company’s lease terms may include options to extend or terminate the lease. Periods beyond the noncancellable term of the lease are included in the measurement of the lease liability only when it is reasonably certain that the Company will exercise the associated extension option or waive the termination option. The Company reassesses the lease term if and when a significant event or change in circumstances occurs within the control of the Company. As most of the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. The Company's incremental borrowing rate is an estimate of the interest rate the Company would have to pay to borrow on a collateralized basis with similar terms and payments, in the economic environment where the leased asset is located.
The lease ROU asset is recognized based on the lease liability, adjusted for any rent payments or initial direct costs incurred or tenant incentives received prior to commencement.
Lease expense for operating leases, which includes amortization expense of ROU assets, is recognized on a straight-line basis over the lease term. Amortization expense of finance lease ROU assets is recognized on a straight-line basis over the lease term, and interest expense for finance lease liabilities is recognized based on the incremental borrowing rate. Expense for variable lease payments are recognized as incurred.
On the lease commencement date, the Company also establishes assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are included in property and equipment, net and are amortized over the lease term.
The Company has entered into subleases or has made decisions and taken actions to exit and sublease certain unoccupied leased office space. Similar to other long-lived assets discussed below, management tests ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. For leased assets, such circumstances would include the decision to leave a leased facility prior to the end of the minimum lease term or subleases for which estimated cash flows do not fully cover the costs of the associated lease.
Intangible Assets Acquired through Business Combinations
Intangible Assets Acquired through Business Combinations
Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization.
Impairment Assessment
Impairment Assessment
The Company evaluates intangible assets and other long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value.
The Company evaluates and tests the recoverability of its goodwill for impairment at least annually during its fourth quarter of each fiscal year or more often if and when circumstances indicate that goodwill may not be recoverable.
Business Combinations
Business Combinations
The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions, tax-related valuation allowances and pre-acquisition contingencies are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s condensed consolidated statements of operations.
In the event the Company acquires an entity with which the Company has a preexisting relationship, the Company will generally recognize a gain or loss to settle that relationship as of the acquisition date within operating income on the condensed
consolidated statements of operations. In the event that the Company acquires an entity in which the Company previously held a strategic investment, the difference between the fair value of the shares as of the date of the acquisition and the carrying value of the strategic investment is recorded as a gain or loss and recorded within net gains (losses) on strategic investments in the condensed consolidated statements of operations.
Restructuring Restructuring The Company generally recognizes employee severance costs when payments are probable and amounts are estimable or when notification occurs, depending on the region an employee works. Costs related to contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs are recognized as incurred.
Stock-Based Compensation Expense
Stock-Based Compensation Expense
Stock-based compensation expense is measured based on grant date at fair value using the Black-Scholes option pricing model for stock options and the grant date closing stock price for restricted stock awards. The Company recognizes stock-based compensation expense related to stock options and restricted stock awards on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term of four years. The estimated forfeiture rate applied is based on historical forfeiture rates.
Stock-based compensation expense related to the Company’s Amended and Restated 2004 Employee Stock Purchase Plan (“ESPP” or “2004 Employee Stock Purchase Plan”) is measured based on grant date at fair value using the Black-Scholes option pricing model. The Company recognizes stock-based compensation expense related to shares issued pursuant to the 2004 Employee Stock Purchase Plan on a straight-line basis over the offering period, which is 12 months. The ESPP allows employees to purchase shares of the Company's common stock at a 15 percent discount from the lower of the Company’s stock price on (i) the first day of the offering period or on (ii) the last day of the purchase period and also allows employees to reduce their percentage election once during a six-month purchase period (December 15 and June 15 of each fiscal year), but not to increase that election until the next one-year offering period. The ESPP also includes a reset provision for the purchase price if the stock price on the purchase date is less than the stock price on the offering date.
The Company, at times, grants performance share awards to executive officers and other members of senior management, which may include a market condition or performance condition, or both. Stock-based compensation expense related to awards with a market condition are measured at fair value using a Monte Carlo simulation model and stock-based compensation expense related to these awards is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period of the awards, which is generally the vesting term. Stock-based compensation expense related to awards with a performance condition are measured based on the grant date closing stock price and stock-based compensation expense related to these awards is recognized based on the requisite service period elapsed, as well as the probability of achievement and estimated attainment of the performance condition as of the end of our reporting period.
The Company, at times, grants unvested restricted shares to employee stockholders of certain acquired companies in lieu of cash consideration. These awards are generally subject to continued post-acquisition employment. Therefore, the Company accounts for them as post-acquisition stock-based compensation expense. The Company recognizes stock-based compensation expense equal to the grant date fair value of the restricted stock awards, based on the closing stock price on grant date, on a straight-line basis over the requisite service period of the awards, which is generally four years.
Income Taxes
Income Taxes
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax laws is recognized in the condensed consolidated statements of operations in the period that includes the enactment date.
The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position is sustainable upon examination by the taxing authority, solely based on its technical merits. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision.
Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income,
the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed.
Foreign Currency Translation Foreign Currency TranslationThe functional currency of the Company’s major foreign subsidiaries is generally the local currency. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as a separate component on the condensed consolidated statements of comprehensive income (loss). Foreign currency transaction gains and losses are included in other income (expense) in the condensed consolidated statements of operations for the period.
Warranties and Indemnification
Warranties and Indemnification
The Company’s enterprise cloud computing services are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company’s online help documentation under normal use and circumstances.
The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any material liabilities related to such obligations in the accompanying condensed consolidated financial statements.
The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions.
v3.23.2
Summary of Business and Significant Accounting Policies (Tables)
 6 Months Ended
Jul. 31, 2023
Accounting Policies [Abstract]  
Schedule of Property and Equipment Estimated Useful Lives Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of those assets as follows:
Buildings and building improvements
10 to 40 years
Computers, equipment and software
3 to 5 years
Furniture and fixtures5 years
Leasehold improvements
Shorter of the estimated lease term or 10 years
v3.23.2
Revenues (Tables)
 6 Months Ended
Jul. 31, 2023
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Subscription and support revenues consisted of the following (in millions):
 Three Months Ended July 31,Six Months Ended July 31,
 2023202220232022
Sales $1,895 $1,695 $3,705 $3,327 
Service 2,049 1,828 4,013 3,589 
Platform and Other 1,638 1,478 3,205 2,897 
Marketing and Commerce1,238 1,121 2,408 2,210 
Data (1) 1,186 1,021 2,317 1,976 
$8,006 $7,143 $15,648 $13,999 
(1) Data is comprised of revenue from Analytics, which includes Tableau, and Integration, which includes Mulesoft.
Total Revenue by Geographic Locations
Revenues by geographical region consisted of the following (in millions):
 Three Months Ended July 31,Six Months Ended July 31,
 2023202220232022
Americas$5,769 $5,261 $11,251 $10,232 
Europe1,974 1,745 3,925 3,483 
Asia Pacific860 714 1,674 1,416 
$8,603 $7,720 $16,850 $15,131 
Unearned Revenue
The change in unearned revenue was as follows (in millions):
Three Months Ended July 31,Six Months Ended July 31,
2023202220232022
Unearned revenue, beginning of period$15,121 $13,636 $17,376 $15,628 
Billings and other (1)7,723 6,884 13,660 12,212 
Contribution from contract asset(4)23 51 112 
Revenue recognized over time(8,178)(7,336)(16,015)(14,392)
Revenue recognized at a point in time(425)(384)(835)(739)
Unearned revenue from business combinations0 2 0 4 
Unearned revenue, end of period$14,237 $12,825 $14,237 $12,825 
(1) Other includes, for example, the impact of foreign currency translation.
Remaining Performance Obligation Remaining performance obligation consisted of the following (in billions):
 CurrentNoncurrentTotal
As of July 31, 2023$24.1 $22.5 $46.6 
As of January 31, 2023 $24.6 $24.0 $48.6 
v3.23.2
Investments (Tables)
 6 Months Ended
Jul. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of Marketable Securities
At July 31, 2023, marketable securities consisted of the following (in millions):
Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair Value
Corporate notes and obligations$3,199 $2 $(79)$3,122 
U.S. treasury securities550 0 (13)537 
Mortgage-backed obligations261 0 (13)248 
Asset-backed securities1,199 1 (17)1,183 
Municipal securities129 0 (5)124 
Commercial paper150 0 0 150 
Covered bonds90 0 (5)85 
Other179 0 (3)176 
Total marketable securities$5,757 $3 $(135)$5,625 
At January 31, 2023, marketable securities consisted of the following (in millions):
Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair Value
Corporate notes and obligations$3,442 $4 $(92)$3,354 
U.S. treasury securities381 0 (11)370 
Mortgage-backed obligations190 0 (12)178 
Asset-backed securities1,004 1 (20)985 
Municipal securities175 0 (6)169 
Commercial paper278 0 0 278 
Covered bonds105 0 (4)101 
Other59 0 (2)57 
Total marketable securities$5,634 $5 $(147)$5,492 
Schedule of Short-Term and Long-Term Marketable Securities The contractual maturities of the investments classified as marketable securities were as follows (in millions):
 As of
 July 31, 2023January 31, 2023
Due within 1 year$2,221 $2,380 
Due in 1 year through 5 years3,395 3,104 
Due in 5 years through 10 years9 8 
$5,625 $5,492 
Schedules of Strategic Investments
Strategic investments by form and measurement category as of July 31, 2023 were as follows (in millions):
 Measurement Category
 Fair ValueMeasurement AlternativeOtherTotal
Equity securities$52 $4,519 $138 $4,709 
Debt securities and other investments 0 0 69 69 
Balance as of July 31, 2023
$52 $4,519 $207 $4,778 
Strategic investments by form and measurement category as of January 31, 2023 were as follows (in millions):
 Measurement Category
 Fair ValueMeasurement AlternativeOtherTotal
Equity securities$48 $4,479 $76 $4,603 
Debt securities and other investments0 0 69 69 
Balance as of January 31, 2023
$48 $4,479 $145 $4,672 
The components of gains and losses on strategic investments were as follows (in millions):
2Three Months Ended July 31,Six Months Ended July 31,
2023202220232022
Unrealized gains (losses) recognized on publicly traded equity securities, net$2 $(29)$2 $(103)
Unrealized gains recognized on privately held equity securities, net13 60 51 117 
Impairments on privately held equity and debt securities(80)(42)(257)(53)
Unrealized losses, net(65)(11)(204)(39)
Realized gains on sales of securities, net36 56 34 91 
Gains (losses) on strategic investments, net$(29)$45 $(170)$52 
v3.23.2
Fair Value Measurement (Tables)
 6 Months Ended
Jul. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents information about the Company’s assets and liabilities that were measured at fair value as of July 31, 2023 and indicates the fair value hierarchy of the valuation (in millions):
DescriptionQuoted Prices in
Active Markets
for Identical Assets
(Level 1)		Significant Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Fair Value
Cash equivalents (1):
Time deposits$0 $866 $0 $866 
Money market mutual funds3,276 0 0 3,276 
Cash equivalent securities 0 656 0 656 
Marketable securities:
Corporate notes and obligations0 3,122 0 3,122 
U.S. treasury securities0 537 0 537 
Mortgage-backed obligations0 248 0 248 
Asset-backed securities0 1,183 0 1,183 
Municipal securities0 124 0 124 
Commercial paper0 150 0 150 
Covered bonds0 85 0 85 
Other0 176 0 176 
Strategic investments:
Equity securities52 0 0 52 
Total assets$3,328 $7,147 $0 $10,475 
(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $2.0 billion of cash, as of July 31, 2023.
The following table presents information about the Company’s assets and liabilities that were measured at fair value as of January 31, 2023 and indicates the fair value hierarchy of the valuation (in millions):
DescriptionQuoted Prices in
Active Markets
for Identical Assets
(Level 1)		Significant Other
Observable Inputs (Level 2)		Significant
Unobservable
Inputs
(Level 3)		Fair Value
Cash equivalents (1):
Time deposits$0 $1,877 $0 $1,877 
Money market mutual funds1,795 0 0 1,795 
Cash equivalent securities0 794 0 794 
Marketable securities:
Corporate notes and obligations0 3,354 0 3,354 
U.S. treasury securities0 370 0 370 
Mortgage-backed obligations0 178 0 178 
Asset-backed securities0 985 0 985 
Municipal securities0 169 0 169 
Commercial paper0 278 0 278 
Covered bonds0 101 0 101 
Other0 57 0 57 
Strategic investments:
Equity securities48 0 0 48 
Total assets$1,843 $8,163 $0 $10,006 
(1) Included in “cash and cash equivalents” in the accompanying condensed consolidated balance sheets in addition to $2.6 billion of cash, as of January 31, 2023.
v3.23.2
Leases and Other Commitments (Tables)
 6 Months Ended
Jul. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Maturities of Operating Lease Liabilities As of July 31, 2023, the maturities of lease liabilities under non-cancelable operating and finance leases were as follows (in millions):
Operating Leases Finance Leases
Fiscal Period:
Remaining six months of fiscal 2024$243 $184 
Fiscal 2025657 378 
Fiscal 2026585 312 
Fiscal 2027518 198 
Fiscal 2028462 29 
Thereafter1,303 0 
Total minimum lease payments3,768 1,101 
Less: Imputed interest(391)(52)
Total$3,377 $1,049 
Maturities of Finance Lease Liabilities As of July 31, 2023, the maturities of lease liabilities under non-cancelable operating and finance leases were as follows (in millions):
Operating Leases Finance Leases
Fiscal Period:
Remaining six months of fiscal 2024$243 $184 
Fiscal 2025657 378 
Fiscal 2026585 312 
Fiscal 2027518 198 
Fiscal 2028462 29 
Thereafter1,303 0 
Total minimum lease payments3,768 1,101 
Less: Imputed interest(391)(52)
Total$3,377 $1,049 
v3.23.2
Intangible Assets Acquired Through Business Combinations and Goodwill (Tables)
 6 Months Ended
Jul. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Acquired From Business Combinations
Intangible assets acquired through business combinations were as follows (in millions):
Intangible Assets, GrossAccumulated AmortizationIntangible Assets, NetWeighted
Average
Remaining Useful Life (Years)
January 31, 2023Additions and retirements, net July 31, 2023January 31, 2023Expense and retirements, netJuly 31, 2023January 31, 2023July 31, 2023July 31, 2023
Acquired developed technology$4,844 $0 $4,844 $(2,471)$(498)$(2,969)$2,373 $1,875 2.5
Customer relationships6,691 0 6,691 (2,162)(420)(2,582)4,529 4,109 5.2
Other (1)303 0 303 (80)(25)(105)223 198 4.0
Total$11,838 $0 $11,838 $(4,713)$(943)$(5,656)$7,125 $6,182 4.4
(1) Included in other are in-place leases, trade names, trademarks and territory rights.
Expected Future Amortization Expense for Purchased Intangible Assets The expected future amortization expense for intangible assets as of July 31, 2023 was as follows (in millions):
Fiscal Period:
Remaining six months of fiscal 2024$924 
Fiscal 20251,597 
Fiscal 20261,355 
Fiscal 2027990 
Fiscal 2028620 
Thereafter696 
Total amortization expense$6,182 
Schedule of Goodwill
The changes in the carrying amounts of goodwill, which is generally not deductible for tax purposes, were as follows (in millions):
Balance as of January 31, 2023$48,568 
Adjustments (1)(2)
Balance as of July 31, 2023$48,566 
(1) Adjustments include the effect of foreign currency translation.
v3.23.2
Debt (Tables)
 6 Months Ended
Jul. 31, 2023
Debt Disclosure [Abstract]  
Carrying Value of Borrowings
The components of the Company's borrowings were as follows (in millions):
InstrumentDate of IssuanceMaturity DateContractual Interest Rate
Outstanding Principal as of July 31, 2023
Carrying Value as of July 31, 2023Carrying Value as of January 31, 2023
2023 Senior Notes (1) April 2018April 20233.25 %$0 $0 $1,000 
Loan assumed on 50 Fremont (2) February 2015June 20233.75 0 0 182 
2024 Senior NotesJuly 2021July 20240.625 1,000 999 998 
2028 Senior NotesApril 2018April 20283.70 1,500 1,494 1,493 
2028 Senior Sustainability NotesJuly 2021July 20281.50 1,000 993 992 
2031 Senior NotesJuly 2021July 20311.95 1,500 1,490 1,489 
2041 Senior NotesJuly 2021July 20412.70 1,250 1,235 1,235 
2051 Senior NotesJuly 2021July 20512.90 2,000 1,977 1,977 
2061 Senior NotesJuly 2021July 20613.05 1,250 1,235 1,235 
Total carrying value of debt$9,500 9,423 10,601 
Less current portion of debt(999)(1,182)
Total noncurrent debt$8,424 $9,419 
(1) The Company repaid in full the 2023 Senior Notes in the first quarter of fiscal 2024.
(2) The Company repaid in full the Loan assumed on 50 Fremont in the second quarter of fiscal 2024.
Schedule of Future Principal Payments The contractual future principal payments for all borrowings as of July 31, 2023 were as follows (in millions):
Fiscal Period:
Remaining six months of fiscal 2024$0 
Fiscal 20251,000 
Fiscal 20260 
Fiscal 20270 
Fiscal 20280 
Thereafter8,500 
Total principal outstanding$9,500 
v3.23.2
Restructuring (Tables)
 6 Months Ended
Jul. 31, 2023
Restructuring and Related Activities [Abstract]  
Summary of Restructuring Activities
The following table summarizes the activities related to the Restructuring Plan for the three and six months ended July 31, 2023 (in millions):
Three Months Ended July 31, 2023Six Months Ended July 31, 2023
Workforce ReductionOffice Space ReductionsTotalWorkforce ReductionOffice Space ReductionsTotal
Liability, beginning of the period$614 $0 $614 $607 $0 $607 
Charges45 4 49 389 371 760 
Payments(540)(2)(542)(860)(2)(862)
Non-cash items(2)(2)(4)(19)(369)(388)
Liability, end of the period$117 $0 $117 $117 $0 $117 
v3.23.2
Stockholders' Equity (Tables)
 6 Months Ended
Jul. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Share-based Compensation, Stock Options, Activity Stock option activity for the six months ended July 31, 2023 was as follows:
 Options Outstanding
 Outstanding
Stock
Options
(in millions)		Weighted-
Average
Exercise Price		Aggregate
Intrinsic Value (in millions)
Balance as of January 31, 202323 $175.23 
Exercised(4)131.54 
Plan shares expired or canceled(1)203.61 
Balance as of July 31, 202318 $182.12 $2,162 
Vested or expected to vest18 $181.03 $2,088 
Exercisable as of July 31, 202311 $168.73 $1,435 
Schedule of Restricted Stock Activity Restricted stock activity for the six months ended July 31, 2023 was as follows:
 Restricted Stock Outstanding
 Outstanding
(in millions)		Weighted-Average Grant Date Fair ValueAggregate
Intrinsic
Value (in millions)
Balance as of January 31, 202329 $204.62 
Granted - restricted stock units and awards12 192.96 
Granted - performance-based stock units1 192.55 
Canceled(4)201.46 
Vested and converted to shares(7)205.09 
Balance as of July 31, 202331 $199.82 $7,016 
Expected to vest26 $5,931 
Share-based Payment Arrangement, Expensed and Capitalized, Amount The aggregate expected stock-based compensation expense remaining to be recognized as of July 31, 2023 was as follows (in millions):
Fiscal Period:
Remaining six months of fiscal 2024$1,424 
Fiscal 20252,253 
Fiscal 20261,619 
Fiscal 2027775 
Thereafter132 
Total stock-based compensation expense$6,203 
v3.23.2
Net Income Per Share (Tables)
 6 Months Ended
Jul. 31, 2023
Earnings Per Share [Abstract]  
Reconciliation of Denominator Used in Calculation of Basic And Diluted Earnings Per Share A reconciliation of the denominator used in the calculation of basic and diluted earnings per share is as follows (in millions):
2Three Months Ended July 31,Six Months Ended July 31,
 2023202220232022
Numerator:
Net income$1,267 $68 $1,466 $96 
Denominator:
Weighted-average shares outstanding for basic earnings per share975 997 977 994 
Effect of dilutive securities:
Employee stock awards11 4 10 7 
Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share986 1,001 987 1,001 
Shares Excluded From Diluted Earnings Per Share The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive (in millions):
 Three Months Ended July 31,Six Months Ended July 31,
 2023202220232022
Employee stock awards13 44 18 33 
v3.23.2
Summary of Business and Significant Accounting Policies - Narrative (Details)
 3 Months Ended 6 Months Ended
Jul. 31, 2023
USD ($)
Jan. 31, 2023
USD ($)
Jul. 31, 2023
USD ($)
Jul. 31, 2022
USD ($)
Jul. 31, 2023
USD ($)
segment
Jul. 31, 2022
USD ($)
Concentration Risk [Line Items]            
Number of operating segments | segment         1  
Capitalized contract cost, amortization term (in years) 4 years   4 years   4 years  
Capitalized contract cost, renewals and success fees, amortization term (in years)         2 years  
Impairments of costs to obtain revenue contracts     $ 0 $ 0 $ 0 $ 0
Offering period         12 months  
Discount for ESPP         15.00%  
Purchase period         6 months  
Stock options and restricted stock            
Concentration Risk [Line Items]            
Vesting period (in years)         4 years  
Restricted stock            
Concentration Risk [Line Items]            
Award requisite service period         4 years  
Foreign currency derivative contracts | Derivatives not designated as hedging instruments            
Concentration Risk [Line Items]            
Notional amount of foreign currency derivative contracts $ 5,000,000,000 $ 6,000,000,000 $ 5,000,000,000   $ 5,000,000,000  
Assets | Geographic concentration risk | Non-US            
Concentration Risk [Line Items]            
Concentration risk percentage 15.00% 15.00%        
Assets | Geographic concentration risk | Untied States            
Concentration Risk [Line Items]            
Concentration risk percentage 84.00% 83.00%        
Strategic investments | Investment concentration risk | Two Privately Held Investments            
Concentration Risk [Line Items]            
Concentration risk percentage   16.00%        
v3.23.2
Summary of Business and Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Details)
Jul. 31, 2023
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful lives 5 years
Minimum | Buildings and building improvements  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful lives 10 years
Minimum | Computers, equipment and software  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful lives 3 years
Maximum | Buildings and building improvements  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful lives 40 years
Maximum | Computers, equipment and software  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful lives 5 years
Maximum | Leasehold improvements  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful lives 10 years
v3.23.2
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Jul. 31, 2022
Jul. 31, 2023
Jul. 31, 2022
Disaggregation of Revenue [Line Items]        
Total revenues $ 8,603 $ 7,720 $ 16,850 $ 15,131
Americas        
Disaggregation of Revenue [Line Items]        
Total revenues 5,769 5,261 11,251 10,232
Europe        
Disaggregation of Revenue [Line Items]        
Total revenues 1,974 1,745 3,925 3,483
Asia Pacific        
Disaggregation of Revenue [Line Items]        
Total revenues $ 860 $ 714 $ 1,674 1,416
Untied States | Geographic concentration risk | Revenue        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 93.00% 92.00% 93.00%  
Subscription and support        
Disaggregation of Revenue [Line Items]        
Total revenues $ 8,006 $ 7,143 $ 15,648 13,999
Sales        
Disaggregation of Revenue [Line Items]        
Total revenues 1,895 1,695 3,705 3,327
Service        
Disaggregation of Revenue [Line Items]        
Total revenues 2,049 1,828 4,013 3,589
Platform and Other        
Disaggregation of Revenue [Line Items]        
Total revenues 1,638 1,478 3,205 2,897
Marketing and Commerce        
Disaggregation of Revenue [Line Items]        
Total revenues 1,238 1,121 2,408 2,210
Integration and Analytics        
Disaggregation of Revenue [Line Items]        
Total revenues $ 1,186 $ 1,021 $ 2,317 $ 1,976
v3.23.2
Revenues - Contract Balances and Unearned Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Jul. 31, 2022
Jul. 31, 2023
Jul. 31, 2022
Jan. 31, 2023
Revenue from Contract with Customer [Abstract]          
Customer contract assets $ 700   $ 700   $ 648
Unearned Revenue [Roll Forward]          
Unearned revenue, beginning of period 15,121 $ 13,636 17,376 $ 15,628  
Billings and other 7,723 6,884 13,660 12,212  
Contribution from contract asset (4) 23 51 112  
Unearned revenue from business combinations 0 2 0 4  
Unearned revenue, end of period 14,237 12,825 14,237 12,825  
Revenue recognized over time          
Unearned Revenue [Roll Forward]          
Revenue recognized (8,178) (7,336) (16,015) (14,392)  
Revenue recognized at a point in time          
Unearned Revenue [Roll Forward]          
Revenue recognized $ (425) $ (384) $ (835) $ (739)  
v3.23.2
Revenues - Remaining Performance Obligation (Details) - USD ($)
$ in Billions
Jul. 31, 2023
Jan. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Current $ 24.1 $ 24.6
Noncurrent 22.5 24.0
Total $ 46.6 $ 48.6
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-08-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Noncurrent remaining performance obligation, recognition period 13 months  
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-08-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Noncurrent remaining performance obligation, recognition period 36 months  
v3.23.2
Investments - Schedule of Marketable Securities (Details) - USD ($)
$ in Millions
Jul. 31, 2023
Jan. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 5,757 $ 5,634
Unrealized Gains 3 5
Unrealized Losses (135) (147)
Fair Value 5,625 5,492
Corporate notes and obligations    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 3,199 3,442
Unrealized Gains 2 4
Unrealized Losses (79) (92)
Fair Value 3,122 3,354
U.S. treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 550 381
Unrealized Gains 0 0
Unrealized Losses (13) (11)
Fair Value 537 370
Mortgage-backed obligations    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 261 190
Unrealized Gains 0 0
Unrealized Losses (13) (12)
Fair Value 248 178
Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 1,199 1,004
Unrealized Gains 1 1
Unrealized Losses (17) (20)
Fair Value 1,183 985
Municipal securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 129 175
Unrealized Gains 0 0
Unrealized Losses (5) (6)
Fair Value 124 169
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 150 278
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 150 278
Covered bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 90 105
Unrealized Gains 0 0
Unrealized Losses (5) (4)
Fair Value 85 101
Other    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 179 59
Unrealized Gains 0 0
Unrealized Losses (3) (2)
Fair Value $ 176 $ 57
v3.23.2
Investments - Schedule of Short-Term and Long-Term Marketable Securities (Details) - USD ($)
$ in Millions
Jul. 31, 2023
Jan. 31, 2023
Investments, Debt and Equity Securities [Abstract]    
Due within 1 year $ 2,221 $ 2,380
Due in 1 year through 5 years 3,395 3,104
Due in 5 years through 10 years 9 8
Fair value of marketable securities $ 5,625 $ 5,492
v3.23.2
Investments - Schedule of Strategic Investments (Details) - USD ($)
$ in Millions
Jul. 31, 2023
Jan. 31, 2023
Investment Holdings [Line Items]    
Strategic investments $ 4,778 $ 4,672
Variable Interest Entity, Not Primary Beneficiary    
Investment Holdings [Line Items]    
Strategic investments 419 354
Equity securities    
Investment Holdings [Line Items]    
Strategic investments 4,709 4,603
Debt securities and other investments    
Investment Holdings [Line Items]    
Strategic investments 69 69
Fair Value    
Investment Holdings [Line Items]    
Strategic investments 52 48
Fair Value | Equity securities    
Investment Holdings [Line Items]    
Strategic investments 52 48
Fair Value | Debt securities and other investments    
Investment Holdings [Line Items]    
Strategic investments 0 0
Measurement Alternative    
Investment Holdings [Line Items]    
Strategic investments 4,519 4,479
Measurement Alternative | Equity securities    
Investment Holdings [Line Items]    
Strategic investments 4,519 4,479
Measurement Alternative | Debt securities and other investments    
Investment Holdings [Line Items]    
Strategic investments 0 0
Other    
Investment Holdings [Line Items]    
Strategic investments 207 145
Other | Equity securities    
Investment Holdings [Line Items]    
Strategic investments 138 76
Other | Debt securities and other investments    
Investment Holdings [Line Items]    
Strategic investments $ 69 $ 69
v3.23.2
Investments - Components of Gains and Losses on Strategic Investments (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Jul. 31, 2022
Jul. 31, 2023
Jul. 31, 2022
Investment Holdings [Line Items]        
Unrealized gains (losses) recognized, net $ (65) $ (11) $ (204) $ (39)
Realized gains on sales of securities, net 36 56 34 91
Gains (losses) on strategic investments, net (29) 45 (170) 52
Publicly traded equity securities        
Investment Holdings [Line Items]        
Unrealized gains (losses) recognized, net 2 (29) 2 (103)
Privately held equity securities        
Investment Holdings [Line Items]        
Unrealized gains (losses) recognized, net 13 60 51 117
Upward adjustments 6 52 52 130
Downward adjustments 81 20 256 30
Privately held equity and debt securities        
Investment Holdings [Line Items]        
Impairments on privately held equity and debt securities $ (80) $ (42) $ (257) $ (53)
v3.23.2
Fair Value Measurement (Details) - USD ($)
$ in Millions
Jul. 31, 2023
Jan. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities $ 5,625 $ 5,492
Equity securities 52 48
Total assets 10,475 10,006
Corporate notes and obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 3,122 3,354
U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 537 370
Mortgage-backed obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 248 178
Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 1,183 985
Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 124 169
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 150 278
Covered bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 85 101
Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 176 57
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 52 48
Total assets 3,328 1,843
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate notes and obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Covered bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 0 0
Total assets 7,147 8,163
Significant Other Observable Inputs (Level 2) | Corporate notes and obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 3,122 3,354
Significant Other Observable Inputs (Level 2) | U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 537 370
Significant Other Observable Inputs (Level 2) | Mortgage-backed obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 248 178
Significant Other Observable Inputs (Level 2) | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 1,183 985
Significant Other Observable Inputs (Level 2) | Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 124 169
Significant Other Observable Inputs (Level 2) | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 150 278
Significant Other Observable Inputs (Level 2) | Covered bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 85 101
Significant Other Observable Inputs (Level 2) | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 176 57
Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 0 0
Total assets 0 0
Significant Unobservable Inputs (Level 3) | Corporate notes and obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Mortgage-backed obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Covered bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Other    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Significant Unobservable Inputs (Level 3) | Fair value, non-recurring | Privately held equity securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments, fair value 4,700 4,600
Time deposits | Cash and cash equivalents    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 866 1,877
Time deposits | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Time deposits | Cash and cash equivalents | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 866 1,877
Time deposits | Cash and cash equivalents | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Money market mutual funds | Cash and cash equivalents    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 3,276 1,795
Money market mutual funds | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 3,276 1,795
Money market mutual funds | Cash and cash equivalents | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Money market mutual funds | Cash and cash equivalents | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Cash equivalent securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 2,000 2,600
Cash equivalent securities | Cash and cash equivalents    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 656 794
Cash equivalent securities | Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Cash equivalent securities | Cash and cash equivalents | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 656 794
Cash equivalent securities | Cash and cash equivalents | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 0 $ 0
v3.23.2
Leases and Other Commitments - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Jul. 31, 2022
Jul. 31, 2023
Jul. 31, 2022
Jan. 31, 2023
Other Commitments [Line Items]          
Operating lease cost $ 191 $ 220 $ 660 $ 453  
Operating leases, not yet commenced 268   268    
Accrued compensation $ 1,600   $ 1,600   $ 2,600
Minimum          
Other Commitments [Line Items]          
Operating lease term, not yet commenced 4 years   4 years    
Maximum          
Other Commitments [Line Items]          
Operating lease term, not yet commenced 17 years   17 years    
v3.23.2
Leases and Other Commitments - Maturities of Lease Liabilities (Details)
$ in Millions
Jul. 31, 2023
USD ($)
Operating Leases  
Remaining six months of fiscal 2024 $ 243
Fiscal 2025 657
Fiscal 2026 585
Fiscal 2027 518
Fiscal 2028 462
Thereafter 1,303
Total minimum lease payments 3,768
Less: Imputed interest (391)
Total 3,377
Finance Leases  
Remaining six months of fiscal 2024 184
Fiscal 2025 378
Fiscal 2026 312
Fiscal 2027 198
Fiscal 2028 29
Thereafter 0
Total minimum lease payments 1,101
Less: Imputed interest (52)
Total $ 1,049
v3.23.2
Intangible Assets Acquired Through Business Combinations and Goodwill - Intangible Assets Acquired From Business Combinations (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Jul. 31, 2022
Jul. 31, 2023
Jul. 31, 2022
Finite-lived Intangible Assets [Roll Forward]        
Intangible assets, gross, beginning balance     $ 11,838  
Additions and retirements, net     0  
Intangible assets, gross, ending balance $ 11,838   11,838  
Accumulated amortization, beginning balance     (4,713)  
Expense and retirements, net     (943)  
Accumulated amortization, ending balance (5,656)   (5,656)  
Intangible assets, net, beginning balance     7,125  
Intangible assets, net, ending balance 6,182   $ 6,182  
Weighted Average Remaining Useful Life (Years)     4 years 4 months 24 days  
Amortization of intangible assets 472 $ 492 $ 943 $ 1,000
Developed technology        
Finite-lived Intangible Assets [Roll Forward]        
Intangible assets, gross, beginning balance     4,844  
Additions and retirements, net     0  
Intangible assets, gross, ending balance 4,844   4,844  
Accumulated amortization, beginning balance     (2,471)  
Expense and retirements, net     (498)  
Accumulated amortization, ending balance (2,969)   (2,969)  
Intangible assets, net, beginning balance     2,373  
Intangible assets, net, ending balance 1,875   $ 1,875  
Weighted Average Remaining Useful Life (Years)     2 years 6 months  
Customer relationships        
Finite-lived Intangible Assets [Roll Forward]        
Intangible assets, gross, beginning balance     $ 6,691  
Additions and retirements, net     0  
Intangible assets, gross, ending balance 6,691   6,691  
Accumulated amortization, beginning balance     (2,162)  
Expense and retirements, net     (420)  
Accumulated amortization, ending balance (2,582)   (2,582)  
Intangible assets, net, beginning balance     4,529  
Intangible assets, net, ending balance 4,109   $ 4,109  
Weighted Average Remaining Useful Life (Years)     5 years 2 months 12 days  
Other purchased intangible assets        
Finite-lived Intangible Assets [Roll Forward]        
Intangible assets, gross, beginning balance     $ 303  
Additions and retirements, net     0  
Intangible assets, gross, ending balance 303   303  
Accumulated amortization, beginning balance     (80)  
Expense and retirements, net     (25)  
Accumulated amortization, ending balance (105)   (105)  
Intangible assets, net, beginning balance     223  
Intangible assets, net, ending balance $ 198   $ 198  
Weighted Average Remaining Useful Life (Years)     4 years  
v3.23.2
Intangible Assets Acquired Through Business Combinations and Goodwill - Expected Future Amortization Expense for Purchased Intangible Assets (Details) - USD ($)
$ in Millions
Jul. 31, 2023
Jan. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
Remaining six months of fiscal 2024 $ 924  
Fiscal 2025 1,597  
Fiscal 2026 1,355  
Fiscal 2027 990  
Fiscal 2028 620  
Thereafter 696  
Total amortization expense $ 6,182 $ 7,125
v3.23.2
Intangible Assets Acquired Through Business Combinations and Goodwill - Schedule of Goodwill (Details)
$ in Millions
 6 Months Ended
Jul. 31, 2023
USD ($)
Goodwill [Roll Forward]  
Goodwill, beginning balance $ 48,568
Adjustments (2)
Goodwill, ending balance $ 48,566
v3.23.2
Debt - Carrying Value of Borrowings (Details) - USD ($)
$ in Millions
Jul. 31, 2023
Jan. 31, 2023
Debt Instrument [Line Items]    
Outstanding Principal as of July 31, 2023 $ 9,500  
Total carrying value of debt 9,423 $ 10,601
Less current portion of debt (999) (1,182)
Total noncurrent debt $ 8,424 9,419
Senior Notes | 2023 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 3.25%  
Outstanding Principal as of July 31, 2023 $ 0  
Total carrying value of debt $ 0 1,000
Senior Notes | 2024 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 0.625%  
Outstanding Principal as of July 31, 2023 $ 1,000  
Total carrying value of debt $ 999 998
Senior Notes | 2028 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 3.70%  
Outstanding Principal as of July 31, 2023 $ 1,500  
Total carrying value of debt $ 1,494 1,493
Senior Notes | 2028 Senior Sustainability Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 1.50%  
Outstanding Principal as of July 31, 2023 $ 1,000  
Total carrying value of debt $ 993 992
Senior Notes | 2031 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 1.95%  
Outstanding Principal as of July 31, 2023 $ 1,500  
Total carrying value of debt $ 1,490 1,489
Senior Notes | 2041 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 2.70%  
Outstanding Principal as of July 31, 2023 $ 1,250  
Total carrying value of debt $ 1,235 1,235
Senior Notes | 2051 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 2.90%  
Outstanding Principal as of July 31, 2023 $ 2,000  
Total carrying value of debt $ 1,977 1,977
Senior Notes | 2061 Senior Notes    
Debt Instrument [Line Items]    
Contractual Interest Rate 3.05%  
Outstanding Principal as of July 31, 2023 $ 1,250  
Total carrying value of debt $ 1,235 1,235
Secured Debt | Loan assumed on 50 Fremont (2)    
Debt Instrument [Line Items]    
Contractual Interest Rate 3.75%  
Outstanding Principal as of July 31, 2023 $ 0  
Total carrying value of debt $ 0 $ 182
v3.23.2
Debt - Narrative (Details)
Jul. 31, 2023
USD ($)
Jan. 31, 2023
USD ($)
Dec. 31, 2020
USD ($)
Revolving Credit Facility      
Line of Credit Facility [Line Items]      
Maximum borrowing capacity     $ 3,000,000,000
Outstanding borrowings for line of credit $ 0    
Closing trading price      
Line of Credit Facility [Line Items]      
Long-term debt measurement input 100 100  
Senior Notes | Significant Other Observable Inputs (Level 2)      
Line of Credit Facility [Line Items]      
Senior Notes fair value $ 7,600,000,000 $ 8,800,000,000  
v3.23.2
Debt - Future Principal Payments (Details)
$ in Millions
Jul. 31, 2023
USD ($)
Debt Disclosure [Abstract]  
Remaining six months of fiscal 2024 $ 0
Fiscal 2025 1,000
Fiscal 2026 0
Fiscal 2027 0
Fiscal 2028 0
Thereafter 8,500
Total principal outstanding $ 9,500
v3.23.2
Restructuring - Summary of Restructuring Activities (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Jul. 31, 2022
Jul. 31, 2023
Jul. 31, 2022
 [1],[2]
Restructuring Reserve [Roll Forward]        
Charges $ 49 $ 0 $ 760 [1],[2] $ 0
The Plan        
Restructuring Reserve [Roll Forward]        
Liability, beginning of the period   614 607  
Charges 49   760  
Payments (542)   (862)  
Non-cash items (4)   (388)  
Liability, end of the period 117   117  
The Plan | Workforce Reduction        
Restructuring Reserve [Roll Forward]        
Liability, beginning of the period   614 607  
Charges 45   389  
Payments (540)   (860)  
Non-cash items (2)   (19)  
Liability, end of the period 117   117  
The Plan | Office Space Reductions        
Restructuring Reserve [Roll Forward]        
Liability, beginning of the period   $ 0 0  
Charges 4   371  
Payments (2)   (2)  
Non-cash items (2)   (369)  
Liability, end of the period $ 0   $ 0  
[1] Amounts include amortization of intangible assets acquired through business combinations, as follows:
Three Months Ended July 31,Six Months Ended July 31,
2023202220232022
Cost of revenues$250 $260 $498 $535 
Marketing and sales222 232 445 469 
[2] Amounts include stock-based compensation expense, as follows:
 Three Months Ended July 31,Six Months Ended July 31,
 2023202220232022
Cost of revenues$112 $130 $215 $242 
Research and development256 297 497 576 
Marketing and sales277 326 540 617 
General and administrative79 98 152 192 
Restructuring 0 0 16 0 
v3.23.2
Stockholders' Equity - Narrative (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 1 Months Ended 3 Months Ended 6 Months Ended
Feb. 28, 2023
Jul. 31, 2023
Apr. 30, 2023
Jul. 31, 2023
Aug. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Common stock repurchased   $ 1,913 $ 2,144    
Share Repurchase Program          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Authorized amount of stock repurchase $ 20,000       $ 10,000
Increased authorized amount of stock repurchase $ 10,000        
Share Repurchase Program | Common Stock          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Common stock repurchased (in shares)   9   20  
Common stock repurchased   $ 1,900   $ 4,100  
Average stock repurchased price (in dollars per share)   $ 211.83   $ 198.63  
Common stock authorized repurchase amount   $ 11,900   $ 11,900  
v3.23.2
Stockholders' Equity - Share-based Compensation, Stock Options, Activity (Details)
$ / shares in Units, shares in Millions, $ in Millions
 6 Months Ended
Jul. 31, 2023
USD ($)
$ / shares
shares
Outstanding Stock Options  
Beginning balance (in shares) | shares 23
Exercised (in shares) | shares (4)
Plan shares expired or canceled (in shares) | shares (1)
Ending balance (in shares) | shares 18
Outstanding Stock Options, Vested or expected to vest (in shares) | shares 18
Outstanding Stock Options, Exercisable (in shares) | shares 11
Options Outstanding Weighted-Average Exercise Price  
Beginning balance (in dollars per share) | $ / shares $ 175.23
Exercised (in dollars per share) | $ / shares 131.54
Plan shares expired or canceled (in dollars per share) | $ / shares 203.61
Ending balance (in dollars per share) | $ / shares 182.12
Weighted-Average Exercise Price, Vested or expected to vest (in dollars per share) | $ / shares 181.03
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $ / shares $ 168.73
Aggregate Intrinsic Value  
Balance | $ $ 2,162
Vested or expected to vest | $ 2,088
Exercisable | $ $ 1,435
v3.23.2
Stockholders' Equity - Schedule of Restricted Stock Activity (Details)
$ / shares in Units, shares in Millions, $ in Millions
 6 Months Ended
Jul. 31, 2023
USD ($)
$ / shares
shares
Restricted stock  
Restricted Stock Outstanding  
Beginning balance (in shares) 29
Granted (in shares) 12
Canceled (in shares) (4)
Vested and converted to shares (in shares) (7)
Ending balance (in shares) 31
Expected to vest (in shares) 26
Restricted Stock Outstanding, Weighted-Average Exercise Price  
Beginning balance (in dollars per share) | $ / shares $ 204.62
Granted (in dollars per share) | $ / shares 192.96
Canceled (in dollars per share) | $ / shares 201.46
Vested and converted to shares (in dollars per share) | $ / shares 205.09
Ending balance (in dollars per share) | $ / shares $ 199.82
Restricted Stock Outstanding, Aggregate Intrinsic Value  
Aggregate Intrinsic Value, Outstanding | $ $ 7,016
Aggregate Intrinsic Value, Expected to vest | $ $ 5,931
Performance shares  
Restricted Stock Outstanding  
Granted (in shares) 1
Restricted Stock Outstanding, Weighted-Average Exercise Price  
Granted (in dollars per share) | $ / shares $ 192.55
v3.23.2
Stockholders' Equity - Share-based Payment Arrangement Expensed and Capitalized, Amount (Details)
$ in Millions
Jul. 31, 2023
USD ($)
Share-Based Payment Arrangement [Abstract]  
Remaining six months of fiscal 2024 $ 1,424
Fiscal 2025 2,253
Fiscal 2026 1,619
Fiscal 2027 775
Thereafter 132
Total stock-based compensation expense $ 6,203
v3.23.2
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Jul. 31, 2022
Jul. 31, 2023
Jul. 31, 2022
Income Tax Disclosure [Abstract]        
Provision for income taxes $ 225 $ 113 $ 352 $ 56
Income before provision for income taxes $ 1,492 $ 181 $ 1,818 $ 152
Effective tax rate     19.00% 37.00%
v3.23.2
Net Income Per Share - Reconciliation of Denominator Used in Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Apr. 30, 2023
Jul. 31, 2022
Apr. 30, 2022
Jul. 31, 2023
Jul. 31, 2022
Numerator:            
Net income $ 1,267 $ 199 $ 68 $ 28 $ 1,466 $ 96
Denominator:            
Weighted-average shares outstanding for basic earnings per share (in shares) 975   997   977 994
Dilutive effect of employee stock awards (in shares) 11   4   10 7
Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share (in shares) 986   1,001   987 1,001
v3.23.2
Net Income Per Share - Shares Excluded from Diluted Earnings Per Share (Details) - shares
shares in Millions
 3 Months Ended 6 Months Ended
Jul. 31, 2023
Jul. 31, 2022
Jul. 31, 2023
Jul. 31, 2022
Employee stock awards        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded (in shares) 13 44 18 33
v3.23.2
Legal Proceedings and Claims (Details)
 1 Months Ended
Sep. 30, 2019
lawsuit
Slack Litigation  
Loss Contingencies [Line Items]  
Number of claims filed 7