Salesforce (CRM) risk factors, 2025 10-K

Operational and Execution Risks

1. 01Defects or disruptions in our services could diminish demand for our services and subject us to substantial liability
2. 02As part of our business strategy, we periodically acquire complementary businesses, joint ventures, services and technologies and intellectual property rights. We continue to evaluate such opportunities and expect to make such acquisitions in the future
3. 03Supporting our existing and growing customer base could strain our personnel resources and infrastructure, and if we are unable to scale our operations and increase productivity, we may not be able to successfully implement our business plan
4. 04short term. We may not be able to make these investments as quickly or effectively as necessary to successfully scale our operations
5. 05Periodic changes to our sales organization can be disruptive and may reduce our rate of growth
6. 06Sales to customers outside the United States expose us to risks inherent in international operations
7. 07We may lose key members of our management team or development and operations personnel, and may be unable to attract and retain employees we need to support our operations and growth
8. 08Any failure in the delivery of high-quality professional and technical support services related to our online applications may adversely affect our relationships with our customers and our financial results

Strategic and Industry Risks

1. 09The markets in which we participate are intensely competitive, and if we do not compete effectively, our operating results could be harmed
2. 10Our efforts to expand our service offerings and to develop and integrate our existing services in order to keep pace with technological developments may not succeed and may reduce our revenue growth rate and harm our business
3. 11Our continued success depends on our ability to maintain and enhance our brands
4. 12In addition, we have secured the naming rights to facilities controlled by third parties, such as office towers and a transit center, and any negative events or publicity arising in connection with these facilities could adversely impact our brand
5. 13We are subject to risks associated with our strategic investments, including partial or complete loss of invested capital. Significant changes in the fair value of this portfolio could negatively impact our financial results
6. 14If third-party developers and providers do not continue to embrace our technology delivery model and enterprise cloud computing services, or if our customers seek warranties from us for third-party applications, integrations, data and content, our business could be harmed
7. 15Social and ethical issues, including the use or capabilities of AI in our offerings, may result in reputational harm and liability
8. 16The evolving landscape related to ESG matters may expose us to risks that could adversely affect our reputation and performance

Legal and Regulatory Risks

1. 17Privacy concerns and laws as well as evolving regulation of cloud computing, AI services, cross-border data transfer restrictions and other domestic or foreign regulations may limit the use and adoption of our services and adversely affect our business
2. 18Industry-specific regulations and other requirements and standards are evolving and industry-specific laws, regulations, interpretive positions or standards could harm our business
3. 19We have been and may in the future be sued by third parties for various claims, including alleged infringement of proprietary rights
4. 20Any failure to obtain registration or protection of our intellectual property rights could impair our ability to protect our proprietary technology and our brand, causing us to incur significant expenses and harm our business
5. 21We may be subject to risks related to government contracts and related procurement regulations
6. 22We are subject to governmental sanctions and export and import controls that could impair our ability to compete in international markets and may subject us to liability if we are not in full compliance with applicable laws

Financial Risks

1. 23Because we generally recognize revenue from subscriptions for our services over the term of the subscription, downturns or upturns in new business may not be immediately reflected in our operating results
2. 24If we experience significant fluctuations in our rate of anticipated growth and fail to balance our expenses with our revenue forecasts, our business could be harmed and the market price of our common stock could decline
3. 25Unanticipated changes in our effective tax rate and additional tax liabilities and global tax developments may impact our financial results
4. 26We are exposed to fluctuations in currency exchange rates that have in the past and could in the future negatively impact our financial results and cash flows from changes in the value of the U.S. Dollar versus local currencies
5. 27Our debt service obligations, lease commitments and other contractual obligations may adversely affect our financial condition, results of operations and cash flows
6. 28events of default under such instruments, which could permit acceleration of all of our debt and borrowings. Any required repayment of our debt as a result of a fundamental change or other acceleration would lower our current cash on hand such that we would not have those funds available for use in our business

Risks Related to Owning Our Common Stock

1. 29Our quarterly results are likely to fluctuate, which may cause the value of our common stock to decline substantially
2. 30The market price of our common stock is likely to be volatile and could subject us to litigation
3. 31Provisions in our amended and restated certificate of incorporation and bylaws and Delaware law might discourage, delay or prevent a change of control of the Company or changes in our management and, therefore, depress the market price of our common stock
4. 32There can be no assurance that we will continue to declare cash dividends in any particular amounts, or at all

General Risks

1. 33Volatile and significantly weakened global economic conditions have in the past and may in the future adversely affect our industry, business and results of operations
2. 34Geopolitical crises, natural disasters and other events beyond our control have in the past and may in the future materially adversely affect us
3. 35Climate change may have an impact on our business