What the changes say
- AI-related risks now span product ethics, investor sentiment, privacy regulation, service vulnerabilities, and energy demand.
What changed since the prior 10-K
New
- NewOperational and Execution Risks
As we acquire companies or technologies, we may not realize the expected business or financial benefits and the acquisitions could prove difficult to integrate, disrupt our business, dilute stockholder value and adversely affect our operating results and the market value of our common stock
Acquisitions may fail to deliver benefits, introduce cybersecurity vulnerabilities, complicate integration and revenue recognition, damage Salesforce’s brand, or dilute stockholder value.
- NewOperational and Execution Risks
Sales to larger enterprise customers may involve more time-consuming and expensive sales cycles, pricing pressure and implementation and configuration challenges, and, for some complex transactions, delayed revenue recognition, all of which could harm our business and operating results
Large enterprise and government sales may require costly education, configuration, integration, and implementation work, creating pricing pressure, delays, and delayed revenue recognition.
Dropped
- DroppedOperational and Execution Risks
As 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
- DroppedStrategic and Industry Risks
In 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
Covered general acquisition risks, including failed benefits, security issues, integration difficulties, and unforeseen operating costs.
Reworded
- 89% rewrittenStrategic and Industry Risks
Social, ethical, and regulatory issues, including the development, deployment, use or capabilities of AI in our offerings, may result in reputational harm, legal liability and increased compliance costs
Explicitly adds AI development, deployment, use, and capabilities, plus regulators’ conflicting expectations, while retaining reputational and stakeholder risks.
Was: Social and ethical issues, including the use or capabilities of AI in our offerings, may result in reputational harm and liability
- 81% rewrittenRisks Related to Owning Our Common Stock
Our stock price is likely to be volatile and could subject us to litigation
Now highlights AI-related investor sentiment and announcements or rumors about technology, services, acquisitions, customers, and competitors as stock-price drivers.
Was: The market price of our common stock is likely to be volatile and could subject us to litigation
- 79% rewrittenLegal and Regulatory Risks
Privacy concerns and laws as well as evolving regulation of cloud computing, AI services, cross-border data transfers and other domestic or foreign regulations may limit the use and adoption of our services and adversely affect our business
Adds that privacy and data regulations are growing in volume, complexity, and scope, potentially due to heightened geopolitical tensions.
Was: Privacy 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
- 77% rewrittenRisks Related to Owning Our Common Stock
Our quarterly results are likely to fluctuate, which may cause the value of our common stock to decline substantially
Expands fluctuation drivers to Commerce customers, contract and term-license timing, costs and capital expenditures, employee compensation, and real estate.
- 68% rewrittenOperational and Execution Risks
Defects or disruptions in our services could diminish demand for our services and subject us to substantial liability
Adds that defects in Salesforce, customer, or vendor products and components may create vulnerabilities permitting unauthorized access to protected customer data.
- 58% rewrittenOperational and Execution Risks
Sales to customers outside the United States expose us to risks inherent in international operations
Specifically adds evolving U.S. relations with China and Russia and the Middle East conflict to international operating risks.
- 57% rewrittenOperational and Execution Risks
Periodic changes to our sales organization can be disruptive and may reduce our rate of growth
Now focuses on reduced operating results, rather than specifically warning that sales changes may reduce growth, revenue, or performance in particular quarters.
- 56% rewrittenGeneral Risks
Climate change may have an impact on our business
Adds AI-driven energy consumption, energy-market volatility, power-grid disruptions, and higher value-chain and data-center operating costs.
- 54% rewrittenGeneral Risks
Geopolitical crises, natural disasters and other catastrophic events beyond our control have in the past and may in the future materially adversely affect us
Was: Geopolitical crises, natural disasters and other events beyond our control have in the past and may in the future materially adversely affect us
- 48% rewrittenOperational and Execution Risks
Supporting 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
- 47% rewrittenLegal and Regulatory Risks
We may be subject to risks related to government contracts and related procurement regulations
- 46% rewrittenFinancial Risks
Unanticipated changes in our effective tax rate and additional tax liabilities and global tax developments may impact our financial results
- 45% rewrittenStrategic and Industry Risks
Our continued success depends on our ability to maintain and enhance our brands
- 45% rewrittenLegal and Regulatory Risks
Industry-specific regulations and other requirements and standards are evolving and industry-specific laws, regulations, interpretive positions or standards could harm our business
- 39% rewrittenOperational and Execution Risks
We 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
- 34% rewrittenFinancial Risks
If 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 our stock price could decline
Was: If 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
- 34% rewrittenRisks Related to Owning Our Common Stock
Provisions in our governing documents and Delaware law might discourage, delay or prevent a change of control of the Company or changes in our management and, therefore, depress our stock price
Was: Provisions 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
- 34% rewrittenStrategic and Industry Risks
The evolving landscape related to environmental, social and governance matters may expose us to risks that could adversely affect our reputation and performance
Was: The evolving landscape related to ESG matters may expose us to risks that could adversely affect our reputation and performance
- 22% rewrittenStrategic and Industry Risks
Our 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
All 33 risk factors
Headings as the filing states them, in filing order.
Operational and Execution Risks
- 01Defects or disruptions in our services could diminish demand for our services and subject us to substantial liability68% rewritten
- 02As we acquire companies or technologies, we may not realize the expected business or financial benefits and the acquisitions could prove difficult to integrate, disrupt our business, dilute stockholder value and adversely affect our operating results and the market value of our common stockNew
- 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 plan48% rewritten
- 04Periodic changes to our sales organization can be disruptive and may reduce our rate of growth57% rewritten
- 05Sales to customers outside the United States expose us to risks inherent in international operations58% rewritten
- 06Sales to larger enterprise customers may involve more time-consuming and expensive sales cycles, pricing pressure and implementation and configuration challenges, and, for some complex transactions, delayed revenue recognition, all of which could harm our business and operating resultsNew
- 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 growth39% rewritten
- 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
- 09The markets in which we participate are intensely competitive, and if we do not compete effectively, our operating results could be harmed
- 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 business22% rewritten
- 11Our continued success depends on our ability to maintain and enhance our brands45% rewritten
- 12We 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
- 13If third-party developers and vendors 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
- 14Social, ethical, and regulatory issues, including the development, deployment, use or capabilities of AI in our offerings, may result in reputational harm, legal liability and increased compliance costs89% rewritten
- 15The evolving landscape related to environmental, social and governance matters may expose us to risks that could adversely affect our reputation and performance34% rewritten
Legal and Regulatory Risks
- 16Privacy concerns and laws as well as evolving regulation of cloud computing, AI services, cross-border data transfers and other domestic or foreign regulations may limit the use and adoption of our services and adversely affect our business79% rewritten
- 17Industry-specific regulations and other requirements and standards are evolving and industry-specific laws, regulations, interpretive positions or standards could harm our business45% rewritten
- 18We have been and may in the future be sued by third parties for various claims, including alleged infringement of proprietary rights
- 19Any 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
- 20We may be subject to risks related to government contracts and related procurement regulations47% rewritten
- 21We may be subject to risks from governmental sanctions and export and import controls that could impair our ability to compete in international markets and subject us to liability if we are not in full compliance with applicable laws
Financial Risks
- 22Because 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
- 23If 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 our stock price could decline34% rewritten
- 24Unanticipated changes in our effective tax rate and additional tax liabilities and global tax developments may impact our financial results46% rewritten
- 25We 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
- 26Our debt service obligations, lease commitments and other contractual obligations may adversely affect our financial condition, results of operations and cash flows
Risks Related to Owning Our Common Stock
- 27Our quarterly results are likely to fluctuate, which may cause the value of our common stock to decline substantially77% rewritten
- 28Our stock price is likely to be volatile and could subject us to litigation81% rewritten
- 29Provisions in our governing documents and Delaware law might discourage, delay or prevent a change of control of the Company or changes in our management and, therefore, depress our stock price34% rewritten
- 30There can be no assurance that we will continue to declare cash dividends in any particular amounts, or at all
General Risks
- 31Volatile and significantly weakened global economic conditions have in the past and may in the future adversely affect our industry, business and results of operations
- 32Geopolitical crises, natural disasters and other catastrophic events beyond our control have in the past and may in the future materially adversely affect us54% rewritten
- 33Climate change may have an impact on our business56% rewritten
Other Salesforce 10-Ks
- FY2025 10-K risk factors35 risks
Service reliability, scaling Salesforce’s customer infrastructure, and integrating acquisitions are central operational risks.
Filed Mar 05, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.