MarianoPardo
$CRM (Salesforce Inc) posted another robust quarter, sending its stock up 9% today after reporting its Q3 FY25 results. ๐—ž๐—ฒ๐˜† ๐— ๐—ฒ๐˜๐—ฟ๐—ถ๐—ฐ๐˜€: ๐Ÿ”น Revenue: $9.44 billion, up 8% YoY, with Subscription & Support revenue growing 9% to $8.88 billion. ๐Ÿ”น Operating Margins: GAAP margin improved to 20%, up 280 basis points YoY; non-GAAP margin reached 33.1%, up 190 bps YoY. ๐Ÿ”น Cash Flow: Operating cash flow surged 29% YoY to $1.98 billion, while free cash flow grew 30% YoY to $1.78 billion. ๐Ÿ”น Current Remaining Performance Obligation (cRPO): Increased 10% YoY to $26.4 billion, reflecting strong contractual growth. ๐Ÿ”น Shareholder Returns: $1.6 billion returned via share repurchases and dividends during the quarter, with over $20 billion in total returns to date. ๐Ÿ“ˆ ๐—ฃ๐—ผ๐˜€๐—ถ๐˜๐—ถ๐˜ƒ๐—ฒ ๐—›๐—ถ๐—ด๐—ต๐—น๐—ถ๐—ด๐—ต๐˜๐˜€: Salesforceโ€™s financial discipline is paying off, with substantial margin expansion and cash flow growth. The adoption of Agentforce, its AI-powered platform, has become a significant growth driver, enabling businesses to leverage autonomous agents for operational efficiency. The company's ability to sustain double-digit growth in cRPO signals continued confidence in its long-term revenue pipeline. ๐Ÿ“‰ ๐—ก๐—ฒ๐—ด๐—ฎ๐˜๐—ถ๐˜ƒ๐—ฒ ๐—”๐˜€๐—ฝ๐—ฒ๐—ฐ๐˜๐˜€: Despite these successes, certain revenue segments showed signs of slowing growth compared to prior quarters. For instance, Platform and Other revenue growth decelerated to 8% YoY in constant currency terms. Losses on strategic investments also impacted net income, reducing EPS by $0.17 on a GAAP basis. ๐Ÿ”ฎ ๐—ข๐˜‚๐˜๐—น๐—ผ๐—ผ๐—ธ: Salesforce raised its FY25 guidance, now targeting $37.8-$38 billion in revenue, representing 8-9% YoY growth. With Agentforce and other innovations leading its AI push, Salesforce is well-positioned to maintain its leadership. However, continued cost optimization and effective execution in integrating recent acquisitions will be critical to sustaining this trajectory. Disclaimer: I own Salesforce shares. This article is not financial advice. Please do your own research before making any investment decisions.
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