$CRM (Salesforce Inc) posted another robust quarter, sending its stock up 9% today after reporting its Q3 FY25 results.
๐๐ฒ๐ ๐ ๐ฒ๐๐ฟ๐ถ๐ฐ๐:
๐น Revenue: $9.44 billion, up 8% YoY, with Subscription & Support revenue growing 9% to $8.88 billion.
๐น Operating Margins: GAAP margin improved to 20%, up 280 basis points YoY; non-GAAP margin reached 33.1%, up 190 bps YoY.
๐น Cash Flow: Operating cash flow surged 29% YoY to $1.98 billion, while free cash flow grew 30% YoY to $1.78 billion.
๐น Current Remaining Performance Obligation (cRPO): Increased 10% YoY to $26.4 billion, reflecting strong contractual growth.
๐น Shareholder Returns: $1.6 billion returned via share repurchases and dividends during the quarter, with over $20 billion in total returns to date.
๐ ๐ฃ๐ผ๐๐ถ๐๐ถ๐๐ฒ ๐๐ถ๐ด๐ต๐น๐ถ๐ด๐ต๐๐: Salesforceโs 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.
๐ ๐ก๐ฒ๐ด๐ฎ๐๐ถ๐๐ฒ ๐๐๐ฝ๐ฒ๐ฐ๐๐: 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.
๐ฎ ๐ข๐๐๐น๐ผ๐ผ๐ธ: 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.... Show More
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