Salesforce (CRM), the #1 AI CRM, announced results for its Q3 fiscal 2025 ended October 31, 2024.
Third Quarter Highlights
- Third Quarter Revenue of $9.44 Billion, up 8% both Year-Over-Year (“Y/Y”) & in Constant Currency (“CC”), inclusive of Subscription & Support Revenue of $8.88 Billion, up 9% both Y/Y & in CC
- Third Quarter GAAP Diluted Net Income Per Share was $1.58 and non-GAAP Diluted Net Income Per Share was $2.41. GAAP and non-GAAP Diluted Net Income Per Share were Impacted by Losses on Strategic Investments of $(0.17) and $(0.18), Respectively
- Third Quarter GAAP Operating Margin of 20.0% and non-GAAP Operating Margin of 33.1%
- Current Remaining Performance Obligation of $26.4 Billion, up 10% both Y/Y & in CC
- Third Quarter Operating Cash Flow of $1.98 Billion, up 29% Y/Y, and Free Cash Flow of $1.78 Billion, up 30% Y/Y
- Returned $1.2 Billion in the Form of Share Repurchases and $0.4 Billion in Dividend Payments to Stockholders, Third Quarter Total Cash Returned to Stockholders of $1.6 Billion
FY25 Guidance Highlights
- Initiates Fourth Quarter FY25 Revenue Guidance of $9.90 Billion – $10.10 Billion, up 7% – 9% Y/Y
- Raises Low End of Full Year FY25 Revenue Guidance to $37.8 Billion to $38.0 Billion, up 8% – 9% Y/Y and Maintains Full Year FY25 Subscription & Support Revenue Growth Guidance of Slightly Below 10% Y/Y & Approximately 10% in CC
- Raises Full Year FY25 GAAP Operating Margin Guidance to 19.8% and Raises non-GAAP Operating Margin Guidance to 32.9%
- Raises Full Year FY25 Operating Cash Flow Growth Guidance to 24% to 26% Y/Y
“We delivered another quarter of exceptional financial performance across revenue, margin, cash flow, and cRPO,” said Marc Benioff, Chair and CEO, Salesforce. “Agentforce, our complete AI system for enterprises built into the Salesforce Platform, is at the heart of a groundbreaking transformation. The rise of autonomous AI agents is revolutionizing global labor, reshaping how industries operate and scale. With Agentforce, we’re not just witnessing the future—we’re leading it, unleashing a new era of digital labor for every business and every industry.”
“We continue to drive disciplined profitable growth with third quarter GAAP operating margin of 20.0%, up 280 basis points year-over-year, and non-GAAP operating margin of 33.1%, up 190 basis points year-over-year,” said Amy Weaver, President and CFO of Salesforce. “To date, our total capital returns have surpassed $20 billion and we remain focused on driving shareholder value.”
Third Quarter Notes
Net Income Per Share: Third quarter GAAP diluted net income per share was $1.58 and non-GAAP diluted net income per share was $2.41. During the three months ended October 31, 2024, losses on strategic investments impacted GAAP diluted net income per share by $(0.17) on a U.S. tax rate of 24.5% and non-GAAP diluted net income per share by $(0.18) on a non-GAAP tax rate of 22.0%.
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