Company and Industry Overview * **Company**: Salesforce, Inc. (NYSE:CRM) * **Industry**: Cloud Computing, Customer Relationship Management (CRM), Artificial Intelligence (AI) * **Event**: Barclays 22nd Annual Global Technology Conference, December 12, 2024 Key Points Q3 Results and Market Performance * **Revenue Beat**: Salesforce announced a beat on revenue, CRPO, margin, and free cash flow in Q3, with almost all key metrics exceeding expectations. * **Market Reaction**: The market responded positively to the results, with the share price reacting well. * **Customer Demand**: There is significant demand for Salesforce's AI product, Agentforce, from customers. Agentforce and AI Strategy * **Agentforce Launch**: Salesforce launched Agentforce in October 2024, and it has already generated significant interest and momentum. * **Agentforce 2.0**: Salesforce plans to launch Agentforce 2.0 with incremental capabilities, including deeper integration with Slack and enhanced analytics. * **Digital Labor Market**: Salesforce sees a massive opportunity in the digital labor market, which it estimates to be worth trillions of dollars. * **Monetization**: Salesforce is exploring new pricing models for Agentforce, moving away from conversations-based pricing to a more platform-based approach. Data Cloud and MuleSoft * **Data Cloud**: Salesforce's Data Cloud is a critical component of its AI strategy, providing insights and data to customers across various platforms. * **MuleSoft**: Salesforce's acquisition of MuleSoft enhances its ability to move data around organizations and integrate various systems. Sales Cloud and Service Cloud * **Resilience**: Salesforce's Sales Cloud and Service Cloud showed resilience in Q3, driven by customer demand and the company's focus on data and insights. * **Agentforce Impact**: Salesforce expects Agentforce to complement its existing products rather than cannibalize them, with the potential for significant cross-selling opportunities. Efficiency and Profitability * **Efficiency Initiatives**: Salesforce continues to focus on efficiency initiatives, including org health, location strategies, and leveraging its own technology internally. * **Agentforce for Internal Use**: Salesforce plans to use Agentforce internally to drive efficiencies and improve profitability. Acquisitions * **Strategic Focus**: Salesforce remains committed to strategic acquisitions that add value to its product portfolio and drive growth. * **Profitability**: Salesforce is more selective about acquisitions, focusing on those that can achieve profitability quickly. Additional Notes * Salesforce is investing in new sales roles and compensation plans to support the growth of Agentforce and Data Cloud. * Salesforce is committed to providing customers with choice in terms of cloud platforms and services. * Salesforce is focused on building a single platform that leverages Data Cloud and Agentforce across its entire product suite.

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Investment Rating - The report does not explicitly mention an investment rating for Salesforce [1] Core Viewpoints - Agentforce is expected to become a new growth driver for Salesforce, enhancing the company's product ecosystem by integrating with Salesforce Platform, Data Cloud, and Customer 360 [2] - Agentforce's capabilities surpass those of Salesforce's previous AI solution, Einstein, and its potential could be further enhanced by OpenAI's large models [4] Product System - Salesforce's product system is built on a foundation of Platform, Data Cloud, Trust Layer, and Customer 360, with Agentforce adding pre-configured agents for various industries and roles [15][16][17] - The Platform layer includes MuleSoft, Einstein AI, and process automation, while Data Cloud handles structured and unstructured data, and Trust Layer ensures data security and privacy [15] Financial Performance - Salesforce's FY2024 revenue reached $34.857 billion, with subscription and support revenue accounting for 93% of total revenue [19] - Revenue growth has slowed, with FY2024 revenue increasing by 11.18% YoY, down from over 20% growth in previous years [19] - The Americas region contributed the highest revenue share at 67%, followed by Europe at 23%, and Asia-Pacific at 10% [25] - FY2024 operating profit surged by 386.50% YoY to $5.011 billion, while GAAP net income increased over 18 times to $4.136 billion [45] Agentforce Overview - Agentforce, launched in 2024, is an AI-driven automation tool designed to assist with service, sales, and marketing tasks [54] - It consists of five key elements: role, data, action, protection mechanism, and channel, enabling it to operate across various platforms like Slack and CRM [58] - Agentforce's workflow includes data input, prompt generation, reasoning engine processing, and action execution, with features like Query Enrichment and pre-configured workflows differentiating it from previous products [63][65] Agentforce Integration and Capabilities - Agentforce integrates with Data Cloud, allowing users to import data through methods like Data Cloud ingestion, zero-copy, and MuleSoft APIs [83][84][85] - It supports natural language descriptions for agent creation, enabling users to define agent behavior and data usage with minimal coding [75] - Agentforce's Sales Agent feature automates tasks like lead nurturing and sales coaching, leveraging CRM data for personalized interactions [79][80] Future Outlook - Agentforce is positioned to become a significant growth driver for Salesforce, with potential enhancements from OpenAI's large models [90][91]

On December 3rd, Salesforce (NYSE: CRM ) reported its Q3 2025 earnings, delivering a solid revenue beat but slightly missing on EPS. The market's reaction was swift and enthusiastic, with the stock rallying over 10% post-results. I'm initiating coverage on Salesforce with a BuyWe bring a rigorous research-driven approach to uncovering high-conviction stocks with compelling growth potential across dynamic sectors like big tech, semiconductors, AI, and healthcare. Leveraging comprehensive sector insights, We ...

Salesforce (NYSE: CRM ) rallied more than 10% despite missing its non-GAAP EPS consensus and guiding a lower YoY revenue growth in 4Q FY2025. While management's discussion on its featured Agentforce platform was promising, it did not seem to justify thisI'm specialized in fundamental equity research, global macro strategy, and top-down portfolio construction. I graduated from UCLA with a degree of Business Economics and UMich Ross School of Business with a Master of Accounting. I'm a senior analyst at a mul ...

This account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in a business model that will cause a stock to change dramatically. Associated with SA contributors Thomas Potter and Elijah Buell.Analyst’s Disclosure: I/we h ...

More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...

Salesforce, Inc. (CRM) delivered a mixed set of third-quarter fiscal 2025 results, with revenues surpassing expectations but earnings per share (EPS) falling slightly short. Despite this, the company raised its full-year revenue guidance, which buoyed investor confidence.Amid near-term challenges and long-term opportunities, here’s why holding Salesforce stock may be the right decision for now.Salesforce’s Q3 Results: A Mixed BagSalesforce reported revenues of $9.41 billion, an 8% year-over-year increase th ...

I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking AlphaAnalyst’s Disclosure: I/we have a beneficial long position in the shares of PLTR either ...

Investment Rating - Maintain BUY rating with a target price of US$410.0 based on 24x FY25E EV/EBITDA, up from the previous target of US$336.5 [1][7] Core Views - Salesforce reported inline 3QFY25 results with total revenue of US$9.44bn, up 8% YoY, and non-GAAP net income of US$2.32bn, up 12% YoY, both in line with consensus estimates [1] - cRPO grew 10% YoY on a constant currency basis, beating previous guidance of 9% YoY, driven by early renewals, strong booking performance, and momentum from Agentforce [1] - For 4QFY25E, Salesforce guided total revenue growth of 7-9% YoY to US$9.90-10.10bn, in line with consensus estimates of US$10.05bn [1] - The company raised FY25E non-GAAP OPM guidance to 32.9% from 32.8%, driven by efficiency improvements and expense control [1] Financial Performance - Salesforce's revenue is expected to grow from US$37.9bn in FY25E to US$44.2bn in FY27E, with adjusted net profit increasing from US$9.7bn to US$12.3bn over the same period [5][10] - Non-GAAP operating margin improved by 1.9ppt YoY to 33.1% in 3QFY25, with FY25E guidance raised to 32.9% [1] - Gross margin is expected to improve from 77.0% in FY25E to 78.3% in FY27E, while non-GAAP OPM is projected to rise from 32.9% to 35.9% over the same period [5] Growth Drivers - Agentforce, Salesforce's AI agent platform, saw strong demand with over 200 deals closed in 3QFY25, and the launch of Agentforce 2.0 in Dec is expected to further expand monetization opportunities [1] - AI-related deals more than tripled YoY to 2,000 in 3QFY25, with multi-cloud adoption continuing to show strong momentum, averaging over 5 clouds per top 25 deal [1] - Data Cloud, a foundation for AI implementation, was included in one-third of all deals over US$1mn and 8 of the top 10 deals in 3QFY25 [1] Valuation - Salesforce is valued at US$410.0 per share based on 24x FY25E EV/EBITDA, a discount to the sector average of 31x, reflecting its more mature earnings growth stage [7][8] - The target EV/EBITDA multiple implies a target equity valuation of US$397.7bn, with net cash of US$14.1bn factored into the valuation [8]