Group 1 - Salesforce plans to hire 2,000 new sales representatives to promote its AI tools, doubling previous hiring plans [1][2] - The company has already received 9,000 referrals for the 2,000 positions [1] - Salesforce is set to release the second generation of its AI agent software in February 2025 [2] Group 2 - CEO Marc Benioff anticipates that Salesforce will have over a billion AI agents operational within the next 12 months [2] - Benioff expressed unprecedented excitement about generative AI, stating it is the most thrilling development in his career at Salesforce [2]

Shares of Salesforce Inc NYSE: CRM have been a standout performer this year, as they continue to add gains to the 180% rally that kicked off in late 2022. Two years in, this tech giant is looking stronger than ever. Up 70% since May alone and already setting record highs this month, Salesforce has cemented itself as one of the market’s top growth names.  Salesforce TodayCRMSalesforce$351.01 -6.22 (-1.74%) 52-Week Range$212.00▼$369.00Dividend Yield0.46%P/E Ratio57.73Price Target$377.24Add to WatchlistSalesf ...

Investment Rating - The report maintains a "Buy" rating for Salesforce (CRM) with a target price of $450, indicating a potential upside of approximately 26% from the current price [1][16][19]. Core Insights - Salesforce reported a revenue of $9.44 billion for FY25Q3, reflecting an 8% year-over-year growth, driven primarily by subscription and support services [1][5][17]. - The company has adjusted its GAAP operating margin guidance to 19.8% and non-GAAP operating margin to 32.9% for FY25, indicating strong profitability [5][12]. - The introduction of AI products, particularly Agentforce, is expected to enhance revenue growth and operational efficiency, positioning Salesforce competitively in the market [12][18][19]. Summary by Sections Financial Performance - FY25Q3 revenue reached $9.44 billion, up 8% year-over-year, exceeding market expectations [1][5]. - GAAP operating margin was reported at 20%, with a net profit of $1.53 billion, reflecting a 25% increase year-over-year [1][5][17]. - The company’s cash flow from operations was $1.78 billion, with free cash flow also showing a strong increase of 30% year-over-year [1][5]. Revenue Breakdown - Subscription and support revenue accounted for $8.88 billion, growing 9% year-over-year, while professional services revenue was $560 million, showing a slight increase [1][5][12]. - Revenue by geography showed growth across all regions, with the Americas contributing $6.22 billion, Europe $2.23 billion, and Asia Pacific $996 million [5][12]. AI Strategy and Product Development - Salesforce's AI strategy, particularly through Agentforce, is expected to drive significant revenue growth, with a target of 1 billion AI interactions by 2025 [12][18]. - The integration of AI capabilities is enhancing customer engagement and operational efficiency, with reported improvements in sales efficiency and customer satisfaction [18][19]. Market Position and Future Outlook - The report highlights Salesforce's competitive edge in the AI CRM market, with a focus on continuous innovation and strategic partnerships [12][18]. - The company aims to leverage its AI capabilities to further penetrate the market and enhance its product offerings, ensuring sustained growth [12][19].

Investment Rating - The investment rating for Salesforce (CRM) is "Buy" (maintained) [2] Core Views - The report highlights that Salesforce's Q3 FY25 performance exceeded expectations, with total revenue reaching $9.44 billion, a year-on-year increase of 8.3%, surpassing consensus estimates by 1.0% [2] - Subscription revenue was $8.88 billion, growing 9.1% year-on-year, also exceeding consensus estimates by 0.7% [2] - Net profit for the quarter was $1.53 billion, reflecting a year-on-year growth of 24.8%, exceeding consensus estimates by 7.9% [2] - The report emphasizes the significant impact of AI functionalities, particularly the new product "Agent Force," which has driven a substantial increase in orders, with over 2,000 AI orders signed, including more than 200 for Agent Force [2] - The company maintains its full-year guidance, with a slight upward adjustment in operating margin expectations [2] Financial Performance Summary - For FY2025, the expected revenue is between $9.90 billion and $10.10 billion, representing a year-on-year growth of 7%-9% [2] - The full-year revenue forecast remains unchanged at $37.8 billion to $38.0 billion, indicating an 8%-9% year-on-year growth [2] - Non-GAAP operating margin for FY25 is projected at 32.9%, with a slight increase from previous estimates [2] - The report projects non-GAAP net profits for FY25, FY26, and FY27 to be $9.78 billion, $11.14 billion, and $12.51 billion respectively, with year-on-year growth rates of 20.9%, 13.9%, and 12.4% [2][4] Key Financial Metrics - Revenue for FY2024 is reported at $34.86 billion, with a year-on-year growth of 11.2% [4] - Non-GAAP net profit for FY2024 is projected at $8.09 billion, reflecting a significant year-on-year increase of 54.7% [4] - Gross margin is expected to be 75.5% for FY2024, with a gradual increase to 77.0% in subsequent years [4] - The report indicates a projected P/E ratio of 53.5 for FY2024, decreasing to 27.6 by FY2027 [4][9]

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 ...