salesforce(CRM) - 2025 Q3 - Quarterly Report

Revenue and Income - Revenue for the nine months ended October 31, 2024, was $27.9 billion, an increase of 9 percent year-over-year[123] - Total revenues for the three months ended October 31, 2024, were$9,444 million, an increase of 8% compared to $8,720 million for the same period in 2023[144] - Total revenues for the nine months ended October 31, 2024, were$27,902 million, representing a 9% growth compared to $25,570 million for the same period in 2023[155] - Subscription and support revenues accounted for approximately 94 percent of total revenues for the nine months ended October 31, 2024[127] - Subscription and support revenues accounted for 94$5.4 billion, with an operating margin of approximately 19 percent, up from 13 percent year-over-year[125] - Diluted net income per share increased to $4.60, compared to$2.73 from the previous year[125] - Net income for the three months ended October 31, 2024, was $1,527 million, or 16$1,224 million, or 14%, in the same period of 2023[144] - Gross profit for the three months ended October 31, 2024, was $7,339 million, representing a gross margin of 78$6,565 million and 75% in the same period of 2023[144] Cash Flow and Investments - Cash provided by operations was $9.1 billion, reflecting a 34 percent increase year-over-year[125] - Net cash provided by operating activities for the nine months ended October 31, 2024, was$9.1 billion, an increase of 33.6% from $6.8 billion in the same period of 2023[164] - The net cash used in investing activities for the nine months ended October 31, 2024, was$1.0 billion, compared to $859 million in the same period of 2023[166] - As of October 31, 2024, the company had cash, cash equivalents, and marketable securities totaling$12.8 billion, along with accounts receivable of $4.7 billion[162] Share Repurchase and Stock - The company repurchased approximately 30 million shares for approximately$7.7 billion during the nine months ended October 31, 2024[125] - The company repurchased $7.8 billion of common stock during the nine months ended October 31, 2024, compared to$5.9 billion in the same period of 2023, representing a 32.2% increase[167] - The company has a remaining authorization of $10.6 billion for share repurchases under its Share Repurchase Program as of October 31, 2024[171] Expenses and Cost Management - Operating expenses for the three months ended October 31, 2024, totaled$5,446 million, consistent with 58% of total revenues, compared to $5,064 million in the same period of 2023[144] - Total operating expenses for the nine months ended October 31, 2024, were$16,091 million, representing 58% of total revenues, a decrease from 62% in the same period last year[158] - Research and development expenses for the three months ended October 31, 2024, were $1,356 million, representing 14$344 million in cash and Own Data Company Ltd. for approximately $1.9 billion in cash in November 2024[175] - The company continues to invest in generative and agentic AI across all products to enhance customer engagement and operational efficiency[122] Performance Obligations and Attrition - Total remaining performance obligation as of October 31, 2024, was approximately$53.1 billion, a 10 percent increase year-over-year[125] - The attrition rate, excluding Slack self-service, was approximately 8 percent as of October 31, 2024[131] Tax and Debt - The tax provision for the three months ended October 31, 2024, was $219 million, compared to$263 million for the same period in 2023, reflecting a decrease of 16.7%[161] - The effective tax rate for the three months ended October 31, 2024, was 13%, down from 18% in the same period of 2023[161] - The company had senior unsecured debt outstanding with a total carrying value of $8.4 billion as of October 31, 2024[168] Strategic Investments - The company's strategic investment portfolio consisted of investments in over 400 companies with a combined carrying value of$4.8 billion as of October 31, 2024[186] - The company recorded unrealized gains of $1.162 billion and unrealized losses of$651 million in its equity securities portfolio as of October 31, 2024[186] - The company's ten largest privately held equity securities represent 37% of its total strategic investments as of October 31, 2024[186] Foreign Currency and Interest Rate Management - The company aims to minimize foreign currency transaction risk through the use of foreign currency forward contracts[180] - An immediate increase or decrease in interest rates of 100 basis points could result in a market value change of $56 million in the company's fixed-income portfolio[182] - Total revenue for the three months ended October 31, 2024, was minimally impacted by fluctuations in foreign currencies compared to the same period in 2023[181]