salesforce(CRM)2024-12-03 21:03Revenue and Growth - Third Quarter Revenue of 8.88 Billion, up 9% Y/Y and in CC[3] - Fourth Quarter FY25 Revenue Guidance of 10.10 Billion, up 7% - 9% Y/Y[4] - Full Year FY25 Revenue Guidance raised to 38.0 Billion, up 8% - 9% Y/Y, with Subscription & Support Revenue Growth Guidance slightly below 10% Y/Y and approximately 10% in CC[4] - Total revenues for the three months ended October 31, 2024, were 8.720 billion in the same period in 2023, representing an 8.3% increase[22] - Subscription and support revenues for the three months ended October 31, 2024, were 8.141 billion in the same period in 2023[22] - Subscription and support revenues for the three months ended October 31, 2024, totaled 8.141 billion in the same period in 2023[30] - Total revenue for the three months ended October 31, 2024, was 6.220 billion from the Americas, 996 million from Asia Pacific[31] - Revenue from the Americas for the nine months ended October 31, 2024, was 17.113 billion in the same period in 2023[31] - Revenue from Europe for the nine months ended October 31, 2024, was 5.923 billion in the same period in 2023[31] - Subscription and support revenues constant currency growth rates for Sales increased by 11% in Q3 2024 compared to Q3 2023[32] - Asia Pacific region showed the highest revenue constant currency growth rate at 14% in Q3 2024 compared to Q3 2023[32] - Constant currency revenue growth rates exclude the effect of foreign currency rate fluctuations[46] Profitability and Margins - Third Quarter GAAP Operating Margin of 20.0% and non-GAAP Operating Margin of 33.1%, up 280 basis points and 190 basis points Y/Y respectively[3] - Full Year FY25 GAAP Operating Margin Guidance raised to 19.8% and non-GAAP Operating Margin Guidance raised to 32.9%[4] - Gross profit margin for the three months ended October 31, 2024, was 78%, up from 75% in the same period in 2023[24] - Non-GAAP income from operations for Q3 2024 was 2,717 million in Q3 2023[33] - Non-GAAP operating margin for Q3 2024 was 33.1%, compared to 31.2% in Q3 2023[33] - Non-GAAP operating margin excludes stock-based compensation, amortization of intangibles, and restructuring charges[39] Cash Flow and Capital Returns - Third Quarter Operating Cash Flow of 1.78 Billion, up 30% Y/Y[3] - Full Year FY25 Operating Cash Flow Growth Guidance raised to 24% - 26% Y/Y[4] - Total capital returns to stockholders have surpassed 1.6 billion returned in the third quarter through share repurchases and dividend payments[3] - Net cash provided by operating activities for the nine months ended October 31, 2024, was 6.831 billion in the same period in 2023, a 33.5% increase[26] - Free cash flow for Q3 2024 was 1.366 billion in Q3 2023[36] - Free cash flow is defined as GAAP net cash provided by operating activities less capital expenditures[47] - Capital expenditures for the nine months ended October 31, 2024, were 589 million in the same period in 2023[26] - Repurchases of common stock for the nine months ended October 31, 2024, totaled 5.928 billion in the same period in 2023[26] - Capital expenditures for Q3 2024 were 166 million in Q3 2023[36] Performance Obligations and Liabilities - Current Remaining Performance Obligation (cRPO) of 53.1 billion, with 26.7 billion noncurrent[28] - Unearned revenue at the end of the three months ended October 31, 2024, was 12.564 billion for the same period in 2023[29] - Total current remaining performance obligation constant currency growth rate was 10% in Q3 2024 compared to Q3 2023[32] Expenses and Investments - Research and development expenses for the three months ended October 31, 2024, were 1.204 billion in the same period in 2023[22] - Sales and marketing expenses for the three months ended October 31, 2024, were 3.173 billion in the same period in 2023[22] - Research and development expenses for Q3 2024 were 238 million in Q3 2023[34] - Sales and marketing expenses for Q3 2024 were 275 million in Q3 2023[34] - Stock-based compensation expense for Q3 2024 was 693 million in Q3 2023[33] Net Income and Earnings Per Share - Net income for the three months ended October 31, 2024, was 1.224 billion in the same period in 2023, a 24.8% increase[22] - Net income for the three months ended October 31, 2024, was 1.224 billion for the same period in 2023, representing a 24.8% increase[26] - Non-GAAP net income for Q3 2024 was 2.068 billion in Q3 2023[36] - GAAP basic net income per share for Q3 2024 was 1.26 in Q3 2023[36] - Non-GAAP basic net income per share for Q3 2024 was 2.13 in Q3 2023[36] - Non-GAAP net income for Q3 2024 was 2,068 million in Q3 2023[33] - Non-GAAP diluted net income per share for Q3 2024 was 2.11 in Q3 2023[33] Balance Sheet and Equity - Cash and cash equivalents as of October 31, 2024, were 8.472 billion as of January 31, 2024[25] - Accounts receivable, net, as of October 31, 2024, were 11.414 billion as of January 31, 2024[25] - Total current liabilities as of October 31, 2024, were 26.631 billion as of January 31, 2024[25] - Total stockholders' equity as of October 31, 2024, was 59.646 billion as of January 31, 2024[25] AI and Innovation - Agentforce, Salesforce's AI system for enterprises, is highlighted as a key driver of transformation and digital labor innovation[4] Tax and Non-GAAP Adjustments - The company uses a projected non-GAAP tax rate of 23.5% for fiscal 2024 and 22.0% for fiscal 2025[45] - Non-GAAP operating margin excludes stock-based compensation, amortization of intangibles, and restructuring charges[39]