salesforce(US:CRM) Huaan Securities·2024-09-09 04:09Investment Rating - The investment rating for Salesforce (CRM) is "Buy" (maintained) [1] Core Views - The company reported stable revenue growth in Q2, with a revenue of $9.33 billion, representing a year-over-year increase of 8.4%, exceeding consensus expectations by 1.0% [2] - Subscription revenue reached $8.76 billion, up 9.5% year-over-year, also surpassing consensus expectations by 0.8% [2] - Non-GAAP operating margin was 33.7%, a year-over-year increase of 2.1 percentage points, marking a historical high [2] - Operating cash flow for Q2 was $889 million, a 10% increase year-over-year, while free cash flow was $760 million, up 20% year-over-year [2] - The company's remaining performance obligations (RPO) grew to $53.5 billion, a 14.8% year-over-year increase, exceeding expectations by 1.5% [2] - The current remaining performance obligations (cRPO) reached $26.5 billion, a 10% year-over-year increase, also surpassing expectations by 0.7% [2] - The company maintains its full-year guidance while raising Q3 revenue expectations to $9.31-9.36 billion, a 7% year-over-year growth [2] - The company expects full-year revenue for FY25 to be $37.7-38 billion, representing an 8%-9% year-over-year growth [2] - The introduction of the new product, Agent Force, is expected to enhance sales and service capabilities, increasing user engagement and driving revenue growth [2] Financial Summary - For FY2025, the company forecasts revenue of $37.524 billion, with a year-over-year growth of 7.7% [3] - Non-GAAP net profit is projected to be $10.421 billion for FY2025, reflecting a year-over-year increase of 28.9% [3] - The gross margin is expected to be 76.8% in FY2025, with a return on equity (ROE) of 17% [3] - The price-to-earnings (P/E) ratio is projected to be 22.6 for FY2025, decreasing to 18.2 by FY2027 [3] - The company anticipates a cash flow growth rate of 23%-25% for FY25 [2]