salesforce(US:CRM)2025-12-03 23:00Financial Data and Key Metrics Changes - Q3 revenue was $10.26 billion, up 9% year over year and 8% in constant currency [11][44] - Non-GAAP operating margin was strong at 35.5%, with GAAP operating margin up 130 basis points [11][44] - Current remaining performance obligation (CRPO) ended at $29.4 billion, up 11% year over year [11][45] - Operating cash flow was $2.3 billion, up 17% year over year, with free cash flow at $2.2 billion, up 22% year over year [12][11] Business Line Data and Key Metrics Changes - Agentforce and data reached nearly $1.4 billion in ARR, up 114% year over year, with Agentforce ARR at about $540 million, up 330% year over year [13][11] - Subscription and support revenue grew 10% year over year in nominal terms and 9% in constant currency [44] - Data 360 ingested 32 trillion records, up 119% year over year, including 15 trillion through zero-copy data integration, up 341% year over year [30][11] Market Data and Key Metrics Changes - Strong business growth was observed in North America and EMEA, particularly in France and the UK, while Asia-Pacific faced constraints, especially in Australia and India [45] - The small and mid-market business continued to perform well, with enterprise growth accelerating [45] Company Strategy and Development Direction - The company is focused on accelerating Agentforce and Data 360 adoption, reallocating resources to high-growth areas [46] - Strategic acquisitions, such as Informatica, are aimed at enhancing the data foundation and are expected to be accretive within 12 months [47][30] - The company is positioning itself for sustainable, profitable growth through disciplined investments and capital allocation strategies [6][11] Management's Comments on Operating Environment and Future Outlook - Management highlighted a strong demand for becoming agentic enterprises, with companies seeking to leverage AI for efficiency and productivity [54][56] - The company expects to finish the year with nearly $15 billion in operating cash flow, indicating strong financial health [12][11] - There is a projection for continued growth in subscription and support revenue, with a guidance of approximately 9% year-over-year growth in constant currency for fiscal year 2026 [48][49] Other Important Information - The company processed over 3.2 trillion tokens through its LLM gateway, indicating significant adoption of AI capabilities [20][21] - The company is seeing a consumption flywheel effect, with over 50% of new Agentforce bookings coming from existing customers expanding their investments [29][43] Q&A Session Summary Question: Insights on customer appetite for building their own applications versus using Salesforce - Management noted a significant shift in customer sentiment, with many realizing the complexity of building their own solutions and preferring to leverage Salesforce's capabilities for generative AI [52][53][56] Question: Expansion of sales representatives and productivity - Management confirmed a 20% increase in sales capacity, with expectations of healthy double-digit growth in pipeline generation, indicating readiness to capture market opportunities [56][58] Question: Competitive advantage in infrastructure - Management emphasized that Salesforce is not building data centers but leveraging existing infrastructure to preserve margins and cash flow, while enhancing overall company success [60]