- Salesforce Inc. reported third-quarter revenue of $9.44 billion, marking an 8.3% increase year-over-year, aligning with the estimated $9.35 billion.
- The company’s revenue on a constant currency basis rose by 8%, surpassing the estimate of 7.75%.
- Subscription and support revenue increased by 9.1% year-over-year to $8.88 billion, slightly above the $8.82 billion estimate.
- Sales revenue was up by 11% year-over-year at $2.12 billion, exceeding the projected $2.06 billion.
- Service revenue grew by 10% year-over-year to $2.29 billion, slightly higher than the $2.26 billion estimate.
- Professional services and other revenue experienced a decline of 2.4% year-over-year to $565 million, but it surpassed the estimate of $532.9 million.
- Unearned revenue at the end of the period was $13.47 billion, an increase of 7.2% year-over-year, though slightly below the estimate of $13.65 billion.
- Adjusted income from operations rose by 15% year-over-year to $3.12 billion, above the expected $3.01 billion.
- The adjusted operating margin improved to 33.1%, from the previous year’s 31.2%, beating the estimate of 32.2%.
- Free cash flow jumped by 30% year-over-year to $1.78 billion, outperforming the estimate of $1.69 billion.
- Salesforce has initiated its fourth-quarter FY25 revenue guidance between $9.90 billion and $10.10 billion, reflecting a 7% to 9% year-over-year increase.
- The company raised the low end of its full-year FY25 revenue guidance to $37.8 billion to $38 billion, signifying an 8% to 9% year-over-year growth.
- Salesforce maintained its full-year FY25 subscription and support revenue growth guidance of slightly below 10% year-over-year and approximately 10% on a constant currency basis.
- Analyst recommendations include 43 buys, 11 holds, and 2 sells.
Salesforce.Com Inc on Smartkarma
On Smartkarma, independent analysts have been closely monitoring Salesforce.com Inc, a key player in customer relationship management solutions. Baptista Research highlighted Salesforce’s fiscal 2025 second-quarter results, emphasizing enhanced product offerings and vertical integration driving optimism. The company reported a strong quarter with revenue reaching $9.33 billion, showcasing an 8% year-over-year increase. Value Investors Club noted a 21% decline in Salesforce’s stock price to $214 due to lowered guidance, potentially offering a buying opportunity. Despite challenges in the post-Covid environment, Salesforce’s core business remains robust, with the stock poised to compound at 15-24% over the next five years.
Tech Supply Chain Tracker discussed how AI is revolutionizing sustainability efforts while presenting environmental risks. Tech giants like Nvidia, AMD, Google, and Apple are heavily investing in AI technologies, driving innovation in computing and task optimization. Salesforce.com Inc’s integration and implementation of platforms were highlighted by Baptista Research, with Q1 2025 revenue growing by 11% year-over-year to $9.13 billion. The company continues to lead global market share in CRM and is actively driving transformation in artificial intelligence, maintaining revenue guidance for fiscal year 2025 at $37.7-$38 billion.
A look at Salesforce.Com Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
The long-term outlook for Salesforce.Com Inc looks promising based on their Smartkarma Smart Scores. With a Growth score of 4 and a Resilience score of 4, the company appears to be well-positioned for sustained expansion and able to weather economic downturns effectively. Additionally, a Momentum score of 5 suggests that Salesforce.Com Inc is currently experiencing strong positive market sentiment and performance.
While the Value and Dividend scores are at 2, indicating room for improvement in these areas, the overall outlook for Salesforce.Com Inc seems positive. As a company that provides software on demand and offers customer relationship management services globally, Salesforce.Com Inc is a key player in the technology industry, providing essential technology platforms for businesses to manage their operations efficiently.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
