CRM Q3 2025 Earnings

Call Details

• Call Title: Salesforce, Inc. Q3 2025 Earnings Call
• Date: December 3, 2024 at 10:00 PM UTC
• Management Team:
  • Mike Spencer (Executive Vice President of Finance and Strategy and Investor Relations)
  • Marc Benioff (Chair and CEO)
  • Amy Weaver (President and Chief Financial Officer)
  • Brian Millham (President and Chief Operating Officer)

Call Summary

Financial Performance

• Q3 revenue was $9.44B, representing 8% year-over-year growth in both nominal and constant currency.
• Subscription and support revenue grew 9% year-over-year in nominal and constant currency, led by double-digit growth in Sales Cloud and Service Cloud.
• Q3 non-GAAP operating margin was 33.1%, an improvement of 190 basis points year-over-year, while GAAP operating margin reached 20% for the first time in company history.
• Q3 non-GAAP EPS was $2.41, including a $0.18 charge from mark-to-market adjustments of the strategic investments portfolio, and would have been $2.59 excluding that charge.
• Q3 operating cash flow was $2.0B, up 29% year-over-year, and Q3 free cash flow was $1.8B, up 30% year-over-year.
• RPO ended Q3 at $53.1B, up 10% year-over-year, and CRPO ended at $26.4B, up slightly more than 10% year-over-year in nominal currency including a $100M FX tailwind.
• Regional revenue performance was heterogeneous with Americas up 6% nominal and constant currency, EMEA up 12% nominal (9% constant currency), and APAC up 16% nominal (14% constant currency).

Guidance

• Fiscal 2025 revenue guidance range was narrowed at the low end to $37.8B while the high end remained $38.0B, implying approximately 8% to 9% growth year-over-year.
• Fiscal 2025 non-GAAP operating margin guidance was raised to 32.9%, representing a 240 basis point improvement year-over-year.
• Fiscal 2025 GAAP operating margin is expected to be slightly below 20%, representing a 540 basis point improvement year-over-year.
• Fiscal 2025 non-GAAP diluted EPS is expected to be $9.98 to $10.03 and GAAP diluted EPS is expected to be $6.15 to $6.20.
• Fiscal 2025 operating cash flow growth was raised to approximately 24% to 26%, with free cash flow growth forecast at approximately 26% to 28% and CapEx expected to be slightly below 2% of revenue.
• Q4 revenue is guided to $9.9B to $10.1B, up 7% to 9% year-over-year, and Q4 non-GAAP EPS is guided to $2.57 to $2.62 while Q4 GAAP EPS is guided to $1.55 to $1.60.