Salesforce (NYSE: CRM), the leading customer relation management software provider, released their earnings report for the third quarter of the current fiscal year. The company’s stock closed the last trading session with an 11% jump in price. Salesforce has been at the forefront of integrating AI into its CRM systems. Their latest product, Agentforce, allows businesses to create autonomous AI agents that can perform tasks, make decisions, and take actions without human intervention. Businesses are able to customize these agents to suit their use cases. Salesforce’s CEO, Marc Benioff, said in the conference call that Salesforce closed more than 200 Agentforce deals in Q3. He also mentioned names of some of the companies that started using Agentforce, like FedEx, Adecco, Accenture, Ace Hardware, IBM, and RBC Wealth Management. The CEO confirmed that Salesforce is trying to hire 1,000 to 2,000 new salespeople to push Agentforce in the market.
Salesforce Q3 earnings report
In the earnings report, the company reported a revenue of $9.44 billion, an 8% increase year-over-year. Subscription and support revenue, a significant part of Salesforce's business, grew by 9% to $8.88 billion. The company also saw a notable rise in operating cash flow and free cash flow, which increased by 29% and 30%, respectively. The company's GAAP operating margin was 20.0%, and the non-GAAP operating margin was 33.1%. The company returned $1.6 billion to stockholders through share repurchases and dividend payments. Salesforce also raised its revenue guidance for Q4 2025 to $9.90 billion - $10.10 billion. Salesforce's GAAP diluted net income per share was $1.58, while non-GAAP diluted net income per share was $2.41. The report mentioned that GAAP and non-GAAP diluted net income per share were impacted by losses on strategic investments of $(0.17) and $(0.18), respectively.
Salesforce company overview
Founded in 1999 by Marc Benioff, Parker Harris, Dave Moellenhoff, and Frank Dominguez, Salesforce revolutionized the customer relationship management (CRM) industry by introducing the concept of Software-as-a-Service (SaaS). In fact, when Salesforce launched their CRM in 1999, it was the first SaaS system to be built from scratch in any industry. The company's mission was to provide businesses with a platform to manage customer relationships more effectively through cloud-based solutions. Over the years, Salesforce has grown to become a global leader in CRM, offering a wide range of applications focused on sales, customer service, marketing automation, e-commerce, analytics, artificial intelligence, and application development. The company went public 20 years ago in June of 2004, 5 years after its founding.
How much you'd have if you invested in Salesforce 10 years ago?
Using Stoculator's stock calculator, a $1,000 invested in Salesforce 10 years ago would be worth $6,549.56, assuming that the dividends were reinvested (as of December 05, 2024). That's an annual return rate of 20.68% with a total return of 554.96%.
A $1,000 invested in Salesforce 5 years ago would be worth $2,346.08 (as of December 05, 2024), assuming that the dividends were reinvested. That's an annual return rate of 18.62% and a total return rate of 134.61%.
You can use Stoculator's calculator to check the numbers for different periods and investment amounts.