Here's our initial take on Salesforce's (CRM 0.47%) fourth-quarter financial report.Key MetricsMetricQ4 2024Q4 2025Changevs. ExpectationsRevenue$9.2 billion$9.9 billion+7.6%MissedEarnings per share$2.29$2.78+21.4%BeatRemaining performance obligations$56.9 billion$63.4 billion+11%n/aFree cash flow$9.5 billion$12.4 billion+31%n/aStrong Quarter, but Guidance DisappointsSalesforce posted nearly 8% revenue growth and 21% growth in earnings per share in the last three months of its fiscal 2025, but the revenue nu ...

Salesforce beat earnings expectations, but revenue fell slightly below analyst estimates in its latest earnings release.Salesforce (CRM 0.47%), a leading cloud-based software company known for its customer relationship management solutions, reported mixed fiscal year 2025 fourth-quarter earnings on Wednesday, Feb. 26. Adjusted EPS of $2.78 exceeded analysts' consensus expectations of $2.61. Q4 revenue of $9.99 billion slightly lagged behind the expected $10.04 billion, but was up 8% year over year. Overall, ...

Group 1 - Salesforce reported fiscal fourth-quarter revenue of $9.99 billion, an 8% year-over-year growth, which was slightly below analyst expectations [1] - Adjusted earnings per share for the fourth quarter were $1.75, compared to $1.74 a year earlier, but missed estimates [1] - Shares of Salesforce fell about 5% in extended trading following the earnings report, and have lost approximately 8% since the beginning of the year [3] Group 2 - For fiscal 2026, Salesforce projected full-year revenue between $40.5 billion and $40.9 billion, and adjusted EPS between $11.09 and $11.17, both below analyst consensus [2] - The analyst consensus for revenue was $41.32 billion and for EPS was $11.19 [2] - Salesforce announced that former Gilead Sciences CFO Robin Washington will join the company as chief operating and financial officer on March 21 [2]

Salesforce CEO Marc Benioff appears at the World Economic Forum in Davos, Switzerland, on Jan. 23, 2025.Salesforce reported weaker-than-expected quarterly revenue on Wednesday and issued a forecast that fell short of analysts' estimates. The stock slid 6% in extended trading.Here's how the company did in relation to LSEG consensus:Earnings per share: $2.78 adjusted vs. $2.61 expectedRevenue: $9.99 billion vs. $10.04 billion expectedRevenue increased 7.6% from a year ago in the quarter that ended Jan. 31, ac ...

Financial Performance - Fourth quarter revenue was $10.0 billion, an increase of 8% Y/Y, and subscription & support revenue was $9.5 billion, also up 8% Y/Y [6] - FY25 revenue totaled $37.9 billion, reflecting a 9% increase Y/Y, with subscription & support revenue growing 10% Y/Y [6] - Total revenue for the fiscal year ended January 31, 2025, was $37,895 million, up from $34,857 million in 2024, reflecting a year-over-year increase of 8.8% [29] - Total revenues for the three months ended January 31, 2025, were $9,993 million, a 7.6% increase from $9,287 million in the same period of 2024 [20] - Subscription and support revenues reached $9,451 million for the three months ended January 31, 2025, up from $8,748 million, representing a growth of 8.0% [20] - Revenue from the Americas for the three months ended January 31, 2025, was $6,660 million, up from $6,176 million in 2024, reflecting an increase of 7.8% [29] - Total revenue growth in constant currency for the three months ended January 31, 2025, was 9% compared to the same period in 2024 [30] Profitability - Net income for the fiscal year ended January 31, 2025, was $6,197 million, compared to $4,136 million in 2024, reflecting a year-over-year increase of 49.8% [20] - Net income for the three months ended January 31, 2025, was $1,708 million, an increase from $1,446 million in the same period of 2024, representing a growth of 18.1% [24] - GAAP net income for the fiscal year 2025 was $6,197 million, up from $4,136 million in fiscal year 2024, indicating a 49.9% increase [34] - Non-GAAP diluted net income per share for Q1 2025 was $2.78, compared to $2.29 in Q1 2024, reflecting a growth of 21.4% [34] Cash Flow - Operating cash flow for FY25 was $13.1 billion, up 28% Y/Y, and free cash flow was $12.4 billion, up 31% Y/Y [6] - Cash provided by operating activities for the fiscal year ended January 31, 2025, was $13,092 million, an increase from $10,234 million in 2024, representing a growth of 28.0% [24] - Free cash flow for Q1 2025 was $3,816 million, an increase from $3,256 million in Q1 2024, showing a growth of 17.2% [35] Shareholder Returns - The company returned $9.3 billion to shareholders in FY25 through share repurchases and dividends [6] Performance Obligations - Total remaining performance obligation reached $63.4 billion, up 11% year-over-year (Y/Y) [5] - Current remaining performance obligation is $30.2 billion, up 9% Y/Y [6] - Remaining performance obligation (RPO) as of January 31, 2025, was $63.4 billion, compared to $53.1 billion as of October 31, 2024, indicating a growth of 19.5% [26] - Unearned revenue at the end of the period was $20,743 million, up from $19,003 million at the beginning of the period, showing an increase of 9.2% [27] Operating Expenses - Salesforce's total operating expenses for the fiscal year ended January 31, 2025, were $22,047 million, up from $21,305 million in 2024, indicating a growth of 3.5% [20] - Research and development expenses for the fiscal year ended January 31, 2025, were $5,493 million, an increase of 12% from $4,906 million in 2024 [20] - The company reported a net cash used in investing activities of $2,936 million for the three months ended January 31, 2025, compared to $468 million in the same period of 2024 [24] Margins - GAAP operating margin for FY25 was 19.0%, with non-GAAP operating margin at 33.0% [6] - Non-GAAP operating margin for the fiscal year 2025 was 33.0%, compared to 30.5% in fiscal year 2024, representing an improvement of 2.5 percentage points [31] - GAAP operating margin for Q1 2025 was 18.2%, up from 17.5% in Q1 2024, reflecting a 0.7 percentage point increase [31] Stock-Based Compensation - The company’s stock-based compensation expense for the fiscal year ended January 31, 2025, was $3,183 million, up from $2,787 million in 2024, indicating a rise of 14.2% [24] - Stock-based compensation expense for the fiscal year 2025 totaled $3,181 million, compared to $2,764 million in fiscal year 2024, an increase of 15.1% [32] Guidance - The company initiated revenue guidance for FY26 of $40.5 billion to $40.9 billion, representing a 7% to 8% increase Y/Y [8] Assets and Equity - Total current assets as of January 31, 2025, were $29,727 million, slightly up from $29,074 million in 2024 [23] - The company’s total assets increased to $102,928 million as of January 31, 2025, compared to $99,823 million in 2024 [23] - The total stockholders' equity rose to $61,173 million as of January 31, 2025, from $59,646 million in 2024 [23] Other Information - Constant currency information is used to assess underlying business performance, excluding foreign currency fluctuations, with revenue growth rates converted to USD at the weighted average exchange rate for the quarter [41] - The Company defines free cash flow as GAAP net cash from operating activities minus capital expenditures, providing a clearer view of cash generation [42] - The projected non-GAAP tax rates for fiscal 2024 and 2025 are 23.5% and 22.0%, respectively, with a consistent rate of 22.0% projected for fiscal 2026 [40] - The Company evaluates its long-term tax rate based on factors such as its expected tax structure and geographic earnings mix, which may change due to acquisitions or strategic shifts [40]

Core Insights - FlatForce LLC has launched a subscription-based Salesforce consulting service aimed at small and medium-sized businesses, transforming access to enterprise-grade CRM solutions [1][5] - The service offers unlimited customization requests for a flat monthly fee, moving away from traditional time-and-materials billing [1][4] - The company emphasizes a fully asynchronous approach, allowing clients to submit requests without the need for meetings or calls, thus enhancing efficiency [2][4] Company Model - The subscription model includes two tiers: an Admin plan and a Developer plan, catering to varying levels of customization needs [4] - The month-to-month subscription requires no long-term contracts and includes a pause-anytime option, addressing the flexibility required by smaller organizations [2][3] - FlatForce's approach allows clients to manage a backlog of requests, with one active request being handled at a time, ensuring dedicated service while serving multiple clients [3][4] Market Positioning - The company aims to bridge the gap for startups and SMBs that cannot afford dedicated Salesforce resources, making expert support accessible and affordable [2][5] - FlatForce positions itself as a partner for businesses undergoing digital transformation, focusing on delivering measurable business impact through automation and CRM solutions [5][6] - The company's core values include simplicity, transparency, and a customer-centric approach, aiming to remove complexity and hidden costs in Salesforce consulting [6]

Core Viewpoint - Salesforce Inc is set to report its fourth-quarter earnings, with Wall Street expecting an EPS of $2.61 and revenues of $10.04 billion, while the stock has shown a 2.76% increase over the past year but a 6.64% decline year-to-date [1] Stock Performance - Salesforce stock is currently priced at $308.35, indicating it is in bearish territory as it trades below its five-day, 20-day, and 50-day exponential moving averages (EMA), suggesting a strong downward trend [2] - The stock's eight-day simple moving average (SMA) is $316.35, the 20-day SMA is $328.28, and the 50-day SMA is $332.95, all reinforcing the bearish setup and short-term weakness [2] Technical Indicators - The stock remains above its 200-day SMA of $289.55, which provides a longer-term bullish signal [3] - Momentum indicators show a negative trend, with the Moving Average Convergence Divergence (MACD) at -6.90 indicating negative momentum, and the Relative Strength Index (RSI) at 34.92 suggesting the stock is nearing oversold conditions [3] Analyst Ratings - The consensus analyst rating for Salesforce stock is currently a Buy, with a price target of $378.03, indicating a potential upside of 26.57% according to recent ratings from Citigroup, Citizens Capital, and BMO Capital [5] - At the time of publication, Salesforce stock was trading at $308.12 [5]

Group 1 - Google Cloud secured a $2.5 billion, seven-year deal with Salesforce CRM, allowing Salesforce customers to run key software like Agentforce AI and Data Cloud on Google Cloud [2] - The partnership aims to counter Microsoft's dominance in enterprise AI and cloud, with clients like Wayfair and Accenture set to move Salesforce apps to Google Cloud [2] - Salesforce will integrate Google's Gemini AI into its services, highlighting its strategic focus on enhancing AI capabilities [3] Group 2 - Salesforce is included as a top 10 pick in the Outlook 2025 due to its involvement in funding major events like the Olympics and the NFL on Netflix [3] - Recent market conditions indicate a potential reversal pattern for Salesforce, with a new 60+ day low price observed [7] - The stock's recent low of 303.61 is close to a previous gap low of 303.07, suggesting 293 as a logical risk point [7]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive adopts technology enthusiastically, utilizing decades of expertise and experience among its content creators [4] - The company employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Company Overview - Salesforce, Inc. (NYSE: CRM) was previously viewed neutrally due to a lack of strong products to compete with the disruptive nature of Generative AI [1] - The perspective on Salesforce changed in October, indicating a potential shift in its market position or product offerings [1] Analyst Background - The analyst has 10 years of experience in investment banking and a background in IT, specifically as the Director of Keylogin InfoTech, providing a unique perspective on technology investments [1] - The analyst emphasizes a moderate approach to investing, focusing on capital preservation and informed decision-making based on personal experience and analytics [1] Investment Themes - The analyst covers various themes including automated supply chains, Generative AI, telecommunications capital expenditures, the deflationary nature of software, and semiconductors [1] - There is a noted interest in "techbio" sectors, indicating a focus on the intersection of technology and biotechnology [1]