Table of Contents
a. Key Points
Agentforce is over $1B in ARR.
Revenue outperformance was driven by Informatica.
Tableau is struggling a bit.
Strong ongoing Y/Y operating leverage.
The $25B accelerated buyback boosted EPS by $0.23.
b. Demand
Beat revenue estimates by 0.7% & beat guidance by 0.6%.
12% constant currency (CC) growth beat 10.5% CC growth guidance. 8.9% organic revenue growth beat 8.5% organic growth guidance.
The slight outperformance vs. guidance was related to Informatica, which was offset by commerce cloud and marketing cloud weakness.
Beat subscription & support revenue estimates by 0.7%.
Slightly missed current remaining performance obligation (cRPO) estimates. Met 13% constant currency (CC) cRPO growth guidance.
Missed RPO estimates by 1.5%.
6 of CRM’s 10 largest deals were consumption-based, as it begins to show signs of moving away from seat-based monetization.
c. Profits & Margins
Beat EBIT estimates by 4.8%.
Beat $3.12 EPS estimate & identical guidance by $0.75 each or by $0.52 excluding the $25B accelerated buyback.
Missed Operating Cash Flow (OCF) estimates by 3.8%.
d. Balance Sheet
$11.8B cash & equivalents.
$39.3B debt vs. $10.4B Y/Y.
Diluted share count shrank by 10% Y/Y. With the help of debt issuance, they bought back $27B in stock in a single quarter. For context, the market cap is currently $144B. Massive.
e. Guidance & Valuation:
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