Salesforce (CRM) Earnings Beat Highlights Expanding AI Adoption
Salesforce, Inc. (NYSE:CRM) ranks among the best AI stocks to buy according to analysts. On December 4, Piper Sandler reaffirmed its Overweight rating and $315 price target for Salesforce, Inc. (NYSE:CRM) following the company’s third-quarter results, noting solid advancements in its artificial intelligence products.
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The CRM powerhouse reported Q3 revenue of $10.3 billion, a 9% year-over-year rise, as well as operational cash flow of $2.3 billion, up 17% year-over-year, along with free cash flow of $2.2 billion, up 22% year-over-year. Meanwhile, revenue guidance for the fourth quarter exceeded Wall Street expectations. Salesforce, Inc. (NYSE:CRM) forecasts adjusted earnings per share of $3.02 to $3.04 with revenue of $11.13 billion to $11.23 billion.
Additionally, Salesforce, Inc. (NYSE:CRM) reported a 70% quarter-over-quarter rise in production customers, from 800 to about 2,200. The company’s total ARR is currently near 4% due to its combined data and AI solutions.
Piper Sandler noted that Salesforce’s Agentforce annual recurring revenue has hit $540 million, accounting for 1.4% of the company’s subscription run-rate. This expansion was complemented by encouraging customer feedback, with nearly 50% of Agentforce bookings coming from current customers who made additional commitments, up from 40% the prior quarter.
Salesforce, Inc. (NYSE:CRM) is a California-based provider of customer relationship management (CRM) technology. Incorporated in 1999, the company connects companies and customers together through its core offerings, including Agentforce, Data Cloud, Industries AI, and Slack.
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Disclosure: None. This article is originally published at Insider Monkey.
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