BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Salesforce Reports Q1 Fiscal 2025 Results but Faces After-Hours Stock Decline
Salesforce (NYSE: CRM), the world's leading AI CRM, reported its first-quarter fiscal 2025 results, ending April 30, 2024. The company demonstrated solid growth across several key financial metrics:
- Revenue: $9.13 billion, an 11% increase year-over-year (Y/Y) and in constant currency (CC).
- Subscription & Support Revenue: $8.59 billion, up 12% Y/Y.
- GAAP Operating Margin: 18.7%.
- Non-GAAP Operating Margin: 32.1%.
- Current Remaining Performance Obligation: $26.4 billion, up 10% Y/Y.
- Operating Cash Flow: $6.25 billion, a 39% increase Y/Y.
- Free Cash Flow: $6.08 billion, up 43% Y/Y.
- Shareholder Returns: $2.2 billion in share repurchases and $0.4 billion in dividend payments.
CEO Commentary
Marc Benioff, Chair and CEO of Salesforce, emphasized the company's strong cash flow generation and its positioning as the leading AI CRM. He highlighted the significant opportunity for customers to leverage AI for enhanced customer connections.
Amy Weaver, President and CFO, noted the disciplined profitable growth, with substantial improvements in both GAAP and non-GAAP operating margins. She also pointed out the progress in the capital return program, including the first-ever quarterly dividend payout.
FY25 Guidance
Salesforce provided its guidance for the upcoming quarters and the full fiscal year, reflecting confidence in continued growth despite some adjustments:
- Q2 FY25 Revenue: Expected between $9.20 billion and $9.25 billion, representing a 7% to 8% Y/Y growth.
- Full Year FY25 Revenue: Projected between $37.7 billion and $38.0 billion, up 8% to 9% Y/Y.
- Subscription & Support Revenue Growth: Expected to be slightly below 10% Y/Y.
- GAAP Operating Margin: Expected to be 19.9% for the full year.
- Non-GAAP Operating Margin: Maintained at 32.5%.
- Operating Cash Flow Growth: Projected between 21% and 24% Y/Y.
Market Reaction
Despite the strong financial performance, Salesforce's stock dropped by 16.2% in after-hours trading. The decline was attributed to the slightly lowered guidance for subscription and support revenue growth and the adjusted GAAP operating margin expectations.
Overall, Salesforce's robust first-quarter results and forward-looking strategies indicate a positive trajectory, although the market's immediate reaction highlights investor concerns over the revised guidance.
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