Salesforce Inc (NYSE:CRM) stock rose 3.80% (As on January 23, 11:18:51 AM UTC-4, Source: Google Finance) after Cowen analyst Derrick Wood reduced his rating on the company to Market Perform from Outperform, trimming his target price to $160, from $175.

Meanwhile, the operating cash flow for the third quarter was $0.31 billion, a decrease of 23% Y/Y. Free cash flow was $0.12 billion, a decrease of 52% Y/Y. Total third quarter revenue was $7.84 billion, an increase of 14% Y/Y, and 19% CC. Subscription and support revenues were $7.23 billion, an increase of 13% Y/Y. Professional services and other revenues were $0.60 billion, an increase of 25% Y/Y. Third quarter non-GAAP operating margin was 22.7%. Remaining performance obligation ended the third quarter at $40.0 billion, an increase of 10% Y/Y. Current remaining performance obligation ended at $20.9 billion, an increase of 11% Y/Y, 15% CC

Moreover, customers with five or more clouds increased ARR by over 20%. Second, the industry solution continues to be a strong tailwind to the revenue growth. Seven of the 13 industry clouds grew ARR above 50% this quarter. Some of the highest-performing industries’ clouds in the quarter included energy and utilities, manufacturing, and the recently announced Automotive Cloud. Finally, from a geographical perspective, Americas grew 16% year over year, EMEA grew 10%, 23% in constant currency, and APAC grew 14%, which is 30% in constant currency. The revenue attrition in Q3 was again below 7.5%, reflecting the value that the services are providing to the customer base in this tough operating environment.

For Fiscal Year ‘23 revenue guidance of $30.9 billion to $31 billion, representing 17% growth year over year, or 20% in constant currency, despite an incremental $100 million FX headwind. This raises the total year-over-year FX headwind to $900 million. In addition, the guidance includes Slack at slightly above $1.5 billion. For Q4, the company expects GAAP EPS of $0.23 to $0.25, and non-GAAP EPS of $1.35 to $1.37. For the full year, the company expects GAAP EPS of $0.55 to $0.57, and non-GAAP EPS of $4.92 to $4.94. CRPO growth for Q4 is expected to be approximately 7% year over year, or 10% in constant currency. For Fiscal ‘23 operating cash flow is expected to be approximately 16%, which is at the lower end of the previous guidance, driven by lower billings. This includes a three-point headwind from cash taxes associated with tax law changes, requiring the capitalization of certain R&D costs.