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Salesforce Q2 beats estimates, shares fall on light Q3 guidance

The social enterprise purveyor reported non-GAAP earnings of 24 cents per share on revenue of $2.04 billion, up 25 percent year over year.
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Written by Natalie Gagliordi, Senior Writer on

Salesforce reported second quarter financial results Wednesday above estimates, but its shares took a hit after hours on a light guidance for the current quarter.

The social enterprise purveyor reported non-GAAP earnings of 24 cents per share on revenue of $2.04 billion, up 25 percent year over year.

Wall Street was looking for earnings of 22 cents per share with revenue of $2.02 billion.

Subscription and support revenues increased 24 percent annually to $1.89 billion. Professional services and other revenues totaled $151 million, up 33 percent year over year.

For the current quarter, analysts expect earnings of 24 cents a share on revenue of $2.13 billion. Salesforce came up short with an EPS range between 20 cents and 21 cents and revenue in the range of $2.11 billion to $2.12 billion. As a result, its shares fell nearly 6 percent in late trading.

For the fiscal year, Salesforce upped its guidance once again to the range of $8.275 billion to $8.325 billion

Salesforce CEO Marc Benioff said the results propelled the company "past the $2 billion quarterly revenue milestone", something he said no other enterprise software company of its size has done.

Benioff also teased the launch of Salesforce Einstein, which he described as "the world's first comprehensive artificial intelligence platform for CRM". The platform will be unveiled at the company's upcoming Dreamforce conference in San Francisco, Calif.

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