Salesforce shares fall despite better-than-expected earnings

Salesforce reported profit and revenue that topped Wall Street estimates, while the company forecasts the current quarter revenue will top expectations.

Salesforce reported better-than-expected results last quarter.

The company says it dialed back spending on cloud-based software offerings in an uncertain economy.

Shares of Salesforce are down 5% in premarket trading.

Shares had been on quite a run, rising by more than two-thirds so far this year and rose to their highest in about 16 months in regular trading on Wednesday.

SALESFORCE PROFIT OUTLOOK BUOYS SOFTWARE MAKER AGAINST ACTIVIST INVESTORS

Salesforce Chief Financial Officer Amy Weaver said the company faced continued macroeconomic pressures in the United States and that demand from financial services and technology companies slowed in the quarter.

Capital expenditure also jumped nearly 36% to $243 million as the company invested in AI-related tools to power its software products.

Profit and revenue actually topped expectations.

WALMART PARTNERS WITH SALESFORCE TO SELL ITS DELIVERY TECH TO RETAILERS

On an adjusted basis, Salesforce earned $1.69 per share, compared with the estimates of $1.61 per share.

Revenue for Salesforce was $8.25 billion, while analysts were expecting $8.18 billion, according to Refinitiv IBES.

CLICK HERE TO READ MORE ON FOX BUSINESS

In the current quarter, Salesforce expects revenue of between $8.51 billion and $8.53 billion.

That would be growth of about 10% from last year. Analysts were expecting revenue of $8.49 billion.

Reuters contributed to this report.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.