Salesforce’s second quarter revenues were up 26% year-over-year Tuesday. The company hit $2.56 billion, beating analyst expectations of $2.51 billion.
The company reported:
- Revenues – $2.56 billion. Analysts had forecast $2.51 billion. Earnings per share (adjusted) – $0.33 per share. Wall Street was expecting $0.32 a share. Subscription and support revenues – $2.37 billion, up 26% year-over-year. Professional services and other revenues – $193 million, up 28% year-over-year. Estimated revenues for Q3 – $2.64 billion to $2.65 billion. Analysts had previously projected revenues of $2.61 billion for the period. Estimated earnings per share for Q3 (adjusted) – $0.36 a share to $0.37 a share. Analysts had previously forecast earnings of $0.36 for the quarter. Estimated revenues for fiscal year 2018 – $10.35 billion to $10.40 billion. Analysts had previously expected revenues of $10.28 billion for the year. Estimated earnings per share for fiscal year 2018 (adjusted) – $1.29 per share to $1.31 earnings per share. Wall Street had previously forecast earnings of $1.30 a share.
Despite the beat on the top and bottom lines and the somewhat better-than-expected third-quarter forecast, Salesforce’s stock quickly dropped $1.75, or nearly 2%, to $91.20 a share in recent after-hours trading.
It’s since bounced back up to $92 – down 1% from where it closed, but still up from $91.76, where it closed on Monday.