Salesforce shares fall despite better-than-expected earnings
Shares of Salesforce have surged this year and rose on Wednesday to their highest level in 16 months
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
The Salesforce logo is seen at its headquarters in San Francisco, California. ((Photo by Stephen Lam/Getty Images) / Getty Images)
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
Salesforce chairman Marc Benioff speaks during a news conference, in Indianapolis. ((AP Photo/Darron Cummings, File) / AP Newsroom)
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.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CRM | SALESFORCE INC. | 272.90 | -21.42 | -7.28% |
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.