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Salesforce.com Inc shares ease premarket after market beating results but mixed outlook

For the fourth quarter, Salesforce estimates adjusted earnings of 32 US cents to 33 US cents a share on revenue of US$2.8bn to US$2.81bn
financial results
For the full fiscal year, Salesforce is guiding adjusted earnings of US$1.32 to US$1.33 a share on revenue of US$10.43bn to US$10.44bn.

Salesforce.com Inc. (NYSE:CRM) saw its shares slip in premarket trade, extending losses recorded during after hours, following a market beating third quarter  but its outlook for the fourth quarter failed to excite the market.

The customer-relationship management software company said that in the third quarter, its net income came in at US$51.4mln, or 7 US cents a share, against a loss of US $37.3mln, or 5 US cents a share, a year ago.

READ: Salesforce trying to block Microsoft’s US$26.2bn LinkedIn deal

Adjusted earnings stood at 39 US cents a share while revenue increased to US$2.68bn from the US$2.14bn a year ago.

Wall Street had pencilled in 37 US cents a share on revenue of US$2.65bn.

For the fourth quarter, Salesforce estimates adjusted earnings to between 32 US cents to 33 US cents a share on revenue of US$2.8bn to US$2.81bn.

This was against market consensus for earnings of 34 US cents a share on revenue of US$2.79bn.

For the full fiscal year, Salesforce is guiding adjusted earnings of US$1.32 to US$1.33 a share on revenue of US$10.43bn to US$10.44bn.

The market consensus is not far off, at US$1.32 a share on revenue of US$10.4bn.

READ: Salesforce’s BeyondCore buyout is tenth acquisition in a year

Salesforce also maintained its fiscal 2019 revenue outlook at US$12.45bn to US$12.50bn it had forecast during its Dreamforce convention in early November, against market consensus for US$12.48bn.

In a separate announcement, the company said it has appointed the former CEO of Quip (bought over by Salesforce in 2016), Bret Taylor, as chief product officer and Alex Dayson as chief strategy officer.

In premarket trade, its shares were down 1.19% at US$107.50.

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