Investing.com – Salesforce revenue guidance fell short of estimates after the bell Tuesday. That offset a beat on both the top and bottom lines as acquisitions helped boost growth for its most recent quarter.
The cloud software company guided fiscal 2020 revenue in the range of $16.99 billion to $17 billion. That was below consensus estimates of $16.9 billion, according to Refinitiv.
The company reported earnings per share (EPS) of $0.75 on revenue of $4.51 billion. Analysts polled by Investing.com forecast EPS of $0.66 on revenue of $4.45 billion. That compared to EPS of $0.61 on revenue of $3.39 billion in the same period a year earlier. The company had reported EPS of $0.66 on revenue of $4 billion in the previous quarter.
Revenue was led by growth in Sales Cloud, the company’s biggest product. Sales Cloud generated $1.17 billion in revenue, up 14.5% year on year and Service Cloud, the second-largest division, grew 24% to $1.14 billion.
Revenue was also bolstered by the acquisition of Tableau, which contributed approximately $308 million to the top line. Earlier this year, Salesforce closed the $15.3 billion acquisition of Tableau to gain entry into data visualization tools market.
Salesforce.com (NYSE:) shares lost 1.64% to trade at $159.00 in after-hours trade following the report.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.