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Salesforce shares are down 5% despite earnings beat

Sep 1, 2016, 01:39 IST

Justin Sullivan/Getty Images

Salesforce just reported its second quarter earnings on Wednesday after the bell.

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It's an overall beat, but its stock is down roughly 5% in after hours on lower-than-expected guidance.

Here are the most important numbers from Salesforce's earnings report:

EPS (non-GAAP): $0.24 per share vs. $0.22 per share expected by analysts

Revenue: $2.04 billion vs. $2.02 billion expected by analysts (up 25% year-over-year)

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Salesforce gave third quarter revenue guidance in the range of $2.11 billion to $2.12 billion, slightly lower than the $2.13 billion analysts were expecting.

Still, it was the first time Salesforce crossed $2 billion in quarterly revenue, while the company continued to expand its profit margins, an area it's been paying closer attention to.

Salesforce has been on a buying spree lately, spending roughly $4 billion on acquisitions this year alone.

Some investors have raised concerns around the company's buying strategy, as CEO Marc Benioff is reported to have tried to even outbid Microsoft's $26 billion offer for LinkedIn at one point.

Salesforce shares have remained roughly flat after announcing its $2.8 billion Demandware acquisition in June. Its stock jumped about 30% over the past 2 years, and almost 9X over the past decade.

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