Salesforce stock tumbled Wednesday after the company reduced its outlook for subscription and support revenue and issued a downbeat forecast for the current quarter.
The shares fell 13% in after-hours trading after a modest rise during the regular session. Salesforce had been up about 3.2% since the start of the year.
The business software provider said it now expects subscription and support revenue, the lions share of the companys business, to grow just below 10% in the current fiscal year. The company had previously forecast growth of about 10%, or above 10% in constant currency.
Salesforce also reduced its full-year guidance for operating margin.
The company expects revenue to be up 7% to 8% in the current quarter to $9.2 billion to $9.25 billion. Analysts polled by FactSet are expecting revenue of $9.35 billion for the period.
Here are other highlights from the companys earnings report:
-- Salesforce posted a profit of $1.53 billion, or $1.56 a share, for the quarter ended April 30, compared with $199 million, or 20 cents a share, a year earlier.
-- Stripping out certain one-time items, the company reported a profit of $2.44 a share, ahead of the $2.37 expected by Wall Street analysts and beating the companys guidance.
-- Revenue rose 11% to $9.13 billion in the quarter, falling short of the $9.15 billion expected by Wall Street analysts.