Salesforce.com on Wednesday reported better-than-expected quarterly results, but its guidance missed estimates. Its shares dropped in extended trading.
The company said it lost $38.9 million, or 6 cents per share, in its fiscal third quarter. Earnings, adjusted for stock option expense and amortization costs, were 14 cents per share.
The results exceeded Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 13 cents per share.
The customer-management software developer posted revenue of $1.38 billion in the period, also beating Street forecasts. Analysts expected $1.37 billion, according to Zacks.
For the current quarter ending in January, Salesforce.com expects its per-share earnings to range from 13 cents to 14 cents. Analysts expect 15 cents per share, according to FactSet.
The San Francisco-based company said it expects revenue in the range of $1.44 billion for the fiscal fourth quarter. Analysts surveyed by Zacks had expected revenue of $1.45 billion.
Salesforce.com expects full-year earnings in the range of 51 cents to 52 cents per share, with revenue expected to be $5.37 billion.
Looking ahead, the company issued revenue guidance for fiscal 2016 of $6.45 billion to $6.5 billion. That compares with analysts' expectations of $6.66 billion, according to FactSet.
In after-hours trading, Salesforce.com shares traded at $58.26, down $2.76, or 4.5 percent.
Elements of this story were generated by Automated Insights using data from Zacks Investment Research. CRM stock research report from Zacks.