Despite delivering a solid second quarter report card, Salesforce CEO Marc Benioff told CNBC that foreign exchange fluctuations and poor internal execution were to blame for the cloud software company's warning about third quarter revenue.
Salesforce, after Wednesday's closing bell, reported adjusted quarterly profit of 24 cents per share, 2 cents above estimates. Revenue of $2.04 billion was slightly above forecasts.
But those results were overshadowed by the weaker-than-expected forward guidance, and the stock down more than 6 percent drop Thursday. (Click here for the latest CRM quote.)
"Foreign exchange was just brutal in the quarter," Benioff told CNBC's Jim Cramer on "Mad Money" on Wednesday evening.
"Not only did we have Brexit, but we have this precipitous fall of the great British pound, which is how we roll up our European currencies," Benioff said. "That dramatically affected our revenue in the quarter. In fact, we've lost $150 million in revenue for the year through this foreign exchange change. Even through that though, we are raising our revenue guidance for the year."
"We did see a bit of softness in the United States at the very end of the second quarter," Benioff added. He stressed that it was not the result of any industry or macroeconomic forces. "It has to do with our own execution in the United States in the quarter in the end."
"[But] I have a lot of confidence in the second half," he said.
In his analysis of the interview, Cramer said Thursday on "Squawk on the Street" he sympathized with Benioff and praised his candor.
"I'm giving Mark the benefit of the doubt ... because he didn't lower the year ... but more importantly, he literally did spell out it was his own execution," Cramer said.
"I think this is one where you give him benefit of the doubt because they delivered, delivered, delivered [in the past]. And they were very candid, and straightforward. ... They blamed themselves."