Earnings

Salesforce (CRM) shares drop in the after-hours despite better-than-expected quarterly results

Salesforce.com Inc. (NYSE:CRM) announced its second-quarter earnings and revenue that beat analysts forecast. Despite better-than-expected Q2 results, CRM shares fell nearly 1.3 percent in the after-hours trading session on Tuesday.

The San Francisco-based company reported net income of $241 million, or 33 cents a share for the latest quarter, up from $170 million, or 24 cents a share in the same period last year. Overall revenue increases to $2.6 billion, representing a surge of 25.8 percent from year-earlier quarter. On an adjusted basis, CRM earned 33 cents a share.

Analysts surveyed by Thomson Reuters I/B/E/S had predicted earnings of 32 cents on $2.51 billion in revenue.

The company generated revenue of $886.4 million from its flagship product Sales Cloud, up 17.4 percent from last year.

Salesforce has raised its investment on R&D, as well as marketing and sales amid intense competition from rivals including Microsoft and Oracle.

Salesforce (CRM) shares performed well so far this year, as the stock jumped more than 35 percent year-to-date. The 52-week range of the stock is $66.43-$93.44. The company’s market cap is $66.20 billion.

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