Salesforce Shares Plunge 17% On First Revenue Miss Since 2006

Salesforce shares dropped as much as 17% in extended trading due to weaker-than-expected revenue and guidance that fell short of Wall Street expectations. "Revenue in the fiscal first quarter, which ended April 30, increased 11% from $8.25 billion a year earlier," reports CNBC. "It's the first time since 2006 that Salesforce fell short on revenue, according to LSEG data." From the report: Salesforce called for adjusted earnings per share in the current quarter of $2.34 to $2.36 on $9.2 billion to $9.25 billion in revenue. Analysts surveyed by LSEG had expected $2.40 in adjusted earnings per share on $9.37 billion in revenue. [...] Salesforce saw budget scrutiny and longer deal cycles than usual during the quarter, president and operating chief Brian Millham told analysts on a conference call. Management implemented go-to-market changes that cut into bookings, Millham said. All five of Salesforce's product areas contributed to the growth. But revenue from the Professional Services and Other category, at $548 million, was down 9% and under the StreetAccount consensus of $572.9 million. Net income jumped to $1.53 billion, or $1.56 per share, from $199 million, or 20 cents per share a year ago.

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