Updated from 10:30 a.m. to include information from JMP Securities.
NEW YORK (TheStreet) -- Salesforce.com (CRM - Get Report) shares dropped sharply after the cloud computing company posted quarterly results that beat expectations, and gave 2015 guidance that was largely upbeat.
For the fiscal first-quarter, San Francisco-based Salesforce earned 11 cents a share on a non-GAAP basis, as revenue grew 37.8% year over year to $1.23 billion. Analysts surveyed by Thomson Reuters were expecting the company to earn 10 cents a share on $1.209 billion in sales.
"Salesforce.com had a strong start to its fiscal year. We delivered 37% year-over-year growth in revenue, and 67% year-over-year growth in operating cash flow in the first quarter," said Marc Benioff, Chairman and CEO, in the press release. "Salesforce.com continues to be the #1 CRM platform, and is the fastest growing top ten software company in the world."
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Despite the earnings beat, shares were trading lower Wednesday, falling 5.9% to $49.78.
For the second quarter, Salesforce expects revenue to be between $1.285 billion and $1.29 billion, up 34%-35% year over year, while non-GAAP earnings are expected to be between 11 cents and 12 cents a share.
Looking forward to the rest of fiscal 2015, Salesforce expects to earn between 49 cents and 51 cents a share, and raised its revenue outlook for the year. It now expects to generate between $5.3 billion and $5.34 billion in sales, up from a prior view of $5.25 billion to $5.3 billion. Analysts expect revenue of $5.29 billion for the year.
Analysts by and large were positive on the company and the quarter, though some expressed disappointment that the stock wasn't reacting the way it would in previous quarters, given the strong metrics. Here's what a few had to say.