Dividend.com: Salesforce.com Letdown

Salesforce.com First-Quarter Earnings Beat Estimates, but Lowered Guidance Disappoints

Sales management software-maker Salesforce.com(CRM Quote) said Thursday that its first-quarter profit almost doubled, as sales rose 23% from last-year's levels, but its shares plummeted as the company lowered its full-year guidance for the second time.

The San Francisco-based company reported first-quarter net income of $18.4 million or 15 cents per share, up 92% from $9.6 million or 8 cents per share in the year-ago period. Revenue jumped 23% to $304.9 million from $247.6 million in the same quarter last year.

Both quarterly profit and revenue results beat analysts' expectations. On average, Wall Street analysts expected a profit of 11 cents per share on revenue of $304.7 million. Salesforce.com said that subscription and support revenue gained 25% percent in the period to $281.8 million, while professional services and other revenue rose a more modest 4%, to $23.1 million. ...