Shares of Salesforce.com, Inc. (NYSE:CRM) are down after hours Wednesday, even as the firm’s first-quarter capital expenses overshadowed expectations beats on both the top and bottom lines.
The cloud software firm posted revenue of $8.25 billion in the three months ended April 30, up 11% year-over-year, and above expectations of $8.18 billion. Earnings were $1.69 per share, up from $0.98 a year earlier and topping projections of $1.61.
Capital expenditures, though, were $243 million, 36% higher year-over-year and well above the $205 million on average expected by analysts polled by StreetAccount.
Shares of Salesforce fell 3.3% to $216.01.
“We are leading the next major revolution in CRM — infusing trusted, secure generative AI across our entire product portfolio. Salesforce's generative AI ecosystem wields Einstein GPT, Slack GPT, and Tableau GPT, delivering trusted power across our product portfolio,” CEO Marc Benioff said in a statement. “Our Salesforce GPT Trust Layer will shield customer data, enabling productive automation and intelligent enterprise enhancements securely.”
Looking ahead, Salesforce issued second-quarter revenue guidance of $8.51 billion to $8.53 billion and maintained its full-year guidance of $34.5 billion to $34.7 billion.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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