Salesforce's Q2 Earnings Miss Expectations, Revenue Guidance Lowered

Aug 24, 2024

By [Author Name]

Salesforce CRM (NYSE: CRM) released its fiscal 2024 second-quarter earnings report on Aug. 24, 2024, before the market opened. The company reported earnings per share (EPS) of $0.78, missing the analyst consensus estimate of $0.80. Revenue for the quarter came in at $8.38 billion, also below the consensus estimate of $8.43 billion.

Salesforce's Q1 numbers beat analyst expectations, with the company reporting EPS of $0.98 and revenue of $7.41 billion. However, the company's Q2 results suggest that its growth is slowing down. Salesforce lowered its full-year revenue guidance from $34 billion to $33.5 billion. The company cited macroeconomic headwinds as the reason for the lowered guidance.

Despite the Q2 miss, Salesforce remains a leading provider of cloud-based customer relationship management (CRM) software. The company has a large and growing customer base, and its products are well-regarded by users. Salesforce is also investing heavily in research and development, which should help it to continue to innovate and grow in the future.

Salesforce's stock price fell 8% in premarket trading following the release of the Q2 earnings report. The stock is now trading at around $190 per share, down from its 52-week high of $274.56. Despite the recent pullback, Salesforce remains a valuable company with a strong long-term growth outlook. Investors should consider the Q2 miss as a buying opportunity.