Shares of Salesforce declined 2% on Tuesday despite positive third quarter earnings.
The enterprise software company reported its third quarter fiscal 2018 report for the period ended October 31st. Salesforce reported earnings per share of 39 cents versus the expectation of 37 cents from analysts.
Revenue for the period was $2.68 billion compared to $2.65 billion expected. It was also a growth of 25% year over year.
So why the drop? It could have been because the company’s professional services revenue was $193.7 million and lagged behind the FactSet estimate of $201.4 million.
In other news, Salesforce also announced that Bret Taylor has been promoted to be the company’s new president and chief officer. He was previously the CEO of Quip under Salesforce. Salesforce also announced that Alex Dayon will be the president and chief strategy officer.
The company also raised its outlook for the fiscal full year. The company projects revenue of $10.43 to $10.44 billion. Analysts were waiting for $10.39 billion.
For the fourth quarter, the company is forecasting earnings per share in a range of 32 to 33 cents, excluding items, and revenue of $2.80 to $2.81 billion. Analysts were waiting for EPS of 34 cents and revenue of $2.79 billion.
Shares of the stock are up 59% since 2017 started.
Disclaimer: We have no position in salesforce.com, inc. (NYSE: CRM) and have not been compensated for this article.