Salesforce reported its second quarter earnings on Tuesday after the bell, and the numbers came in above estimates.

Despite the overall beat, Salesforce stock is down roughly 1.5% in after hours.

Here are the most important numbers:

• Adjusted EPS: 33 cents vs. 32 cents per share expected by a Thomson Reuters consensus estimate
• Revenue: $2.56 billion vs. $2.51 billion expected by a Thomson Reuters consensus estimate

Salesforce’s stock has jumped nearly 6% over the past couple weeks in the run up to Tuesday’s earnings. Its stock is up over 20% this year.

After going on a record buying spree in 2016, Salesforce has slowed its pace of acquisition this year, with only one deal announced so far. Instead, the business software maker has focused on generating growth from its prior deals, especially in the artificial intelligence market.

Salesforce’s revenue saw a 26% jump from a year-ago period, while its deferred revenue, an important metric that reflects its future growth, grew 26% year-over-year as well, to $4.82 billion.

Its third quarter revenue is expected to be in the range of $2.64 billion to $2.65 billion, which exceeds street estimates of $2.61 billion.

Salesforce raised its full year guidance by $100 million to the range of $10.35 billion to $10.40 billion. That would make it the first year for Salesforce to cross the $10 billion annual revenue mark.

Salesforce CEO Marc Benioff touted the $10 billion revenue run rate milestone in the earnings statement.

“We did this faster than any other enterprise software company in history,” Benioff said in a statement.

But competition is increasing from companies like Microsoft, Oracle, and ServiceNow. Salesforce’s Service Cloud, its second-largest business, has struggled to reach its internal goals of late, leading to four leadership changes in four years.

Source: Tech CNBC
Salesforce stock drops despite earnings beat