Salesforce Falls Despite Q2 Earnings Beat

Salesforce.com, inc. CRM shares sank despite delivering a record second-quarter earnings and sales beat.

Salesforce reported Q2 adjusted earnings of 33 cents per share, beating estimates by a penny. Sales came in at $2.56 billion, representing a 26 percent year-over-year growth rate and topping estimates by $50 million.

The company also raised its full year outlook.

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"We had a phenomenal quarter of growth, reaching a huge milestone for the company, becoming the first enterprise cloud software company to break the $10 billion revenue run rate," said CEO Marc Benioff. "We did this faster than any other enterprise software company in history. Our continued momentum as the leader in CRM, the fastest-growing segment of our industry, combined with more than $15 billion in billed and unbilled deferred revenue, puts us well on the path to $20 billion and beyond."

Salesforce briefly passed a 52-week high following the report, but retreated by shedding nearly 3 percent in after-hours trading.

At time of publication, shares traded down about 1.5 percent at $91.40.