Salesforce stock falls amid weakened Q4 guidance, CEO resignation

Shares of Salesforce fell despite the company's Q3 earnings beat after news of co-CEO Bret Taylor resigning and weakened fourth-quarter guidance.

Video transcript

SEANA SMITH: We've got to get to Salesforce because their earnings just released right now. At least for the third quarter, the numbers were relatively strong. Revenue coming in slightly better than expected, adjusted EPS of $1.40. You're looking at losses, though, after-hours. A lot of that has to do with revenue guidance.

Fourth quarter revenue guidance coming in a bit light. Salesforce now seeing 7.93 billion to 8.03 billion. The estimate on the Street was for just around 8 billion. Full year revenue also at the lower end of the range. Salesforce seeing 30.9 billion to 31 billion. The estimate on the Street was for 30.98 billion. Adjusted EPS for the fourth quarter, Salesforce seeing $1.35 to $1.37.

Also a big headline here, Bret Taylor will be stepping down as Salesforce vice chair and co-CEO. That will be effective January 31. Once again, Bret Taylor stepping down as vice chair and co-CEO. That will be effective on January 31. Again, you're looking at losses here after-hours. The stock off just around 4 and 1/2%. A lot of that has to do with the revenue guidance.