Shares Down 11% Due to Worse Than Expected Q4 Guidance (NYSE:CRM) shares were trading more than 11% lower Wednesday afternoon following the company’s reported Q3 results. While both EPS and revenue beat the consensus estimates, the company’s Q4 EPS guidance of $0.72–0.73 was below the $0.82 consensus estimate.

Q3 revenue grew 27% year-over-year to $6.86 billion, beating the consensus estimate of $6.80 billion. Quarterly EPS came in at $1.27, better than the consensus estimate of $0.9.

The overall business momentum slowed during the quarter and Mulesoft was called out as having a challenging quarter. Additionally, the Q4 organic CRPO guidance implies further deceleration, but could prove conservative given the increasing invoicing seasonality next quarter.

Positively, the margin story remains on track despite the extra expenses for integrating Slack and Acumen, revenue attrition reached a record at sub-8%, and Service Cloud had a strong quarter.