Salesforce stock price is off 3% after trimming its guidance for the full year due to the adverse impact of coronavirus spread.

The company expects second-quarter adjusted earnings in the range of 66 cents to 67 on revenue of $4.89 billion to $4.90 billion, down from analysts’ consensus estimate for 75 cents in adjusted earnings on $5.03 billion in revenue.

Moreover, the company has slashed a full-year adjusted earnings outlook to $2.93 to $2.95 per share on revenue of $20 billion. The market analysts were expecting it to report adjusted earnings in the range of $3.09 on $20.73 billion in revenue.

Its first-quarter numbers, however, remain strong despite the impact of lockdown and slower demand for cloud offerings. The company topped first-quarter revenue and earnings estimates by $20 million and $0.01 per share, respectively.

Its first-quarter revenue of $4.87 billion grew 30% from the past year period. Its remaining performance obligation stood around $29.3 billion in the first quarter, up 18% year-over-year.

“Our results, amidst this global crisis, demonstrated our ability to execute at speed, innovate at scale and the strength of our business model,” said Marc Benioff, Chair & CEO, Salesforce.

“The pandemic showed us that digital is imperative for every company, and we’re confident Salesforce will continue to accelerate as we bring our customers into the new normal,” Marc Benioff added.

CRM salesforce.com, inc. daily Stock Chart

Investors reacted negatively to lower forecast as Salesforce stock price tumbled more than 3% in post-market trading. Besides the analyst’s reaction to first-quarter results, Salesforce stock price is up more than 10% year to date. Its shares rebounded sharply in the past month after bottoming around $115 in March amid coronavirus related broader market selloff. 

On the positive side, the company appears in a strong cash position to invest in growth opportunities, with $1.86 billion in cash flow from operations in the first quarter and $9.80 billion in total cash, cash equivalents, and marketable securities.