-- Salesforce (NYSE:) reported better-than-expected first-quarter results and revenue guidance for the current quarter that topped expectations. Still, shares trade 5.5% lower in premarket Thursday.

Salesforce  adjusted EPS of $1.69 on revenue of $8.25 billion. Analysts polled by anticipated EPS of $1.61 on revenue of $8.18B.

Subscription and support revenues for the quarter were $7.64B, an increase of 11% year-over-year. Professional services and other revenues for the quarter were $0.61B, an increase of 9% year-over-year.

Looking ahead, the company reiterated full-year 2024 guidance to between $34.5B and $34.7B. The company forecast Q2 revenue in the range of $8.51B to $8.53B, above Wall Street estimates for $8.49B.

Analysts blamed the drop in shares on the magnitude of revenue outperformance that was below historical trends while the F2Q cRPO forecast also came in lower than expected.

Still, Goldman Sachs analysts reiterated a Buy rating on CRM shares, saying the results were "strong in light of the challenging macro backdrop."

"FY24 guidance of +500bps expansion remains viable and likely represents the start of a multi-year journey that will raise CRM's margin profile to similar levels of best-in-class software at ~33-35%," they said in a client note.

Bank of America analysts reaffirmed a Top Pick status on CRM shares as macro headwinds continue to weigh on the outlook.

"We are impressed by the 1% beat to guidance for 11% y/y cRPO growth given the tough macro and disruption from restructuring actions[...] Our conviction that Salesforce is emerging as the next quality GARP stock remains high," the analysts said.

(Additional reporting by Senad Karaahmetovic)