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The stock price of Salesforce (NYSE: CRM) tanked after the company reported its 2019 fourth quarter and full fiscal year results on Monday.

The company posted solid financial performance. However, its earnings and revenue outlook for the first quarter and full fiscal year 2020 was lower-than-expected, the primary reason for its stock to decline.

CRM shares closed $158.50 per share, down by 3.66 percent in New York. The stock dropped another 2.48 percent to $154.25 per share after-hours around 7:59 in the evening.

Salesforce financial performance

During the fourth quarter, Salesforce achieved $3.6 billion in revenue, an increase of 26 percent year-over-year. Wall Street analysts expected $3.56 billion.

The company delivered non-GAAP earnings of $0.70 per share, higher than the $0.56 per share expected by analysts.

For the full fiscal year, Salesforce said its revenue was $13.28 billion, up 26 percent year-over-year. Its non-GAAP earnings were $2.75 per share.

In a statement, the company’s co-CEO Mark Benioff, said, "We had another year of outstanding revenue growth, surpassing $13 billion in revenue faster than any other enterprise software company in history. As companies of all sizes turn to Salesforce, we're enabling them to put the customer at the center of their digital transformation through our intelligent Customer 360 platform. I've never been more excited about the opportunity ahead."

On the other hand, co-CEO Keith Block, commented, "Our relentless focus on delivering innovation and customer success has fueled our growth and solidified our leadership in the enterprise. This is just the beginning, which is why we're now targeting $26 to $28 billion in revenue by FY23 – organically doubling our revenue again in the next four years."

First quarter and full fiscal year 2020 financial outlook

For its first quarter fiscal 2020, Salesforce forecasted to achieve revenue in the range of $3.67 billion to $3.68 billion and earnings of around $0.60 to $0.61per share. Analysts expected the company to deliver earnings of $0.63 per share on $3.70 billion revenue for the first quarter, according to Refinitiv.

For the full fiscal year, Salesforce forecasted to achieve earnings of around $2.74 to $2.76 per share and revenue in the range of $15.95 billion to $16.05 billion. Analysts estimated the company to deliver earnings of $2.75 per share on $15.99 billion.