Image source: Callidus.

What: Shares of Callidus Software (NASDAQ:CALD) were heading lower today after the cloud-computing specialist posted second-quarter earnings and lowered its full-year revenue guidance. As of 12:53 p.m. EDT, the stock was down 12.6%.

So what: Callidus delivered a loss of $0.10 per share for the quarter, but after adjustments for stock-based compensation and other expenses, it came to a $0.06-per-share profit, which beat estimates by a penny. Revenue in the quarter increased 20% to $49.8 million, but that was worse than the consensus at $50.3 million.

CEO Leslie Stretch said the quarter was a strong one for sales execution as the company closed several high-value deals, adding that "the momentum of our business remains strong."

Now what: Callidus' guidance was also on the weak side as the company expects revenue for the current quarter of $51.5 million-$52.5 million, equal to a 17% increase, while analysts had expected $53.7 million.

Adjusted earnings guidance of $0.07-$0.09 was even with the consensus at $0.08. However, Callidus lowered its revenue guidance for the full year to $203 million-$207 million, citing a lower expected growth rate form SaaS revenue. At a time when a number of cloud-based service providers are booming, investors may be able to find a better play in this space than Callidus, though the number of new contracts should continue to deliver growth to the company over the long term.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.