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.