Splunk Surprises Wall Street Again With Earnings, Sales Beat

Splunk (NASDAQ:SPLK) pleasantly surprised Wall Street late Thursday, posting fiscal Q2 earnings a penny ahead of analyst estimates and revenue that soundly beat forecasts, and it hiked its sales outlook for the year.

The maker of machine-to-machine data analytics software reported earnings per share minus items of 3 cents, up from a penny in the year-earlier quarter and ahead of the 2 cents expected by analysts polled by Thomson Reuters.

Revenue for the quarter that ended July 31 rose 46% to $148.3 million, where analysts had estimated $140.3 million.

“We have extended our position as the leading platform for machine data with two acquisitions focused on machine learning,” Splunk (NASDAQ:SPLK) CEO Godfrey Sullivan said in the firm’s earnings release.

“Our continuing investments in product innovation will help our customers realize even greater value from our solutions across a wide range of use cases,” he said.

Splunk stock was up 4% in after-hours trading, after the company released its results.

Bolstered by the market rally, Splunk shares surged 4.5% to 64.24 in Thursday’s regular session. In Monday’s market rout, Splunk stock touched a nearly seven-month low of 55.01.

Splunk expects revenue for its fiscal Q3 ending Oct. 31 to rise as much as 38% to $158 million-$160 million, ahead of the analyst forecast of $155.2 million.

For the fiscal year, Splunk upped its sales guidance to $628 million-$632 million, up more than 40% at the high end, from its earlier guidance of $610 million-$614 million. Analysts have modeled $616.1 million.

The company competes with the likes of Oracle (NYSE:ORCL) and Tableau Software (NYSE:DATA) in making software designed to analyze the vast volume of data that enterprises are accumulating in the digital age.

On a conference call with analysts to discuss the earnings, Splunk executives said that the quarter offered a “healthy” breadth of orders across geographic regions.

One of the company’s biggest gains came via its cloud offerings, which store and share data via the Internet cloud.

“We tripled our orders in nine months,” said Marc Olesen, Splunk’s senior vice president overseeing its cloud business.

Splunk Chief Financial Officer David Conte said that the firm’s cloud business is growing to the point where its financial results will soon be broken out separately.

The company reached two key milestones during the quarter. It says that it added 500 new customers during the period and now has 10,000 customers overall.

CFO Conte said that the 500 customer adds were a quarterly record for Splunk and that the firm reached new highs in both orders over $100,000 and smaller orders.

Source: Splunk Surprises Wall Street Again With Earnings, Sales Beat

Via: Google Alert for ML