Categories Earnings, Technology

Splunk stock rises on upbeat Q3 results, guidance

Machine data specialist Splunk Inc. (SPLK) reported a wider loss in the third quarter due to higher costs and expenses. However, the results exceeded analysts’ expectations. The company raised revenue guidance for the full year 2019 and 2020, as well as guided fourth-quarter revenue above consensus view. Following this, the stock inched up over 4% in the after-market session.

Net loss widened to $55.7 million or $0.38 per share from $29.7 million or $0.21 per share in the previous year quarter. However, adjusted earnings jumped 36% to $0.38 per share.

Total revenues climbed 40% to $481 million. Software revenues soared 49% year-over-year to $325 million. The top line was benefited by the rising demand for data-driven insights across all industries.

Looking ahead into the fourth quarter, the company expects total revenues of about $560 million and adjusted operating margin in the range of 25% to 26%.

For the full year 2019, the company lifted its total revenues outlook to about $1.74 billion from the previous estimate of about $1.685 billion. Adjusted operating margin for the full year is now expected to be in the 11.5% to 12% range compared to the prior forecast of about 11.5%.

The company raised its total revenues guidance for the fiscal year 2020 to about $2.15 billion from the earlier outlook of about $2 billion.

Microsoft is on a mission to make AI accessible to all

Additionally, Splunk said Dave Conte has decided to retire after more than eight years from the position of financial chief in March 2020. Conte will remain CFO until a successor is named and will facilitate a smooth transition. Splunk will initiate a search to identify the company’s next CFO.

The company appointed Lenny Stein to the newly created position of Senior Vice President of Global Affairs. Scott Morgan was named to the position of General Counsel and Secretary. Jake Loomis was appointed to the newly created position of Chief Digital Officer.

Shares of Splunk ended Thursday’s regular session up 2.51% at $101.63 on the Nasdaq. The stock has risen over 22% in the year so far and over 27% in the past year.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top