Splunk (SPLK) Shares Up on Better than Expected Earnings

Shares of Splunk Inc. (SPLK) were trading up +3.70 or +8.19 percent to $49.00 per share in premarket trading on Friday, after the company announced better than expected earnings yesterday after the market close. Spunk stock closed at $45.29 per share, down -0.61 or -1.33 percent in Thursday's regular trading session.

San Francisco, California based Splunk was founded in 2003 and had its initial public offering in September of 2013.
Splunk is a multinational company that develops, produces and markets software for monitoring, searching, indexing and reporting analysis of machine generated "big data . The company's main product, a software platform called Splunk Enterprise, captures and correlates real time information which can then generate charts, reports, dashboards, visualizations and alerts over a web style interface. The company's name refers to cave exploration as in the term spelunking.

The company reported a GAAP operating loss of -$60.4 million or -$0.51 per share on GAAP operating margin of -59.4%, with Non-GAAP earnings nearly flat at +$0.01 per share on revenue of $101.5 million, an increase of +52 percent over last year's second quarter. Non-GAAP operating income was +$1.6 million while Non-GAAP operating margin was +1.6 percent. The analyst consensus was for the company to report a loss of -$0.02 per share on revenue of $93.93 million.

Splunk Chairman and Chief Executive Officer, Godfrey Sullivan said in the company's press release that, "We are pleased to deliver another strong quarter and thank our customers and partners for their continued support, he continued, "we continue to invest heavily in product innovation, including the industry's first 100 percent uptime SLA for Splunk Cloud, we shipped a brand new product - the Splunk App for Stream for wire data - and delivered a new release of our App for Enterprise Security. I am also pleased to report the promotion of Haiyan Song to Senior Vice President, Security Markets.

Other highlights reported in the second quarter included the signing of 500 new customers, which ended the quarter with a total of 7,900 customers; an industry first with a 100 percent uptime service level agreement for Spunk Cloud with a free Splunk Online Sandbox, allowing customers immediate trial access to Spunk Cloud.

In addition, Splunk announced general availability (GA) for the company's Splunk App for Stream, an app that captures real time streaming wire data for app management support; a 3.1 version of Splunk App for Enterprise Security and the introduction of the Splunk Mobile App, allowing users to receive real-time alerts and leverage the Splunk Enterprise software platform through an optimized mobile interface.

Splunk also provided guidance for its third quarter: total revenues are now expected to be between $105 million to $107 million with Non-GAAP operating margin expected to be around one percent. The company revised its full year 2015 (ending January 31st, 2015) guidance with total revenues expected between $423 million and $428 million upwardly revised from $402 million to $410 million on Non-GAAP operating margin of one percent. Previous operating margin was expected to be flat.

Splunk stock is at the lower end of its yearly range, having made a high of $106.15 in February. With improving numbers and an increasing customer base, the company's stock could continue appreciating, especially if Splunk exceeds its revised third quarter and full year guidance.

Other News About Splunk
Splunk Software Helps GoodData Scale Business for Customer Success
GoodData using Splunk Enterprise to drive customer growth.
Splunk Introduces the Splunk App for Stream
Company announces app for capturing real-time streaming wire data.

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Published on Aug 29, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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