Splunk Loss Widens, But Tops View; Stock Up - Update

(RTTNews) - Data-analysis software maker Splunk Inc. (SPLK), Thursday reported a second-quarter loss that widened from a year ago, on higher expenses despite a surge in revenue. Nonetheless, the loss for the quarter was lower than what Wall Street analysts expected, with revenues topping expectations.

Splunk once again raised its revenue outlook for the full year 2014 as it expands its product offerings and taps new customers. Shares of Splunk gained over six percent in after-hours trade on the Nasdaq.

Splunk makes software that allows companies to collect and analyze huge amounts of data. Splunk has never posted a profit for any quarter, however its revenue continues to increase reflecting strong demand for its products and increasing customer base.

The San Francisco, California-based company posted a net loss of $13.7 million or $0.13 per share for the quarter, as compared to a loss of $4.6 million or $0.05 per share a year ago.

Excluding items, adjusted loss for the second quarter was $1 million or $0.01 per share. On average, 18 analysts polled by Thomson Reuters estimated a loss of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter jumped to $67 million from $44.5 million a year ago, topping analysts' expectations of $63.03 million.

Total expenses increased to $73 million from $44 million in the prior year quarter, due mainly to increased costs toward research and marketing.

For the third quarter, Splunk expects revenue in the range of $69 million to $71 million and anticipates adjusted operating margin between zero and negative. Analysts currently expect revenue of $69.64 million for the quarter.

For full year 2014, Splunk now expects revenue of $275 million to $281 million, up from its prior guidance of $266 million to $274 million. Analysts currently expect revenue of $275.02 million for the year.

Shares of Splunk closed Thursday regular trading at $48.92, up $0.81 or 1.68%, on a volume of 1.5 million shares on the Nasdaq. In after hours, the stock gained $3.30 or 6.75%. In the past year, the stock has trended in the range of $26.10 - $53.47.