Splunk Loss Widens, FY Outlook Weak, Shares Down 9%

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

Splunk raised its revenue outlook for the full year 2015, however, the mid-point of the outlook is expected to fall short of current estimates. Shares of the company plunged 9 percent in after-hours trade, following the news.

"We thank our customers for their enthusiastic support of our expanding product line," said Godfrey Sullivan, Chairman and CEO. "We are accelerating our investments in core technologies, cloud services and market specific solutions to better serve our global customers."

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 rise reflecting strong demand for its products and increasing customer base.

San Francisco, California-based Splunk's first-quarter loss widened to $50.8 million or $0.43 per share from $16.1 million or $0.16 per share last year.

On an adjusted basis, loss narrowed to $4.2 million or $0.04 per share from $5.7 million or $0.06 per share a year ago. On average, 28 analysts polled by Thomson Reuters expected a loss of $0.06 per share for the quarter. Analysts' estimates typically exclude special items.

Splunk's revenues for the first quarter surged 50 percent to $85.9 million from $57.2 million last year. Twenty-six analysts expected revenues of $80.74 million for the quarter.

Total operating expenses increased to $121.8 million from $66.2 million last year.

Looking ahead to the second quarter, the company expects revenue between $92 million and $94 million. Analysts currently expect revenues of $91.64 million for the quarter.

For the fiscal 2015, the company lifted its revenue outlook to a range of $401 million to $410 million from its prior guidance of $400 million. Analysts currently expect revenue of $406.92 million for 2015.

SPLK closed Thursday's trading at $50.04, up $1.16 or 2.37%, on the Nasdaq. The stock, however, dropped $4.75 or 9.49%, in after-hours trade.