Splunk Loss Widens, Shares Up 9% On Outlook

(RTTNews) - Data-analysis software maker Splunk Inc. (SPLK), Thursday reported a second-quarter loss that widened from a year ago, on higher expenses and notwithstanding a 52 percent surge in revenues. Nonetheless, adjusted earnings for the quarter trumped Wall Street analysts estimates, with revenues also topping expectations.

Splunk detailed a strong third quarter revenue guidance and raised its revenue outlook for the full year 2015, sending its shares up 9 percent in the after-hours trade.

"We are pleased to deliver another strong quarter and thank our customers and partners for their continued support," said CEO Godfrey Sullivan. "We continue to invest heavily in product innovation..."

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 second-quarter loss widened to $60.8 million or $0.51 per share from last year's $13.7 million or $0.13 per share.

On an adjusted basis, the company reported profit of $1.2 million or $0.01 per share, compared to a loss of $1.2 million or $0.01 per share a year ago. On average, 28 analysts polled by Thomson Reuters expected a loss of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.

Splunk's revenues for the first quarter surged 52 percent to $101.5 million from $66.9 million last year. Twenty-six analysts had a consensus revenue estimate of $93.93 million for the quarter.

Stock-based compensation expense for the quarter rose to $59.5 million from $12.0 million last year.

Looking ahead to the third quarter, the company expects revenue of $105 million and $107 million. Analysts currently expect revenues of $104.31 million for the quarter.

For fiscal year 2015, the company lifted its revenue outlook to a range of $423 million to $428 million from its prior estimate of $402 million to $410 million. Analysts currently expect revenue of $411.59 million for 2015.

SPLK closed Thursday's trading at $45.29, down $0.61 or 1.33%, on the Nasdaq. The stock, however, gained $3.95 or 8.72%, in the after-hours trade.