Splunk Q3 Results Beat View, Lifts Full-year Revenue Outlook

(RTTNews) - Shares of Splunk Inc. (SPLK) gained more than 10 percent in extended trades Thursday after the data-analysis software maker's results for the third quarter beat analysts' expectations and the company forecast revenue for the fourth quarter above Street estimates. In addition, Splunk raised its revenue outlook for fiscal 2013.

The company reported a loss for the third quarter that widened from last year, as higher expenses and one-time charges more than offset strong revenue growth. However, both revenue and adjusted earnings per share beat analysts' expectations.

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's net loss for the third quarter was $16.55 million or $0.16 per share, wider than loss of $5.47 million or $0.06 per share in the year-ago period.

Excluding stock-based compensation, expense, impairment and acquisition-related costs, among others, adjusted net income for the quarter was $398 thousand or breakeven per share, compared to net loss of $789 thousand or $0.01 per share in the prior-year period.

On average, 23 analysts polled by Thomson Reuters expected the company to report loss of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter jumped 51 percent to $78.63 million from $52.05 million in the previous-year quarter, beating analysts' consensus estimate of $71.09 million.

License revenues grew 47 percent from last year to $50.87 million. The company signed more than 450 new customers, ending the quarter with more than 6,400 customers worldwide.

Total operating expenses for the quarter rose 65 percent from the prior-year period to $84.93 million.

Gross margin declined to 86.6 percent from 88.7 percent in the same period last year. Operating margin was negative 21.4 percent, compared to negative 10.3 percent in the year-ago quarter.

Looking ahead to the fourth quarter, Splunk forecast total revenues between $88 million and $90 million. Analysts currently expect fourth-quarter revenues of $86.12 million.

For fiscal 2014, Splunk now expects revenue of $291 million to $293 million, up from its prior range of $275 million to $281 million. Analysts currently expect revenue of $281.43 million for the year.

SPLK closed Thursday regular trading at $59.90, down $2.63 or 4.21 percent on a volume of 3.32 million shares. However, in after-hours, the stock gained $6.10 or 10.18 percent to $66.00.