Splunk Q3 Tops View, Outlook Strong; Shares Up

(RTTNews) - Data-analysis software maker Splunk Inc. (SPLK), on Thursday reported a third-quarter loss that widened from a year ago, on higher expenses despite a 48 percent surge in revenues. Nevertheless, both adjusted earnings and revenue for the quarter trumped Wall Street analysts estimates.

Splunk detailed a strong fourth-quarter revenue outlook and raised its revenue outlook for the full year 2015, sending its shares up 6 percent in the extended trading hours.

San Francisco, California-based Splunk's third-quarter loss widened to $48.6 million or $0.40 per share from last year's loss of $16.6 million or $0.16 per share.

Results for the quarter included stock-based compensation expense of $48 million compared with $4 million a year ago.

Excluding items, adjusted earnings for the quarter improved to $0.02 per share from breakeven per share last year. Analysts polled by Thomson Reuters expected earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Splunk's revenues for the third quarter jumped 48 percent to $116.0 million from $78.6 million last year. Analysts had a consensus revenue estimate of $107.3 million for the quarter.

Total operating costs for the quarter rose to $146.7 million from $84.9 million last year.

CEO Godfrey Sullivan said, "We welcomed over 500 new customers, saw growth in all of our core markets - with the growth in security especially notable - and we had our best quarter yet with Splunk Cloud."

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.

Looking ahead to the fourth quarter, the company expects revenue in the range of $135 million to $137 million. Analysts currently expect earnings of $133.3 million for the quarter.

For the fiscal year 2015, the company now expect revenues in the range of $438 million to $440 million, up from its prior guidance of $423 million to $428 million. Analysts currently expect revenues of $428 million for the quarter.

For full year 2016, Splunk expects revenues of about $575 million, while analysts currently expect $570.3 million.

SPLK closed Thursday's trading at $64.94, up $1.04 or 1.63%, on the Nasdaq. The stock further gained $3.86 or 5.94%, in the after-hours trade.