Splunk on Wednesday delivered better-than-expected second-quarter financial results and announced its plans to acquire cloud monitoring company SingalFx for $1.05 billion -- its largest acquisition to date. Splunk CEO Doug Merritt said the purchase would enable to Splunk offer customers a single data platform that can monitor cloud-native infrastructure and enterprise applications in real-time.
"The combination of Splunk and SignalFx will give IT and developers a data platform that allows them to monitor and observe data in real-time, no matter the infrastructure or data volume, helping them cut costs, boost revenue and improve the customer experience," Splunk said in a press release.
"This enables organizations to work across their entire data landscape, not just silos in the data center or cloud-native environments."
As for the numbers, the machine data software provider reported a quarterly net loss of $100.8 million, or 67 cents per share. Splunk's non-GAAP earnings came to 30 cents per share on revenue of $517 million, up 33% from the same time last year.
Wall Street was expecting earnings of 12 cents per share on revenue of $488.35 million. Shares of Splunk were up more than 6% after hours.
Elsewhere on the balance sheet, Splunk said software revenues were $350 million, up 46% year-over-year. The company also landed more than 500 new enterprise customers in Q2.
In terms of outlook, analysts are looking for earnings of 52 cents a share on revenue of $590.52 million. Splunk responded above the target, calling for Q3 revenue of $600 million. Splunk also upped its guidance for the fiscal year to about $2.30 billion.
Splunk said the SignalFx acquisition would close in the second half of its current fiscal year. With its $1.05 billion price tag, the acquisition is considerably larger than any of Splunk's recent acquisitions. Last June the company bought DevOps incident management player VictorOps for $120 million. That deal came several months after Splunk's $350 million purchase of Phantom, makers of a security orchestration platform.