Splunk, Autodesk report strong quarters

Brocade also reported financials but came up short of Wall Street expectations.
Written by Natalie Gagliordi, Contributor

Splunk reported solid second quarter financial results Thursday bolstered by a 32 percent uptick in billings.

The machine data software provider reported a second quarter net loss of $83,500, or 60 cents per share.

Splunk's non-GAAP earnings were 8 cents per share on revenue of $280 million, up 32 percent year over year.

Wall Street was expecting earnings of 6 cents per share on a revenue of $268.5 million.

In terms of outlook, analysts are looking for Q3 earnings of 15 cents a share on revenue of $306.7 million. Splunk responded with revenue expectations between $307 million and $309 million. Splunk upped its guidance for billings from $1.425 billion to $1.450 billion.

Splunk also lifted its revenue outlook for the fiscal year to a range of $1.210 billion to $1.215 billion, up from a previous outlook of $1.195 billion.

Autodesk also posted better-than-expected results for its second quarter. The design software maker reported a net loss of $144 million, or 66 cents per share.

Non-GAAP losses were 11 cents per share on revenue of $502 million, down 9 percent from the year-ago period. Wall Street was bracing for a loss of 15 cents per share with $494.9 million in revenue.

Autodesk has been working to transition to a subscription-based business model, which has caused more than a few rocky quarters. But the Bay Area-based company says it's finally seeing positive results from the switch.

"During the second quarter we started offering a simple path for maintenance customers to move to subscription," said Autodesk CEO Andrew Anagnost. "While the program didn't begin until midway through the quarter, it is off to a great start with nearly one-in-four renewal opportunities moving to subscription."

For the outlook, Autodesk expects third quarter revenue between $505 million and $515 million, which falls just below analysts expectations for at least $516 million.

As for Brocade, the networking solutions provider -- which agreed to be purchased by Broadcom for $5.5 billion back in November -- reported a Q3 net loss of $19.6 million, or 5 cents per share.

Non-GAAP earnings were 16 cents per share on revenue of $549 million, down 7 percent year over year. Analysts were looking for earnings of 17 cents a share on revenue of $586.8 million.

Brocade did not provide fiscal Q4 2017 guidance and nixed its usual earnings conference call because of the pending Broadcom acquisition.

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