Splunk Q2 beats estimates with earnings nearly flat

With losses not as bad as expected, Splunk increased its guidance for its fiscal year.
Written by Natalie Gagliordi, Contributor

Splunk reported second quarter earnings after the bell Thursday.

The machine data player posted a loss of $60.4 million or 51 cents per share (statement). Non-GAAP earnings were nearly flat at 1 cent per share, on revenue of $101.5 million, up 52 percent year-over-year.

Wall Street was expecting a loss of two cents a share on revenue of $93.93 million.

Splunk shares were up nearly 4 percent in after-hours trading, although the company still struggles to reclaim its all-time high trading price of $106 a share, which it reached in February. 

Splunk CEO Godfrey Sullivan said he was "pleased" with the quarter, and reflected on the results quarter in prepared remarks:

"We continue to invest heavily in product innovation, including the industry's first 100 percent uptime SLA for Splunk Cloud, we shipped a brand new product – the Splunk App for Stream for wire data – and delivered a new release of our App for Enterprise Security. I am also pleased to report the promotion of Haiyan Song to Senior Vice President, Security Markets."

As for its Q3 outlook, the company expects revenue between $105 million and $107 million. Bullish about the rest of its fiscal 2015 year, Splunk upped its guidance from between $402 million and $410 million to the range of $423 million and $428 million.

The company boasted that signed more than 500 new customers, ending the quarter with around 7,900 customers worldwide.

Other highlights from the quarter include:

  • The launch of a 100 percent uptime service level agreement for Splunk Cloud and a free Splunk Online Sandbox;
  • The launch of the Splunk App for Stream to capture real-time streaming wire data;
  • The launch of version 3.1 of the Splunk App for Enterprise Security; 
  • The launch of the Splunk Mobile App; and
  • Announced a technical alliance with Syncsort to deliver machine data insights from mainframe systems.
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