Splunk Q3 earnings, revenue fall well below estimates

Splunk reported a loss of 7 cents per share on revenue of $559 million, down 11% from the same time last year.

Splunk shares fell over 17% after market Wednesday after the company missed both earnings and revenue targets for the third quarter. 

The machine data software provider reported a Q3 net loss of $201 million, or $1.26 per share. On a non-GAAP basis, Splunk reported a loss of 7 cents per share on revenue of $559 million, down 11% from the same time last year.

Wall Street was expecting earnings of 9 cents per share on revenue of $613 million. Shares of Splunk were down more than 17% after hours.

Elsewhere on the balance sheet, Splunk said cloud revenues were $145 million, up 80% year-over-year. Meanwhile, Cloud ARR was $630 million, up 71% year-over-year, while total ARR was $2.07 billion, up 44% year-over-year.

The company also signed 444 new enterprise customers in Q3.

In terms of outlook, analysts are looking for earnings of 45 cents a share on revenue of $777.7 million. Splunk responded well below that target, calling for Q4 revenue between $650 million and $700 million. Splunk did not provide its guidance for the fiscal year.

"Even in the face of uncertain market conditions, Splunk remains one of the fastest growing companies in the history of enterprise software," said Splunk CEO Doug Merritt. "We crossed an important milestone during the quarter as continued demand for data-driven insights across our global customer-base drove our total ARR to over $2 billion. Today, there's no better strategic partner to help organizations turn their data into action and accelerate their journey to the cloud than Splunk."