Splunk raises outlook, delivers strong Q2

Splunk reported better than expected second quarter results and raised it outlook for the third quarter.

The company reported a second quarter net loss of $13.69 million, or 13 cents a share, on revenue of $66.9 million, up 50 percent from a year ago. The non-GAAP loss was a penny a share.

Wall Street was expecting a loss of 3 cents a share on revenue of $63 million.

As for the outlook, Splunk projected third quarter revenue of $69 million to $71 million. For fiscal 2014, Splunk projected sales of $275 million to $281 million. The non-GAAP operating margin for the fiscal year will be zero.

Analysts were expecting revenue of $275.46 million for the year.

In the second quarter, Splunk signed more than 400 new customers and had more than 6,000 customers globally.

On a conference call with analysts, Splunk CEO Godfrey Sullivan said:

We continue to see customers expanding over time from one initial use case around apps monitoring IT ops for security to other core use cases. We are also seeing new customers making initial purchases for multiple use cases.

However, 90 percent of Splunk's revenue are tied to core markets such as IT operations, applications management and security.