Splunk stock sags: fiscal Q1 revenue tops expectations, outlook lite
Analytics software powerhouse Splunk this afternoon reported fiscal Q1 revenue that topped Wall Street's expectations, but missed on the bottom line, and offered an outlook for revenue this quarter that was slightly below consensus.
The report sent Splunk shares down 2% in late trading.
CEO Doug Merritt remarked, "Our first quarter success was defined by customers accelerating their move to the cloud,"
Added Merritt, "Data became an essential service in the past year as the pandemic solidified the urgent importance of digital transformation. Splunk delivers the only cloud data platform that is able to simultaneously serve the multitude of teams tasked with driving this shift for application development, infrastructure management and cyber security."
CFO Jason Child said that the company experienced "continued improvement in demand during the first quarter and customer engagement remains high across our portfolio of products and cloud services."
Added Child, "Our Cloud ARR exceeded 70% for the sixth straight quarter and we now have more than 200 customers with Cloud ARR over a million dollars. As we look forward, we have great confidence in our ability to deliver continued high growth, particularly within our cloud business.""
Revenue in the three months ended in April rose to $502 million, yielding a net loss of 91 cents a share, excluding some costs.
Analysts had been modeling $492 million and a 70-cent net loss per share.
This quarter's result compares to Splunk's March 4th, fiscal 4th-quarter report, in which the company beat sales expectations by 10%, but forecast revenue below consensus.
Also: Splunk shares rise as fiscal Q4 recurring revenue tops expectations, lead by cloud
For the current quarter, the company sees revenue of $550 million to $570 million. That compares to consensus for $562 million.