Splunk shares rise as fiscal Q2 results top expectations, ARR growth tops forecast
Data analytics pioneer Splunk this afternoon reported fiscal Q2 revenue and profit that both topped Wall Street's expectations, and an outlook for the current quarter's revenue that was in line with consensus .
The report sent Splunk shares up almost 4% in late trading.
CEO Doug Merritt remarked that the "team delivered another strong quarter, validating the high strategic value we deliver to the world's largest and most dynamic organizations."
Added Merritt, "We doubled the number of customers with Cloud ARR of $1 million dollars or more as workloads and data continue to shift to cloud.
"Our second quarter execution was broad-based with each of our major geographic regions exceeding our own expectations as more and more customers around the world rely on Splunk and our market-leading data platform and cloud-based capabilities."
CFO Jason Child, noting the company's growth in annualized recurring revenue, remarked, "We outperformed in the first half of the year and are well-positioned heading into the second half.
"We expect $1.3 billion of Cloud ARR and Total ARR of well over $3 billion by fiscal year end as we help our customers accelerate their digital transformations."
Revenue in the three months ended in July rose 23%, year over year, to $606 million, yielding a net loss of 62 cents a share, excluding some costs.
Analysts had been modeling $563 million and a 69-cent net loss per share.
Splunk said its total annualized recurring revenue in the quarter rose by 37% to $2.63 billion, compared to its forecast for $2.59 billion to $2.61 billion.
The company said its ARR from cloud computing sales rose to $976 million, above a forecast it had offered for $950 million to $960 million.
For the current quarter, the company sees revenue of $625 million to $650 million, in line with consensus for $636 million. The company expects total ARR of $2.8 billion to $2.825 billion.
For the full year, the company sees revenue in a range of $2.35 billion to $2.6 billion, below consensus of $2.54 billion.