{"id":20061,"date":"2022-12-01T00:24:19","date_gmt":"2022-12-01T00:24:19","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/01\/splunk-beats-expectations-and-edges-closer-to-profitability-sending-its-stock-higher\/"},"modified":"2022-12-01T00:24:19","modified_gmt":"2022-12-01T00:24:19","slug":"splunk-beats-expectations-and-edges-closer-to-profitability-sending-its-stock-higher","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/01\/splunk-beats-expectations-and-edges-closer-to-profitability-sending-its-stock-higher\/","title":{"rendered":"Splunk beats expectations and edges closer to profitability, sending its stock higher"},"content":{"rendered":"

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Big data analytics company Splunk Inc.<\/a> is flying high today, its stock up more than 8% in after-hours trading after it reported third-quarter financial results that topped Wall Street\u2019s expectations.<\/p>\n

The company reported<\/a> earnings before certain costs such as stock compensation of 83 cents per share on revenue of $930 million, up by an impressive 39% from the same period one year ago. Wall Street\u2019s analysts had been targeting earnings of just 25 cents per share on sales of $847.7 million, so the results were a resounding success.<\/p>\n

The strong performance helped Splunk trim its overall loss to just $32.6 million, down from a $343.3 million loss one year ago. Three months ago, Splunk reported a loss of $209.7 million, so it\u2019s clearly making strong progress on its path to profitability.<\/p>\n

Splunk is the creator of a popular data processing platform<\/a> that\u2019s used by large enterprises to detect and troubleshoot technical issues within their information technology infrastructure. Splunk also offers tools for dealing with cybersecurity incidents such as data breaches. Its tools are popular, with Splunk counting thousands of enterprises among its customers.<\/p>\n

Splunk Chief Executive Gary Steele (pictured), who took over the reins<\/a> earlier this year, said the company delivered a \u201csolid quarter\u201d with very strong revenue growth. \u201cOur results underscore the value our customers place in Splunk,\u201d he said. \u201cThe world\u2019s largest and most innovative enterprises continue to invest in our platform and make their businesses more resilient through faster insights and action across security, IT and DevOps.\u201d<\/p>\n

The CEO added that he was especially pleased to see Splunk\u2019s progress as it strives to balance long-term, durable growth with profitability. \u201cWe also made very good progress on our expense reduction during the quarter,\u201d he added. \u201cAs a result, we are increasing our full-year outlook for total revenues, profitability and free cash flow.\u201d<\/p>\n

Much of Splunk\u2019s growth was driven by the cloud, where revenue jumped 54% to $374 million. Cloud revenue now accounts for more than a third of the company\u2019s total sales. Splunk\u2019s customer base also grew impressively. It said it now counts 754 customers who spend at least $1 million a year on Splunk\u2019s platform, up 19% from a year earlier.<\/p>\n

Looking to the fourth quarter, Splunk said it\u2019s forecasting revenue of between $1.055 billion and $1.085 billion, which is more or less in line with Wall Street\u2019s target of $1.07 billion. For the full year, Splunk said it expects total sales of between $3.455 billion and $3.485 billion, up from its earlier range of $3.35 billion to $3.4 billion. Wall Street has Splunk\u2019s annual sales pegged at exactly $3.4 billion.<\/p>\n

Photo:\u00a0CNBC Television\/YouTube<\/a><\/h5>\n
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