Big Data — which involves analyzing huge amounts of information to help with things like sales strategies to security – is one of tech’s hottest trends. And one of the top players riding that trend is Splunk (NASDAQ:SPLK), which posted a standout earnings report for its second quarter late Thursday and was surging in after-hours trading.
Q2 revenues spiked by 71% to $44.5 million, and the company suffered and adjusted loss of 1 cent per share, with both figures beating Wall Street estimates of $39.8 million and 4 cents per share, respectively.
The company also added almost 400 new customers — including Salesforce.com (NYSE:CRM), Expedia (NASDAQ:EXPE) and the US Postal Service — to put its total above 4,400.
Splunk has been busy building new software, focused primarily on security — in fact, I recently pointed out Splunk on the IPO Playbook as a top security IPO to keep an eye on.
and recently launched the beta version of Splunk Enterprise 5.0. What’s more, it also has new applications to support major platforms from VMware (NYSE:VMW), Microsoft (NASDAQ:MSFT) and Palo Alto Networks (NYSE:PANW). Splunk also has software to help improve cloud environments.
With such a strong pipeline, it should be no surprise that Splunk thinks growth will continue to be strong. For the third quarter, SPLK is looking for revenues of $45 million to $47 million, above forecasts for $44.6 million.
Splunk’s stock was trading around $34 in after-hours trading, almost double its March IPO pricing of $17.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli. As of this writing, he did not own a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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