Splunk Inc (SPLK) Shares Skyrockets on 34% Revenue Increase

The company's non-GAAP profit rose 41.7% year-over-year.

Splunk Inc (NASDAQ:SPLK) had a strong third quarter of fiscal 2018 that saw its shares surge after hours, with profit and revenue increasing year-over-year.

Splunk Inc (SPLK) The software developer unveiled adjusted earnings of 17 cents per share, which beat Wall Street’s consensus estimate of 14 cents per share. A year ago, the company earned 12 cents per share on an adjusted basis.

Splunk also had solid revenue of $328.7 million for the period, rising 24% compared to the year-ago quarter. Analysts were projecting revenue of $310 million for the company’s third quarter.

The company said it added more than 450 new enterprise customers, while total billings were $381.6 million, surging 38% year-over-year. Splunk added native support for metrics and machine learnings updates to Enterprise and Cloud for the period, as well as “new event analytics capabilities in Splunk IT Service Intelligence.”

Splunk customers are seizing upon the growing opportunity machine data presents and only Splunk can help them get answers on-premises, in the cloud or across hybrid environments,” said Doug Merritt, President and CEO, Splunk.

For its fourth quarter of fiscal 2018, revenue is slated to be in the range of $388 million to $390 million, compared to the Wall Street guidance of $383 million, per Thomson Reuters. Adjusted operating margin is slated to be roughly 16%.

Total revenue in 2019 will be approximately $1.55 billion, which is in line with analysts’ forecast.

SPLK stock soared 11.1% after Thursday’s market close.

Article printed from InvestorPlace Media, https://investorplace.com/2017/11/splunk-inc-splk/.

©2020 InvestorPlace Media, LLC