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Machine data specialist Splunk reported better than expected hird quarter earnings despite higher costs and expenses. $SPLK raised revenue guidance for 2019 and 202 and guided fourth-quarter revenue higher, the stock rose 8% after the release.

Splunk Index


Splunk Inc NASDAQ: SPLK; Reported Earnings After Close Thursday

$0.38 Beat $0.32 EPS And $481M Beat $433.3 Million Forecast in Revenue. 


Splunk reported that it's net loss widened to $55.7 million or $0.38 per share from $29.7 million or $0.21 per share in the previous year quarter.  Adjusted earnings of 38 cents per share, beating the consensus estimate of 32 cents. The company posted revenue of $481 million, beating the consensus of $433.3 million for its fiscal third quarter ending Oct. 31. On a year-over-year basis, sales rose 40%.


Market Reaction - After hours $107.95 ▲ 6.20 (+6.09%)


  • Software revenues soared 49% year-over-year to $325 million.
  • The top line benefited by rising demand for data-driven insights across all industries.


Signed more than 500 new enterprise customers. New and Expansion Customers Include: ATB Financial (Canada), Chicago Public Schools, City of Austin, Clemson University, Department of Home Affairs (Australia), Fleetcor Technologies, GVB (Netherlands), Jabil, Norfolk Southern, Paddy Power Betfair (Ireland), Randstad (Netherlands), Softbank (Japan), SundaySky (Israel), Teachers Mutual Bank (Australia), University of Portsmouth (UK), Vanderbilt University Medical Center


  • Looking ahead into the fourth quarter, the company expects total revenues of about $560 million and adjusted operating margin in the range of 25% to 26%.
  • For the full year 2019, the company lifted its total revenues outlook to about $1.74 billion from the previous estimate of about $1.685 billion.
  • Adjusted operating margin for the full year is now expected to be in the 11.5% to 12% range compared to the prior forecast of about 11.5%. 
  • SPLk raised its total revenues guidance for the fiscal year 2020 to about $2.15 billion from the earlier outlook of about $2 billion.

Management Changes

Splunk said Dave Conte has decided to retire after more than eight years from the position of financial chief in March 2020. Conte will remain CFO until a successor is named and will facilitate a smooth transition. Splunk will initiate a search to identify the company’s next CFO. The company appointed Lenny Stein to the newly created position of Senior Vice President of Global Affairs. Scott Morgan was named to the position of General Counsel and Secretary. Jake Loomis was appointed to the newly created position of Chief Digital Officer. 

About Splunk

Splunk Inc. (NASDAQ: SPLK) helps organizations ask questions, get answers, take actions and achieve business outcomes from their data. Organizations use market-leading Splunk solutions with machine learning to monitor, investigate and act on all forms of business, IT, security, and Internet of Things data. Join millions of passionate users and try Splunk for free today. Splunk, Splunk>, Listen to Your Data, The Engine for Machine Data, Splunk Cloud, Splunk Light and SPL are trademarks and registered trademarks of Splunk Inc. in the United States and other countries. All other brand names, product names, or trademarks belong to their respective owners. © 2018 Splunk Inc. All rights reserved

From The Traders Community Research Desk

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