Splunk’s revenue falls shy of Wall Street estimates in the second quarter

Splunk Inc. (NASDAQ: SPLK) said on Wednesday that its quarterly revenue came in lower than Wall Street estimates. Its subscription metric, on the hand, blew past what the analysts had anticipated for the fiscal second quarter. The company also gave its future guidance on Wednesday that was reported weaker than the experts’ forecast.

Shares of the company tanked roughly 1.5% in after-hours trading on Wednesday. Splunk is now exchanging hands at £161.23 per share that marks an about 125% recovery since March when it touched a year to date low of £72.50 per share due to the ongoing Coronavirus pandemic. Wondering how you can buy shares online? Follow these simple steps and start buying stocks online in 2020.

Splunk’s Q2 financial results versus analysts’ estimates

Splunk’s loss ballooned to £197.79 million in the second quarter that translates to £1.24 per share. In the same quarter last year, it had recorded a much lower £76.37 million of loss or 50.71 pence a share. Splunk’s results come a day after its peer, Salesforce, published its quarterly earnings report.

On an adjusted basis, the software company saw 24.98 pence of loss per share. In terms of revenue, it printed £372.18 million in Q2 versus the year-ago figure of £391.03 million. According to FactSet, analysts had predicted the company to note 24.98 pence of per-share loss in the recent quarter on £393.91 million of revenue. Splunk was reported to have created a post of Chief of Social Impact earlier in August.

According to Splunk, its annual recurring revenue, however, came in at £1.46 billion that represents a 50% increase on a year over year basis. Experts had forecast a slightly lower £1.45 billion for revenue that Splunk can expect to generate via subscriptions.

CEO Dough Merrit’s comment on Wednesday

CEO Dough Merritt of Splunk commented on the earnings report on Wednesday and said:

“Splunk’s cloud business continues to accelerate, now representing more than half of our software bookings in the quarter – a major milestone in our cloud journey.”

For the fiscal third quarter, the San Francisco-based company now forecasts its revenue to lie in the range of £454.16 million to £476.87 million. Analysts, on the other hand, have estimated a higher £485.57 million for Splunk in Q3 revenue.

At the time of writing, the American multinational corporation has a market cap of £26 billion.