Splunk Inc says its revenue tanked 6% in the fiscal fourth quarter

Written by: Wajeeh Khan
March 3, 2021
  • Splunk Inc says its revenue tanked 6% in the fiscal fourth quarter.
  • The software company reports £99.88 million of net loss in Q4.
  • Splunk Inc records £1.60 billion of total revenue in fiscal 2021.

Splunk Inc. (NASDAQ: SPLK) published its earnings report for the fiscal fourth quarter on Wednesday that came in better than what analysts had anticipated.

Splunk shares were reported about 2% up in extended trading on Wednesday. The stock now has a per-share price of £104.53 versus £119.12 at the start of 2021. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a list of the top few to make selection easier for you.

Splunk’s Q4 financial results versus analysts’ estimates

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Splunk said that it concluded the fourth quarter with £99.88 million of net loss, that translates to 61.57 pence per share. In the same quarter last year, its net loss stood at a significantly lower £16.25 million, or 10.74 pence per share.

The software company posted £533.39 million of revenue in Q4 that represents a 6% year over year decline. In the prior quarter (Q3), Splunk had noted £150 million of net loss.

According to FactSet, experts had forecast the company to report £485.42 million of revenue in the recent quarter. Their estimate for per-share loss was capped at a lower 76.61 pence. At £122.43 million, Splunk’s cloud revenue jumped 72% on a year over year basis in the fourth quarter.

Splunk’s earnings report comes only a day after Box Inc. said that its financial performance was better than expected in the recent quarter.

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Splunk’s performance in fiscal 2021

For fiscal 2021, Splunk recorded £1.60 billion of total revenue – a 5% decline from the previous year. Its full-year operating loss on a non-GAAP basis came in at £60.86 million, or 39.38 pence per share.

Splunk valued its operating cash flow at negative £136.75 million in the recently concluded year, while its free cash flow stood at negative £163.24 million. Chief Executive Doug Merritt commented on the financial report on Wednesday and said:

“The market’s demand for data-driven solutions that enable digital and cloud transformation has never been higher. We now have more than 500 customers investing over $1 million annually in our platform and solutions. At our size, Splunk, is one of the fastest-growing companies in the history of enterprise software.”

Splunk performed slightly upbeat in the stock market last year with an annual gain of more than 10%. At the time of writing, the American public multinational corporation is valued at £16.58 billion.