(NASDAQ:SPLK).The analysts at the brokerage house have a current rating of Buy on the shares. Its total revenues were $US174.4 million, up 50 per cent year-over-year while its GAAP operating loss was $US72.3 million, with a GAAP operating margin of negative 41.5 per cent.
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Splunk reported third quarter earnings after the bell Thursday.
Splunk (NASDAQ:SPLK) traded down 1.27% on Friday, reaching $61.96.
On cash flow, investing for growthAs I suggested in my earnings preview earlier this week, investors should also watch for Splunk to generate healthy cash flow. Non-GAAP operating margin is expected to be between five and six per cent.
Meanwhile, as Splunk continues to forego bottom-line profits in favor of driving top-line growth, it continued piling money into both sales and marketing (up 51.8% year over year, to $130.1 million in Q3), and research and development (up 42.1%, to $56.2 million). He has continued to build a world-class field organization and channel that are taking Splunk and its customers to new levels of success.
“I am extremely honored and thrilled to become President and CEO of Splunk – one of the most disruptive, innovative and successful companies in technology”, said Merritt.
Splunk also released the latest version of the Splunk App for AWS, and struck a strategic alliance for predictive security analytics with Booz Allen Hamilton.
Splunk also announced that Godfrey Sullivan, the company’s president and CEO, will retire effective immediately. Now the company Insiders own 3.7% of Splunk Inc. shares according to the proxy statements.
“Since joining Splunk in 2008, Godfrey has been an outstanding and inspirational leader, growing the Company from 750 customers and $18 million of annual revenue to over 10,000 customers and trailing 12 month revenues of almost $600 million”, said John Connors, lead independent director. “We will continue our laser focus on becoming the data fabric for businesses, government agencies, universities, and organizations”, added Merritt. During the same period in the previous year, the company posted $0.02 earnings per share. The company provided soft guidance for the upcoming quarter, as it expects to generate revenues in the $317-320 million range, which is achingly close to beat its consensus estimate of $320.3 million. Don’t be surprised, though, if Wall Street again ratchets up its expectations given Splunk’s past history of lowballing guidance. Revenue rose 50% to $174.4 million, beating views for $160.2 million.
The company expects full-year revenue of $650 million.
Splunk shares have increased 6.5 percent since the beginning of the year.
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A number of analysts have recently issued reports on SPLK shares.
