Splunk beats quarterly revenue estimates on robust cybersecurity demand

Splunk

28/11/2023 23:06

Nov 28 (Reuters) - Splunk  SPLK.O  beat quarterly
estimates for revenue on Tuesday, helped by resilient demand for
its cybersecurity offerings in an uncertain economy. 
        The cybersecurity firm's stock has risen over 75% this
year as investors laud Splunk's move to incorporate artificial
intelligence into its products and its focus on subscription or
renewable contract models.
    Cisco Systems  CSCO.O , which cut its annual revenue and
profit forecasts earlier this month, entered into an agreement
to buy Splunk for about $28 billion in September to strengthen
its software business.
    Splunk is known for its strengths in the area of data
observability, which helps companies monitor their systems for
cybersecurity risks and other threats. The company operates a
subscription-based pricing model for customers. 
    Splunk's total annual recurring revenue for the third
quarter ended Oct. 31 rose 15% to $4 billion.
        It reported total revenue of $1.07 billion, beating
analysts' expectations of $1.03 billion, according to LSEG data.
        On an adjusted basis, the company earned $1.52 per share
compared with estimates of $1.14 per share.

 (Reporting by Zaheer Kachwala in Bengaluru; Editing by Shailesh
Kuber)
 ((Zaheer.Kachwala@thomsonreuters.com;))