Splunk beats quarterly revenue estimates on steady demand for cloud services
27/02/2024 23:33
Feb 27 (Reuters) - Data analytics software maker Splunk
SPLK.O topped Wall Street estimates for fourth-quarter revenue
and profit on Tuesday, bolstered by strong demand for its
cybersecurity software and cloud solutions.
Splunk provides a broad range of data security applications
for businesses and analysts consider them among the best at
ingesting, monitoring and analyzing machine data.
The company has adapted its software for smaller IT firms
looking to trim expenses in an unpredictable economy.
San Francisco, California-based Splunk focuses on
subscription or renewable contract models for its enterprise
clients, with more than 90% of the Fortune 100 using its
solutions, according to brokerage Morningstar.
The company reported total revenue of $1.49 billion, beating
analysts' expectation of $1.28 billion, according to LSEG data.
Splunk reported total annual recurring revenue of $4.21
billion in the quarter ended Jan. 31, up by 15% compared to last
year.
On an adjusted basis, the company earned $3.02 per share,
compared with an estimate of $1.95 per share, according to LSEG
data.
Splunk said it expects its merger with Cisco Systems
CSCO.O to close towards the end of the current quarter or
early in the second quarter of 2024.
Analysts have said Cisco's global presence and channel
partnerships could help sell Splunk’s security solutions at a
larger scale.
(Reporting by Harshita Mary Varghese; Editing by Alan Barona
and Pooja Desai)
((HarshitaMary.Varghese@thomsonreuters.com;))