Splunk forecasts upbeat third-quarter revenue, counting on AI-led spending
23/08/2023 22:18
Aug 23 (Reuters) - Data analytics software maker Splunk Inc SPLK.O
forecast third-quarter revenue above market estimates on Wednesday, banking on
upbeat spending by companies that are increasingly adopting artificial
intelligence (AI).
The company's shares were up about 9% after the bell.
Splunk, which is also benefiting from its focus on subscription or renewable
contract model to retain clients, said it expects third-quarter revenue of
between $1.02 billion and $1.035 billion. Analysts on average were expecting
$981.34 million, according to Refinitiv IBES data.
In the quarter ended July 31, Splunk's total annual recurring revenue was
$3.858 billion, up by 16%.
Growing information technology security threats have led to higher demand
for the company's security analytics products, which are used for detecting
cyber-attacks. It reported a loss of $0.38 per share, smaller than $1.30 per
share a year ago.
On an adjusted basis, the company reported a second-quarter profit of 71
cents per share, beating expectations of 45 cents per share.
The San Francisco, California-based company posted total revenue of $910.59
million, compared with $798.75 million last year. That beat analysts' average
estimate of $885.97 million.
(Reporting by Akshita Toshniwal in Bengaluru; Editing by Maju Samuel)
((Akshita.Toshniwal@thomsonreuters.com;))