Splunk (SPLK) reported quarterly results late Wednesday that came in well above analyst estimates as the company continues its business transition. Splunk stock rose.
The data analytics company reported adjusted earnings of 38 cents per share on revenue of $745 million. Analysts expected Splunk to report earnings of 4 cents a share on revenue of $686 million, according to FactSet.
Splunk stock climbed 5%, near 150.30, during after-hours trading on the stock market today.
For the year, Splunk reported total revenue of $2.23 billion, down 5% from the year-earlier period.
Splunk Stock: Working Through A Transition
The company is undergoing a cloud transition to a software-as-a-service business model as it faces increased competition. This includes a transition to annual recurring revenue. On that basis, cloud ARR grew 83% from the year-ago period to $810 million in the quarter. Total ARR was $2.36 billion, up 41% year over year.
“The market’s demand for data-driven solutions that enable digital and cloud transformation has never been higher,” Splunk Chief Executive Doug Merritt said in written remarks with the earnings release. “We now have more than 500 customers investing over $1 million annually in our platform and solutions.”
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