Splunk disappoints with Q3 results and revenue outlook

Splunk disappoints with Q3 results and revenue outlook

Q3 results caused Splunk share price to stumble

After Snowflake, another American software specialized company released its Q3 earnings. Splunk, a San Francisco-based enterprise, reported figures that came below the consensus.

In Q3, Splunk reported a loss per share of $1.26, considerably higher than the 38 cents/ share reported in the year-earlier quarter. The revenue figures reached $558.6 million, lower than the $626.3 million posted in Q3 2019. The market was looking for a loss per share of $1.02 on revenues of $613 million.

According to its CFO Jason Child, despite the challenges brought by the pandemic, Splunk “exceeded our cash-flow target significantly, and we ended with cloud annual recurring revenue up 71% year-over-year – among the highest growth rates in the industry.” Currently, the annual recurring revenue tops $2 billion.

For the future, Splunk expects its revenue to reach a high of $700 million, while the market is more optimistic, looking for $777.9 million.

At the moment of writing, Splunk stock price is trading 21% lower in pre-market.

Read here about how Snowflake performed in the past quarter!

Sources: thestreet.com, finance.yahoo.com

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