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