Article Hero

Splunk disappoints with Q3 results and revenue outlook

Miguel A. Rodriguez
Miguel A. Rodriguez
03 December 2020
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!


This information prepared by is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation, or the particular needs of any recipient.You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation, or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.This information may not be published, circulated, reproduced, or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of Financial Services (Pty) Ltd trading as CAPEX.COM/ZA acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via CAPEX.COM/ZA, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15.  Magnasale Trading Ltd is the principal to the CFD purchased by investors.

Share this article

How did you find this article?


Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.