Splunk Inc (NASDAQ: SPLK) reported a net loss for the second quarter of 2021, compared to profit last year, as revenues of the software company declined 5% due to pandemic-related disruption. The stock was trading down 2% on Wednesday evening soon after the announcement.
The San Francisco-based tech firm reported a loss of $0.33 per share for the second quarter, excluding special items, compared to earnings of $0.30 per share last year. The outcome matched analysts’ forecast. On an unadjusted basis, the loss widened to $261.3 million or $1.64 per share from $100.9 million or $0.67 per share in the second quarter of 2020.
Second-quarter revenues declined 5% annually to $492 million and missed the consensus forecast, despite a 79% growth in cloud services. At $568 million, annual recurring revenues for the cloud segment was up 89% year-over-year.
“As organizations continue to adapt to tectonic societal shifts brought on by COVID-19, one thing is constant: the power of data to radically transform business. I’m pleased to see the role Splunk’s Data-to-Everything platform has played in helping our customers drive meaningful insights as they advance into The Data Age to meet the challenges of 2020 and beyond,” said CEO Doug Merritt.
For the third quarter of 2021, the management projects revenues in the range of $600 million to $630 million and adjusted operating margin between 2% and 5%.
In a separate statement, the company said it has appointed Sean Boyle to its board of directors. Boyle, who has extensive experience in finance and capital markets, has served Amazon (AMZN) for more than a decade, holding various key positions.
Splunk’s stock was trading at a record high of about $220 prior to the earnings announcement on Wednesday. However, the shares changed course and pared a part of the recent gains during the extended session. Their value nearly doubled in the past twelve months.