Categories Earnings, Technology

Splunk (SPLK) slips to loss in Q2 on lower revenues; stock falls

Earnings Update by AlphaStreet

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.

Looking forward to listening to management/analysts’ comments on Q2 results? Stay tuned here for Splunk’s Q2 2021 earnings call transcript 

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.

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Viewing Highlight