Machine data specialist Splunk Inc. (SPLK) reported a wider loss in the third quarter due to higher costs and expenses. However, the results exceeded analysts’ expectations. The company raised revenue guidance for the full year 2019 and 2020, as well as guided fourth-quarter revenue above consensus view. Following this, the stock inched up over 4% in the after-market session.
Net loss widened to $55.7 million or $0.38 per share from $29.7 million or $0.21 per share in the previous year quarter. However, adjusted earnings jumped 36% to $0.38 per share.
Total revenues climbed 40% to $481 million. Software revenues soared 49% year-over-year to $325 million. The top line was benefited by the rising demand for data-driven insights across all industries.
Looking ahead into the fourth quarter, the company expects total revenues of about $560 million and adjusted operating margin in the range of 25% to 26%.
For the full year 2019, the company lifted its total revenues outlook to about $1.74 billion from the previous estimate of about $1.685 billion. Adjusted operating margin for the full year is now expected to be in the 11.5% to 12% range compared to the prior forecast of about 11.5%.
The company raised its total revenues guidance for the fiscal year 2020 to about $2.15 billion from the earlier outlook of about $2 billion.
Additionally, Splunk said Dave Conte has decided to retire after more than eight years from the position of financial chief in March 2020. Conte will remain CFO until a successor is named and will facilitate a smooth transition. Splunk will initiate a search to identify the company’s next CFO.
The company appointed Lenny Stein to the newly created position of Senior Vice President of Global Affairs. Scott Morgan was named to the position of General Counsel and Secretary. Jake Loomis was appointed to the newly created position of Chief Digital Officer.
Shares of Splunk ended Thursday’s regular session up 2.51% at $101.63 on the Nasdaq. The stock has risen over 22% in the year so far and over 27% in the past year.
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