Splunk Inc. (NASDAQ: SPLK) third-quarter 2020 earnings and revenue exceeded the market’s estimates. The company posted an adjusted EPS of $0.58 on revenue of $626 million. Analysts had expected the data analytics firm to report earnings of $0.54 per share on revenue of $604.12 million for the recently ended quarter. Splunk stock, which ended flat today, rose about 6% during the after-market session.
On a GAAP basis, Splunk reported a loss of $0.38 per share, unchanged from the prior-year quarter. The year-over-year revenue growth of 30% in the three months ended October 31, 2019 period was helped by the 40% increase in the software revenues.
For the fourth quarter of 2020, Splunk expects revenue to be approximately $780 million and non-GAAP operating margin to be approximately 23%.
For the full year 2020, the company lifted its revenue expectation to $2.35 billion, from the prior projection of $2.30 billion. Guidance on the non-GAAP operating margin was kept unchanged at approximately 14%.
The San Francisco-based firm signed 440 new enterprise customers during the third quarter. Splunk completed the acquisition of SignalFx and announced the acquisition of Omnition in the just-concluded quarter.
“With the shift to a renewable model largely complete, momentum in our term license and cloud offerings drove 53% growth in total ARR during the quarter,” said CFO Jason Child.
Shares of Splunk have advanced 21% so far this year and 37% from this time last year.