Splunk Raises Guidance Again Amid Strong Revenue Growth

Splunk Inc. again boosted its outlook for the year as the big-data software company continued to generate strong top-line growth in the latest quarter, though its loss also widened amid higher operating expenses.

Shares, down 2.4% for the year, rose 6.3% after hours to $61.

For the year ending in January, the company now expects revenue of $930 million and $932 million, up from its August estimate for $910 million to $914 million.

And for the current quarter, the company guided for revenue between $286 million and $288 million, more than the $285.1 million average analyst estimate, according to Thomson Reuters.

Splunk's technology analyzes data from websites, applications, servers and mobile devices. The company's recent products include the Splunk APP for AWS 4.2 for management of multiple Amazon Web Services accounts. The company has been active in cybersecurity technology.

The company said it signed nearly 500 new enterprise customers during its latest quarter.

In all for the October period, Splunk posted a loss of $93.5 million, or 69 cents a share, compared with a loss of $73 million, or 57 cents a share, a year earlier.

Earnings excluding items were 12 cents a share, topping analyst predictions for 8 cents a share, according to Thomson Reuters.

Revenue surged 40% to $244.8 million, above the company's guidance of $228 million to $230 million. License revenue ticked up 34% to $139.7 million while maintenance and services revenue grew 50% to $105.1 million.

Operating expenses also increased during the quarter, jumping 33% to $287.1 million.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

November 29, 2016 17:15 ET (22:15 GMT)

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