By Kimberly Chin
Splunk Inc.'s losses widened in the third quarter on higher expenses and lower sales as customers weigh their IT infrastructure spending after months of remote working due to the pandemic.
The software platform that analyses machine-generated data posted a loss of $201.5 million, or $1.26 a share, compared with a loss of $57.6 million, or 38 cents a share, in the year-ago quarter. Analysts polled by FactSet expected a loss of $1.02 a share.
Revenue decreased to $558.6 million from $626.3 million last year, falling below analysts' consensus estimates of $613 million. The company's cloud services revenue climbed 80% to $144.7 million but licensing revenue fell more than 35% to around $240.2 million.
Total costs increased 27% to $136.8 million while expenses rose 3.8% to $587.3 million.
Annual recurring revenue, which accounts for the company's subscriptions, licenses and maintenance contracts, was $2.07 billion, up 44% from a year ago.
Splunk shares dived 9% to $187 in after-hours trading.
Founded in 2004, Splunk-a play on the word "spelunking"-collects and analyzes data to help companies identify patterns, like customers' beverage preferences, and detect anomalies, say fraud or a cyberattack.
Write to Kimberly Chin at firstname.lastname@example.org