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Dec. 2, 2021, 8:28 a.m. EST

Splunk forecast falls short after stock closes at 52-week low

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By Wallace Witkowski

Splunk Inc. shares declined in the extended session Wednesday after the cloud-based enterprise software company’s revenue forecast fell short of Wall Street estimates.

Splunk  /zigman2/quotes/203060494/composite SPLK -3.73% shares fell 5% after hours, following a 7.7% drop in the regular session to close at $111.70, a 52-week low for the stock. Over the past 12 months, shares have dropped 46%, compared with a 23% gain in the tech-heavy Nasdaq Composite Index  /zigman2/quotes/210598365/realtime COMP -2.60% .

Splunk reported a third-quarter loss of $343.3 million, or $2.14 a share, compared with a loss of $201.5 million, or $1.26 a share, in the year-ago period. The adjusted loss, which excludes stock-based compensation expenses and other items, was 37 cents a share, compared with a loss of 7 cents a share in the year-ago period.

Revenue rose to $664.8 million from $558.6 million in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 52 cents a share on revenue of $646.5 million.

Annual recurring revenue, a software-as-a-service metric that shows how much revenue the company can expect based on subscriptions, rose 37% for the quarter to $2.83 billion, while analysts had forecast $2.82 billion.

“Q3 marked a significant milestone for Splunk as it was our first billion-dollar cloud ARR quarter, with cloud accounting for a record 68% of our software bookings,” said Graham Smith, Splunk’s chairman and interim chief executive, in a statement.

Smith took over for Doug Merritt last month, after the Splunk CEO suddenly resigned . At the time, Splunk provided preliminary financial results that were largely confirmed with Wednesday’s report, but the company issued new revenue guidance that came in lower than expectations.

Splunk expects fourth-quarter revenue between $740 million and $790 million and total ARR of $3.09 billion to $3.14 billion, while analysts had forecast revenue of $828.3 million and ARR of $3.12 billion.

Splunk forecast revenue of $2.51 billion to $2.56 billion for the end of fiscal 2022 ending in January, and total ARR of about $3.9 billion in fiscal 2023 ending in Jan. 2023. Analysts expect fiscal 2022 revenue of $2.58 billion, and fiscal 2023 ARR of $4.07 billion.

/zigman2/quotes/203060494/composite
US : U.S.: Nasdaq
$ 118.05
-4.57 -3.73%
Volume: 2.55M
Jan. 18, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$19.47 billion
Rev. per Employee
$387,327
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/zigman2/quotes/210598365/realtime
US : Nasdaq
14,506.90
-386.86 -2.60%
Volume: 4.43M
Jan. 18, 2022 5:16p
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