Splunk (NASDAQ: SPLK), the cybersecurity company, surged in pre-market trading on Thursday after the company’s Q2 results. The company’s losses narrowed in Q2 to $0.38 per share from $1.30 per share in the same period last year, while analysts expected Q2 earnings of $0.46 per share.
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The company’s total Q2 revenues surged by 14% year-over-year to $911 million, beating Street estimates of $889.29 million. Splunk’s total annual recurring revenues (ARR) jumped by 16% year-over-year to $3.858 billion in the second quarter.
Splunk raised its outlook for FY24 and now expects revenues in the range of $3.925 billion to $3.95 billion as compared to its prior forecast of $3.9 billion. In FY24, ARR is estimated to be between $4.150 billion and $4.175 billion versus its earlier outlook in the range of $4.125 billion to $4.175 billion. Adjusted operating margin is likely to be between 21% and 21.5%.
In fiscal Q3, the company’s total revenues are forecasted to be between $1.02 billion and $1.035 billion with adjusted operating margin projected to range from 24.7% to 25.3%.
Analysts are cautiously optimistic about SPLK stock with a Moderate Buy consensus rating based on 16 Buys and nine Holds.
