Splunk beats quarterly revenue estimates on steady demand for cloud services

By Thomson Reuters Feb 27, 2024 | 5:35 PM

(Reuters) – Data analytics software maker Splunk topped Wall Street estimates for fourth-quarter revenue and profit on Tuesday, bolstered by strong demand for its cybersecurity software and cloud solutions. Splunk provides a broad range of data security applications for businesses and analysts consider them among the best at ingesting, monitoring and analyzing machine data.

The company has adapted its software for smaller IT firms looking to trim expenses in an unpredictable economy.

San Francisco, California-based Splunk focuses on subscription or renewable contract models for its enterprise clients, with more than 90% of the Fortune 100 using its solutions, according to brokerage Morningstar.

The company reported total revenue of $1.49 billion, beating analysts’ expectation of $1.28 billion, according to LSEG data.

Splunk reported total annual recurring revenue of $4.21 billion in the quarter ended Jan. 31, up by 15% compared to last year.On an adjusted basis, the company earned $3.02 per share, compared with an estimate of $1.95 per share, according to LSEG data.

Splunk said it expects its merger with Cisco Systems to close towards the end of the current quarter or early in the second quarter of 2024.

Analysts have said Cisco’s global presence and channel partnerships could help sell Splunk’s security solutions at a larger scale.

(Reporting by Harshita Mary Varghese; Editing by Alan Barona and Pooja Desai)