Splunk shares were up 15 percent at midday Friday after the company announced its quarterly report. Though the company’s report showed a cent’s loss per share, it beat the estimates of the experts.
Financial analysts had estimated a 4-cent loss per share minus items in a consensus conducted by Thomas Reuters. But the company showed 1-cent loss a pop minus items that was quite reassuring to the investors. The operational revenues jumped a whopping 71 percent from the year-earlier quarter to $44.5 Million that beat the consensus of $39.8 Million by the analysts.
This is the 19th straight month for the company that it is announcing a revenue figure in double or triple digits. Some experts, upon the release of the report, said that Splunk needs commemoration for showing low loss against the estimates despite working in a weak economy.
Splunk develops and markets enterprise solutions to the corporate sector that helps than in increasing the proficiency in operations. Its software collects data from a wide array of sources and produces comprehensive and authentic reports. Despite the aching economy, the big companies still upgrade and purchase new applications developed by Splunk.
In a conference call with analysts, Splunk CEO Godfrey Sullivan mentioned a number of software applications it is developing for its customers. One of them was for Palo Alto Networks, which provides “visibility, insight, and analysis of next-generation security threats.”
“As I meet with CIOs (chief information officers), I receive very positive feedback around our software development efforts,” said Sullivan. “They want to customize and extend Splunk within their corporate environments.”
Splunk has been going through a rough patch of late and one of the factors its operations have not churned more profits than it used to is the dwindling economy. Though big corporate companies still purchase their software, the demand has dropped for some time now. The company’s biggest competitors in the market are IBM and Oracle.