A month has gone by since the last earnings report for Splunk (SPLK). Shares have lost about 0.7% in that time frame, underperforming the S&P 500.
Here is what I found. it is likely that investors booked a profit, which resulted in a drop for Splunk stock. Splunk stock has lost close to 7% this month. Despite the recent pullback, Splunk stock is up 23% in 2019.
Operating loss of $165.52 million is 248.5% wider year-over-year compared to $47.49 million. The Splunk earnings news also has it bringing in a net loss of $201.53 million. That’s 249.6% worse than its net loss of $57.64 million from the same period of the year prior.
Did Cisco Systems make an offer to buy Splunk?
The news on Splunk actually came out late Friday, when reports suggested that Cisco Systems (CSCO 2. 58%) had made an offer to buy the company. According to the reports from The Wall Street Journal, Cisco might have offered more than $20 billion in a buyout bid for Splunk.
On average, analysts were expecting revenue of $613 million. Splunk also reported an adjusted loss per share of $1.26 — far behind the $0.09 per share in profit analysts had been modeling for. The company’s top-line weakness derived from a sharp drop in its license revenue.
Moreover, what is the forecast for Splunk Cloud arr for fiscal 2022?
Cloud ARR is expected to be between $1.1 billion and $1.11 billion. For full-year fiscal 2022, Splunk expects revenues in the range of $2.53 billion to $2.6 billion. Non-GAAP operating margin is likely to be between -14% and -17%. Total ARR is expected between $3.08 billion and $3.13 billion.
How did Splunk’s arr stack up in Q2?
Splunk ended the quarter with total annual recurring revenues (“ARR”) of $2.63 billion, up 36.7% year over year. Cloud ARR soared 71.8% year over year to $976 million. The company ended the fiscal second quarter with 582 customers generating ARR greater than $1 million, up 47% year over year.
“We crossed an important milestone during the quarter as continued demand for data-driven insights across our global customer-base drove our total ARR to over $2 billion. Today, there’s no better strategic partner to help organizations turn their data into action and accelerate their journey to the cloud than Splunk.”.
How much did SPLK stock fall after missing Wall Street’s earnings estimate?
This has the company expecting revenue to range from $650 million to $700 million. Unfortunately for SPLK stock, this will have it missing Wall Street’s estimate of $777.73 million for the quarter. SPLK stock was down 21.6% as of Thursday morning.