Splunk Is Showing Big Data 'Who's The Boss'
Brian White of Cantor Fitzgerald maintained a bullish tone on Splunk Inc (NASDAQ: SPLK) following its top and bottom line beat in its second-quarter results which were released on Thursday.
Splunk reported revenue of $148.3 million in its second quarter, beating the $139.6 million White was expecting. The company earned $0.03 per share which also topped the $0.01 the analyst expected.
During the quarter, the company added over 500 new enterprise customers to bring its total customer base to over 10,000. At the same time, management also brought in 327 deals of over $100,000.
"In our view, Splunk operated on all cylinders in 2Q:FY16 with strong revenue upside, a bigger-than-expected uptick in larger-sized deals, strong deferred revenue performance and an upbeat tone during the conference call," White wrote.
Related Link: Did 1 Billion People Really Use Facebook In 24 Hours?
The analyst said there is still "plenty to get excited about," including an expanding portfolio with multiple product offerings and expanding customer use cases, momentum with security, more attractive pricing options, broadening capabilities, additional business overseas and an overall expanding ecosystem. In the interim, the company will host its Worldwide Users' Conference (September 21-24) which will also include an Analyst Meeting on September 22.
Looking forward to the third quarter, Splunk expects to report sales of $158 million to $160 million and expects total revenue for fiscal 2016 to now be $628 million to $632 (previous guidance of $610-614 million). The analyst is now projecting third-quarter revenue to be $159.8 million (previous estimate of $155.3 million) and full year revenue to be $632.3 million (previous estimate of $611.9 million).
Bottom line, White stated that Splunk is showing "big data who's the boss."
Shares remain Buy rated with an unchanged $90 price target.
Latest Ratings for SPLK
Aug 2015 | UBS | Maintains | Buy | |
Aug 2015 | Summit Research | Downgrades | Buy | Hold |
Jul 2015 | RBC Capital | Initiates Coverage on | Outperform |
View More Analyst Ratings for SPLK
View the Latest Analyst Ratings
See more from Benzinga
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
