Splunk Inc opened higher today and gained over $20 on top of already great price per share, leading the SPLK stock to all time high price of $183.39 at May 22, 15:01 EDT.
The provider of the analytics software, Splunk (NASDAQ:SPLK) yesterday presented its Q1 numbers, and during past quarter cloud business was able to grow significantly. The euphoric investors are celebrating the figures with a new price firework and let the stock skyrocket in regular trade by over twelve percent to a new all-time high. With its software, Splunk streamlines corporate processes and offers business models that are particularly susceptible to maintenance.
Overall, Splunk increased sales by 2.2 percent to $ 434.1 million. The loss per share on a non-GAAP basis was 0.56 cents (last year a small profit per share of 2 cents was generated in the comparable period). In terms of both sales and profits, Splunk was slightly below Wall Street expectations.
But probably the best thing about SPLK is that Annual recurring revenue (ARR) increased 52% to $1.78 billion. Imagine having so many companies paying your bills each and every month. Recurring revenue companies are the most sought after companies in the world.
The fact that the increase in sales fell short of expectations is primarily due to the licensing business, which was around 27 percent below the previous year’s figure. In contrast, the growth of Splunk’s cloud business was surprisingly strong. Overall, cloud services grew a whopping 81 percent to $ 116 million. It is significant that a total of 44 percent of bookings in the first quarter of the fiscal year 2021 were accounted for by cloud services.
The company said that due to the homeworking trend, cloud demand remained stable.
Splunk offers its customers a cloud-based data-to-everything platform and thus enables real-time acquisition and evaluation of a wide variety of company data.
The advantage for customers is obvious: The results of the analysis can then be used for actions or recommendations for action. For example, early maintenance and warning notices can drastically reduce system downtimes and companies save money. At the same time, notification processes are shortened by automation and valuable working time is saved.
According to the figures, the Splunk share gained over twelve percent in regular trading and is currently trading at a new all-time high. Splunk streamlines corporate processes and offers business models that are particularly susceptible to maintenance. The latest quarterly figures make us very confident due to the strong cloud growth.