Why Splunk Stock Soared Today

Shares of Splunk (NASDAQ: SPLK) climbed 12.9% on Thursday, according to data provided by S&P Global Market Intelligence, after the data analytics and observability company announced strong second-quarter results.

For its fiscal second quarter 2024 (ended July 31, 2023), Splunk's quarterly revenue climbed 14% year over year to $910.6 million, translating to a generally accepted accounting principles (GAAP) net loss of $63.2 million, or $0.38 per share. On an adjusted (non-GAAP) basis -- excluding items like stock-based compensation -- Splunk generated net income of $134.8 million, or $0.71 per diluted share. Analysts, on average, were only expecting adjusted earnings of $0.47 per share on revenue of $888.6 million.

Splunk also saw significant growth in total annual recurring revenue (ARR; up 16% year over year to $3.858 billion) thanks to its momentum with large customers. The company ended the quarter with 834 clients with ARR greater than $1 million, up from 723 in the same year-ago period.

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Source Fool.com