Splunk Sales Surge on Demand for Big Data Software
Stock Chart for Splunk Inc (SPLK)
Splunk Inc. (SPLK), a maker of software that helps businesses analyze web data, said fiscal first-quarter sales jumped 80 percent in its first earnings report since selling shares to the public.
Revenue in the period ended April 30 rose to $37.2 million from $20.6 million a year earlier, the San Francisco-based company said today in a statement. Splunk’s net loss widened to $20.5 million, or 71 cents a share, from a loss of $2.25 million, or 12 cents, as the company bolstered investment to take advantage of surging demand.
Splunk became the first of the so-called big data companies to go public when it debuted six weeks ago. The company is winning business from customers including Zynga Inc. (ZNGA), Bank of America Corp. and Autodesk Inc., which are looking for new ways to monitor and analyze the vast amounts of data being created by Web services and mobile devices. To fund expansion, Splunk increased spending on sales and marketing by 89 percent in the quarter to $24.2 million.
Splunk shares were little changed after the report. They had fallen 5.1 percent to $32.56 at the close in New York. The stock more than doubled in its debut on April 19 and has since dropped 8.2 percent, giving Splunk a market value of $3.08 billion.
The company forecast second-quarter sales of $38 million to $40 million, up from $26 million a year earlier. For the year ending Jan. 31, Splunk expects revenue to jump at least 44 percent, to $174 million to $177 million, from the year-earlier $121 million.
Splunk added more than 350 customers in the period, bringing the total number of companies using its software to more than 4,000. Clients that either signed on or upgraded their accounts in the period include Internet service provider CenturyLink Inc., online-storage startup Evernote Corp. and Stanford University.
The company, founded in 2004, is led by Godfrey Sullivan, who joined as chief executive officer in 2008, and who previously led Hyperion Solutions Corp.’s $3.3 billion sale to Oracle Corp.
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