Tags: Splunk | Loss | Widen | Expenses

Splunk's Quarterly Loss Widens as Expenses Soar

Thursday, 29 May 2014 06:23 PM

Data-analytics software maker Splunk Inc. posted a bigger quarterly loss as the company spent more on hiring and product development, sending its shares down 9 percent in extended trading Thursday.

The company's net loss widened to $50.8 million, or 43 cents per share, in the first quarter ended April 30 from $16.1 million, or 16 cents per share, a year earlier.

Excluding items, the company posted a loss of 4 cents per share, smaller than the 6-cent loss analysts on average had expected, according to Thomson Reuters I/B/E/S.

Operating expenses nearly doubled to $121.8 million.

The company's revenue jumped 50 percent to $85.9 million, above the average analyst expectation of $80.7 million.

The San Francisco-based company has been focusing on increasing its revenue and is yet to post a profit.

Splunk's software indexes and manages data from computers, servers and mobile devices and uses a Google-like interface that makes it easy to search and navigate a company's database.

The company forecast current-quarter revenue of $92 million to $94 million, ahead of analysts' estimates of $91.6 million.

Splunk's shares, which closed at $50.04 on the Nasdaq on Thursday, have lost nearly half their value since March.

 

"High multiple names such as Splunk remain in the penalty box as investors continue to flee these names and head toward safer ground in more value names," FBR Capital Markets analyst Daniel Ives said.

Splunk's stock trades at 1,466.4 times its 12-month forward earnings, compared with its software peer average of 22, according to StarMine.

In aftermarket trading, the shares were down 9 percent at $45.50.

© 2017 Thomson/Reuters. All rights reserved.

   
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Data-analytics software maker Splunk Inc. posted a bigger quarterly loss as the company spent more on hiring and product development, sending its shares down 9 percent in extended trading Thursday.
Splunk, Loss, Widen, Expenses
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2014-23-29
Thursday, 29 May 2014 06:23 PM
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