Splunk Inc (NASDAQ: SPLK) stock rose over 12% on 22nd May, 2020 (as of 12:15 pm GMT-4; Source: Google finance) after the company posted first quarter of FY 20 performance. During the first quarter, ARR was up 52% to $1.775 billion year-over-year. The company’s shift to a SaaS model is accelerating with cloud driving nearly half of total software bookings in the quarter.
Splunk, along with Accenture, Adobe, Oracle, NuHarbor Security, DataHouse, Globant, Whyline and the nonprofit Alliance for Innovation, had released the COVID-19 Testing and Data Response Platform. The free platform will offer end-to-end COVID-19 test management process, including online COVID-19 risk screening and critical symptom evaluation, test scheduling, test site management and data analytics and dashboarding for use by public health officials. Further, the company has formed a new, strategic partnership with Google Cloud. This partnership is expected to bring Splunk Cloud to Google Cloud, which will allow the customers to unlock the value of their data, drive actionable insights and enable fast decisions across the enterprise.
Moreover, the company continues to strengthen its strategic relationship with AWS, working across product, go-to-market and the field. Recently, the company and AWS had launched the Workload Migration Program to help migrate on-premises legacy Splunk Enterprise workloads to Splunk Cloud running on AWS. Splunk and AWS also announced the newly launched AWS Service Ready program, Lambda Ready, which recognizes Splunk’s proven solutions for customers to build, manage and run serverless applications.
SPLK in the first quarter of FY 20 has reported the adjusted loss per share of 54 cents, beating the analysts’ estimates for the adjusted loss per share of 57 cents, according to analysts surveyed by FactSet. The company had reported the adjusted revenue growth of 2 percent to $434.1 million in the first quarter of FY 20, missing the analysts’ estimates for revenue of $443 million. Cloud revenue grew 81% to $112 million year-over-year.
The company projected the revenue to be of $520 million for the second quarter, while analysts on average expected $550 million, according to FactSet. The company expects Non-GAAP operating margin to be between negative 10% and negative 15%.