Splunk Inc (NASDAQ:SPLK) reported better-than-expected results for its second quarter and issued strong third-quarter sales guidance. The company also announced the acquisition of the SaaS company SignalFix for $1.05 billion.
The San Francisco-based software company announced Wednesday that software revenues were $350 million, up 46% year-over-year. Total revenues came in at $517 million, up 33% year-over-year.
GAAP operating loss was $87 million; GAAP operating margin was negative 16.8%. Non-GAAP operating income was $47 million; non-GAAP operating margin was 9.0%. GAAP loss per share was $0.67; non-GAAP income per share was $0.30.
CEO Doug Merritt said, "I am excited by our strong quarter, tremendous cloud growth, and our agreement to acquire SignalFx. I am particularly pleased with how quickly we are accelerating our business transformation to cloud, and the impact cloud is having on our customers."
Indeed, the company announced that during the quarter it signed almost 500 new enterprise customers.
New customers included such high-profile forms as ABB, Conde Nast, Denny’s, DoorDash, Duke University, Gatwick Airport in England, Harvard Business School and Penn State University, the U.S. Postal Service and NATO.
As for the future, Splunk points up guidance for its fiscal third quarter 2020 (ending October 31, 2019). Total revenues are expected to be approximately $600 million.
The company is updating its previous guidance for its fiscal year 2020 (ending January 31, 2020). Total revenues are expected to be approximately $2.30 billion (was approximately $2.25 billion).
Shares dissolved $9.59, or 7.5%, to $118.87
