Splunk (NASDAQ:SPLK) gained ground Thursday following an earnings beat. The cloud services provider earned 71 cents per share, after adjustments, on $910.6 million in revenue for the second quarter. Analysts had expected Splunk would earn 46 cents per share and $889.3 million in revenue, with Cloud revenue growing 29% to $445 million.
GAAP Operating Expenses declined 2% year-over-year; non-GAAP Operating Expenses declined 3% year-over-year. Trailing 12-month operating cash flow was $827 million, up 247% year-over-year. Trailing 12-month free cash flow was $805 million, up 273% year-over-year.
The company also boasted 834 customers with total ARR greater than $1 million, an increase of 111 year-over-year.
“Splunk delivered another solid quarter, demonstrating the incredible value organizations worldwide gain from unified security and observability,” said Gary Steele, President and CEO of Splunk. “Through our ongoing focus on accelerating innovation and harnessing AI, we unveiled many important advancements during the quarter to help customers strengthen their overall digital resilience and security posture. Our team’s strong execution, operational discipline and deep customer engagement have again illustrated Splunk’s leadership.”
“Q2 represents a strong quarter of growth, execution, and operating leverage. We generated 16% ARR growth as we reduced non-GAAP operating expenses by 3% year-over-year,” said CFO Brian Roberts. “We are raising our full year outlook on the top and bottom line as we focus on driving growth by delivering value to customers and increasing profitability through greater efficiency.”
SPLK shares sprang up $13.16, or 13.2%, to $113.09.
