Splunk Shares Rise on Bullish Forecast

Tickers in this article: SPLK

NEW YORK (TheStreet) -- Shares of software company Splunk (SPLK) are rising in after-hours trading, helped by strong revenue growth.

Splunk generated $52.05 million in third-quarter revenue, up 67% from a year earlier. License revenue increased 56% to $34.5 million. On a non-GAAP basis, Splunk lost 1 cent per share. Analysts polled by Thomson Reuters were looking for a loss of 2 cents per share on $46.67 million in revenue.

The company won more than new 350 enterprise customers, CEO Godfrey Sullivan said in a press release. "Our license revenues were the result of broad adoption by our customers in financial services, technology, telecommunications and government sectors."

During the quarter, the company signed new clients such as Bureau of Alcohol, Tobacco, Firearms and Explosives, Daimler AG, the U.S. Department of Agriculture, among others.

Splunk gave fourth-quarter revenue guidance that was above Wall Street estimates. The company expects sales to be between $58 million and $60 million, with non-GAAP operating margins between 3% and 4%. Wall Street analysts expect $58.07 million in revenue.

Splunk also gave updated 2013 revenue guidance, raising its previous forecast. It now expects sales to be between $192 million and $194 million, up from $183 million to $186 million previously. Analysts surveyed by Thomson Reuters expect $186.35 million in revenue for fiscal 2013.

Shares of Splunk closed higher during the regular session, gaining 3.6% to $30. The stock is moving higher in extended-hours trading, tacking on another 1.3% to $30.36, according to Nasdaq.com.

Interested in more on Splunk? See TheStreet Ratings' report card for this stock.

--Written by Chris Ciaccia in New York

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