Shares of Splunk Inc (NASDAQ:SPLK) shares continued to move higher past week and soared 25%, extending previous week’s rally after the company posted solid qualrterly results.
Business software maker Splunk Inc’s posted better than expected results in the second quarter resulting in its shares going into a tizzy on Friday.
Late Thursday, the company announced that it had made a loss of $4.6 million or 5 cents per share in the quarter ended July 31. This was significantly lower than analysts’ expectations of a loss of 7 cents per share. Revenue growth was an impressive 71 percent at $44.5 million, much above the $39.8 million revenues of the corresponding quarter of last year. Further, the San Francisco based company has raised its annual forecast.
Will SPLK Continue To Hit New Highs? Find Out here
An analyst from Cowen & Co. Peter Goldmacher, has said that the higher sales are indicative of the fact that existing corporate customers are increasingly using Splunk’s data management software.
His report states, "This metric indicates very strong customer satisfaction." He goes on to say, "It's clear to us that potential customers are looking at Splunk for a wider variety of machine data opportunities which will substantially broaden the company's (total addressable market.)"
The software producer had debuted on the bourses in April at $17 per share and was trading at double that amount on listing day.
Shares of SPLK ended higher by 2.85% to $38.29 on Friday and made and all time high of $38.49. The week prior to the past, the stock had gained over 13%.