Splunk (SPLK) Tops Q3 EPS by 44c; Guides Q4 Revenues Below Street

Splunk (NASDAQ: SPLK) reported Q3 EPS of ($0.07), $0.44 better than the analyst estimate of ($0.51). Revenue for the quarter came in at $665 million versus the consensus estimate of $646.63 million.

• Cloud ARR was $1.11 billion, up 75% year-over-year.
• Total ARR was $2.83 billion, up 37% year-over-year.

“Q3 marked a significant milestone for Splunk as it was our first billion-dollar cloud ARR quarter, with cloud accounting for a record 68% of our software bookings,” said Graham Smith, interim CEO and chair of Splunk. “Our third quarter results underscore the role Splunk is playing in our customers’ digital transformations and the immense trust organizations have in our data platform and security and observability solutions.”

“Once again, our execution was very strong as we grew cloud ARR by $130 million to more than $1.1 billion dollars, up 75% over last year,” said Jason Child, CFO of Splunk. “We finished Q3 with 635 customers with total ARR greater than $1 million dollars, up 43% from a year ago.”

“The demand environment remains strong,” continued Child, “and customer engagement is excellent, especially for existing customers managing their hybrid environments. We expect our momentum to continue through the end of the year and we’re on track to end FY22 with more than $3 billion of total ARR.”

GUIDANCE:

Splunk sees Q4 2022 revenue of $740-790 million, versus the consensus of $834.11 million.

• Cloud ARR is expected to be between $1.325 billion and $1.350 billion.
• Total ARR is expected to be between $3.085 billion and $3.135 billion.

For earnings history and earnings-related data on Splunk (SPLK) click here.

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