Earnings Results: Splunk stock wobbles on mixed results

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Splunk Inc. SPLK, +6.44% shares fluctuated between gains and losses in the extended session Wednesday after the cloud-based enterprise software company’s revenue and outlook fell below Wall Street estimates but a subscription metric came in above expectations.

Splunk shares, which had dropped 7% initially, were up 1% after hours, following a 6.4% rally in the regular session to close at $216.74 following encouraging earnings from cloud-based software company Salesforce.com Inc. CRM, +26.04% late Tuesday.

Splunk reported a second-quarter loss of $261.3 million, or $1.64 a share, compared with a loss of $100.9 million, or 67 cents a share, in the year-ago period. The adjusted loss, which excludes stock-based compensation expenses and other items, was 33 cents a share. Revenue declined to $491.7 million from $516.6 million in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 33 cents a share on revenue of $520.4 million.

Annual recurring revenue, a software-as-a-service metric that shows how much revenue the company can expect based on subscriptions, rose 50% for the quarter to $1.93 billion, while analysts had forecast $1.92 billion.

“Splunk’s cloud business continues to accelerate, now representing more than half of our software bookings in the quarter — a major milestone in our cloud journey,” said Doug Merritt, Splunk’s Chief Executive, in a statement.

Splunk expects third-quarter revenue between $600 million and $630 million, while analysts had forecast revenue of $641.5 million.