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Splunk (SPLK) Reports Q3 Earnings: What Key Metrics Have to Say

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For the quarter ended October 2023, Splunk (SPLK - Free Report) reported revenue of $1.07 billion, up 14.8% over the same period last year. EPS came in at $1.55, compared to $0.83 in the year-ago quarter.

The reported revenue represents a surprise of +3.79% over the Zacks Consensus Estimate of $1.03 billion. With the consensus EPS estimate being $1.12, the EPS surprise was +38.39%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Splunk performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total Annual Recurring Revenue (ARR): $4 billion versus $3.99 billion estimated by seven analysts on average.
  • Revenues- License: $429.36 million versus $380.85 million estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +11.9% change.
  • Revenues- Maintenance and services: $168.55 million versus the nine-analyst average estimate of $169.92 million. The reported number represents a year-over-year change of -2.1%.
  • Revenues- Cloud services: $469.45 million compared to the $476.14 million average estimate based on nine analysts. The reported number represents a change of +25.5% year over year.
View all Key Company Metrics for Splunk here>>>

Shares of Splunk have returned +3% over the past month versus the Zacks S&P 500 composite's +10.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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