Splunks Q2 and Q3 outlook disappoint
Summary
The company, which provides a data platform, reported revenue of $492 million, down 5% from a year ago, with a non-GAAP loss of 33 cents a share. Splunk CEO Doug Merritt said the companys cloud business is accelerating with sales of $126 million in the second quarter, up 79%. Our customers are turning to Splunk Cloud faster than ever before, thanks to its rapid time to value, high velocity of innovative features and lower total cost of ownership. The current macro environment is playing a role here, too, as more and more organizations accelerate their move to cloud-based services in response to the pandemic. Overall, Splunk has been gaining wallet share and customers, but as it branches out it faces more competition from the likes of New Relic among others.