What happened
Shares of Splunk (NASDAQ: SPLK) jumped 9.9% on Friday after the operational-intelligence platform company announced stronger-than-expected fiscal third-quarter 2019 results. In fact, this marked Splunk's 27th straight quarter of exceeding top-line guidance.
Revenue soared 40.4% year over year, to $481 million, well above the outlook provided in August for between $430 million and $432 million. And on the bottom line, Splunk generated adjusted earnings of $57.6 million, or $0.38 per share, beating most analysts' models by $0.06 per share.
IMAGE SOURCE: SPLUNK
So what
During the subsequent conference call, management credited Splunk's growth to both new customers -- it added more than 500 new enterprise customers this quarter, after all, including the likes of Jabil, Softbank, and Norfolk Southern -- and existing clients expanding their adoption of its platform with newer data analytics and machine-learning features.
"The strength of our results is a testament to Splunk's pioneering innovation and rising demand for data-driven insights across all industries," added Splunk CEO Doug Merritt.
Now what
If that wasn't enough, Splunk called for revenue in the current (fiscal fourth) quarter to arrive at roughly $560 million, up 33.4% year over year and comfortably above consensus predictions for $557 million. Splunk also raised its full-fiscal-year 2019 guidance for revenue to be approximately $1.74 billion (up from its old target of $1.685 billion), and increased its fiscal 2020 revenue outlook by $150 million, to $2.15 billion.
When you consider Splunk's straightforward beat-and-raise performance along with the stock still reeling from a largely unjustified drop last month as the broader markets pulled back from record highs, it should come as no surprise that shares popped in response today.
Editor's note: This article has been corrected to note this was Splunk's 27th straight quarter of beating its guidance.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Splunk. The Motley Fool has a disclosure policy.