Magnunk Inc. (NASDAQ: SPLK) on Wednesday reported a larger loss for the third quarter of the fiscal year as sales suffered a setback in the midst of the coronavirus pandemic that forced companies to work from home. Splunk also said that spending was higher in the last quarter and continued to weigh on the company’s financial performance.
On Wednesday, the company’s shares plunged nearly 20% in post-trade trading. Including the price action, Splunk Inc. is now exchanging hands for £124 per share, representing approximately 10% growth in the stock market so far this year.
This compares to Splunk’s shares, which you can buy online here, which fell to £71.59 in March when the effects of the coronavirus pandemic peaked.
Splunk’s financial results for the 3rd quarter compared to analysts’ estimates
Splunk reported a third quarter loss of £150.72 million, or 94 pence per share. This compares to a much lower loss of 43.08 million pounds sterling or 28.42 pence per share in the prior year quarter. The FactSet Consensus for the loss per share for the last quarter was 76 pence.
In terms of revenue, the U.S. multinational posted £417.83 million in the third quarter compared to £468.47 million in the prior year. Analysts had predicted Splunk’s third quarter revenues to be higher at £458.52 million sterling. In the previous quarter (Q2) Splunk Inc. had recorded 368 million pounds of total sales according to the report published in the last week of August.
Splunk also said on Wednesday that its cloud services revenues had increased by 80% to £108.24 million in the last quarter. Licensing revenue, on the other hand, was £179.67 million in the third quarter, down over 35% year on year.
According to Splunk, total costs increased by 27% in the third quarter.
According to Splunk, total costs for the third quarter increased by 27% to £102.33 million on an annualised basis. At 439.30 million pounds sterling, expenses in the final quarter were up 3.8%. Annual recurring revenues for the San Francisco-based company increased 44% to £1.55 billion in the third quarter.
In a separate news release from the United States on Wednesday, Synopsys Inc., the electronic design automation company, said its revenues grew 9.6% in fiscal year 2020.
Splunk’s performance was largely positive last year with an annual profit of around 45% in the stock market. At the time of writing this article, the US company had a market capitalization of 24.71 billion pounds sterling.