What happened
Business intelligence specialist Splunk (SPLK +0.00%) was doing well on the stock market in the last full trading week of August. According to data compiled by S&P Global Market Intelligence, as of Thursday market close, its share price was more than 16% higher week to date. This was due largely to a solid earnings report published by the company.
So what
In its second quarter of fiscal 2024, Splunk's revenue totaled just under $910.6 million, which was 14% higher than that of the same period in 2023. Non-GAAP (adjusted) net income ballooned to nearly $135 million, or $0.71 per share, from the year-ago profit of less than $17 million.
Both headline figures crushed analyst estimates. On average, prognosticators following the stock were modeling barely over $889 million on the top line and only $0.46 per share for adjusted net income.
Splunk, which specializes in crunching vast amounts of data for enterprise customers, has attracted attention recently with its involvement in the white-hot field of artificial intelligence (AI). It recently introduced Splunk AI. In the company's words, this "combines automation with human-in-the-loop experiences, so organizations can drive faster detection, investigation and response while controlling how AI is applied to their data."
NASDAQ: SPLK
Key Data Points
Now what
Splunk cited recent innovations, such as its AI offering as a driver of growth for the quarter. It'll also likely help lift results in the future, as the company raised its full-year guidance for both revenue and profitability.
For the entirety of fiscal 2024, it's anticipating revenue of nearly $3.93 billion to $3.95 billion. Previously, it was guiding for around $3.69 billion. Its adjusted operating margin should land at 21% to 21.5%, well up from the preceding forecast of 18% to 18.5%.
