Why Splunk (SPLK) Shares Are Gaining Today

Splunk Inc SPLK reported Q1 FY24 revenue of $752 million, beating the consensus of $722 million.
Cloud revenue grew 30% Y/Y to $419 million. Customers with an ARR over $1 million increased 120 Y/Y to 810.
Adjusted gross margin expanded to 77.3% from 74.7% a year ago.
Adjusted operating margin improved to 3.3% vs. (8.5)% the prior year.
Adjusted EPS of $0.18 beat the consensus loss of $(0.13).
Outlook: Splunk sees Q2 FY24 revenue of $880 million-$895 million (vs. consensus of $868.46 million), ARR of around $3.825 billion, and adjusted operating margin of 10%-12%.
Splunk revised FY24 revenue guidance to be at the top-end of its prior range of around $3.9 billion (vs. $3.85 billion-$3.9 billion previously, consensus: $3.89 billion), adjusted operating margin of 18%-18.5% (vs. 16.5%- 17.5% earlier) and FCF of within $805 million-$825 million (vs. $775 million-$795 million earlier).
The company continues to expect ARR of $4.125 billion-$4.175 billion in FY24.
Also Read: Analyst Resumes Coverage On Splunk On Strong Fundamentals
Price Action: SPLK shares are trading higher by 8.49% at $104.90 premarket on the last check Thursday.

Why Splunk Shares Are Gaining Today