Cloud growth drives strong financial performance
- Splunk reports third-quarter profit after revenue jumps 15%
- Net income of $96.9 million, compared to a loss of $32.6 million last year
- Cloud revenue rose 26% to $469 million
- Annual recurring revenue reaches $4 billion, up 15% from last year
- 851 customers with annual recurring revenue over $1 million, a 97% increase YoY
- Cisco to acquire Splunk for $28 billion
Splunk, the analytics and security-software company, has reported a third-quarter profit after experiencing a nearly 15% increase in revenue. The company’s net income reached $96.9 million, compared to a loss of $32.6 million in the same period last year. Splunk’s cloud business was a key driver of this growth, with cloud revenue rising by 26% to $469 million. Additionally, the company’s annual recurring revenue reached $4 billion, marking a 15% increase from the previous year. Splunk also saw a significant increase in customers with annual recurring revenue over $1 million, with a 97% YoY growth. In other news, networking equipment company Cisco has agreed to acquire Splunk for approximately $28 billion, with the deal expected to close by the end of September 2024.
Public Companies: Splunk (SPLK), Cisco (CSCO)
Private Companies:
Key People:
Factuality Level: 9
Justification: The article provides specific financial figures and compares them to previous periods and analyst expectations. The information is objective and based on factual data.
Noise Level: 7
Justification: The article provides relevant information about Splunk’s financial performance, including its profit, revenue, and growth in its cloud business. It also mentions the expected acquisition by Cisco. However, it lacks in-depth analysis, scientific rigor, and actionable insights. The article could have explored the reasons behind Splunk’s success, the impact of the acquisition on the company’s future, or provided comparisons with competitors in the industry.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the technology sector and specifically the cloud computing industry. The performance and growth of Splunk’s cloud business, as well as the announcement of Cisco’s acquisition of Splunk, can have an impact on the stock prices and valuations of companies in these sectors.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: There is no mention of an extreme event in the news article.
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