Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Splunk, Inc. (NASDAQ:SPLK) jumped nearly 23% Friday after the data analysis software specialist reported better-than-expected results.

So what: Quarterly revenue rose 51% year over year to $78.6 million, which translated to breakeven non-GAAP earnings per share. By contrast, analysts were expecting the company to report a $0.01 per share adjusted net loss on sales of $71.09 million.

In addition, Splunk provided strong forward guidance, calling for Q4 revenue between $88 million and $90 million, and full-year fiscal 2014 revenue between $291 million and $293 million. For those of you keeping track, that's a big increase over Splunk's previous full-year guidance, which it raised after last quarter's solid report to between $275 million and $281 million.

Now what: While those results were great, I'm personally still wary of this yet-to-be-profitable company's outsized valuation, which currently pegs its market cap at a whopping $7.78 billion. That's more than 28 times this year's expected sales, so with shares up more than 150% year to date, I'm fine waiting until Splunk can prove it has what it takes to sustain this momentum over the long term.

Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.