Shares of Splunk (NASDAQ:SPLK) surged on Friday after the data analytics company reported its third-quarter results. Splunk beat analyst estimates for both revenue and earnings, and it boosted its revenue guidance for the full year. The stock was up about 7.2% at 11:45 a.m. EST after being up as much as 10% earlier in the day.
Splunk reported third-quarter revenue of $626.3 million, up 30.2% year over year and $21.1 million higher than the average analyst estimate. Software revenue was up 40% to $454 million.
Non-GAAP (adjusted) earnings per share came in at $0.58, up from $0.38 in the prior-year period and $0.04 better than analysts were expecting. Splunk lost $0.38 per share on a GAAP basis, flat from the prior-year period.
"Splunk continues to show the world how our Data-to-Everything Platform is uniquely positioned to bring data to every question, decision and action," said Splunk CEO Doug Merritt.
Splunk expects to generate about $780 million of revenue in the fourth quarter, along with a non-GAAP operating margin of 23%. For the full year, Splunk now sees revenue of $2.35 billion, up from a previous outlook of $2.3 billion. The company kept its expectations for a 14% non-GAAP operating margin unchanged.
Including Friday's rally, shares of Splunk are up about 30% since the beginning of the year.