What happened

Shares of Splunk (NASDAQ:SPLK) have soared to record highs today, up by 13% as of 11:50 a.m. EDT, after the company reported first-quarter earnings. The results were mixed compared to consensus estimates.

So what

Revenue in the first quarter came in at $434 million, missing Wall Street's expectations of $443 million in sales. That all led to an adjusted net loss per share of $0.56, slightly better than the $0.57 per share in adjusted losses that analysts were modeling for. Annual recurring revenue (ARR) increased 52% to $1.78 billion as Splunk continues its shift to a subscription model.

Green stock chart going up

Image source: Getty Images.

"COVID-19 has transformed the world into one that requires rapidly accelerated digital transformation to keep organizations moving -- we are seeing some resilient customers complete three-to-five year projects in just months," CEO Doug Merritt said in a statement. "As customers continue to adapt to this new normal, data matters more than ever, evidenced by our continued strong momentum this quarter."

Now what

The data analytics company's guidance for Q2 calls for revenue of approximately $520 million, with an adjusted operating margin of negative 10% to negative 15%. That top-line forecast is below the consensus estimate of $550.6 million in sales for the coming quarter. However, Merritt noted on the conference call with analysts that the broad shift to remote work had resulted in increased demand for Splunk's cloud-based offerings like Remote Work Insights (RWI), which was introduced in March.

Due to ongoing uncertainty surrounding the coronavirus outbreak, Splunk withdrew its guidance for the full fiscal year.