Splunk (NASDAQ:SPLK) reported its Q3 results, with EPS of $0.55 coming in worse than the consensus estimate of $1.15. Meanwhile, revenues grew 14.8% year-over-year to $1.07 billion, beating the consensus estimate of $1.03B.
The company's total ARR reached $4.0B, a 15% rise year-over-year. The Cloud segment ARR grew 26% year-over-year to $2.0B, and now represents the majority of total ARR.
"Splunk delivered a solid third quarter and marked several milestones in our journey to deliver exceptional customer and shareholder value, including our agreement to join forces with Cisco,” said CEO Gary Steele.
According to Steele, the quarterly results reflect the company’s commitment to innovation, focus on customers, and consistent execution, noting that he is confident they are well-positioned for the future.
On September 21st, Cisco (CSCO) announced that they would be acquiring Splunk for $157 per share in cash, representing approximately $28 billion in equity value.
"We see the deal as a favorable outcome for SPLK shareholders following years of ongoing transition for the company," analysts at Truist wrote in a note after earnings.
Additional reporting by Senad Karaahmetovic