NOW - Nutanix Splunk lead cloud stocks higher on strong results guidance

2023-05-25 10:32:26 ET

Nutanix ( NASDAQ: NTNX ) and Splunk ( NASDAQ: SPLK ) led enterprise software stocks higher on Thursday after the pair reported stronger-than-expected results and guidance.

Nutanix ( NTNX ) surged more than 14% after the company raised its full-year revenue forecast and completed its internal investigation.

San Jose, California-based Nutanix ( NTNX ) said annual contract value billings for the full-year would be between $915M and $925M, with revenue forecast to fall within a range of $1.84B and $.85B.

Analysts were expecting $1.8B in revenue for the full-year.

The company also said it expects adjusted gross margins to be around 84%, while adjusted operating margins are expected to be within a range of 6% to 7%.

Splunk ( SPLK ) shares rose nearly 4% after the company topped first-quarter estimates and guidance for the upcoming period.

The company earned an adjusted 18 cents per share in the first-quarter as revenue rose 11.6% year-over-year to $752.2M. Analysts were expecting a loss of 12 cents per share, excluding one-time items, and revenue of $729.19M.

Looking to the second-quarter, Splunk ( SPLK ) said it expects second-quarter revenue to be between $880M and $895M, above the $870.6M analysts were expecting.

Full-year revenue is forecast to be approximately $3.9B, about in line with the $3.89B that analysts expect.

Other cloud computing stocks were higher in early Thursday trading, including ServiceNow ( NOW ), Adobe ( ADBE ), Microsoft ( MSFT ) and others.

Salesforce ( CRM ), which is slated to report first-quarter results on May 31, was little changed in early trading.

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