Splunk ( NASDAQ: SPLK ) is set to report second-quarter results on August 24 and the data software company's cloud-based services are likely to "remain the star" of the show, investment firm Monness, Crespi, Hardt said on Thursday.
Analyst Brian White, who has a neutral rating on Splunk ( SPLK ), noted that the company's platform is stronger than it was before and its new leadership is "encouraging," after some internal issues transitioning to the cloud.
"With the worst of Splunk’s cloud journey behind it and new leadership at the helm, the company appears to be in better shape today then before the pandemic began," White wrote in a note to clients.
The analyst said he expects Splunk ( SPLK ) to report a loss of 9 cents per share on $790.5M in revenue, while a consensus of analysts expect a loss of 35 cents per share on $747.83M in revenue.
In that $790.5M, $269.9M is expected to come from licenses and $352M from cloud services revenue, up 62% year-over-year. The remainder is expected to be made up from maintenance and services revenue at $168.8M.
Deferred revenue is expected to be $1.32B and billings are expected to rise 28% year-over-year to $804.4M.
Looking ahead to the next quarter, White expects Splunk ( SPLK ) to generate $893M in revenue and earnings per share of 31 cents.
Earlier this week, Morgan Stanley said software companies such as Snowflake ( SNOW ) and Splunk ( SPLK ) face the possibility of slowing sales growth .
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Splunk's cloud services likely to 'remain the star' in Q2, Monness, Crespi, Hardt says