Splunk Inc. (NASDAQ: SPLK), which has expanded its customer-base regularly over the years, on Wednesday said fourth-quarter earnings increased supported by a double-digit growth in software revenues. The company also provided guidance for the first quarter and fiscal 2021, which however fell short of expectations.

Also read: Splunk Q3 2020 Earnings Conference Call Transcript

The software maker lost significant market value in recent weeks in the selloff linked to the coronavirus outbreak. The stock plunged about 13% during Wednesday’s extended trading session, immediately after the announcement.

Earnings Update by AlphaStreet

Earnings Meet

The San Francisco-based tech firm reported earnings of $0.96 per share for the quarter, excluding special items, representing a 3% growth from the year-ago quarter. It was in line with analysts’ forecast. On an unadjusted basis, it posted a net loss of $22.73 million or $0.15 per share, compared to profit of $2.13 million or $0.01 per share a year earlier.

Solid Demand

A 33% growth in software revenues, amid growing demand for the company’s cloud offerings, pushed up fourth-quarter revenues to $791 million, which is slightly above the consensus estimate. Splunk signed more than 450 new customers during the three-month period.

“This was a transformational year for Splunk. We have transitioned our business model, our product strategy and introduced new and enhanced pricing models as part of our company-wide, cloud-first approach. These shifts have provided unprecedented value to our customers by bringing Data-to-Everything,” said Doug Merritt, CEO of Splunk.

Outlook

For the first quarter, the management currently expects revenues of about $450 million, which is lower than the consensus forecast. Adjusted operating margin is expected to be negative 25%. For the whole of 2021, the company predicts revenues of $2.6 billion and break-even operating margin, on an adjusted basis.

Related: Sina’s troubles may be far from over

Splunk’s stock closed Wednesday’s regular session higher but fell sharply following the earnings announcement. It gained 25% in the past twelve months. However, the momentum waned in recent weeks and the stock pulled back amid the coronavirus selloff.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.