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UPDATE 1-Splunk raises revenue forecast as it adds more customers
August 29, 2013 / 9:41 PM / 4 years ago

UPDATE 1-Splunk raises revenue forecast as it adds more customers

* Raises revenue forecast to $275 mln-$281 mln

* Adds 400 customers in the second quarter

* 2nd-qtr revenue rises 50 percent to $66.9 million

* Shares rise 6 percent in extended trading

Aug 29 (Reuters) - Data analytics software maker Splunk Inc reported better-than-expected quarterly results and raised its revenue forecast for the year ending January as it adds new customers and expects more enterprise deals in the second half.

The company’s shares were up 6 percent in extended trading.

The company expects more enterprise deals, usually seven-figure deals that enable adoption of its products across an enterprise, in the second half, Chief Financial Officer David Conte said on a conference call with analysts.

Splunk raised its full-year revenue forecast to $275 million-$281 million from $266 million-$274 million.

Demand is rising for Splunk’s services to index and search data stores in Hadoop, the open-source software widely used in Big Data analysis, Wedbush Securities analysts wrote in a pre-earnings note.

Worldwide spending on business intelligence tools, a subset of the business analytics software market, was $12.9 billion in 2012, according to IDC estimates.

Larger players such as VMware Inc have entered the data analytics market, buoyed by Splunk’s success.

Splunk added 400 customers in the second quarter, including Bombardier (Germany), Sony Corp, Softbank Corp unit Softbank Telecom Corp and Commercial Bank of Dubai .

Net loss widened to $13.7 million, or 13 cents per share, in the second quarter, from $4.6 million, or 5 cents per share, a year earlier.

Excluding items, the company lost 1 cent per share.

Revenue rose 50 percent to $66.9 million.

Analysts on average had expected a loss of 3 cents per share on revenue of $63 million. The company has reported an adjusted profit only once since going public in April last year.

The San Francisco-based company’s shares, which have risen 53 percent since the company went public, closed at $48.92 on the Nasdaq on Thursday.

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