(Reuters) – Splunk beat quarterly estimates for revenue on Tuesday, helped by resilient demand for its cybersecurity offerings in an uncertain economy.
The cybersecurity firm’s stock has risen over 75% this year as investors laud Splunk’s move to incorporate artificial intelligence into its products and its focus on subscription or renewable contract models.
Cisco Systems, which cut its annual revenue and profit forecasts earlier this month, entered into an agreement to buy Splunk for about $28 billion in September to strengthen its software business.
Splunk is known for its strengths in the area of data observability, which helps companies monitor their systems for cybersecurity risks and other threats. The company operates a subscription-based pricing model for customers.
Splunk’s total annual recurring revenue for the third quarter ended Oct. 31 rose 15% to $4 billion.
It reported total revenue of $1.07 billion, beating analysts’ expectations of $1.03 billion, according to LSEG data.
On an adjusted basis, the company earned $1.52 per share compared with estimates of $1.14 per share.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shailesh Kuber)
