Shares of data-management company Splunk (NASDAQ: SPLK) were up on Thursday after it reported results for the first quarter of its fiscal 2023 that surpassed analysts' expectations on the top and bottom lines. As of 1:40 p.m. ET, Splunk stock was up 9%.
For the period, which ended April 30, Splunk's revenue was up 34% year over year to $674 million. Management had only guided for revenue in the range of $615 million to $635 million. Needless to say, that Splunk beat the top end of guidance by such a solid margin was a pleasant surprise for shareholders.
The tech company is in transition. In November, long-time President and CEO Doug Merritt abruptly stepped down. Also, Splunk has been shifting to a cloud-subscription model, which impacts how its financial metrics are reported. Considering the nature of the company's transition, it's encouraging to see such strong top-line gains: Its 34% revenue growth was its strongest since the first quarter of its fiscal 2020. In other words, it appears the changes are paying off in the form of re-accelerating growth.
Source Fool.com