NEW YORK (TheStreet) -- Splunk (SPLK - Get Report) shares surged 11% to $50.25 on Friday as investors cheered the software maker's quarterly revenue beat after it added more than 500 customers in the quarter.
The San Francisco-based company reported fiscal second-quarter revenue of $101.5 million, up 52% from last year and above consensus expectations of $93.9 million. Splunk's licensed revenue rose 44% year over year to $62.1 million.
Splunk said it signed more than 500 new customers in the quarter, bringing its total worldwide customers to 7,900.
"We are pleased to deliver another strong quarter and thank our customers and partners for their continued support," said Godfrey Sullivan, chairman and CEO. "We continue to invest heavily in product innovation, including the industry's first 100% uptime SLA for Splunk Cloud, we shipped a brand new product -- the Splunk App for Stream for wire data -- and delivered a new release of our App for Enterprise Security."
Splunk reported an adjusted profit of 1 cent a share vs. consensus estimates of a loss of 2 cents a share for the quarter ended July 31. Adjusted operating income rose to $1.6 million from a loss of $761 million in the year-earlier quarter. It reported a net loss of $60.8 million, or 51 cents a share.
Here's what analysts were saying about Splunk on Friday.
Brian White, Cantor Fitzgerald (Buy; $83 PT)
Last night, Splunk reported very strong 2Q:FY15 results, with revenue that handily beat our projections (and FactSet Consensus) and customer additions that set a 2Q record, while the company increased its outlook for FY:15. In our view, this was one of Splunk's best performances in recent quarters and the company is now heading into what has historically been a seasonally strong part of its fiscal year. Furthermore, Splunk's Worldwide User's Conference is right around the corner (October 6-9), an event that we believe offers the company a venue to provide investors with a deep dive into new innovations and a glimpse into expanding customer use cases. Finally, we believe the stock has undergone undue punishment in recent months (down 34% YTD, down 57% from the peak in February), despite positive fundamental trends this year, and we reiterate our BUY rating and 12-month price target of $83.00.