For fiscal first quarter 2021 ending April 30, the company predicted revenue of $450 million, compared to Bloomberg’s Consensus analyst forecast of $523 million.
For all of fiscal 2021, Splunk predicted revenue of $2.6 billion, compared to analysts’ projection of $2.88 billion.
As for fourth-quarter fiscal 2020 earnings, sales totaled $791 million in the quarter ended Jan. 31, up 27% from a year earlier and above Bloomberg’s analyst consensus of $782.9 million. Adjusted earnings per share registered 96 cents, matching analysts’ prediction.
The company’s software helps customers analyze data to detect problems like network outages and security threats.
"This was a transformational year for Splunk,” the company’s CEO Doug Merritt said in a statement.
“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.”
That approach will pay off in coming years, said Splunk CFO Jason Child. "Customers are turning to our cloud offerings more and more,” he said in a statement.
“We expect our cloud products could represent more than 60% of our total software business in the next few years.” The company’s average rate of return soared 54% in fiscal year 2020, and it’s shooting for a 40% annual rate over the next three fiscal years, he said.
Splunk shares stood at $143.82 in after-hours trading, down 7.45% from Wednesday’s close. The stock rose 4.65% in Wednesday’s regular session. It hit a record high of $176.31 last month.