Splunk Steeles itselfSoftware company Splunk releases a set of jam packed earnings, and investors don’t seem quite sure how to feel about it.
- Share prices surged in extended trading on Wednesday before shedding those gains to dip into the red, despite the company healthily beating on both ends with EPS of $0.66 (double the $0.32 expected) on revenue that was up 21% to hit $901m.
- The big news is Splunk’s new CEO. Gary Steele will step in as the firm’s new chief exec, replacing interim CEO Graham Smith, who took over after former CEO Doug Merritt’s surprise resignation in 2021. Merritt said at the time that Splunk wanted a leader with a “proven track record”, and Steele arrived after having founded his own cybersecurity firm.
- Steele touched on the company’s bright future. Guidance of $635m in revenue for Q1 beat estimates, and Gary said there are huge opportunities for them rn: “In a world where you have well-funded Russian-based threat actors, you need a level of vigilance. Every security leader is thinking about the potential impact on them and their business.”
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Cisco goes spelunkingSoftware company Splunk is having its caves explored by Cisco (CSCO), and its shares discover some treasured gains.
- Prices popped 14% in Friday extended trading after news hit that IT giant Cisco has made a $20bn plus buyout offer for the struggling company – while Cisco is somewhat of a serial acquirer, this will be its biggest buy yet if the offer is accepted.
- The stock has lost over 30% since November, when former CEO Doug Merritt unexpectedly stepped down from the company. It caused uncertainty at a time when investors were already worried about increasing competition from public cloud providers and a constantly developing business model.
- Tech has become a hotbed for M&A action recently as growth stocks play with the cash brought in by pandemic-induced soaring share prices, causing much speculation over who might be next.
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