Why Splunk Stock Soared to Record Highs

Shares of Splunk (NASDAQ: SPLK) have soared to record highs today, up by 13% as of 11:50 a.m. EDT, after the company reported first-quarter earnings. The results were mixed compared to consensus estimates.

Revenue in the first quarter came in at $434 million, missing Wall Street's expectations of $443 million in sales. That all led to an adjusted net loss per share of $0.56, slightly better than the $0.57 per share in adjusted losses that analysts were modeling for. Annual recurring revenue (ARR) increased 52% to $1.78 billion as Splunk continues its shift to a subscription model.

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