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Splunk Inc (Nasdaq: SPLK) is trading up in extended hours on Tuesday after reporting market-beating financial results for its fourth quarter.

Splunk saw operating expenses increase 6.5% in Q4

The stock is being rewarded because the cybersecurity company saw its cloud revenue jump a whopping 26% year-on-year to $1.837 billion in Q4.

Adjusted operating margin stood at 47.8% in the fourth quarter, as per the press release. According to Gary Steele – the chief executive of Splunk Inc:

We’re pleased to bring momentum to Cisco, and we believe there is an incredible opportunity to meet ever-increasing security and observability needs of the world’s largest and most complex enterprises.

The cybersecurity firm saw its operating expenses increase 6.5% in the recently concluded quarter. $SPLK is now up 100% versus its 52-week low.

Notable figures in Splunk Q4 earnings report

• Earned $427 million versus the year-ago $269 million
• Per-share earnings also climbed from $1.64 to $2.62
• Adjusted EPS printed at $2.28 as per the earnings report
• Revenue jumped 19% year-over-year to $1.486 billion
• Consensus was $1.96 a share on $1.27 billion in revenue
• Adjusted free cash flow came in at $418 million – up 56%

Splunk ended its fourth quarter with 899 customers with total annual recurring revenue of more than $1.0 million – also up 14%. CEO Steele also said on Tuesday:

We delivered a solid finish to FY24 as our team doubled down on helping organizations worldwide keep their digital systems resilient.

#AI is poised as the most impactful technological shift of our era. Fresh from #WEF24, Splunk's Gary Steele dives into the future impact AI policy and security will play in maintaining #digitalresilience in 2024. https://t.co/8wjnAXGVAs pic.twitter.com/2shhFBoio7

— Ofer Guetta (@oferguetta) February 23, 2024

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