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Data analytics company Splunk Inc. has delivered another strong quarter, beating Wall Street’s forecasts on earnings and revenue and posting strong guidance for the next three-month period.

The company, which sells software that helps enterprises to search, correlate, analyze, monitor and report on data in real time, today reported a third-quarter profit before certain costs such as stock compensation of 58 cents per share on revenue of $626 million, up 30% from a year ago.

The results breezed past expectations. Wall Street had forecast a 54-cent profit on revenue of $604.12 million.

There was more good news in terms of guidance. For the next quarter, Splunk said it’s expecting revenue of $780 million, well above the $768.42 million forecast by Wall Street analysts. Splunk also upped its forecast for the full fiscal year, saying it expects total revenue of $2.35 billion.

All that was music to the ears of Splunk’s investors. The company’s stock rose more than 5% in after-hours trading. Update: Splunk’s shares rose nearly 11% Friday, to $14.50.

“Splunk continues to show the world how our Data-to-Everything Platform is uniquely positioned to bring data to every question, decision and action,” Doug Merritt (pictured), Splunk’s president and chief executive officer, said in a statement.

Digging into the numbers a bit, Splunk said its software revenue came to $454 million in the quarter, up 40% from a year ago. It also signed up 440 new enterprise customers in the third quarter.

“With the shift to a renewable model largely complete, momentum in our term license and cloud offerings drove 53% growth in total [annual recurring revenue] during the quarter,” Chief Financial Officer Jason Child added.

There have been a lot of encouraging developments around Splunk in recent months besides its strong financial performance. The company hosted its Splunk .conf19 event in Las Vegas in October, where it announced its intention to acquire real-time stream processing company Streamlio Inc. That announcement followed earlier acquisitions of Omnition, which provides distributed tracing to improve monitoring across microservices applications, and SignalFX Inc., a cloud application monitoring firm it bought for a record $1.058 billion.

Merritt spoke about those acquisitions during an interview on theCUBE, SiliconANGLE’s mobile livestreaming studio, during its coverage of the Splunk .conf19 event, saying one of the main motivations was to help Splunk expand into new vertical markets such as manufacturing and logistics:

Analyst Charles King of Pund-IT Inc. told SiliconANGLE the acquisitions are important because they expand Splunk’s portfolio to incorporate critical new areas and practices such as microservices and security.

“That’s allowed Splunk to remain stable or even prosper when other parts of the market slow or hit a bad patch,” King said “While more than a few businesses remain cautious concerning upcoming quarters, Splunk’s optimistic outlook has to be pleasing its shareholders and prospective investors.”

Constellation Research Inc. analyst Holger Mueller agreed, saying that Splunk is “on a roll” with regards to both revenue growth and its product scope.

“It’s good to 40% growth, but more important are the new capabilities Splunk is adding to its product set, both from an organic growth and acquisition perspective,” Mueller said. “When vendors expand their functional depth and breadth as Splunk is doing right now, executives tend to pay attention and they’re increasingly looking at Splunk to power their next-generation applications.”

Splunk also introduced new subscription pricing options for its key products in the quarter just gone, in an effort to speed up its shift to more predictable subscription revenues from its traditional packaged software licensing model.

Photo: SiliconANGLE