Splunk (SPLK:US) shares rose as much as 13% on Thursday after the software maker posted stronger-than-expected results for its second quarter.

Revenue for the quarter reached $911 million, reflecting a 14% year-over-year increase and topping the expected $886.9 million. License revenue amounted to $295.4 million, showing a 4.9% YoY growth, while cloud revenue rose 29% to $445.2 million

The company generated a further $170 million from maintenance and services. 

Adjusted earnings per share (EPS) were $0.71, a substantial improvement compared to $0.09 in the same period last year, while analysts were looking for just $0.46.

“Splunk delivered another solid quarter, demonstrating the incredible value organizations worldwide gain from unified security and observability,” said Gary Steele, President and CEO of Splunk.

The adjusted gross margin for the quarter was 80.7%, representing a notable increase from 76.8% in the previous year and slightly ahead of the expected 79.3%.

For its fiscal third quarter 2024 (ending October 31, 2023), Splunk is projecting Annual Recurring Revenue (ARR) of $3.98 billion. Total revenues are projected to fall within the range of $1.02 billion to $1.035 billion.

For FY24, total ARR is seen between $4.15 billion to $4.175 billion, up from the prior forecast of $4.125 billion to $4.175 billion. FY revenue is seen between $3.925 billion to $3.95 billion (was previously approximately $3.9 billion).

Analysts were looking for FY revenue of $3.9 billion.

Congress member Ro Khanna was trading SPLK shares in 2022 and 2023.