Splunk Inc (NASDAQ:SPLK) needed a big earnings beat to recapture investors’ attention, and the company certainly delivered. Not only did it beat estimates and set a new record for customer additions in the second quarter, the company also raised its guidance. Cantor Fitzgerald analysts believe the most recent earnings report was one of Splunk’s best performances in the last several quarters.

Splunk

Splunk delivers big-time upside

In last night’s earnings report, Splunk posted second quarter sales of $101.5 million, a 52% year over year increase. That was better than consensus estimates at $93.8 million. Pro forma earnings per share were 1 cent, which was better than the expected losses of 2 cents per share. Licensing revenue was $62.1 million, a 44% increase and ahead of Cantor Fitzgerald’s estimate of $57.9 million. Splunk reported $39.5 million on maintenance and services sales, which rose by 67% and was better than the firm’s estimate of $35.8 million.

The company set a new record for second quarter customer adds, reporting more than 500 new customers in the quarter. In the same quarter last year, the company added 400 customers, and the quarterly average was only between 375 and 400. Splunk now has more than 7,900 customers.

Raising estimates for Splunk

In a report dated Aug. 29, 2014, analysts Brian White and Isabel Zhu said they have increased their estimates for the company. They reiterated their Buy rating and $83 per share price target.

Splunk guided for third quarter sales of between $105 million and $107 million, which is higher than Wall Street’s consensus estimate of $104.2 million. The company increased its full year guidance from between $402 million and $410 million to between $423 million and $428 million.

For the next quarter, the Cantor Fitzgerald team has bumped up their price target from $106.5 million to $107.5 million. They also adjusted their pro forma earnings per share estimate to 1 cent per share. For the full year, the analysts are increasing their revenue estimate from $412.2 million to $426 million.