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Splunk : Announces Fiscal First Quarter 2017 Financial Results

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by August 20, 2017 General

SAN FRANCISCO – May 26, 2016Splunk Inc. (NASDAQ: SPLK), provider of the leading software platform for real-time Operational Intelligence, today announced results for its fiscal first quarter ended April 30, 2016.

First Quarter 2017 Financial Highlights

  • Total revenues were $186.0 million, up 48% year-over-year.
  • License revenues were $101.0 million, up 41% year-over-year.
  • GAAP operating loss was $98.1 million; GAAP operating margin was negative 52.8%.
  • Non-GAAP operating loss was $1.4 million; non-GAAP operating margin was negative 0.7%.
  • GAAP loss per share was $0.77; non-GAAP loss per share was $0.02.
  • Operating cash flow was $35.7 million with free cash flow of $32.0 million.

‘Q1 was a solid start to the year and we are pleased to welcome more than 450 new customers to the Splunk family,’ said Doug Merritt, President and CEO, Splunk. ‘Our product team continued to deliver innovation in Splunk Enterprise 6.4, a new Splunk Cloud release, and new versions of Splunk Enterprise Security and Splunk User Behavior Analytics. We will continue to support our customers who are leveraging Splunk as their machine data fabric with increased investments in the Splunk platform, our ecosystem and high value solutions.’

First Quarter 2017 and Recent Business Highlights:

Customers:

  • Signed more than 450 new enterprise customers.
  • New and Expansion Customers Include: Auburn University, Central 1 Credit Union (Canada), Chicago Public Schools, Chipotle, Clemson University, Co-Operative Group (United Kingdom), Dartmouth-Hitchcock Medical Center, Denver International Airport, FamilySearch, GoodData, Jetstar (Australia), LGA Telecom Pte Ltd (Singapore), NTT Docomo (Japan), Okta, Tesco (United Kingdom), University of Alabama at Birmingham Health System, University of Virginia, U.S. Courts, Virginia Department of Motor Vehicles, Virginia Department of Taxation, World Bank Group.

Products:

Strategic and Channel Partners:

  • Splunk announced an alliance with Accenture to help organizations analyze machine data to drive high-impact business performance.
  • Splunk was named the Cisco Global ISV Partner of the Year in the Cisco Partner Summit Global awards for enabling organizations to reduce operational and security risks, drive informed decisions across the organization and ultimately transform their business with Splunk Enterprise.
  • Splunk announced it is leading a new Adaptive Response Initiative, bringing together the best technologies across the security industry to help organizations combat advanced attacks.
  • Splunk announced an alliance with Verizon Enterprise to bring analytics-driven, predictive threat detection to enterprises and government agencies.
  • Splunk announced an alliance with Herjavec Group that includes Splunk solutions at the heart of Herjavec Group’s new managed security service provider (MSSP) offerings.
  • Splunk announced a reseller agreement with EMC. Joint customers will have a simple way to purchase EMC® solutions with Splunk Enterprise, Hunk, Splunk Enterprise and Global Support, Splunk Professional Services and Splunk Education.

Recognition:

Events:

  • Hosted SplunkLive! events in cities around the world, including Frankfurt, San Diego, San Francisco, Washington, D.C., Portland, Seattle, Chicago, Kansas City and Milan. Presentations can be found on the SplunkLive! website.
  • Splunk showcased its big data solutions to solve critical healthcare issues for IT, security, medical staff and patients at HIMSS16.
  • Splunk participated in the 2016 RSA Conference to demonstrate how Splunk solutions enable organizations to optimize security operations and improve security posture.
  • VenueNext, a Splunk customer, spoke at the 2016 Gartner Business Intelligence & Analytics Summit to discuss how VenueNext is leveraging Splunk technology to help venue operators gain real-time visibility into operations and understand event-goer behavior.

Appointments:

Financial Outlook
The company is providing the following guidance for its fiscal second quarter 2017 (ending July 31, 2016):

  • Total revenues are expected to be between $198 million and $200 million.
  • Non-GAAP operating margin is expected to be between 2% and 3%.

The company is updating its previous guidance for its fiscal year 2017 (ending January 31, 2017):

  • Total revenues are expected to be between $892 and $896 million (was approximately $880 million per prior guidance provided on Feb. 25, 2016).
  • Non-GAAP operating margin is expected to be approximately 5% (unchanged from prior guidance provided on Feb. 25, 2016).

All forward-looking non-GAAP financial measures contained in this section ‘Financial Outlook’ exclude estimates for stock-based compensation expenses, employer payroll tax expense related to employee stock plans, amortization of acquired intangible assets and adjustments related to a financing lease obligation.

While a reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of these costs and expenses that may be incurred in the future, the company has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its fiscal first quarter 2017 non-GAAP results included in this press release. The exclusion of these costs and expenses will have a significant impact on Splunk’s non-GAAP operating margin.

Conference Call and Webcast

Splunk’s executive management team will host a conference call today beginning at 1:30 p.m. PT (4:30 p.m. ET) to discuss the company’s financial results and business highlights. Interested parties may access the call by dialing (866) 501-1535. International parties may access the call by dialing (216) 672-5582. A live audio webcast of the conference call will be available through Splunk’s Investor Relations website at http://investors.splunk.com/events.cfm. A replay of the call will be available through June 2, 2016 by dialing (855) 859-2056 and referencing Conference ID: 6355619.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding Splunk’s revenue and non-GAAP operating margin targets for the company’s fiscal second quarter and fiscal year 2017 in the paragraphs under ‘Financial Outlook’ above and other statements regarding customer demand and penetration, market opportunity, expected investments and innovations and growth strategies. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: Splunk’s limited operating history and experience developing and introducing new products, including its cloud offerings; risks associated with Splunk’s rapid growth, particularly outside of the United States; Splunk’s inability to realize value from its significant investments in its business, including product and service innovations; Splunk’s transition to a multi-product software and services business; Splunk’s inability to successfully integrate acquired businesses and technologies; and general market, political, economic and business conditions.

Additional information on potential factors that could affect Splunk’s financial results is included in the company’s Annual Report on Form 10-K for the year ended January 31, 2016, which is on file with the U.S. Securities and Exchange Commission. Splunk does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Splunk Inc. published this content on 20 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 August 2017 21:37:02 UTC.

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