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Machine data data analytics specialist Splunk reported mixed first quarter earnings, missed on revenue but beat on earnings. $SPLK traded sharply down initially but bounced after the conference call focused on the successful shift to a SaaS model accelerating with cloud driving.

Splunk Index

 

Splunk Inc NASDAQ: SPLK; Reported Earnings After Close Thursday

($0.56) Beat ($0.57) EPS And $434M Missed $433.2 Million Forecast in Revenue. 

Earnings

Splunk (SPLK) reported first-quarter results late Thursday of a GAAP loss per share was $1.94; non-GAAP loss per share was $0.56. on revenue of $434 million, up 2% year-over-year. Wall Street expected a loss of 57 cents on revenue of $443.2 million. ARR was $1.775 billion, up 52% year-over-year. Cloud revenue was $112 million, up 81% year-over-year. The results were for its fiscal first quarter for the period ended April 30. .

While overall groth was slow historically cloud-based revenue jumped 81% to $112 million. "Our shift to a SaaS model is accelerating with cloud driving nearly half of total software bookings in the quarter with (annual recurring revenue) growing 52% year over year," Chief Financial Officer Jason Child said in written remarks with the earnings report.

Splunk Inc NASDAQ: SPLK

Market Reaction - After hours 181.39 +17.94 (=10.98%)

Highlights

New and Expansion Customers Include:

Allied Irish Bank (Ireland), Autodesk, Experian, Hitachi Capital (England), Kayak, Mount Sinai Health System, Santander Bank (Spain), Shopify, State of Illinois, Statkraft (Norway), Square Enix (Japan), Take-Two Interactive Software, TD Ameritrade, Transurban (Australia), Zoom

Splunk Achieves #1 Market Share According to Gartner:

Splunk earned the No. 1 market share for Performance Analysis in the AIOps, ITIM and Other Monitoring Tools subsegment according to Gartner’s Market Share: Enterprise Infrastructure Software, Worldwide, 2019. According to the report, Splunk is ranked No. 1 with 16.5% market share. Gartner’s Market Share: Security Software, Worldwide, 2019 report also recognized Splunk as the No. 1 market share vendor for Security Software subsegment, Security Information Event Management (SIEM). In the report, Splunk is ranked No. 1 with 26% market share. ** Gartner, Market Share: Enterprise Infrastructure Software, Worldwide, 2019, April 2020

Outlook

The company is providing the following guidance for its fiscal second quarter 2021 (ending July 31, 2020): Total revenues are expected to be approximately $520 million. Non-GAAP operating margin is expected to be between negative 10% and negative 15%. The company is withdrawing its previous guidance for its fiscal year 2021 (ending January 31, 2021).

Conference Call

As we continue our aggressive shift to the cloud, we are doubling down on investments in this area, exemplifying our focus on bringing more data to more customers. I hope you saw our recently announced partnership with Google and the news that Splunk Cloud will now be available on Google Cloud. This builds on our cloud-first mindset and offers our customers increased flexibility and choice for real-time visibility across hybrid and multi-cloud environments. Doug Merritt — President and Chief Executive Officer

In addition, Splunk continues to strengthen its strategic relationship with AWS, working across product, go-to-market and the field. Recently, Splunk and AWS launched the Workload Migration Program to help migrate on-premises legacy Splunk Enterprise workloads to Splunk Cloud running on AWS. We also announced a newly-launched AWS service-ready program, Lambda Ready, which recognizes Splunk’s proven solutions for customers to build, manage and run serverless applications. Doug Merritt — President and Chief Executive Officer

Management Changes

Last year Splunk said Dave Conte has decided to retire after more than eight years from the position of financial chief in March 2020. Conte will remain CFO until a successor is named and will facilitate a smooth transition. Splunk will initiate a search to identify the company’s next CFO. The company appointed Lenny Stein to the newly created position of Senior Vice President of Global Affairs. Scott Morgan was named to the position of General Counsel and Secretary. Jake Loomis was appointed to the newly created position of Chief Digital Officer. 

About Splunk

Splunk Inc. (NASDAQ: SPLK) helps organizations ask questions, get answers, take actions and achieve business outcomes from their data. Organizations use market-leading Splunk solutions with machine learning to monitor, investigate and act on all forms of business, IT, security, and Internet of Things data. Join millions of passionate users and try Splunk for free today. Splunk, Splunk>, Listen to Your Data, The Engine for Machine Data, Splunk Cloud, Splunk Light and SPL are trademarks and registered trademarks of Splunk Inc. in the United States and other countries. All other brand names, product names, or trademarks belong to their respective owners. © 2018 Splunk Inc. All rights reserved

Source: Splunk

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