Earnings Reports

Google Ad

Machine data analytics specialist Splunk reported mixed second quarter earnings, missed on revenue but beat on earnings. In a mirror of last quarter $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 Wednesday

($0.33) Beat ($0.34) EPS And $491,7M Missed $520.5 Million Forecast in Revenue. 

Earnings

Splunk (SPLK) reported second-quarter results late Wednesday with an EPS loss of 33c on sales $491.7M vs. est. loss of 34c and $520.5M where cloud accounted for more than half of software bookings in the quarter. The company has seen a rapid shift towards it's offerings in the lockdown stay at home economy.

 

Splunk Inc NASDAQ: SPLK

Market Reaction - After hours $218.00▲ 1.26 (+0.58%) 

Closed Ahead of Report: $216.74 ▲ 13.12 (+6.44%)  

Highlights

“I’m pleased to see the role Splunk’s #DataToEverything platform has played in helping our customers drive significant insights.” - $SPLK CEO @douglasmerritt . “Splunk’s cloud business continues to accelerate, now representing more than half of our software bookings.”

Second Quarter 2021 Financial Highlights

  • Cloud ARR was $568 million, up 89% year-over-year.
  • Total ARR was $1.93 billion, up 50% year-over-year.
  • Cloud revenue was $126 million, up 79% year-over-year.
  • Total revenues were $492 million, down 5% year-over-year.
  • 396 customers with ARR greater than $1 million.

 “Splunk’s rapid transformation to the cloud has enabled us to reach key milestones ahead of schedule. Cloud ARR growth accelerated to 89%, or $568 Million, far exceeding our expectations. We also now have nearly 400 customers with ARR in excess of $1 million as more and more businesses embrace our cloud platform,” said Jason Child, chief financial officer, Splunk.

 

New and Expansion Customers Include:

Atlassian (Australia), California Polytechnic State University - San Luis Obispo, Chicago Public Schools, Costco Travel, DHS Cybersecurity and Infrastructure Security Agency, Financial Industry Regulatory Authority (FINRA), Jemena (Australia), L'Oreal USA, Mars, The Motley Fool, NASA, Transport for London (United Kingdom), University of California, Irvine, United Shore, Yale New Haven Health System

Outlook

“Splunk’s rapid transformation to the cloud has enabled us to reach key milestones ahead of schedule. Cloud ARR growth accelerated to 89%, or $568 Million, far exceeding our expectations.” - $SPLK CFO Jason Child.

The company is providing the following guidance for its fiscal third quarter 2021 (ending October 31, 2020):

  • Total revenues are expected to be between $600 million and $630 million.
  • Non-GAAP operating margin is expected to be between 2% and 5%.

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

From The TradersCommunity News Desk

 

From The Traders Community Research Desk

Log in to comment
Discuss this article in the forums (3 replies).