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November 24, 2014

Splunk Announces Third Quarter 2015 Financial Results

SAN FRANCISCO, Calif., Nov. 24 — Splunk Inc., provider of the leading software platform for real-time Operational Intelligence, today announced results for its fiscal third quarter ended October 31, 2014.

Third Quarter 2015 Financial Highlights

  • Total revenues were $116.0 million, up 48% year-over-year.
  • License revenues were $71.8 million, up 41% year-over-year.
  • GAAP operating loss was $48.3 million; GAAP operating margin was negative 41.6%.
  • Non-GAAP operating income was $2.7 million; non-GAAP operating margin was 2.3%.
  • GAAP net loss per share was $0.40; non-GAAP net income per share was $0.02.
  • Operating cash flow was $24.2 million with free cash flow of $20.2 million.

“This quarter we released new versions of all of our core products, offered new solutions for mobile, wire, mainframe and sensor data, and strengthened our market teams,” said Godfrey Sullivan, Chairman and CEO. “We welcomed over 500 new customers, saw growth in all of our core markets – with the growth in security especially notable – and we had our best quarter yet with Splunk Cloud.”

Third Quarter 2015 and Recent Business Highlights

Customers:

  • Signed more than 500 new enterprise customers, ending the quarter with more than 8,400 customers worldwide.
  • New and Expansion Customers Include: Abacus International Pte Ltd. (Singapore), ADP, AT&T, Beth Israel Deaconess Medical Center, Boeing Employees Credit Union, Cembra Money Bank (Switzerland), Chicago Public Schools, Cisco Systems, Comcast, Consolidated Edison, Dell, 1-800-FLOWERS.COM, Inc., Global Blue Austria GmbH, Hospital Corporation of America, Intermedia, Johns Hopkins University Applied Physics Lab, KeyBank, M2 Telecommunications Group (Australia), Oppenheimer & Co. Inc., Orrstown Bank, SAP, SFR (France), Shazam (United Kingdom), State of New Mexico, The Warehouse Group (New Zealand), University of Lyon (France), U.S. Department of Energy, U.S. Department of Health and Human Services, Valve Corporation, Weight Watchers and Zulily.

Product:

  • Announced the general availability (GA) of Splunk Enterprise 6.2, the latest version of the award-winning platform for machine data, to deliver improved scalability and extend powerful Splunk analytics to a broader number of users.
  • Announced the GA of Hunk 6.2 to extend the power of exploratory analytics and enable all professionals to easily unlock the business value of data in Hadoop and NoSQL data stores.
  • Announced the availability of Hunk priced on an hourly basis, directly from the Amazon Elastic MapReduce (Amazon EMR) console.
  • Announced the GA of Splunk MINT Express and the beta program for Splunk MINT Enterprise, the first new products from the acquisition of BugSense, to empower customers to gain greater Operational Intelligence from mobile apps.
  • Announced the industry’s first 100 percent uptime service level agreement for Splunk Cloud and a free Splunk Online Sandbox to give customers a trial experience of Splunk Cloud within minutes.
  • Announced the GA of the Splunk App for Stream to capture real-time streaming wire data to support app management, IT operations, security and business analytics.

Strategic and Channel Partners:

Recognition:

Appointments:

  • Appointed Mark Carges, Splunk Board of Directors.
  • Appointed Marc Olesen, Senior Vice President and General Manager, Cloud Solutions.
  • Appointed Rick Fitz, Vice President, IT Markets.
  • Promoted Haiyan Song to Senior Vice President, Security Markets.

.Conf:

  • Hosted a record number of customers and partners at this year’s .conf2014 with 80+ customer presentations across use cases and industries.

Financial Outlook

The company is providing the following guidance for its fiscal fourth quarter 2015 (ending January 31, 2015):

  • Total revenues are expected to be between $135 million and $137 million.
  • Non-GAAP operating margin is expected to be between 4% and 5%.

The company is updating its previous guidance for its fiscal year 2015 (ending January 31, 2015):

  • Total revenues are expected to be between $438 million and $440 million (was $423 million and $428 million per prior guidance provided on August 28, 2014).
  • Non-GAAP operating margin is expected to be between 1% and 2% (was previously approximately 1% per prior guidance provided on August 28, 2014).

The Company is providing the following guidance for its fiscal year 2016 (ending January 31, 2016):

  • Total revenues are expected to total approximately $575 million.
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