Splunk Announces Fiscal Second Quarter 2017 Financial Results

SAN FRANCISCO, Calif., Aug. 26 — Splunk Inc. (NASDAQ: SPLK), provider of the leading software platform for real-time Operational Intelligence, has announced results for its fiscal second quarter ended July 31, 2016.

Second Quarter 2017 Financial Highlights

• Total revenues were $212.8 million, up 43% year-over-year.
• License revenues were $115.7 million, up 32% year-over-year.
• GAAP operating loss was $83.6 million; GAAP operating margin was negative 39.3%.
• Non-GAAP operating income was $8.2 million; non-GAAP operating margin was 3.9%.
• GAAP loss per share was $0.65; non-GAAP earnings per share was $0.05.
• Operating cash flow was $18.3 million with free cash flow of $7.8 million.

“We had a solid Q2 and our success continues to come from a combination of our existing customers expanding across multiple use cases and from adding more than 500 new customers,” said Doug Merritt, President and CEO. “We were pleased to see strength across each of our core markets, the continued adoption of the Splunk platform and increased cloud momentum.”

Second Quarter 2017 and Recent Business Highlights:

Customers:

• Signed more than 500 new enterprise customers.
• New and Expansion Customers Include: City of Los Angeles, Clearbridge Investments, Cox Automotive, Dubai Airport (United Arab Emirates), Fruit of the Loom, Hong Kong Jockey Club, Hulu, National Health Service (UK), Orion Health (New Zealand), Penn State Hershey Medical Center, Priceline.com, Qualys, Queensland Department of Education and Training (Australia), SAP SuccessFactors, Subway, State of New York, Texas Roadhouse, Uber and Yelp.

Products:

• Announced the availability of the Splunk App for AWS 4.2, which allows Splunk Enterprise and Splunk Cloud customers to manage multiple Amazon Web Services accounts and regions seamlessly through a single pane of glass.
• Announced that Amazon EC2 Container Service (ECS) added the Splunk native logging driver to the newest version of the ECS agent, making it easier to implement a comprehensive monitoring solution for running containers at scale.

Strategic and Channel Partners:

• Accenture introduced a new breach prevention offering that integrates Splunk Enterprise and Splunk Enterprise Security (ES) with Palo Alto Networks and Tanium through the Accenture Cyber Defense Platform. The solution helps organizations improve security across networks and endpoint devices.
• Participated in Cisco Live 2016 to showcase how Splunk and Cisco deliver unified visibility into application and network performance, dramatically reduce troubleshooting times, enable better and faster response to security incidents and more.
• Participated in DockerCon16 to demonstrate how to monitor, analyze and troubleshoot Docker environments using Splunk.

Recognition:

• Splunk was named a leader in the 2016 Gartner Magic Quadrant for Security Information and Event Management (SIEM). Splunk was positioned furthest in completeness of vision in the SIEM Category.
• Splunk was named to LinkedIn’s Top Attractors List as one of the top 40 companies that are best in the U.S. at attracting and keeping top talent.
• The City of Los Angeles, a Splunk customer, won the City on a Cloud award at the AWS Public Sector Summit in Washington, D.C. for its use of Splunk Cloud as a SIEM for one of its cybersecurity initiatives.
• Splunk ES was named the inaugural winner for best Security Information and Event Management (SIEM) product at the 2016 Computerworld Hong Kong Awards.

Events:

• Announced that Schmidt Peterson Motorsports (SPM) test drove a data-driven strategy with Splunk during the 100th running of the Indianapolis 500. Splunk, SPM and Splunk partner Kinney Group collaborated to analyze real-time operational data for all three SPM race cars.
• The Splunk Women in Technology group hosted its first international event in Vancouver, providing the opportunity for technology professionals and students to hear from Splunk experts on Splunk and machine learning.
• Hosted SplunkLive! events in cities around the world, including Calgary, Boston, Salt Lake City, Vienna, London, Zurich and Seattle. Presentations can be found on the SplunkLive! website.

Financial Outlook

The company is providing the following guidance for its fiscal third quarter 2017 (ending October 31, 2016):

• Total revenues are expected to be between $228 million and $230 million.
• Non-GAAP operating margin is expected to be between 5% and 6%.

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

• Total revenues are expected to be between $910 and $914 million (was between $892 and $896 million per prior guidance provided on May 26, 2016).
• Non-GAAP operating margin is expected to be approximately 5% (unchanged from prior guidance provided on May 26, 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, acquisition-related costs and adjustments related to a financing lease obligation.

About Splunk

Splunk Inc. (NASDAQ: SPLK) is the market-leading platform that powers Operational Intelligence. We pioneer innovative, disruptive solutions that make machine data accessible, usable and valuable to everyone. More than 12,000 customers in over 110 countries use Splunk software and cloud services to make business, government and education more efficient, secure and profitable. Join hundreds of thousands of passionate users by trying Splunk solutions for free: http://www.splunk.com/free-trials.

Source: Splunk