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February 24, 2017

Splunk Announces Fourth Quarter and Full Year 2017 Financial Results

SAN FRANCISCO, Calif., Feb. 24 — Splunk Inc. (NASDAQ: SPLK), provider of the leading software platform for real-time Operational Intelligence, has announced results for its fiscal fourth quarter and full year ended January 31, 2017.

Fourth Quarter 2017 Financial Highlights

  • Total revenues were $306.5 million, up 39% year-over-year.
  • License revenues were $190.5 million, up 35% year-over-year.
  • GAAP operating loss was $71.1 million; GAAP operating margin was negative 23.2%.
  • Non-GAAP operating income was $35.8 million; non-GAAP operating margin was 11.7%.
  • GAAP loss per share was $0.54; non-GAAP income per share was $0.25.
  • Operating cash flow was $102.5 million with free cash flow of $84.4 million.

Full Year 2017 Financial Highlights

  • Total revenues were $950.0 million, up 42% year-over-year.
  • License revenues were $546.9 million, up 35% year-over-year.
  • GAAP operating margin was negative 36.2%; non-GAAP operating margin was 6.2%.
  • Operating cash flow was $201.8 million with free cash flow of $156.5 million.

“Customer success is our number one priority. More than 13,000 organizations worldwide depend on Splunk, including nearly 700 new customers this quarter,” said Doug Merritt, President and CEO, Splunk. “It is early in our data and analytics journey – it is a big market with a tremendous opportunity that Splunk is uniquely positioned to win. We are confident in our long-term strategy to become the ubiquitous machine data platform for our customers.”

Fourth Quarter 2017 and Recent Business Highlights:

Customers:

  • Signed nearly 700 new enterprise customers and ended the year with more than 13,000 customers worldwide.
  • New and Expansion Customers Include: Aflac, Asurion, Atlassian (Australia), Australia and New Zealand Banking Group, BM&F Bovespa (Brazil), City and County of San Francisco, Commonwealth of Virginia, Condé Nast, CrowdStrike, eHarmony, FedEx, Heartland Jiffy Lube, Infoblox, National Health Service (United Kingdom), Papa John’s Pizza, Penske Truck Leasing, Randstad (Netherlands), Raymond James, Stamps.com, Telstra (Australia), University of Maryland, University of Minnesota and U.S. Department of State.

Products:

  • Announced version 5.0 of the Splunk App for AWS – available for the first time on Splunk Light –delivering enhanced dashboards, advanced billing insights into reserved versus on-demand AWS instances, and integrated machine learning to identify cost optimization improvements and security anomalies.
  • Announced the new Splunk App for Jenkins, making it possible to use Splunk solutions to collect, monitor and analyze the wealth of Jenkins data.
  • Announced new AWS Lambda blueprints to easily stream valuable logs, events and alerts from over 15 AWS services into Splunk to help customers gain critical security and operational insights.

Recognition:

Events:

  • Hosted over 1,100 attendees at Splunk GovSummit 2016 in Washington, D.C. and unveiled the winners of the Splunk Public Sector Innovation Awards, recognizing Splunk customers and partners for driving transformation through data in their organization.
  • Hosted SplunkLive! events in Beijing, Columbus, Long Beach, New Brunswick, Santa Clara, Shanghai, Taipei and Utrecht (Netherlands). Presentations can be found on the SplunkLive! Website.

Financial Outlook

The company is providing the following guidance for its fiscal first quarter 2018 (ending April 30, 2017):

  • Total revenues are expected to be between $231 million and $233 million.
  • Non-GAAP operating margin is expected to be between negative 2% and negative 4%.

The company is updating its previous guidance for its fiscal year 2018 (ending January 31, 2018):

  • Total revenues are expected to be approximately $1.185 billion (was approximately $1.175 billion per prior guidance provided on January 12, 2017).

The company is providing the following guidance for its fiscal year 2018 (ending January 31, 2018):

  • Cloud revenues are expected to be approximately $85 million.
  • Non-GAAP operating margin is expected to be approximately 8%.

About Splunk Inc.

Splunk Inc. (NASDAQ: SPLK) is the market leader in analyzing machine data to deliver Operational Intelligence for security, IT and the business. Splunk software provides the enterprise machine data fabric that drives digital transformation. More than 13,000 customers in over 110 countries use Splunk solutions in the cloud and on-premises. Join millions of passionate users by trying Splunk software for free: http://www.splunk.com/free-trials.


Source: Splunk

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