November 17, 2017

Splunk Inc. Announces Fiscal Third Quarter 2018 Financial Results

SAN FRANCISCO, Nov. 17, 2017 — Splunk Inc. (NASDAQ: SPLK) has announced results for its fiscal third quarter ended October 31, 2017.

Third Quarter 2018 Financial Highlights

  • Total revenues were $328.7 million, up 34% year-over-year.
  • Total billings were $381.6 million, up 38% year-over-year.
  • GAAP operating loss was $50.8 million; GAAP operating margin was negative 15.5%.
  • Non-GAAP operating profit was $32.3 million; non-GAAP operating margin was positive 9.8%.
  • GAAP loss per share was $0.36; non-GAAP earnings per share was $0.17.
  • Operating cash flow was $52.3 million with free cash flow of $46.9 million.

“I’m proud of our global performance for the quarter and our increased outlook through the rest of the year,” said Doug Merritt, President and CEO, Splunk. “Splunk announced a wide range of innovations at .conf2017 including native support for metrics and machine learning updates to Splunk® Enterprise and Splunk Cloud; new event analytics capabilities in Splunk IT Service Intelligence; new content updates for Splunk Enterprise Security; and a host of new use case-specific solutions. Splunk customers are seizing upon the growing opportunity machine data presents and only Splunk can help them get answers on-premises, in the cloud or across hybrid environments.”

Third Quarter 2018 and Recent Business Highlights:

Customers:

  • Signed more than 450 new enterprise customers.
  • New and Expansion Customers Include: 21st Century Fox, Arizona State University, ATB Financial, Atlassian, Banner Health, BCD Travel, Blackbaud, Blucora, CallidusCloud, Cincinnati Children’s Hospital Medical Center, Daimler (Germany), Deakin University (Australia), Defense Health Agency, Derbyshire Fire & Rescue (England), The E.W. Scripps Company, Johns Hopkins University, Li & Fung (Hong Kong), Nutanix, Norsk Helsenett (Norway), PIMCO, Purdue University, SAS, Smithsonian Institution, Texas Department of Transportation, U.S. Army, U.S. Department of Homeland Security Data Center, Vodafone Egypt, Yahoo! JAPAN

Products:

Corporate:

  • Acquired selected assets of Rocana Inc., a company providing analytics solutions for the IT market, to extend Splunk’s IT operations leadership.
  • Acquired SignalSense Inc., a company offering cloud-based advanced data collection and breach detection solutions, further advancing Splunk’s machine learning capabilities.
  • Showcased flexible pricing programs tailored to fit the needs of all customers and deliver value no matter where organizations are in their Splunk journey.
  • Unveiled new, free training programs to help military veterans and youth train for careers in technology through Splunk4Good in partnership with nonprofits AWS re:Start, NPower, Wounded Warrior Project and Year Up.
  • Inducted 42 members of the 2018 cohort of the SplunkTrust program to recognize some of the most dedicated members of the Splunk Community.

Strategic and Channel Partners:

Recognition:

Events:

  • Hosted .conf2017: the 8th Annual Splunk Conference in Washington, drawing more than 7,000 Splunk enthusiasts, customers and partners.
  • Honored the winners of the 2017 Revolution Awards at .conf2017, recognizing spectacular achievements from Splunk’s worldwide customers and partners.
  • Hosted the first-ever SplunkLive! in Montreal and additional SplunkLive! events in cities worldwide, including Beijing,SeattleShanghai and Singapore. Presentations can be found on the SplunkLive! website.

Appointments:

  • Appointed Sara Baack, chief marketing officer of Equinix, and Elisa Steele, former CEO and president of Jive Software, to Splunk’s Board of Directors.
  • Promoted Susan St. Ledger to the newly created role of president, worldwide field operations.

Financial Outlook

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

  • Total revenues are expected to be between $388 million and $390 million.
  • Non-GAAP operating margin is expected to be approximately 16%.

The company is updating its previous guidance provided on August 24, 2017 for its fiscal year 2018 (ending January 31, 2018):

  • Total billings are expected to be approximately $1.485 billion (was approximately $1.450 billion).
  • Total revenues are expected to be between $1.239 and $1.241 billion (was between $1.210 and $1.215 billion).
  • Non-GAAP operating margin is expected to be approximately 8.5% (was approximately 8%).

The company is providing the following guidance for its fiscal year 2019 (ending January 31, 2019):

  • Total revenues are expected to be approximately $1.550 billion.
  • Non-GAAP operating margin is expected to be approximately 10.5%.

All forward-looking non-GAAP financial measures contained in this section “Financial Outlook” exclude estimates for expenses related to stock-based compensation and related employer payroll tax, amortization of acquired intangible assets, adjustments related to a financing lease obligation, adjustments related to facility exits and acquisition-related adjustments.

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of the excluded costs and expenses that may be incurred in the future. The company has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its fiscal third quarter 2018 non-GAAP results included in this press release.

Conference Call and Webcast

Splunk’s executive management team will host a conference call today beginning at 1:30 p.m. PT (4:30 p.m. ET) to discuss the company’s financial results and business highlights. Interested parties may access the call by dialing (866) 501-1535. International parties may access the call by dialing (216) 672-5582. A live audio webcast of the conference call will be available through Splunk’s Investor Relations website at http://investors.splunk.com/events.cfm. A replay of the call will be available through November 23, 2017 by dialing (855) 859-2056 and referencing Conference ID 8994427.

About Splunk Inc.

Splunk Inc. (NASDAQ: SPLK) turns machine data into answers. Organizations use market-leading Splunk solutions with machine learning to solve their toughest IT, Internet of Things and security challenges. Join millions of passionate users and discover your “aha” moment with Splunk today: http://www.splunk.com.


Source: Splunk Inc.

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