Splunk Inc. Announces Fiscal Third Quarter 2019 Financial Results
SAN FRANCISCO, Nov. 30, 2018 — Splunk Inc., delivering actions and outcomes from the world of data, today announced results for its fiscal third quarter ended October 31, 2018.
Third Quarter 2019 Financial Highlights
- Software revenues were $325 million, up 49% year-over-year.
- Total revenues were $481 million, up 40% year-over-year.
- GAAP operating loss was $50 million; GAAP operating margin was negative 10.4%.
- Non-GAAP operating income was $65.4 million; non-GAAP operating margin was 13.6%.
- GAAP loss per share was $0.38; non-GAAP income per share was $0.38.
- Operating cash flow was $59.1 million with free cash flow of $51.8 million.
“The strength of our results is a testament to Splunk’s pioneering innovation and the rising demand for data-driven insights across all industries,” said Doug Merritt, President and CEO, Splunk. “At .conf18, we announced the largest wave of product innovation in our history, unveiled Splunk Next – our vision to take Splunk beyond IT and security at scale, and released our first Internet of Things product, Splunk for Industrial IoT. Customer feedback is overwhelmingly positive, and Splunk is positioned to continue to lead through this data revolution.”
CFO Future Retirement
Dave Conte has decided to retire in March 2020, after what will be more than eight years with Splunk. Conte will remain CFO until a successor is named and will facilitate a smooth transition. Splunk will initiate a search to identify the company’s next CFO.
“I speak for all us at Splunk when I say it has been an honor to work alongside Dave, who is an invaluable partner to the company and me,” said Merritt. “Dave has been instrumental in helping us grow from $120 million at the time of our IPO to over $2 billion in expected revenue next year and in building our high growth culture.”
“After so many years with the company, I’m proud of everything we’ve accomplished including transforming our business model to one that is primarily renewable on our way to delivering more than $2 billion in revenue,” said Conte. “Splunk has never been better positioned for success, and I’m looking forward to continuing our execution over the next year.”
Third Quarter 2019 and Recent Business Highlights:
- Signed more than 500 new enterprise customers.
- New and Expansion Customers Include: ATB Financial (Canada), Chicago Public Schools, City of Austin, Clemson University, Department of Home Affairs (Australia), Fleetcor Technologies, GVB (Netherlands), Jabil, Norfolk Southern, Paddy Power Betfair (Ireland), Randstad (Netherlands), Softbank (Japan), SundaySky (Israel), Teachers Mutual Bank (Australia), University of Portsmouth (UK), Vanderbilt University Medical Center
- Announced the general availability of Splunk Enterprise 7.2 and a new version of Splunk Cloud, which make it easier to ask questions, take precise actions and drive meaningful business outcomes with data no matter where it lives.
- Announced Splunk Next, a continually evolving series of visionary beta technologies that brings the power of Splunk to more data sources and more people. Splunk Next includes Splunk Data Stream Processor, Splunk Data Fabric Search, Splunk Mobile, Splunk Developer Cloud, Splunk Natural Language, Splunk Augmented Reality and Splunk TV.
- Announced the general availability of Splunk for Industrial IoT, Splunk’s first product for the Internet of Things, to help industrial organizations minimize downtime, shift operations from reactive to proactive and save money.
- Released new versions across the security portfolio including; Splunk Enterprise Security 5.2 which introduces event sequencing and a new use case library to accelerate investigations; Splunk User Behavior Analytics 4.2, which includes new anomaly scoring rules to improve insider threat detection models; and Splunk Phantom 4.0, which includes clustering support to improve scale and an indicator view to give analysts a threat intelligence-centered view for investigations.
- Announced the general availability of Splunk ITSI 4.0 to help IT Operations teams better predict and prevent problems with machine learning.
- Announced integrations with Amazon Web Services (AWS) Security Hub, released a new integration with AWS Web Access Firewall, and made it easier to ingest AWS data into Splunk solutions via Trumpet.
- Named to Forbes Digital 100 list, ranking #9 in the top 100 public companies that are shaping the digital economy.
- Recognized by IDC’s ‘Worldwide IT Operations Management Software Market Shares, 2017: Hybrid Management Drives Growth’ report as the fastest growing vendor in the IT Operations market.
- Recognized by Gartner’s ‘Market Share Analysis: ITOM, Performance Analysis Software, Worldwide, 2017’ report as #2 in the AIOps/ITIM/Other Monitoring Tools category for the second year in a row.
- Recognized as gaining network security market share “at the expense of SIEM vendors” in IDC’s ‘Worldwide Security and Vulnerability Management Market Shares 2017: Defending the Boundaryless Network’ report.
- Appointed Lenny Stein to the newly created position of Senior Vice President of Global Affairs.
- Appointed Scott Morgan to General Counsel and Secretary.
- Appointed Jake Loomis to the newly created position of Chief Digital Officer.
The company is providing the following guidance for its fiscal fourth quarter 2019 (ending January 31, 2019):
- Total revenues are expected to be approximately $560 million.
- Non-GAAP operating margin is expected to be between 25% and 26%.
The company is updating its previous guidance provided on August 23, 2018 for its fiscal year 2019 (ending January 31, 2019):
- Total revenues are expected to be approximately $1.740 billion (was approximately $1.685 billion).
- Non-GAAP operating margin is expected to be between 11.5% and 12.0% (was approximately 11.5%).
The company is updating its previous guidance for its fiscal year 2020 (ending January 31, 2020):
- Total revenues are expected to be approximately $2.15 billion (was approximately $2.0 billion).
All forward-looking non-GAAP financial measures contained in this section “Financial Outlook” exclude estimates for stock-based compensation and related employer payroll tax, amortization of acquired intangible assets, adjustments related to a financing lease obligation, interest expense related to convertible debt and acquisition-related adjustments, which may be significant.
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 these 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 2019 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-presentations. A replay of the call will be available through December 6, 2018 by dialing (855) 859-2056 and referencing Conference ID 7482069.
About Splunk Inc.
Splunk Inc. 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.
Source: Splunk Inc.