Wed, May 27, 5:35 PM
Mon, May 18, 1:00 PM
- Splunk (NASDAQ:SPLK) has named Snehal Antani, formerly the CIO of multiple GE Capital units and before that an IBM exec, its new CTO.
- No word on the status of former CTO Todd Papaioannou, who was appointed in 2013 following the resignation of his predecessor, Erik Swan. For now, Papaioannou's LinkedIn page still lists him as Splunk's CTO.
- Antani will work with products SVP Guido Schroeder and strategy chief Stephen Sorkin to "direct the long-term vision for Splunk technology across Splunk's rapidly expanding cloud, mobile, on-premises and hybrid offerings." He'll report to chairman/CEO Godfrey Sullivan.
- Splunk has sold off towards $67 following the news. Shares had made a new 2015 high of $70.97 on Friday. FQ1 results arrive on May 28.
- Update: Cantor is defending Splunk following the news. The firm considers the CTO change "an upgrade," and expects "stronger trends as the year progresses."
- Update 2: A Splunk spokeswoman tells Seeking Alpha Papaioannou is no longer with the company.
Thu, May 7, 6:05 PM
- Tableau (NYSE:DATA) has followed up on its big Q1 beat by guiding on its CC for Q2 revenue of $135M-$140M (above a $130.9M consensus) and full-year revenue of $600M-$610M (above a $587.7M consensus). Like many fast-growing tech peers, the company has shown a knack for guiding conservatively.
- License revenue rose 74% Y/Y in Q1 to $84.4M, nearly matching Q4's 75% growth. Over 2,600 new customers were added (even with seasonally stronger Q4), and 249 $100K+ transactions were closed. Tableau also states it now has over 2K customers for its cloud-based Tableau Online BI/data visualization platform. Version 9.0 of Tableau's core platform launched last month (previous).
- GAAP operating expenses rose 85% Y/Y to $128.5M - $72.2M was spent on sales/marketing, $41.9M on R&D, and $14.5M on G&A. International revenue rose 89% to $31.7M (24% of total revenue).
- Separately, in attempt to further grow its user base, Tableau has announced premium features for its cloud-based Tableau Public software (used by students, journalists, etc.) are now available for free. Tableau claims 100K+ users for Public.
- Tableau has risen to $105.03 AH. As was the case in February, Splunk (NASDAQ:SPLK) is getting a lift from Tableau's numbers, rising to $67.30. The machine data analytics vendor's FQ1 report arrives on May 28.
- Tableau's Q1 results, PR
Fri, Apr. 17, 1:46 PM
- Cloud IT service management software leader ServiceNow is down 14.5% after providing soft guidance (thanks in part to forex) to go with a Q1 beat. Many high-beta enterprise tech names are off sharply amid a 1.5% drop for the Nasdaq.
- In addition to Salesforce and Workday (previous), cloud software firms posting big losses include NetSuite (N -4.8%), Constant Contact (CTCT -3.3%), InContact (SAAS -3.9%), Paycom (PAYC -3.6%), Ultimate Software (ULTI -3.6%), and Textura (TXTR -3.7%). NetSuite reports on April 23, Ultimate Software on April 28, Constant Contact on April 30, and Paycom on May 6.
- Big data/analytics software plays have also been hit hard. Tableau (DATA -6.3%), Splunk (SPLK -5.2%), Hortonworks (HDP -6%), and Varonis (VRNS -4.3%) are all off sharply. Though its growth rates and multiples are similar to those of many analytics software firms, ServiceNow generally isn't seen as an analytics play. This morning, D.A. Davidson launched coverage on Tableau and Splunk at Buy, and Hortonworks at Neutral.
- Tableau, which surged yesterday following bullish Stifel and William Blair coverage launches, reports on May 7. Stifel praised Tableau's "superior product performance and simplified user experience," data discovery market lead, international growth potential (less than 25% of license revenue is from outside of North America), and ability to capitalize on "free demo downloads by front-line information workers evangelizing [Tableau's] product." William Blair stated its survey work "indicates that the perceived value of Tableau exceeds that of other self-service [business intelligence] vendors."
- Pac Crest hiked its Splunk target to $82 yesterday after attending a user conference. "[T]he economic value derived from expanding Splunk implementations ... into new areas like security intelligence, compliance and real-time capacity planning results in cost avoidance that can far overshadow the historical pricing objections to Splunk. This is a significant change in customer behavior and pricing perception ... It was clear that the appetite of existing Splunk users to find new use cases remains fierce..."
Tue, Apr. 7, 9:21 AM
- A day after Stephens upgraded Splunk (NASDAQ:SPLK) to Overweight, Piper's Katherine Egbert has done the same, while setting a $77 target.
- Egbert considers Splunk's valuation more reasonable following the selloff seen in the wake of its Feb. 26 FQ4 report, is pleased with the company's recent reseller deal with major IT distributor Arrow Electronics, and sees the launch of enterprise-wide license agreements (long offered by Microsoft, VMware, Oracle, etc.) acting as a tailwind.
- Shares are up to $62.18 premarket, and have risen 8% since Thursday's close.
Mon, Apr. 6, 1:09 PM
- Stephens has upgraded Splunk (NASDAQ:SPLK) to Overweight, and set a $70 target. Shares have moved higher after starting the day close to breakeven.
- Splunk remains down 13% from where it traded before soundly beating FQ4 estimates and offering above-consensus FQ1/FY16 guidance (expectations were high). Last month, the company rolled out Splunk Light, a cheaper version of its core machine data/IT operational intelligence analytics platform (Splunk Enterprise) that's aimed at SMBs; monthly pricing ranges from $50-$75/month, depending on the amount of data indexed per day.
Fri, Mar. 20, 7:04 PM
- Looking to cash in on strong investor interest in all things cybersecurity-related, security software/services providers Rapid7, LogRhythm, and Mimecast are each planning 2015 IPOs at $1B+ valuations, Reuters reports.
- Rapid 7 provides incident detection/response and threat management software (a fast-growing area in the wake of major security breaches), along with security advisory services. It has over 3,500 customers, including Amazon and American Express.
- LogRhythm provides software for analyzing log/machine data, file changes, and network sessions for security threats - machine data analytics leader Splunk (NASDAQ:SPLK) is a rival. Mimecast provides cloud-based e-mail security and archiving tools; its revenue rose 30% in 2014 to $88.4M.
- Earlier this month, Fortune reported Veracode, which provides cloud-based app analysis security tools, has confidentially filed for an IPO and is aiming for a valuation roughly twice that of the $450M assigned in a recent funding round.
- ETF: HACK
Fri, Feb. 27, 4:59 PM
- With shares up 35% in February going into earnings, a big FQ4 beat, above-consensus FQ1/FY16 guidance, and a flood of target hikes and bullish sell-side notes weren't enough to keep Splunk (NASDAQ:SPLK) from selling off.
- Credit Suisse's Philip Winslow is quite pleased billings rose 47.3% Y/Y in FQ4 (up from 42.4% a year ago), cloud software customers grew 90% Q/Q, and $1M+ and $100K+ deals respectively rose to 39 and 429 from 21 and 289 a year ago. He adds high quota attainment and a 38% Y/Y increase in sales heads "reinforces our belief that upside exists to both guidance and consensus estimates."
- Summit Research's Srini Nandury: "We are increasingly confident Splunk is becoming a platform for unstructured data, akin to Oracle/MS-SQL server platforms, and the rise of Splunk reminds us of the rise of Oracle as a broad platform ... While there are several competitors such as Sumo Logic, Loggly, etc., we believe none of have the use cases and platform functionality as that of Splunk."
- CLSA's Ed Maguire: "New unlimited enterprise pricing should further ease customer adoption even as recurring licenses represented 45% of bookings. With 9,000 customers and at least 70% of quarterly bookings coming from the base, there’s more runway to capture an ever increasing [total addressable market]."
- Those less positive are mostly worried about valuation. Needham and BMO (neutral ratings) each observe Splunk has an enterprise value that's equal to ~11x their respective FY16 sales forecasts.
Fri, Feb. 27, 9:15 AM
- Gainers: XIN +20%. CYCC +17%. SREV +16%. BLOX +16%. CYTX +13%. CLNE +12%. MNST +10%. ATOS +10%. SD +9%. SPLK +7%. MEET +6%. ARUN +6%. VIMC +6%. HZNP +6%.
- Losers: CVSL -42%. RESN -28%. MOSY -21%. WTW -18%. TUBE -17%. TBIO -14%. JCP -13%. DRL -13%. GENE -11%. OCN -8%. PBPB -8%. NBG -8%. NVAX -7%. FRO -5%.
Thu, Feb. 26, 5:38 PM
Thu, Feb. 26, 4:23 PM
- In addition to beating FQ4 estimates, Splunk (NASDAQ:SPLK) is guiding for FQ1 revenue of $116M-$118M (above a $115.4M consensus) and FY16 (ends Jan. '16) revenue of $600M (above a $580M consensus and prior guidance of $575M).
- FQ1 and FY16 op. margin guidance is respectively at -2% to +4% and 2%-3%. As the FQ4 results drive home, the company has a history of providing conservative guidance.
- License revenue (drives future services revenue) rose 43% Y/Y in FQ4 to $98.1M, a slight acceleration from FQ3's 41% growth. Maintenance/services revenue rose 59% to $49.3M. 600+ new customers were added, up from FQ3's 500+ and bringing the total base above 9K. FQ4 clients included Toyota, Red Hat, Zillow, the State Department, and the New York MTA.
- GAAP operating expenses rose 51% Y/Y to $183M (compares with 48% revenue growth). R&D spend totaled $47.3M, sales/marketing $107.7M, and G&A $27.9M.
- The deferred revenue balance rose 58% Y/Y to $304.1M. That helped free cash flow total $48.8M, well above net income of $11.6M. For the whole of FY15, free cash flow was $90M.
- SPLK +7.3% AH to $74.65, hitting its highest levels since last spring. Shares rose 3.1% in regular trading, after declining on Tuesday on a report field sales chief Vishal Rao is leaving. The company introduced a new enterprise-wide licensing option this morning (similar to options provided by other major enterprise software firms).
- FQ4 results, PR
Thu, Feb. 26, 4:04 PM
Tue, Feb. 24, 2:04 PM
- Bloomberg reports Splunk (SPLK -5.3%) field sales VP Vishal Rao is leaving the company. For the time being, Rao's LinkedIn page still lists him as a Splunk employee.
- Worth noting: Rao isn't Splunk's top sales exec: That role belongs to field operations SVP/former Cisco exec Doug Merritt, who was hired last May. Nonetheless, the timing of Bloomberg's report (two days before earnings) appears to have some investors on edge.
- Earlier: Splunk selling off ahead of earnings
Tue, Feb. 24, 1:35 PM
- Splunk (SPLK -4.5%) is seeing steep losses ahead of Thursday's FQ4 report. 1.94M shares have been traded thus far, topping a 3-month daily average of 1.65M.
- The machine data analytics software firm's shares remain up 27% for the whole of February; they jumped three weeks ago after Tableau (not a direct rival, but also seen as an analytics play) delivered a big Q4 beat.
- Last week, Splunk announced a deal with Yahoo through which the Web giant will use both Splunk Enterprise (the company's flagship machine data product) for multiple use cases, as well as its Hunk analytics solution for the Hadoop big data framework and the unstructured NoSQL database (often used in big data projects).
Thu, Feb. 12, 2:22 PM
- A slew of enterprise IT names are outperforming after Cisco beat estimates and respectively reported 10%, 8%, and 7% Y/Y growth in enterprise, SMB, and public sector orders. The Nasdaq overall is up 1%.
- Cisco reported particularly strong figures for enterprise-focused business lines: Switching revenue rose 11%, wireless (Wi-Fi-dominated) 18%, collaboration 10%, and data center (UCS servers) 40%. Service provider demand (orders -1%) remained soft.
- Enterprise standouts include EMC (EMC +2.5%), VMware (VMW +2.3%), SAP (SAP +3.1%), Salesforce.com (CRM +3.8%), NetSuite (N +2.6%), Teradata (TDC +4.6%), Splunk (SPLK +2.5%), Varonis (VRNS +3.9%), Gigamon (GIMO +2.8%), and NetScout (NTCT +2.7%).
- EMC's gains comes in spite of rival NetApp's FQ3 miss and soft FQ4 guidance; share loss to EMC, which has been seeing healthy mid-range and scale-out NAS storage growth, could be partly to blame. VMware is adding to the Wednesday gains seen following a Bernstein upgrade.
- Earlier: Telecom/networking stocks rally thanks to Cisco
Wed, Feb. 4, 5:18 PM
- Tableau (NYSE:DATA) has guided on its Q4 CC for Q1 revenue of $110M-$115M and EPS of -$0.02 to -$0.06 vs. a. consensus of $107.3M and 2015 guidance is for revenue of $565M-$580M (39% growth at the midpoint) and EPS of $0.13-$0.23 vs. a consensus of $554.8M and $0.24. Given the magnitude of Tableau's Q4 beat, the outlook might still be conservative.
- The Q4 beat was fueled by a 75% Y/Y increase in license revenue (71% of total revenue) to $101.4M; license growth accelerated from Q3's 66%. 2.6K+ customer accounts were added (up from Q3's 2.5K+), and 304 $100K+ deals were closed (up from Q3's 200).
- Gross margin fell slightly to 92.4% from 92.8%. Op. margin rose to 22.1% from 17.3%, in spite of big sales/marketing and R&D investments.
- Machine data analytics leader Splunk (NASDAQ:SPLK) is following Tableau higher in AH trading.
- Tableau's Q4 results, PR
Splunk Inc provides software products. Its flagship product is Splunk Enterprise and at its core is a proprietary machine data engine, comprised of collection, indexing, search, reporting analysis and data management capabilities.
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