Splunk Inc. (SPLK) - NASDAQ
  • May 29, 2014, 4:18 PM
    • Splunk (SPLK) expects FQ2 revenue of $92M-$94M, above a $91.6M consensus. But FY15 (ends Jan. '15) guidance is for revenue of $402M-$410M, which is only in-line with a $406.9M consensus. After many quarters of guiding above consensus, investors wanted more.
    • License revenue (drives future services revenue) grew 42% Y/Y to $51.3M. Services revenue grew 65% to $34.6M. 400+ customers were added, raising the total to 7.4K+.
    • FQ1 op. margin was -4.2%, above guidance of -8% to -10%. GAAP opex rose 84% Y/Y to $121.8M, with sizable increases in sales/marketing, R&D, and G&A spend.
    • Guidance for an FY15 op. margin of "approximately zero" is being reiterated. FQ2 op. margin is expected to be in the -2% to -4% range.
    • Splunk's deferred revenue balance rose 65% Y/Y to $194M.
    • FQ1 results, PR
    | May 29, 2014, 4:18 PM | 2 Comments
  • May 29, 2014, 4:04 PM
    • Splunk (SPLK): FQ1 EPS of -$0.04 beats by $0.02.
    • Revenue of $85.9M (+50.1% Y/Y) beats by $5.16M.
    • Shares -6.2%.
    | May 29, 2014, 4:04 PM | 5 Comments
  • May 28, 2014, 5:35 PM
  • May 27, 2014, 9:55 AM
    • Splunk (SPLK +5.8%) has been upgraded to Outperform by Northland ahead of its Thursday FQ1 report, and has also received another bullish Pac Crest note. The company recently received bullish commentary from JMP and other analysts.
    • Palo Alto Networks (PANW +2.9%) has upgraded to Buy by Nomura ahead of Wednesday's FQ3 report. The firm sees fewer risks related to Juniper's suit.
    • Guidewire (GWRE +4.4%) has been upgraded to Neutral by Citi ahead of its June 2 FQ3 report.
    • NTELOS (NTLS -5.6%) has been downgraded to Hold by Jefferies. Shares jumped last week after the company extended its Sprint deal to 2022, albeit while axing its dividend.
    • Sabre (SABR +3%) has received bullish ratings from 9 IPO underwriters. PTs are generally around $20.
    • Brooks Automation (BRKS +5.6%) has been upgraded to Buy by B. Riley.
    | May 27, 2014, 9:55 AM
  • May 20, 2014, 2:44 PM
    • Citing positive checks and "recent due diligence" regarding two privately-owned rivals, JMP has hiked its FQ1 Splunk (SPLK +0.4%) revenue forecast by $1M to $83M (above an $80.7M consensus), and is reiterating an Outperform ahead of the company's May 29 report. Shares are up slightly on a down day for equities.
    • With shares now at $44, JMP has decided to slash its PT by $44 to $66. Its new target spells a valuation of 8.6x EV/2016E sales. "Our target multiple decreases as multiples of other stocks in Splunk's high-growth peer group have declined significantly.”
    • Morgan Stanley (Equal-Weight) is a little more cautious: Though upbeat about Splunk's long-term opportunity, the firm thinks "a slowdown in productive sales capacity growth, price cuts and increasing competition represent [near-term] tactical headwinds."
    • The notes arrive as VMware (VMW -2.8%), hungry to grow its non-virtualization revenue base, takes aim at Splunk by launching the second-gen version of its vCenter Log Insight machine/log data analytics software (previous).
    • VMware claims the product, aimed at Splunk's core IT operations market, delivers a 6x improvement in query performance, as well as new machine learning tech that "automatically groups related data."
    • Previous: Analysts return from Splunk conference with high praise
    | May 20, 2014, 2:44 PM | 5 Comments
  • May 16, 2014, 7:06 PM
    • "With now over 550 apps available on the Splunk (SPLK +0.4%) app website, the company reiterates that Splunk is not just an app, but a platform that extends, consumes and integrates data-driven use cases," writes CLSA's Ed Maguire (Buy, $80 PT) after returning from the SplunkLive! user conference.
    • Maguire notes Splunk, which has been trying hard to expand beyond its core IT operational intelligence market, claims 130+ security apps in its ecosystem to go with 300+ IT operations/software management apps. He adds talks with customers revealed many had dramatically expanded deployments of Splunk's machine data analysis tools following initial success.
    • Cantor's Brian White, who called Splunk a top 2014 pick when shares were near $70, noted new CTO Todd Papaioannou says Splunk aims to be the "de facto fabric for unstructured data," a remark that points to broader ambitions in the big data/analytics space.
    • Deutsche's Karl Keirstead is more circumspect, noting rival Sumo Logic claims strong customer win activity for a cloud-based machine data solution it asserts is more scalable than Splunk Cloud. But he also declares "Splunk still has by far the greatest scale, mindshare and technology in the industry."
    • Valuation and (to a lesser extent) competitive worries have led shares to fall 59% from a February high of $106.15.
    • Previous: Splunk sputters after announcing sales chief is leaving
    | May 16, 2014, 7:06 PM | 1 Comment
  • May 7, 2014, 2:51 PM
    • Tom Schodorf, Splunk's (SPLK -7.9%) SVP of field operations since '09, is being replaced by former Cisco marketing exec Doug Merritt. Schodorf, a 30-year tech industry vet, will retire from Splunk at the end of FY15 (ends Jan. '15).
    • Splunk tries to allay fears the move is execution-related by stating it delivered "strong" FQ1 results, but doesn't provide any numbers. Results are due on May 29.
    • Today's announcement comes a day after Splunk unveiled a fresh update for its flagship machine data analysis platform (Splunk Enterprise). Whereas the last update focused on making the product easier for non-IT personnel to use, the latest one provides technical improvements such as multi-site clustering (improves availability) and better support for IBM mainframe datasets. Splunk's Hadoop/NoSQL big data analytics solution (Hunk) has also been updated.
    • Shares are near $48 amid a fresh momentum stock selloff; they're now down 55% from a February high of $106.15.
    | May 7, 2014, 2:51 PM
  • Apr. 29, 2014, 12:44 PM
    • Cloud ERP/HR/e-commerce software vendor NetSuite beat Q1 estimates, reported strong deferred revenue growth, and hiked its 2014 top-line guidance.
    • Meanwhile, Pac Crest is reiterating an Outperform for Workday (WDAY +8.8% - competes to an extent with NetSuite) and Splunk (SPLK +5.6%), and thinks the companies, along with Neutral-rated Salesforce (CRM +3.6%), can attract growth investors at current levels. The firm adds the companies are trading below their average price/sales multiples for the last 3 years.
    • Workday is down 38%, and Splunk 47%, from their respective 52-week highs. But the companies still both go for ~12x FY16E (ends Jan. '16) sales. Price/billings multiples are a bit lower, but still steep.
    • Several other enterprise cloud software vendors are joining NetSuite, Workday, and Salesforce in rallying on an up day for the Nasdaq. NOW +7.7%. CSOD +5.6%. ULTI +4%. DWRE (a NetSuite rival) +3.2%.
    | Apr. 29, 2014, 12:44 PM | 2 Comments
  • Apr. 23, 2014, 3:58 PM
    • Plenty of enterprise software names have underperformed on a down day for tech stocks after VMware (VMW -9.2%) provided soft bookings numbers (sub-10% Y/Y growth in the Americas, EMEA, and Asia-Pac), and blamed it on delays in signing major enterprise licensing deals (ELAs) as it talks with clients about more expansive agreements.
    • VMware rivals Oracle (ORCL -1.6%), Citrix (CTXS -2.8%), and Red Hat (RHT -1.7%) are among the decliners. Others: CRM -2.5%. WDAY -5.6%. SPLK -6.3%. VEEV -4.3%. NOW -4.2%. TIBX -2.9%. INFA -2.2%. QLIK -3.2%.
    • Nomura (Buy) observes that while VMware reported 18% Y/Y billings growth, underlying growth may have been in the single digits after accounting for the AirWatch deal and other adjustments. Nonetheless, it thinks ELA weakness might be a seasonal issue that will correct in Q2.
    • Is competition taking a toll? In spite of the soft bookings figures, VMware managed to report strong licensing activity for products other than its core vSphere server virtualization platform, and noted on its CC (transcript) solutions other than standalone vSphere made up over 45% of license bookings (up from 30%+ a year ago).
    • Microsoft's Hyper-V has been gradually eating into vSphere's market dominance. Other cheaper alternatives such as the open-source Xen (backed by Citrix) and KVM have also been gaining ground.
    | Apr. 23, 2014, 3:58 PM | 1 Comment
  • Apr. 10, 2014, 4:01 PM
    • Following a two-day rebound, high-beta tech stocks are seeing monumental losses once again. The Nasdaq is closing with its biggest one-day decline since 2011 (eclipsing last week's 110-point drop).
    • Security hardware/software providers were hard-hit following Imperva's (IMPV -43.8%) big warning: FEYE -11.6%. PANW -6.4%. PFPT -9.8%. FFIV -4.7%. KEYW -6.5%. FTNT -6.9%. QLYS -10.4%.
    • Other high-beta enterprise names didn't fare much better: DATA -10%. SPLK -10.3%. WDAY -9.3%. VRNS -8%. EOPN -7.9%. FIO -7.6%. BLOX -9.7%.
    • Major Internet decliners: P -11%. YELP -10.6%. ZNGA -6.6%. YY -7.3%. QIHU -9.3%. SINA -6.6%.
    • Solar: TSL -10.4%. CSIQ -10.4%. JKS -7.9%. SPWR -7.4%. JASO -6.8%. CSUN -8.2%.
    • 3D printing: DDD -10.6%. VJET -13.3%. ONVO -8.1%. XONE -7.7%. SSYS -6.7%.
    | Apr. 10, 2014, 4:01 PM | 16 Comments
  • Apr. 4, 2014, 4:20 PM
    • The recent selloff in Nasdaq momentum names spilled over to the rest of the stock market today, pulling the Dow and S&P sharply lower from their record highs hit earlier in the session.
    • The S&P 500's 1.2% drop was less than half the Nasdaq's 2.6% plunge, but its 1,865 close was well below the 1,875 some technicians saw as a resistance level.
    • The selling that started in biotechs a few weeks ago has carried over into cloud and enterprise software names, Internet and other high-flying tech names.
    • Looking around Nasdaq, the carnage is evident: ICPT -9.6%, FEYE -8.2%, YELP -6.8%, TRIP -6.1%, TSLA -5.8%, ILMN -5.8%, SPLK -5.5%,NFLX -4.9%, PCLN -4.8%, FB -4.6%, GOOG -4.6%, BIIB -4.5%, CELG -4.3%, WDAY -3.8%, AMZN -3.2%, GILD -2.4%, TWTR -2%.
    • Recent high-fliers also are seeing a surge in volatility to go along with their declines; the implied volatility of the iShares Biotech Fund (IBB -4%) is near its highest level in at least two years.
    • Treasurys rallied as the latest employment report eased concerns that the Fed could raise interest rates sooner than expected; the 10-year yield fell 6 bps at 2.732%.
    | Apr. 4, 2014, 4:20 PM | 54 Comments
  • Apr. 3, 2014, 3:57 PM
    • Today's rout in tech momentum names (the latest in a string) has been especially harsh on enterprise cloud software, security, and big data/analytics plays.
    • Major cloud software decliners: NOW -11%. WDAY -9.6%. N -6.5%. CNQR -7.2%. SAAS -6.3%. TXTR -6.3%. ULTI -5.5%. DWRE -8%. MKTO -6.2%. CSLT -9%. RALY -7.2%.
    • Salesforce (CRM -4.1%) is following the group lower after announcing plans to offer industry-specific cloud software solutions. Pac Crest thinks Salesforce's top-line will benefit, but is cutting its EPS estimates on margin concerns.
    • Security decliners: FEYE -10.3%. PANW -8.2%. KEYW -5.7%.
    • Big data/analytics decliners: DATA -7.4%. SPLK -6.9%. QLIK -4.1%. Splunk's selloff comes in spite of a two-notch CLSA upgrade to Outperform.
    | Apr. 3, 2014, 3:57 PM | 10 Comments
  • Feb. 27, 2014, 4:35 PM
    • Like many other fast-growing enterprise software names, Splunk (SPLK) isn't scared to spend aggressively: Though it's guiding for FY15 (ends Jan. '15) revenue of $400M (above a $396.3M consensus), it expects to have an op. margin of "approximately zero" for the year. That implies EPS below a $0.13 consensus.
    • FQ1 guidance is for revenue of $78M-$80M (in-line with a $79.4M consensus) and an op. margin of -8% to -10%; the EPS consensus is at -$0.03.
    • 500+ customers were added in seasonally strong FQ4, up from 450+ in FQ3. The total customer base is now above 7K. License revenue (69% of total revenue) rose 47% Y/Y, an even growth rate with FQ3.
    • An 88% Y/Y increase in opex led FQ4 EPS to miss estimates. Sales/marketing spend +90% to $76.4M (63% of revenue).
    • Splunk's deferred revenue balance rose 68% Y/Y to $192.3M.
    • Expectations were high going into earnings.
    • FQ4 results, PR
    | Feb. 27, 2014, 4:35 PM | 3 Comments
  • Feb. 27, 2014, 4:03 PM
    • Splunk Inc. (SPLK): Q4 EPS of $0.03 misses by $0.02.
    • Revenue of $99.9M (+53.2% Y/Y) beats by $9.54M.
    | Feb. 27, 2014, 4:03 PM
  • Feb. 27, 2014, 12:10 AM
  • Feb. 26, 2014, 5:35 PM
Company Description
Splunk, Inc. develops and markets software products. Its software collects and indexes data at massive scale, regardless of format or source and enables users to search, correlate, analyze, monitor and report on this data in real time. The company's machine data is generated by software... More
Sector: Technology
Industry: Application Software
Country: United States