Splunk Inc. (SPLK) - NASDAQ
  • Thu, May 26, 5:39 PM
    | Thu, May 26, 5:39 PM
  • Thu, May 26, 4:38 PM
    • Splunk (NASDAQ:SPLK) is selling off after hours, -6%, after a Q1 earnings report where a loss came as expected though revenues grew solidly and beat, and the company raised full-year guidance.
    • It's a "solid start to the year and we are pleased to welcome more than 450 new customers to the Splunk family,” says CEO Doug Merritt.
    • The company lost $0.77/share on a GAAP basis; non-GAAP loss was $0.02, in line with expectations.
    • Revenue breakout: License, $100.99M (up 40.5%); Maintenance and services, $84.96M (up 57.9%).
    • Operating cash flow of $35.7M; free cash flow was $32M.
    • For Q2, it sees revenues of $198M-$200M, in line with expectations, and operating margin of 2-3%. It's raising guidance for full-year revenues, to $892M-$896M from its February forecast of $880M (and consensus of $882.3M).
    • Press Release
    | Thu, May 26, 4:38 PM | 4 Comments
  • Tue, Mar. 22, 1:46 PM
    • Stifel has hiked its Splunk (SPLK +2.4%) target by $5 to $56, while reiterating a Buy rating. Shares are close to their highest levels since January.
    • Separately, Splunk has disclosed Guido Schroeder, the company's SVP of products (in charge of all product development/management) since 2012, will see his employment terminate "on or before" April 29.
    • No word yet on Schroeder's replacement. News of his pending departure comes ten months after Splunk made a CTO change.
    • Three weeks ago: BMO starts Splunk at Outperform, forecasts strong security growth
    | Tue, Mar. 22, 1:46 PM
  • Fri, Mar. 4, 2:55 PM
    • Estimating the company's security revenue will rise 40% in FY17 (ends Jan. '17) and that its broader addressable market will see an 11% CAGR over the next few years, BMO's Keith Bachman has launched coverage on Splunk (SPLK +0.4%) with an Outperform rating and $55 target.
    • Bachman also thinks Splunk's reported FY16 billings figures understate its actual growth. "In FY2016, we believe that the underlying growth rate normalizing for ratable mix was around 55% y/y growth versus reported billings growth of about 45%. In the January quarter, we believe that billings normalized for ratable mix was about $600 million compared with $390 million the January 2015 quarter, or approximately 55% y/y growth compared with reported billings growth of 44% y/y."
    • He's unconcerned about competition from private Elastic (relies on Elasticsearch and other open-source software tools), declaring its pricing advantage is unclear on an all-in cost basis, and considers Splunk's valuation reasonable. "At $55 per share, Splunk would trade at 26x EV/FY2018E (January year-end) [free cash flow], and Splunk would trade at an (EV/FY2018E FCF)/FY2018E revenue growth rate of 0.9x, compared with the high-growth software average of 1.3x."
    • Shares are up 21% since Splunk beat FQ4 estimates and issued strong guidance eight days ago. Since then, the company has unveiled its Adaptive Response Initiative, an effort to pair Splunk's machine data analytics tools with third-party security hardware/software to provide an end-to-end view of alert and threat data. Partners include Fortinet, Palo Alto Networks, CyberArk, and several private companies.
    | Fri, Mar. 4, 2:55 PM
  • Fri, Feb. 26, 12:22 PM
    • Tableau (DATA +3.7%), Qlik (QLIK +2.7%), and Hortonworks (HDP +5.4%) are rallying after machine data analytics leader Splunk (SPLK +7.4%) beat FQ4 estimates, reported 44% Y/Y license revenue growth, and issued strong FQ1/FY17 guidance. The gains come three weeks after Qlik, Hortonworks, and Splunk (along with other enterprise tech firms) were hammered in the wake of Tableau's Q4 results and Q1/2016 guidance.
    • Oppenheimer's Shaul Eyal (Outperform rating, $80 target) is pleased with Splunk's large deal momentum. "[F]or 4Q SPLK recorded 523 six-figure orders; for FY16, SPLK recorded ~1,500 six-figure orders, 102 seven-figure orders and three eight-digit orders."
    • Cowen's Gregg Moskowitz (Outperform, $62 target): "Term license bookings represented a very high 53% of total license bookings. While the co. expects a reversion to the 40%-45% range going forward, we believe it will likely settle at a level at least modestly north of that. License ASPs of $80k were very strong for a second consecutive quarter and well above historical norms (~$40k- $50k). International revenue grew 67% y/y and accounted for 28% of total revenue, 300 bps above the year-ago period."
    • William Blair's Bhavan Suri (Outperform): "Not surprisingly, fourth-quarter ASPs jumped to $80,000 from historical levels in the $40,000-$50,000 range, which management said resulted from both larger initial and expansion deals. We attribute this dynamic to increased market recognition of the value proposition inherent to Splunk’s platform approach, which is that it enables joint purchasing decisions, rapid horizontal use-case expansion, and shorter time to value for customers."
    • Baird's Steven Ashley: "Partner relationships continue to strengthen, and management called out a number of 80 partners who have tightly integrated Splunk into their own product. Splunk’s competitive win rate in FY16 was over 85%, reinforcing our view that Splunk is a one-of-a-kind solution in the market at this time."
    | Fri, Feb. 26, 12:22 PM
  • Fri, Feb. 26, 9:17 AM
    | Fri, Feb. 26, 9:17 AM | 7 Comments
  • Thu, Feb. 25, 5:45 PM
    | Thu, Feb. 25, 5:45 PM | 6 Comments
  • Thu, Feb. 25, 4:15 PM
    • Splunk's (NASDAQ:SPLK) FQ4 beat has been accompanied by FQ1 revenue guidance of $172M-$174M (above a $170.8M consensus) and FY17 (ends Jan. '17) revenue guidance of $880M (up from a prior $850M and above an $854.2M consensus). FY17 op. margin guidance is at 5%.
    • License revenue (drives future maintenance/services revenue) rose 44% Y/Y in FQ4 to $141.4M, nearly even with FQ3's 45% clip. Maintenance/services revenue rose 59% to $78.6M. GAAP operating expenses rose 44% to $263.6M.
    • Over 600 customers were added, raising the total count above 11K. New and expansion clients included Bloomberg, eBay, Shell, SoftBank, GoDaddy, and Expedia. FY16 free cash flow totaled $104.3M (well above non-GAAP net income of $23.6M).
    • SPLK +9.4% after hours to $42.10. Shares went into the FQ4 report more than $20 where they traded going into the FQ3 report, thanks in part to their reaction to Tableau's earnings/guidance.
    • Splunk's FQ4 results, earnings release
    | Thu, Feb. 25, 4:15 PM | 4 Comments
  • Thu, Feb. 25, 4:06 PM
    • Splunk (NASDAQ:SPLK): Q4 EPS of $0.11 beats by $0.03.
    • Revenue of $220M (+49.3% Y/Y) beats by $17.03M.
    • Shares +12%.
    • Press Release
    | Thu, Feb. 25, 4:06 PM | 1 Comment
  • Fri, Feb. 5, 11:01 AM
    • A long list of enterprise software and security tech names are off sharply after business intelligence/analytics software upstart Tableau (down 45.3%) reported slower-than-expected license revenue growth and issued below-consensus Q1/2016 guidance.
    • Also possibly weighing: LinkedIn (down 39.6%), which derives a large % of its revenue from cloud-based recruiting and sales tools for enterprises, issued weak Q1/2016 guidance.
    • Given the magnitude of the drops, margin calls and forced selling by funds could be playing a big role. The Nasdaq is down 2.2%.
    • Tableau suggested its growth slowdown has to do with softening IT spend and a need to improve sales productivity, but analysts have raised questions about competition from the likes of Microsoft, Amazon, and Qlik. LinkedIn forecast a growth slowdown for its field sales hiring solutions business, while blaming European/Asian macro pressures. The company also noted its display ad business continues declining amid weak industry growth.
    • Major enterprise software decliners include Splunk (SPLK -23.7%), Workday (WDAY -15.1%), Adobe (ADBE -7%), Zendesk (ZEN -15.2%), ServiceNow (NOW -13.6%), NetSuite (N -12.4%), Salesforce (CRM -11.2%), Paycom (PAYC -10.6%), Ellie Mae (ELLI -11.5%), Cornerstone OnDemand (CSOD -7.8%), Veeva (VEEV -7.7%), Ultimate Software (ULTI -9%), Luxoft (LXFT -7.5%), Manhattan Associates (MANH -8.5%), Box (BOX -6.6%), Guidewire (GWRE -13.6%), Demandware (DWRE -9.3%), Hortonworks (HDP -9.7%), and Tableau rival Qlik (QLIK -16.6%). The casualty list includes many cloud software firms, as well as several analytics software plays. Previously covered: New Relic, Atlassian.
    • Major decliners among security tech firms: Palo Alto Networks (PANW -12%), FireEye (FEYE -8.9%), Rapid7 (RPD -8.6%), CyberArk (CYBR -8.3%), Proofpoint (PFPT -8%), Imperva (IMPV -8.3%), Fortinet (FTNT -6.9%), and Vasco (VDSI -5.1%). The selloff comes in spite of an FQ3 beat and in-line FQ4 guidance from Symantec, which has been losing share to various upstarts.
    | Fri, Feb. 5, 11:01 AM | 19 Comments
  • Fri, Feb. 5, 9:17 AM
    | Fri, Feb. 5, 9:17 AM | 10 Comments
  • Thu, Feb. 4, 4:20 PM
    • Likely weighing on Tableau (NYSE:DATA) post-earnings: While Q4 revenue rose 42% Y/Y to $202.8M and beat consensus by $2M, license revenue (drives future services revenue) rose 31% to $133.1M, a marked slowdown from Q3's 57% growth and Q2's 60%.
    • 3,600+ new accounts were added, up from 2,600+ a year ago. $100K+ transactions rose 36% Y/Y to 414. International revenue rose 63% to $53.7M. GAAP operating expenses rose a steep 63% to $188.2M.
    • Tableau has plunged to $50.00 after hours. Machine data analytics leader Splunk (NASDAQ:SPLK) is down 8.8% to $42.92. Tableau rival QLIK is down 2.3% to $24.36. Three months ago, Splunk and Qlik rallied in response to Tableau's earnings/guidance. Tableau typically guides on its earnings call (starts at 4:30PM ET).
    • Tableau's Q4 results, earnings release
    | Thu, Feb. 4, 4:20 PM | 18 Comments
  • Fri, Jan. 22, 12:33 PM
    • IBM is nearing a "big move to improve its ties" with machine/log data analytics software leader Splunk (SPLK +2.6%), reports Northland Securities' Tim Klassell. He sees such a deal providing a "nice tailwind" for Splunk's efforts to win larger deals.
    • FBR argued last month Splunk could be a 2016 IBM acquisition target, but it's worth noting Splunk would be much more costly than recent IBM analytics acquisitions. Regardless, Big Blue's "business analytics" revenue (covered a variety of analytics-related hardware, software, and services sales) totaled $17.9B in 2015 (up 7% Y/Y), and the company could provide Splunk with a massive army of sales, consulting, and IT personnel to sell and deploy the company's offerings.
    • Splunk's current partner list includes Accenture, Cisco, Juniper, NTT, Palo Alto Networks, and VMware. Shares are moderately outpacing the Nasdaq's 2% gain.
    | Fri, Jan. 22, 12:33 PM
  • Wed, Jan. 20, 1:18 PM
    • Like clockwork, high-beta tech stocks continue selling off at a feverish pace as markets nosedive. Today's selloff comes with the Nasdaq down 2.7%, and the S&P 3%. Margin calls are likely a contributing factor.
    • Solar stocks, which sold off yesterday even as major indices moved little, are underperforming again as energy stocks get routed once more and oil drops below $27/barrel. Hard-luck SunEdison (SUNE -13.6%) is now close to $2. Also tumbling: Canadian Solar (CSIQ -8.8%), ReneSola (SOL -8.2%), and Yingli (YGE -6.9%).
    • Security tech plays FireEye (FEYE -9.3%), Palo Alto Networks (PANW -6.1%), Rapid7 (RPD -11.6%), and Vasco (VDSI -10.5%) aren't faring better - peers Fortinet and Barrcauda were downgraded this morning. Nor are Splunk (SPLK -7.7%) and Tableau (DATA -7.2%), two firms often hyped as big data/analytics plays, or Russian tech firms Yandex (YNDX -6.6%) and Qiwi (QIWI -6.9%), which often sell off when oil prices and the ruble are under pressure.
    • Elsewhere in tech, big decliners include Zillow (Z -7.1%), Square (SQ -6.7%), Fitbit (FIT -6.6%), Groupon (GRPN -6.9%), TrueCar (TRUE -7.7%), Pure Storage (PSTG -7.8%), Jive Software (JIVE -7.4%), Shopify (SHOP -7.2%), Ruckus Wireless (RKUS -8%), Renren (RENN -6.8%), Infinera (INFN -6.1%), TripAdvisor (TRIP -6.5%), Ellie Mae (ELLI -6.7%), and Knowles (KN -6.2%).
    • Also off sharply: Several large-cap tech stocks, TowerJazz, Synaptics, Adtran
    | Wed, Jan. 20, 1:18 PM | 20 Comments
  • Dec. 11, 2015, 3:21 PM
    • A long list of tech firms are off sharply as the Nasdaq and S&P respectively drop 2% and 2.2% ahead of an expected Fed rate hike.
    • The casualty list includes threat-prevention hardware/software provider FireEye (FEYE -6.2%), machine data analytics software vendor Splunk (SPLK -7.1%), driver-assistance system vendor Mobileye (MBLY -6.3%), supercomputer makers Cray (CRAY -7.6%) and Silicon Graphics (SGI -7%), audio codec chipmaker Cirrus Logic (CRUS -5.3%), and local services marketplace Angie's List (ANGI -6.3%).
    • Others include cloud HR/financials software provider Workday (WDAY -5.6%). enterprise social networking software firm Jive Software (JIVE -5.9%), cloud telematics software provider FleetMatics (FLTX -5.2%), mobile accessory maker Zagg (ZAGG -7.5%), network visibility/monitoring hardware provider Gigamon (GIMO -5.8%), smart grid networking hardware/software provider Silver Spring (SSNI -8.9%), and online travel deals provider Travelzoo (TZOO -6%).
    | Dec. 11, 2015, 3:21 PM | 2 Comments
  • Dec. 8, 2015, 10:10 AM
    • Stating an IT security survey involving 51 CIOs turned up "exceptional strength" for FireEye (FEYE +7.5%), Citi's Walter Pritchard has upgraded shares to Buy and hiked target hiked by $4 to $35.
    • Palo Alto Networks (PANW -0.6%), Splunk (SPLK +0.4%), and Imperva (IMPV +2%) also "showed up fairly well" in the survey, which pointed to continued strong end-market demand for security in general. Network security led the way, and demand for endpoint protection offerings was particularly strong. FireEye obtained an endpoint protection product line through the Mandiant acquisition; Palo Alto launched its Traps endpoint protection service a year ago.
    • Regarding FireEye, crushed last month due to soft Q3 revenue/billings figures and a full-year guidance cut, Pritchard now sees a favorable risk/reward, and thinks sentiment is "quite negative vs. security peers."
    • Pritchard admits he has been worried (like other analysts) about the consolidation of advanced persistent threat (APT) functionality from standalone products such as FireEye's into firewall and endpoint platforms. However, survey results "show continued reversal of consolidation pressure in network security and also buyer support for standalone APT solutions." That leads him to think FireEye "had more of an execution issue in Q3 than a change in demand/secular market shift."
    | Dec. 8, 2015, 10:10 AM | 10 Comments
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