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Splunk Inc. (SPLK)

  • Dec. 18, 2014, 2:04 PM
    • With the help of stronger-than-expected hardware sales, Oracle (ORCL +9.2%) beat FQ2 estimates in spite of a 400 bps forex headwind (twice what was originally expected). FQ3 guidance was conservative after taking forex pressures into account.
    • The numbers have been good enough for Oracle to surge to new highs and receive a slew of target hikes, and to lead many enterprise tech names to outperform amid a big market rally. The Nasdaq is up 1.9%.
    • Microsoft (MSFT +3.2%), Cisco (CSCO +2.3%), EMC (EMC +3.7%), VMware (VMW +5.1%), and beaten-down IBM (IBM +2.8%) are among the enterprise tech names outperforming today. Others: SPLK +4.6%. CA +3.5%. RHT +3.4%. VRNS +6.3%. PCTY +5.8%. JIVE +4.6%. VMEM +5.2%. SAAS +4.7%. BRCD +3.8%.
    • Oracle's healthy cloud software numbers are drawing attention: While traditional software license revenue fell 4% Y/Y, its SaaS/PaaS revenue rose 41%. SaaS/PaaS bookings totaled $170M, and are expected to be "well over" $1B in FY16 (ends May '16). Fusion cloud app bookings rose over 100%.
    • On the CC (transcript), Oracle performed its customary trash-talking of cloud app rivals. "We are clearly growing faster than Salesforce (CRM +4%) and were more than three times the size of Workday (WDAY +3.2%)." Both firms are posting solid gains.
    • Oracle's numbers come as Bloomberg reports the Chinese government is looking to "purge most foreign technology from banks, the military, state-owned enterprises and key government agencies by 2020." IBM, Cisco, and other U.S. firms have already seen their Chinese sales fall sharply following last year's NSA spying uproar.
  • Dec. 15, 2014, 7:54 AM
    • The Q-50 Index houses those companies next-eligible for inclusion into the Nasdaq 100 (NASDAQ:QQQ). Amid the Nasdaq 100's annual changes which added and dropped three from the index, the Q-50's quarterly re-ranking adds and drops eleven.
    • Added: Ainylam Pharma (NASDAQ:ALNY), Expedia (NASDAQ:EXPE), F5 Networks (NASDAQ:FFIV), (NASDAQ:JD), MercadoLibre (NASDAQ:MELI), Maxim Integrated (NASDAQ:MXIM), Old Dominion Freight Line (NASDAQ:ODFL), Shire (NASDAQ:SHPG), Splunk (NASDAQ:SPLK), Stratasys (NASDAQ:SSYS), United Therapeutics (NASDAQ:UTHR).
    • Dropped: Avis Budget (NASDAQ:CAR), Cree (NASDAQ:CREE), First Solar (NASDAQ:FSLR), Golar LNG (NASDAQ:GLNG), Methanex (NASDAQ:MEOH), Melco Crown (NASDAQ:MPEL), Nuance (NASDAQ:NUAN), SolarCity (NASDAQ:SCTY). Also dropped are the three Nasdaq 100 additions: American Airlines, Lam Research, and Electronic Arts.
    • Source: Press Release
    • Previously: Who's in, who's out in annual change to Nasdaq 100 (Dec. 13, 2014)
  • Nov. 21, 2014, 9:13 AM
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  • Nov. 20, 2014, 5:42 PM
  • Nov. 20, 2014, 4:13 PM
    • Splunk (NASDAQ:SPLK) expects FQ4 revenue of $135M-$137M, above a $133.3M consensus. Op. margin guidance is at 4%-5%.
    • Preliminary FY16 (ends Jan. '16) guidance is for revenue of $575M, above a $570.3M consensus. Splunk has a history of upping its full-year guidance as a year progresses.
    • License revenue rose 41% Y/Y in FQ3 to $71.8M, after growing 44% in FQ2. Services revenue rose 59% to  $44.3M vs. 67% in FQ2.
    • 500+ new customers were signed, even with FQ2 and raising the base to 8.4K+. AT&T, Cisco, Comcast, and the DOE were among Splunk's FQ3 clients.
    • GAAP opex rose 73% Y/Y to $146.7M, exceeding revenue growth of 48% but slowing from FQ2's 101% clip. Sales/marketing spend totaled $85.7M, R&D spend $39.5M, and G&A $21.4M.
    • FQ3 results, PR
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  • Nov. 20, 2014, 4:03 PM
    • Splunk (NASDAQ:SPLK): Q3 EPS of $0.02 beats by $0.01.
    • Revenue of $116M (+47.5% Y/Y) beats by $8.69M.
    • Shares +4.37%.
    • Press Release
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  • Nov. 19, 2014, 5:35 PM
  • Nov. 17, 2014, 2:49 PM
    • Splunk (SPLK -4.8%) is having a rough day ahead of Thursday's FQ3 report. Volume (1.53M shares thus far vs. a 3-month average of 2.35M) is relatively light.
    • Shares are still up 44% since Splunk posted an FQ2 beat and hiked its FY15 guidance in August.
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  • Nov. 11, 2014, 12:44 PM
    • New Relic, a provider of cloud-based tools for analyzing software data to monitor performance and usage, has filed to raise up to $100M under the symbol NEWR. The Underwriters are Morgan Stanley, JPMorgan, UBS, Allen & Co., JMP, and Raymond James. (prospectus)
    • New Relic, which declares itself to be "powering a global data nerd movement," had 250K+ users at the end of September. Revenue for the six months ending Sep. 30 totaled $48M (+84% Y/Y), and net loss $19.4M. Sales/marketing spend of $37.6M had much to do with the red ink.
    • Splunk (SPLK -0.1%), whose machine/log data software is used to analyze app performance (among other things), is a key rival. Last year, Splunk (hungry to expand beyond its core IT operational intelligence end-market) bought mobile app machine data analytics startup BugSense.
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  • Nov. 7, 2014, 8:32 AM
    • Evercore ISI has upgraded Splunk (NASDAQ:SPLK) to Buy, and CA Technologies to Hold. Its targets have been respectively been upped to $75 and $30.
    • Evercore is upbeat about Splunk's ability to improve sales productivity (a recent concern), and considers risk/reward favorable at current levels. It cites valuation and improving enterprise IT spending as reasons for upgrading CA.
    • SPLK +1.2% premarket. The machine data analytics vendor's FQ3 report is due on Nov. 20.
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  • Oct. 22, 2014, 1:22 PM
    • Enterprise software vendors are having a rough day after VMware (VMW -5.6%) provided light Q4 guidance to go with a Q3 beat.
    • On its CC (transcript), VMware also reported its bookings fell Q/Q in Q3. They were hurt by Russian and German softness, and a failure to close a major enterprise license agreement (ELA) with a federal client. ELAs made up 29% of Q3 bookings, down from 37% in Q2.
    • Rivals Oracle (ORCL -1.5%), Red Hat (RHT -3.3%), and Citrix (CTXS -1.5%) are among the decliners, as are Splunk (SPLK -4.7%), Tableau (DATA -2.8%), Qlik (QLIK -2.5%), and MicroStrategy (MSTR -0.9%). Oracle provided light guidance last month.
    • Several enterprise cloud software stocks are also selling off: N -2.5%. VEEV -2.9%. ZEN -4.2%. CSOD -2.3%. SAAS -3.2%. NOW -1.7%.
    • Nomura and Raymond James have downgraded VMware. Nomura thinks 2015 guidance (expected in January) will also be light, and believes slow vSphere server virtualization growth (affected by competition and high penetration rates) will remain a headwind, given it's still over half of VMware's business. "Growth has to come from the vCloud Suite ... other newer products are just too small still to matter."
    • Some of those "other newer products" are doing well: VMware's end-user computing license bookings (boosted by the AirWatch acquisition) rose over 60% Y/Y in Q3, and its much-hyped NSX software-defined networking platform now has 250+ paying customers (up from just 100 a few months ago).
    • A slew of enterprise tech names sold off on Monday in response to IBM's Q3 report. Big Blue's software sales fell 2% Y/Y in Q3, after rising 1% in Q2. CA, Citrix, and ServiceNow report after the bell.
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  • Oct. 13, 2014, 9:12 AM
    • William Blair has upgraded Splunk (NASDAQ:SPLK) to Outperform. The firm cites improving visibility and a reasonable valuation.
    • Morgan Stanley upgraded the machine data analytics vendor a week ago. Shares still go for 11x FY16E (ends Jan. '16) sales. Price/billings multiples are a little lower.
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  • Oct. 6, 2014, 10:00 AM
    • Morgan Stanley's Keith Weiss has upgraded Splunk (SPLK +4.5%) and Tableau (DATA +6.7%) to Overweight, and downgraded Tableau rival Qlik (QLIK -2.9%) to Equal-weight.
    • Weiss: "As a 'Big Data pure play, Splunk benefits from strong secular tailwinds and significant market momentum." He highlights the machine data analytics software firm's FQ2 growth acceleration, and thinks its user conference (starts today) could act as a fresh catalyst. CFO Dave Conte will be hosting a talk with investors/analysts at the conference tomorrow at 2:15PM ET.
    • Regarding Tableau, Weiss predicts the analytics/data visualization upstart's "with a large market opportunity, expanding distribution capacity and strong execution" will yield "plenty of runway" for growth. He thinks a bull case of 50%+ and 100%+ annual sales and free cash flow growth, respectively, is quite achievable.
    • As for Qlik, Weiss admits the pending launch of Qlik Sense (previous) is an opportunity, but is concerned about execution, as well as the need for higher sales/marketing spend to support the Sense ramp. As it is, sales/marketing spend has outpaced revenue growth for several years.
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  • Aug. 29, 2014, 1:23 PM
    • A 33% FQ2 price cut for the Splunk Cloud machine data analytics platform (Amazon price cuts were passed on) appears to be paying off, says CLSA after taking stock of Splunk's (SPLK +19.4%) FQ2 beat and strong guidance. The firm thinks the cuts, along with the launch of an online sandbox for prospective buyers led to "an influx" of new entry-level clients in FQ2.
    • Cowen likes the fact term licenses (as opposed to perpetual licenses) made up 37% of license bookings, much better than the firm's 25% forecast and "indicative of an even stronger quarter than it initially appears." Pac Crest is pleased with CC remarks (transcript) about improving sales productivity (a recent concern) and strong government orders.
    • Morgan Stanley likes Splunk's top-line and customer growth, but remains worried about competition (rival Sumo Logic has been claiming strong growth) and notes management has hinted at further price cuts.
    • Analytics/data visualization software vendors Tableau (DATA +6.3%) and Qlik (QLIK +1.9%) are following Splunk higher.
    • Prior Splunk earnings coverage
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  • Aug. 29, 2014, 12:45 PM
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  • Aug. 29, 2014, 9:07 AM
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Company Description
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.
Sector: Technology
Country: United States