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Splunk Inc. (SPLK)

  • 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.
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  • Fri, Feb. 27, 9:15 AM
  • Thu, Feb. 26, 5:38 PM
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  • 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
    | 1 Comment
  • Thu, Feb. 26, 4:04 PM
    • Splunk (NASDAQ:SPLK): FQ4 EPS of $0.09 beats by $0.05.
    • Revenue of $147.39M (+47.5% Y/Y) beats by $10.34M.
    • Shares +3.54%.
    • Press Release
    | 1 Comment
  • 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
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  • 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).
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  • 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%), (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
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  • 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
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  • Tue, Feb. 3, 12:24 PM
    • Splunk (SPLK +2.5%) will report FQ4 and full-year results after the close on Thursday, February 26th. The conference call will begin at 4.30pm ET.
    • Consensus views for FQ4 and FY15 are for EPS of $0.04 and $0.04 and revenue of $137.05M (+37.2% Y/Y) and $440.68M (+45.6% Y/Y), respectively.
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  • 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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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