Splunk Announces Fiscal First Quarter 2017 Financial Results 

May 27 — Splunk Inc. (NASDAQ: SPLK), provider of the leading software platform for real-time Operational Intelligence, has announced results for its fiscal first quarter ended April 30, 2016.

First Quarter 2017 Financial Highlights

• Total revenues were $186.0 million, up 48% year-over-year.
• License revenues were $101.0 million, up 41% year-over-year.
• GAAP operating loss was $98.1 million; GAAP operating margin was negative 52.8%.
• Non-GAAP operating loss was $1.4 million; non-GAAP operating margin was negative 0.7%.
• GAAP loss per share was $0.77; non-GAAP loss per share was $0.02.
• Operating cash flow was $35.7 million with free cash flow of $32.0 million.

“Q1 was a solid start to the year and we are pleased to welcome more than 450 new customers to the Splunk family,” said Doug Merritt, President and CEO, Splunk. “Our product team continued to deliver innovation in Splunk Enterprise 6.4, a new Splunk Cloud release, and new versions of Splunk Enterprise Security and Splunk User Behavior Analytics. We will continue to support our customers who are leveraging Splunk as their machine data fabric with increased investments in the Splunk platform, our ecosystem and high value solutions.”

First Quarter 2017 and Recent Business Highlights:

Customers:

• Signed more than 450 new enterprise customers.
• New and Expansion Customers Include: Auburn University, Central 1 Credit Union (Canada), Chicago Public Schools, Chipotle, Clemson University, Co-Operative Group (United Kingdom), Dartmouth-Hitchcock Medical Center, Denver International Airport, FamilySearch, GoodData, Jetstar (Australia), LGA Telecom Pte Ltd (Singapore), NTT Docomo (Japan), Okta, Tesco (United Kingdom), University of Alabama at Birmingham Health System, University of Virginia, U.S. Courts, Virginia Department of Motor Vehicles, Virginia Department of Taxation, World Bank Group.

Products:

• Announced the general availability of Splunk Enterprise 6.4 and a new Splunk Cloud release, enabling customers to drive down the cost of big data analytics by reducing the storage costs of historical data by 40 percent to 80 percent.
• Announced the general availability of Splunk Enterprise Security 4.1 and Splunk User Behavior Analytics 2.2, providing customers with better machine learning, anomaly detection, context-enhanced correlation and rapid investigation capabilities.
• Announced the availability of Splunk Enterprise in the Microsoft Azure Marketplace, allowing Azure customers to use and purchase Azure-certified Splunk Enterprise clusters in minutes.
• Announced the Splunk Add-On for Google Cloud Platform (GCP), a free add-on available on Splunkbase that provides IT Ops teams with secure access to GCP Pub/Sub events.
• Announced the new Puppet Enterprise App for Splunk, which helps DevOps teams collect and analyze performance data from Puppet Enterprise.

Strategic and Channel Partners:

• Splunk announced an alliance with Accenture to help organizations analyze machine data to drive high-impact business performance.
• Splunk was named the Cisco Global ISV Partner of the Year in the Cisco Partner Summit Global awards for enabling organizations to reduce operational and security risks, drive informed decisions across the organization and ultimately transform their business with Splunk Enterprise.
• Splunk announced it is leading a new Adaptive Response Initiative, bringing together the best technologies across the security industry to help organizations combat advanced attacks.
• Splunk announced an alliance with Verizon Enterprise to bring analytics-driven, predictive threat detection to enterprises and government agencies.
• Splunk announced an alliance with Herjavec Group that includes Splunk solutions at the heart of Herjavec Group’s new managed security service provider (MSSP) offerings.
• Splunk announced a reseller agreement with EMC. Joint customers will have a simple way to purchase EMC solutions with Splunk Enterprise, Hunk, Splunk Enterprise and Global Support, Splunk Professional Services and Splunk Education.

Recognition:

• Coca-Cola North America, a Splunk customer, was named to the 2016 InformationWeek Elite 100 list of the top business technology innovators for its marketing transformation initiative.
• Splunk was named one of the “Best Places to Work” in the Bay Area for the ninth consecutive year by San Francisco Business Times.
• Splunk Enterprise Security was recognized as the Best SIEM Solution at the 2016 SC Magazine Awards. 
• Splunk Enterprise was named Best Fraud Prevention Solution at the 2016 SC Magazine Awards.
• Splunk announced the winners of its Global Partner Awards at the Splunk Global Partner Summit, recognizing partners for their commitment to the Splunk Partner+ Program, joint customer success and outstanding performance.
• Haiyan Song, senior vice president, security markets, was honored as one of the 2016 Top 50 Most Powerful Women in Technology by the National Diversity Council.

Events:

• Hosted SplunkLive! events in cities around the world, including Frankfurt, San Diego, San Francisco, Washington, D.C., Portland, Seattle, Chicago, Kansas City and Milan. Presentations can be found on the SplunkLive! website.
• Splunk showcased its big data solutions to solve critical healthcare issues for IT, security, medical staff and patients at HIMSS16.
• Splunk participated in the 2016 RSA Conference to demonstrate how Splunk solutions enable organizations to optimize security operations and improve security posture.
• VenueNext, a Splunk customer, spoke at the 2016 Gartner Business Intelligence & Analytics Summit to discuss how VenueNext is leveraging Splunk technology to help venue operators gain real-time visibility into operations and understand event-goer behavior.

Appointments:

• Splunk appointed Susan St. Ledger as Chief Revenue Officer.

Financial Outlook:

The company is providing the following guidance for its fiscal second quarter 2017 (ending July 31, 2016):

• Total revenues are expected to be between $198 million and $200 million.
• Non-GAAP operating margin is expected to be between 2% and 3%.

The company is updating its previous guidance for its fiscal year 2017 (ending January 31, 2017):

• Total revenues are expected to be between $892 and $896 million (was approximately $880 million per prior guidance provided on Feb. 25, 2016).
• Non-GAAP operating margin is expected to be approximately 5% (unchanged from prior guidance provided on Feb. 25, 2016).

Source: Splunk