Delaware | 001-35498 | 86-1106510 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Exhibit Number | Description | |
99.1 | Press release issued by Splunk Inc. dated August 27, 2015. |
SPLUNK INC. | ||
By: | /s/ David F. Conte | |
David F. Conte | ||
Senior Vice President and Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press release issued by Splunk Inc. dated August 27, 2015. |
• | Total revenues were $148.3 million, up 46% year-over-year. |
• | License revenues were $88.0 million, up 42% year-over-year. |
• | GAAP operating loss was $65.6 million; GAAP operating margin was negative 44.2%. |
• | Non-GAAP operating income was $4.8 million; non-GAAP operating margin was 3.2%. |
• | GAAP loss per share was $0.44; non-GAAP earnings per share were $0.03. |
• | Operating cash flow was $13.6 million with free cash flow of $10.8 million. |
• | Signed more than 500 new customers, ending the quarter with more than 10,000 customers worldwide. |
• | New and Expansion Customers Include: AFLAC, Barnes & Noble, Blue Coat Systems Inc., City of San Diego, Covered California, Deutsche Bahn (Germany), Experian (United Kingdom), Gatwick Airport (United Kingdom), GEICO, Infospace, Materialise NV (Belgium), Maxim’s Caterers (Hong Kong), Pernod Ricard (France), Samsung Semiconductor (South Korea), Sharp Healthcare, Staples, State of Missouri, Texas Roadhouse, Unify Solutions (Australia), United States Marine Corp, U.S. Securities and Exchange Commission and Yelp. |
• | Released the new version of the Splunk App for Stream, with functionality that simplifies configuration while increasing administration flexibility. |
• | Announced the winners of Splunk Apptitude App Contest. |
◦ | Fraud / Insider Threat app winner: Hyperthreat |
◦ | Social Impact app winner: Energy Scan |
◦ | Innovation app winner: PRI Capacity |
• | Announced the acquisition of Caspida, extending Splunk’s security analytics leadership by adding Behavioral Analytics and machine learning to better detect advanced and insider threats. |
• | Acquired Metafor Software, an anomaly detection and machine learning company. |
• | Splunk technology partner, Kepware Technologies, awarded the 2015 IoT Evolution Product of the Year Award, from IoT Evolution Magazine, for its Industrial Data Forwarder for Splunk plug-in. |
• | Splunk named a Leader in the 2015 Gartner Magic Quadrant for Security Information and Event Management and is the only company to improve on completeness of vision. |
• | Splunk won first prize at the Deutsche Bahn Internet of Things Hackathon. |
• | Splunk won Computing’s Vendor Excellence Award for “Big Data Innovation”, referencing Splunk’s work to democratize big data. |
• | Hosted SplunkLive! events in cities around the world, including: Boston, Chicago, Hamburg, London, New York, Osaka, Philadelphia, San Francisco, Singapore, Sydney, Tokyo, Toronto and Vienna. Presentations can be found on the SplunkLive! website. |
• | Total revenues are expected to be between $158 million and $160 million. |
• | Non-GAAP operating margin is expected to be between 1% and 2%. |
• | Total revenues are expected to be between $628 million and $632 million (was $610 million to $614 million per prior guidance provided on May 28, 2015). |
• | Non-GAAP operating margin is expected to be between 2% and 3%. |
Three Months Ended | Six Months Ended | |||||||||||||||
July 31, | July 31, | July 31, | July 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | ||||||||||||||||
License | $ | 87,960 | $ | 62,081 | $ | 159,832 | $ | 113,355 | ||||||||
Maintenance and services | 60,366 | 39,466 | 114,159 | 74,099 | ||||||||||||
Total revenues | 148,326 | 101,547 | 273,991 | 187,454 | ||||||||||||
Cost of revenues | ||||||||||||||||
License | 1,813 | 72 | 2,974 | 150 | ||||||||||||
Maintenance and services | 23,227 | 14,999 | 45,151 | 29,108 | ||||||||||||
Total cost of revenues 1,2,3 | 25,040 | 15,071 | 48,125 | 29,258 | ||||||||||||
Gross profit | 123,286 | 86,476 | 225,866 | 158,196 | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development | 48,308 | 34,179 | 93,006 | 63,921 | ||||||||||||
Sales and marketing | 111,786 | 79,978 | 213,775 | 151,056 | ||||||||||||
General and administrative 4,5 | 28,760 | 32,676 | 55,632 | 53,679 | ||||||||||||
Total operating expenses 1,2,3 | 188,854 | 146,833 | 362,413 | 268,656 | ||||||||||||
Operating loss | (65,568 | ) | (60,357 | ) | (136,547 | ) | (110,460 | ) | ||||||||
Interest and other income (expense), net | ||||||||||||||||
Interest income, net | 425 | 163 | 785 | 293 | ||||||||||||
Other income (expense), net | (295 | ) | (54 | ) | (206 | ) | (274 | ) | ||||||||
Total interest and other income (expense), net | 130 | 109 | 579 | 19 | ||||||||||||
Loss before income taxes | (65,438 | ) | (60,248 | ) | (135,968 | ) | (110,441 | ) | ||||||||
Income tax provision (benefit) 6 | (10,149 | ) | 534 | (9,493 | ) | 1,096 | ||||||||||
Net loss | $ | (55,289 | ) | $ | (60,782 | ) | $ | (126,475 | ) | $ | (111,537 | ) | ||||
Basic and diluted net loss per share | $ | (0.44 | ) | $ | (0.51 | ) | $ | (1.01 | ) | $ | (0.94 | ) | ||||
Weighted-average shares used in computing basic and diluted net loss per share | 126,621 | 119,012 | 125,602 | 118,165 |
1 Includes amortization of acquired intangible assets as follows: | ||||||||||||||||
Cost of revenues | $ | 1,572 | $ | 703 | $ | 2,483 | $ | 1,390 | ||||||||
Research and development | 79 | 69 | 148 | 138 | ||||||||||||
Sales and marketing | 155 | 150 | 305 | 297 |
2 Includes stock-based compensation expense as follows: | ||||||||||||||||
Cost of revenues | $ | 5,662 | $ | 3,808 | $ | 12,194 | $ | 7,614 | ||||||||
Research and development | 19,301 | 13,578 | 39,376 | 26,165 | ||||||||||||
Sales and marketing | 28,210 | 21,263 | 57,820 | 40,383 | ||||||||||||
General and administrative | 10,436 | 20,861 | 20,328 | 28,587 | ||||||||||||
3 Includes employer payroll tax on employee stock plans as follows: | ||||||||||||||||
Cost of revenues | $ | 398 | $ | 97 | $ | 661 | $ | 233 | ||||||||
Research and development | 732 | 515 | 1,635 | 1,322 | ||||||||||||
Sales and marketing | 985 | 401 | 2,061 | 1,281 | ||||||||||||
General and administrative | 602 | 328 | 1,182 | 893 | ||||||||||||
4 Includes ground lease expense related to build-to-suit obligation | $ | 222 | $ | 222 | $ | 444 | $ | 222 | ||||||||
5 Includes acquisition-related costs | $ | 1,993 | $ | — | $ | 1,993 | $ | — | ||||||||
6 Includes a partial release of the valuation allowance due to acquisition | $ | (10,924 | ) | $ | — | $ | (10,924 | ) | $ | — |
July 31, 2015 | January 31, 2015 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 326,200 | $ | 387,315 | ||||
Investments, current portion | 529,174 | 462,849 | ||||||
Accounts receivable, net | 99,694 | 128,413 | ||||||
Prepaid expenses and other current assets | 22,312 | 21,256 | ||||||
Total current assets | 977,380 | 999,833 | ||||||
Investments, non-current | 71,685 | 165,082 | ||||||
Property and equipment, net | 77,013 | 50,374 | ||||||
Intangible assets, net | 55,842 | 10,416 | ||||||
Goodwill | 124,321 | 19,070 | ||||||
Other assets | 6,899 | 3,016 | ||||||
Total assets | $ | 1,313,140 | $ | 1,247,791 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 4,116 | $ | 3,726 | ||||
Accrued payroll and compensation | 57,174 | 65,220 | ||||||
Accrued expenses and other liabilities | 33,702 | 27,819 | ||||||
Deferred revenue, current portion | 263,157 | 249,883 | ||||||
Total current liabilities | 358,149 | 346,648 | ||||||
Deferred revenue, non-current | 58,093 | 54,202 | ||||||
Other liabilities, non-current | 59,311 | 33,620 | ||||||
Total non-current liabilities | 117,404 | 87,822 | ||||||
Total liabilities | 475,553 | 434,470 | ||||||
Stockholders’ equity | ||||||||
Common stock | 128 | 123 | ||||||
Accumulated other comprehensive loss | (2,164 | ) | (837 | ) | ||||
Additional paid-in capital | 1,352,921 | 1,200,858 | ||||||
Accumulated deficit | (513,298 | ) | (386,823 | ) | ||||
Total stockholders’ equity | 837,587 | 813,321 | ||||||
Total liabilities and stockholders’ equity | $ | 1,313,140 | $ | 1,247,791 |
Three Months Ended | Six Months Ended | |||||||||||||||
July 31, | July 31, | July 31, | July 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||
Net loss | $ | (55,289 | ) | $ | (60,782 | ) | $ | (126,475 | ) | $ | (111,537 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 4,310 | 2,887 | 7,776 | 5,538 | ||||||||||||
Amortization of investment premiums | 361 | 136 | 722 | 136 | ||||||||||||
Stock-based compensation | 63,609 | 59,510 | 129,718 | 102,749 | ||||||||||||
Deferred income taxes | (10,986 | ) | (228 | ) | (11,305 | ) | (513 | ) | ||||||||
Excess tax benefits from employee stock plans | (186 | ) | (389 | ) | (652 | ) | (868 | ) | ||||||||
Changes in operating assets and liabilities | ||||||||||||||||
Accounts receivable, net | (18,353 | ) | (17,725 | ) | 28,719 | 13,510 | ||||||||||
Prepaid expenses, other current and non-current assets | 12,795 | 968 | 12,468 | 1,492 | ||||||||||||
Accounts payable | (502 | ) | 5 | (100 | ) | 391 | ||||||||||
Accrued payroll and compensation | 9,657 | 7,093 | (8,698 | ) | (6,664 | ) | ||||||||||
Accrued expenses and other liabilities | (7,725 | ) | 4,878 | (7,085 | ) | 9,339 | ||||||||||
Deferred revenue | 15,947 | 12,983 | 17,165 | 14,674 | ||||||||||||
Net cash provided by operating activities | 13,638 | 9,336 | 42,253 | 28,247 | ||||||||||||
Cash Flow From Investing Activities | ||||||||||||||||
Purchases of investments | (58,681 | ) | (53,070 | ) | (219,195 | ) | (303,953 | ) | ||||||||
Maturities of investments | 87,000 | 15,000 | 247,000 | 15,000 | ||||||||||||
Acquisitions, net of cash acquired | (142,693 | ) | (2,500 | ) | (142,693 | ) | (2,500 | ) | ||||||||
Purchases of property and equipment | (2,809 | ) | (2,908 | ) | (9,224 | ) | (7,146 | ) | ||||||||
Other investment activities | — | — | (1,500 | ) | — | |||||||||||
Net cash used in investing activities | (117,183 | ) | (43,478 | ) | (125,612 | ) | (298,599 | ) | ||||||||
Cash Flow From Financing Activities | ||||||||||||||||
Proceeds from the exercise of stock options | 5,370 | 3,582 | 10,736 | 9,418 | ||||||||||||
Excess tax benefits from employee stock plans | 186 | 389 | 652 | 868 | ||||||||||||
Proceeds from employee stock purchase plan | 10,906 | 8,355 | 10,906 | 8,355 | ||||||||||||
Payment related to build-to-suit lease obligation | — | (523 | ) | — | (523 | ) | ||||||||||
Net cash provided by financing activities | 16,462 | 11,803 | 22,294 | 18,118 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (224 | ) | (10 | ) | (50 | ) | 179 | |||||||||
Net decrease in cash and cash equivalents | (87,307 | ) | (22,349 | ) | (61,115 | ) | (252,055 | ) | ||||||||
Cash and cash equivalents at beginning of period | 413,507 | 667,747 | 387,315 | 897,453 | ||||||||||||
Cash and cash equivalents at end of period | $ | 326,200 | $ | 645,398 | $ | 326,200 | $ | 645,398 |
Three Months Ended | Six Months Ended | |||||||||||||||
July 31, | July 31, | July 31, | July 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Reconciliation of cash provided by operating activities to free cash flow: | ||||||||||||||||
Net cash provided by operating activities | $ | 13,638 | $ | 9,336 | $ | 42,253 | $ | 28,247 | ||||||||
Less purchases of property and equipment | (2,809 | ) | (2,908 | ) | (9,224 | ) | (7,146 | ) | ||||||||
Free cash flow (Non-GAAP) | $ | 10,829 | $ | 6,428 | $ | 33,029 | $ | 21,101 | ||||||||
Net cash used in investing activities | $ | (117,183 | ) | $ | (43,478 | ) | $ | (125,612 | ) | $ | (298,599 | ) | ||||
Net cash provided by financing activities | $ | 16,462 | $ | 11,803 | $ | 22,294 | $ | 18,118 | ||||||||
Gross margin reconciliation: | ||||||||||||||||
GAAP gross margin | 83.1 | % | 85.2 | % | 82.4 | % | 84.4 | % | ||||||||
Stock-based compensation expense | 3.8 | 3.7 | 4.5 | 4.1 | ||||||||||||
Employer payroll tax on employee stock plans | 0.3 | 0.1 | 0.2 | 0.1 | ||||||||||||
Amortization of acquired intangible assets | 1.1 | 0.7 | 0.9 | 0.7 | ||||||||||||
Non-GAAP gross margin | 88.3 | % | 89.7 | % | 88.0 | % | 89.3 | % | ||||||||
Operating income (loss) reconciliation: | ||||||||||||||||
GAAP operating loss | $ | (65,568 | ) | $ | (60,357 | ) | $ | (136,547 | ) | $ | (110,460 | ) | ||||
Stock-based compensation expense | 63,609 | 59,510 | 129,718 | 102,749 | ||||||||||||
Employer payroll tax on employee stock plans | 2,717 | 1,341 | 5,539 | 3,729 | ||||||||||||
Amortization of acquired intangible assets | 1,806 | 922 | 2,936 | 1,825 | ||||||||||||
Acquisition-related costs | 1,993 | — | 1,993 | — | ||||||||||||
Ground lease expense related to build-to-suit lease obligation | 222 | 222 | 444 | 222 | ||||||||||||
Non-GAAP operating income (loss) | $ | 4,779 | $ | 1,638 | $ | 4,083 | $ | (1,935 | ) | |||||||
Operating margin reconciliation: | ||||||||||||||||
GAAP operating margin | (44.2 | )% | (59.4 | )% | (49.8 | )% | (58.9 | )% | ||||||||
Stock-based compensation expense | 43.0 | 58.6 | 47.3 | 54.8 | ||||||||||||
Employer payroll tax on employee stock plans | 1.8 | 1.3 | 2.0 | 2.0 | ||||||||||||
Amortization of acquired intangible assets | 1.2 | 0.9 | 1.1 | 1.0 | ||||||||||||
Acquisition-related costs | 1.3 | — | 0.7 | — | ||||||||||||
Ground lease expense related to build-to-suit lease obligation | 0.1 | 0.2 | 0.2 | 0.1 | ||||||||||||
Non-GAAP operating margin | 3.2 | % | 1.6 | % | 1.5 | % | (1.0 | )% | ||||||||
Net income (loss) reconciliation: | ||||||||||||||||
GAAP net loss | $ | (55,289 | ) | $ | (60,782 | ) | $ | (126,475 | ) | $ | (111,537 | ) | ||||
Stock-based compensation expense | 63,609 | 59,510 | 129,718 | 102,749 | ||||||||||||
Employer payroll tax on employee stock plans | 2,717 | 1,341 | 5,539 | 3,729 | ||||||||||||
Amortization of acquired intangible assets | 1,806 | 922 | 2,936 | 1,825 | ||||||||||||
Acquisition-related costs | 1,993 | — | 1,993 | — | ||||||||||||
Ground lease expense related to build-to-suit lease obligation | 222 | 222 | 444 | 222 | ||||||||||||
Partial release of the valuation allowance due to acquisition | (10,924 | ) | — | (10,924 | ) | — | ||||||||||
Non-GAAP net income (loss) | $ | 4,134 | $ | 1,213 | $ | 3,231 | $ | (3,012 | ) | |||||||
Reconciliation of shares used in computing basic and diluted net income (loss) per share: | ||||||||||||||||
Weighted-average shares used in computing GAAP basic net loss per share | 126,621 | 119,012 | 125,602 | 118,165 | ||||||||||||
Effect of dilutive securities: Employee stock awards | 5,380 | 6,606 | 5,551 | — | ||||||||||||
Weighted-average shares used in computing Non-GAAP basic and diluted net income (loss) per share | 132,001 | 125,618 | 131,153 | 118,165 | ||||||||||||
GAAP basic and diluted net loss per share | $ | (0.44 | ) | $ | (0.51 | ) | $ | (1.01 | ) | $ | (0.94 | ) | ||||
Non-GAAP basic and diluted net income (loss) per share | $ | 0.03 | $ | 0.01 | $ | 0.02 | $ | (0.03 | ) |
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