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 November 19, 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 November 19, 2015. |
• | Total revenues were $174.4 million, up 50% year-over-year. |
• | License revenues were $104.2 million, up 45% year-over-year. |
• | GAAP operating loss was $72.3 million; GAAP operating margin was negative 41.5%. |
• | Non-GAAP operating income was $6.6 million; non-GAAP operating margin was 3.8%. |
• | GAAP loss per share was $0.57; non-GAAP earnings per share were $0.05. |
• | Operating cash flow was $36.4 million with free cash flow of $21.1 million. |
• | Signed more than 500 new enterprise customers. |
• | New and Expansion Customers Include: CenterPoint Energy, China Merchants Bank, Cisco, Creative Artists Agency - (CAA), Dubai Smart Government, Fairfax County (Virginia), Getty Images, Groupon, Hong Kong Marine Department, Independent Health, Jabil Circuit, NASDAQ, NetEnt (Sweden), Northwestern Mutual, NTT DOCOMO (Japan), Pernod Ricard Asia (Hong Kong), State of Arkansas, State of Maine, Surfdome (United Kingdom), Synchrony Financial, University of Pittsburgh Medical Center, U.S. Department of Energy, U.S. Pharmacopeial Convention, United States Postal Service, University of Macau (China), Wüstenrot & Württembergische (Germany), Yodlee, Zillow. |
• | Announced the general availability (GA) of Splunk Enterprise 6.3, the latest version of the award-winning platform for machine data, to deliver double the performance and lower total cost of ownership (TCO). |
• | Announced the GA of Splunk IT Service Intelligence, a new IT monitoring and analytics solution that delivers immediate value to IT with advanced analytics and powerful visualizations. |
• | Announced the GA of Splunk Enterprise Security (ES) 4.0 to help organizations track attackers’ actions with streamlined ad hoc analyses and event sequencing. |
• | Announced the GA of Splunk User Behavior Analytics (UBA), delivering out-of-the-box capabilities driven by machine learning and advanced analytics to help detect advanced cyberattacks and insider threats. |
• | Made Splunk Light available as a cloud service, delivering the power of Splunk to small IT environments. |
• | Announced the GA of Hunk 6.3, a full-featured, integrated analytics platform used to interactively explore, analyze and visualize big data in Hadoop and Amazon S3. This allows Splunk users to further drive down TCO by archiving historical data from Splunk Enterprise. |
• | Released the latest version of Splunk App for Amazon Web Services (AWS) to provide easy-to-use dashboards with comprehensive security, compliance and operational insights into AWS environments. |
• | Announced a strategic alliance with Booz Allen Hamilton to deliver predictive security analytics and operationalize threat intelligence. |
• | Verizon Enterprise Solutions announced the launch of its Data Breach Investigations Report (DBIR) App for Splunk, providing actionable security intelligence for enterprises. |
• | Splunk CTO Snehal Antani named to Computerworld’s 2016 Premier 100 Technology Leaders. |
• | Splunk Enterprise won Network World Asia Readers’ Choice Awards for ‘Best Big Data Solution’ in 2015. |
• | Splunk won the Platinum award from Security Insider in the “SIEM” category and the Gold award from Big Data Insider in the “Big Data Management and System Tools” category during the 2015 IT-Awards. |
• | Splunk named to Deloitte’s North American Technology Fast 500. |
• | Splunk ES and Splunk UBA named to Ventana Research’s Technology Innovation Award Winners for 2015. |
• | Splunk named one of the Big Data 50 by Database Trends and Applications. |
• | Announced the winners of the Splunk Revolution Awards at .conf2015. |
• | Hosted a record number of customers and partners at .conf2015, the 6th Annual Splunk Worldwide Users Conference. |
• | Hosted inaugural GovSummit with more than 1,000 attendees. |
• | Hosted SplunkLive! events in cities around the world, including: Amsterdam, Auckland, Austin, Denver, Nashville, Sao Paolo, Seoul, Shanghai, Stockholm, Taipei, Warsaw and Wellington. Presentations can be found on the SplunkLive! website. |
• | Total revenues are expected to be between $200 million and $202 million. |
• | Non-GAAP operating margin is expected to be between 5% and 6%. |
• | Total revenues are expected to total approximately $650 million (was $628 million to $632 million per prior guidance provided on August 27, 2015). |
• | Non-GAAP operating margin is expected to be approximately 3% (was previously between 2% and 3% per prior guidance provided on August 27, 2015). |
• | Total revenues are expected to be approximately $850 million. |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | ||||||||||||||||
License | $ | 104,164 | $ | 71,754 | $ | 263,996 | $ | 185,109 | ||||||||
Maintenance and services | 70,256 | 44,275 | 184,415 | 118,374 | ||||||||||||
Total revenues | 174,420 | 116,029 | 448,411 | 303,483 | ||||||||||||
Cost of revenues | ||||||||||||||||
License | 3,136 | 535 | 6,110 | 685 | ||||||||||||
Maintenance and services | 27,455 | 17,045 | 72,606 | 46,153 | ||||||||||||
Total cost of revenues 1,2,3 | 30,591 | 17,580 | 78,716 | 46,838 | ||||||||||||
Gross profit | 143,829 | 98,449 | 369,695 | 256,645 | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development | 56,186 | 39,534 | 149,192 | 103,455 | ||||||||||||
Sales and marketing | 130,131 | 85,720 | 343,906 | 236,776 | ||||||||||||
General and administrative 4,5 | 29,857 | 21,446 | 85,489 | 75,125 | ||||||||||||
Total operating expenses 1,2,3 | 216,174 | 146,700 | 578,587 | 415,356 | ||||||||||||
Operating loss | (72,345 | ) | (48,251 | ) | (208,892 | ) | (158,711 | ) | ||||||||
Interest and other income (expense), net | ||||||||||||||||
Interest income, net | 377 | 199 | 1,162 | 492 | ||||||||||||
Other income (expense), net | (271 | ) | (52 | ) | (477 | ) | (326 | ) | ||||||||
Total interest and other income (expense), net | 106 | 147 | 685 | 166 | ||||||||||||
Loss before income taxes | (72,239 | ) | (48,104 | ) | (208,207 | ) | (158,545 | ) | ||||||||
Income tax provision (benefit) 6 | 735 | 447 | (8,758 | ) | 1,543 | |||||||||||
Net loss | $ | (72,974 | ) | $ | (48,551 | ) | $ | (199,449 | ) | $ | (160,088 | ) | ||||
Basic and diluted net loss per share | $ | (0.57 | ) | $ | (0.40 | ) | $ | (1.58 | ) | $ | (1.35 | ) | ||||
Weighted-average shares used in computing basic and diluted net loss per share | 128,368 | 120,331 | 126,534 | 118,895 |
1 Includes amortization of acquired intangible assets as follows: | ||||||||||||||||
Cost of revenues | $ | 2,896 | $ | 703 | $ | 5,379 | $ | 2,093 | ||||||||
Research and development | 86 | 569 | 234 | 707 | ||||||||||||
Sales and marketing | 164 | 150 | 469 | 447 |
2 Includes stock-based compensation expense as follows: | ||||||||||||||||
Cost of revenues | $ | 6,384 | $ | 4,039 | $ | 18,578 | $ | 11,653 | ||||||||
Research and development | 22,534 | 15,352 | 61,910 | 41,517 | ||||||||||||
Sales and marketing | 33,247 | 21,075 | 91,067 | 61,458 | ||||||||||||
General and administrative | 11,999 | 7,770 | 32,327 | 36,357 | ||||||||||||
3 Includes employer payroll tax on employee stock plans as follows: | ||||||||||||||||
Cost of revenues | $ | 145 | $ | 111 | $ | 806 | $ | 344 | ||||||||
Research and development | 510 | 327 | 2,145 | 1,649 | ||||||||||||
Sales and marketing | 501 | 387 | 2,562 | 1,668 | ||||||||||||
General and administrative | 283 | 267 | 1,465 | 1,160 | ||||||||||||
4 Includes ground lease expense related to build-to-suit obligation | $ | 222 | $ | 222 | $ | 666 | $ | 444 | ||||||||
5 Includes acquisition-related costs | $ | — | $ | — | $ | 1,993 | $ | — | ||||||||
6 Includes a partial release of the valuation allowance due to acquisition | $ | — | $ | — | $ | (10,924 | ) | $ | — |
October 31, 2015 | January 31, 2015 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 501,691 | $ | 387,315 | ||||
Investments, current portion | 446,840 | 462,849 | ||||||
Accounts receivable, net | 125,657 | 128,413 | ||||||
Prepaid expenses and other current assets | 20,721 | 21,256 | ||||||
Total current assets | 1,094,909 | 999,833 | ||||||
Investments, non-current | 1,500 | 165,082 | ||||||
Property and equipment, net | 100,264 | 50,374 | ||||||
Intangible assets, net | 52,693 | 10,416 | ||||||
Goodwill | 124,306 | 19,070 | ||||||
Other assets | 5,440 | 3,016 | ||||||
Total assets | $ | 1,379,112 | $ | 1,247,791 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 4,205 | $ | 3,726 | ||||
Accrued payroll and compensation | 78,213 | 65,220 | ||||||
Accrued expenses and other liabilities | 37,545 | 27,819 | ||||||
Deferred revenue, current portion | 282,547 | 249,883 | ||||||
Total current liabilities | 402,510 | 346,648 | ||||||
Deferred revenue, non-current | 66,341 | 54,202 | ||||||
Other liabilities, non-current | 69,315 | 33,620 | ||||||
Total non-current liabilities | 135,656 | 87,822 | ||||||
Total liabilities | 538,166 | 434,470 | ||||||
Stockholders’ equity | ||||||||
Common stock | 130 | 123 | ||||||
Accumulated other comprehensive loss | (2,298 | ) | (837 | ) | ||||
Additional paid-in capital | 1,429,386 | 1,200,858 | ||||||
Accumulated deficit | (586,272 | ) | (386,823 | ) | ||||
Total stockholders’ equity | 840,946 | 813,321 | ||||||
Total liabilities and stockholders’ equity | $ | 1,379,112 | $ | 1,247,791 |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||
Net loss | $ | (72,974 | ) | $ | (48,551 | ) | $ | (199,449 | ) | $ | (160,088 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 5,691 | 3,430 | 13,467 | 8,968 | ||||||||||||
Amortization of investment premiums | 327 | 316 | 1,049 | 452 | ||||||||||||
Stock-based compensation | 74,164 | 48,236 | 203,882 | 150,985 | ||||||||||||
Deferred income taxes | (111 | ) | (280 | ) | (11,416 | ) | (793 | ) | ||||||||
Excess tax benefits from employee stock plans | (343 | ) | (240 | ) | (995 | ) | (1,108 | ) | ||||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||||||||||
Accounts receivable, net | (25,963 | ) | (12,712 | ) | 2,756 | 798 | ||||||||||
Prepaid expenses, other current and non-current assets | 3,162 | (3,533 | ) | 15,630 | (2,041 | ) | ||||||||||
Accounts payable | 484 | 654 | 384 | 1,045 | ||||||||||||
Accrued payroll and compensation | 21,039 | 11,269 | 12,341 | 4,605 | ||||||||||||
Accrued expenses and other liabilities | 3,246 | 3,334 | (3,839 | ) | 12,673 | |||||||||||
Deferred revenue | 27,638 | 22,282 | 44,803 | 36,956 | ||||||||||||
Net cash provided by operating activities | 36,360 | 24,205 | 78,613 | 52,452 | ||||||||||||
Cash Flow From Investing Activities | ||||||||||||||||
Purchases of investments | — | (387,324 | ) | (219,195 | ) | (691,277 | ) | |||||||||
Maturities of investments | 152,145 | 48,000 | 399,145 | 63,000 | ||||||||||||
Acquisitions, net of cash acquired | — | — | (142,693 | ) | (2,500 | ) | ||||||||||
Purchases of property and equipment | (15,272 | ) | (4,054 | ) | (24,496 | ) | (11,200 | ) | ||||||||
Other investment activities | — | — | (1,500 | ) | — | |||||||||||
Net cash provided by (used in) investing activities | 136,873 | (343,378 | ) | 11,261 | (641,977 | ) | ||||||||||
Cash Flow From Financing Activities | ||||||||||||||||
Proceeds from the exercise of stock options | 1,960 | 3,387 | 12,696 | 12,805 | ||||||||||||
Excess tax benefits from employee stock plans | 343 | 240 | 995 | 1,108 | ||||||||||||
Proceeds from employee stock purchase plan | — | — | 10,906 | 8,355 | ||||||||||||
Payment related to build-to-suit lease obligation | — | — | — | (523 | ) | |||||||||||
Net cash provided by financing activities | 2,303 | 3,627 | 24,597 | 21,745 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (45 | ) | (299 | ) | (95 | ) | (120 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | 175,491 | (315,845 | ) | 114,376 | (567,900 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 326,200 | 645,398 | 387,315 | 897,453 | ||||||||||||
Cash and cash equivalents at end of period | $ | 501,691 | $ | 329,553 | $ | 501,691 | $ | 329,553 |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Reconciliation of cash provided by operating activities to free cash flow: | ||||||||||||||||
Net cash provided by operating activities | $ | 36,360 | $ | 24,205 | $ | 78,613 | $ | 52,452 | ||||||||
Less purchases of property and equipment | (15,272 | ) | (4,054 | ) | (24,496 | ) | (11,200 | ) | ||||||||
Free cash flow (Non-GAAP) | $ | 21,088 | $ | 20,151 | $ | 54,117 | $ | 41,252 | ||||||||
Net cash provided by (used in) investing activities | $ | 136,873 | $ | (343,378 | ) | $ | 11,261 | $ | (641,977 | ) | ||||||
Net cash provided by financing activities | $ | 2,303 | $ | 3,627 | $ | 24,597 | $ | 21,745 | ||||||||
Gross margin reconciliation: | ||||||||||||||||
GAAP gross margin | 82.5 | % | 84.8 | % | 82.4 | % | 84.6 | % | ||||||||
Stock-based compensation expense | 3.6 | 3.5 | 4.2 | 3.8 | ||||||||||||
Employer payroll tax on employee stock plans | 0.1 | 0.1 | 0.2 | 0.1 | ||||||||||||
Amortization of acquired intangible assets | 1.7 | 0.6 | 1.2 | 0.7 | ||||||||||||
Non-GAAP gross margin | 87.9 | % | 89.0 | % | 88.0 | % | 89.2 | % | ||||||||
Operating income (loss) reconciliation: | ||||||||||||||||
GAAP operating loss | $ | (72,345 | ) | $ | (48,251 | ) | $ | (208,892 | ) | $ | (158,711 | ) | ||||
Stock-based compensation expense | 74,164 | 48,236 | 203,882 | 150,985 | ||||||||||||
Employer payroll tax on employee stock plans | 1,439 | 1,092 | 6,978 | 4,821 | ||||||||||||
Amortization of acquired intangible assets | 3,146 | 1,422 | 6,082 | 3,247 | ||||||||||||
Acquisition-related costs | — | — | 1,993 | — | ||||||||||||
Ground lease expense related to build-to-suit lease obligation | 222 | 222 | 666 | 444 | ||||||||||||
Non-GAAP operating income | $ | 6,626 | $ | 2,721 | $ | 10,709 | $ | 786 | ||||||||
Operating margin reconciliation: | ||||||||||||||||
GAAP operating margin | (41.5 | )% | (41.6 | )% | (46.6 | )% | (52.3 | )% | ||||||||
Stock-based compensation expense | 42.5 | 41.6 | 45.5 | 49.8 | ||||||||||||
Employer payroll tax on employee stock plans | 0.8 | 0.9 | 1.6 | 1.6 | ||||||||||||
Amortization of acquired intangible assets | 1.9 | 1.2 | 1.4 | 1.1 | ||||||||||||
Acquisition-related costs | — | — | 0.4 | — | ||||||||||||
Ground lease expense related to build-to-suit lease obligation | 0.1 | 0.2 | 0.1 | 0.1 | ||||||||||||
Non-GAAP operating margin | 3.8 | % | 2.3 | % | 2.4 | % | 0.3 | % | ||||||||
Net income (loss) reconciliation: | ||||||||||||||||
GAAP net loss | $ | (72,974 | ) | $ | (48,551 | ) | $ | (199,449 | ) | $ | (160,088 | ) | ||||
Stock-based compensation expense | 74,164 | 48,236 | 203,882 | 150,985 | ||||||||||||
Employer payroll tax on employee stock plans | 1,439 | 1,092 | 6,978 | 4,821 | ||||||||||||
Amortization of acquired intangible assets | 3,146 | 1,422 | 6,082 | 3,247 | ||||||||||||
Acquisition-related costs | — | — | 1,993 | — | ||||||||||||
Ground lease expense related to build-to-suit lease obligation | 222 | 222 | 666 | 444 | ||||||||||||
Partial release of the valuation allowance due to acquisition | — | — | (10,924 | ) | — | |||||||||||
Non-GAAP net income (loss) | $ | 5,997 | $ | 2,421 | $ | 9,228 | $ | (591 | ) | |||||||
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 | 128,368 | 120,331 | 126,534 | 118,895 | ||||||||||||
Effect of dilutive securities: Employee stock awards | 4,307 | 6,541 | 5,159 | — | ||||||||||||
Weighted-average shares used in computing non-GAAP basic and diluted net income (loss) per share | 132,675 | 126,872 | 131,693 | 118,895 | ||||||||||||
GAAP basic and diluted net loss per share | $ | (0.57 | ) | $ | (0.40 | ) | $ | (1.58 | ) | $ | (1.35 | ) | ||||
Non-GAAP basic and diluted net income (loss) per share | $ | 0.05 | $ | 0.02 | $ | 0.07 | $ | (0.00 | ) |
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