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 29, 2016. |
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 29, 2016. |
• | Total revenues were $245 million, up 40% year-over-year. |
• | License revenues were $140 million, up 34% year-over-year. |
• | GAAP operating loss was $91.0 million; GAAP operating margin was negative 37.2%. |
• | Non-GAAP operating income was $16.7 million; non-GAAP operating margin was 6.8%. |
• | GAAP loss per share was $0.69; non-GAAP earnings per share was $0.12. |
• | Operating cash flow was $45.3 million with free cash flow of $32.3 million. |
• | Signed nearly 500 new enterprise customers. |
• | New and Expansion Customers Include: BMW (Germany), Cequint, Dow Jones, Educational Testing Services, Emirates Airlines, Exostar, Florida State University, Garanti Bank (Turkey), Monash University (Australia), Progressive Insurance, Rackspace, State of Maine, University Health System, University of Illinois, University of Miami, U.S. Department of Homeland Security, U.S. Department of State, Yahoo Japan and Zendesk. |
• | Announced the newest versions of Splunk solutions leverage machine learning to empower IT, security and business teams to make better data decisions and maximize the value machine data can deliver to organizations. |
• | Announced the general availability (GA) of the new versions of Splunk Cloud and Splunk Enterprise to expand the Splunk platform with machine learning and simplified data analysis. |
• | Announced the GA of Splunk IT Service Intelligence 2.5 (ITSI) to simplify service operations with machine learning and deliver business and service context to help prioritize incident investigation. |
• | Announced the GA of Splunk Enterprise Security 4.5 (ES), which includes Adaptive Response to extend the security architecture beyond legacy preventative technologies and expand its visual analytics capabilities with Glass Tables. |
• | Announced the GA of Splunk User Behavior Analytics 3.0 (UBA) to provide customers with the ability to update detection footprint with zero downtime and without hassle. |
• | Introduced the Talk to Splunk with Amazon Alexa App, enabling Splunk instances to interface with Amazon Alexa by way of a custom Alexa skill and thereby provisioning a Natural Language interface for Splunk. |
• | Released Splunk AppInspect, the first static and dynamic analysis tool for Splunk apps, making it possible for developers to get their work done faster, with fewer errors and less debugging. |
• | Unveiled Splunk Pledge, a new philanthropic program through the Splunk4Good initiative, which commits to donate a minimum of $100 million in software licenses, training, support, education and volunteerism over a 10-year period to nonprofit organizations and educational institutions in order to support academic research and generate social impact. |
• | Announced investments in two companies - Acalvio and Insight Engines - to further drive innovation and extend the power and reach of the Splunk platform. |
• | Announced the expansion of the Splunk-led Adaptive Response Initiative to strengthen enterprise security, with 11 new members including Acalvio, Anomali, Cisco, CrowdStrike, DomainTools, ForeScout, Okta, Proofpoint, Qualys, Recorded Future and Symantec. |
• | Cisco and Splunk joined forces at .conf2016 to highlight the companies’ eight-year partnership, together delivering integrated solutions for thousands of organizations around the globe. |
• | Highlighted the strong partnership between Amazon Web Services (AWS) and Splunk at .conf2016, focused on driving customer success in the cloud. |
• | Ansible by Red Hat introduced the Ansible Tower App for Splunk, a new app developed to ingest all data associated with Ansible deployments, inventories and jobs and deliver this visibility to teams involved in app delivery. |
• | Splunk received three Cisco® Partner Summit awards - one Global award and two country awards in the U.S. Splunk was recognized as Global ISV Partner of the Year, as well as a U.S. (West) Outstanding Solutions Partner and U.S. Public Sector ISV and Consultant Partner of the Year. |
• | Splunk was named by Glassdoor as one of the top-rated public cloud company employers. |
• | Splunk Cloud was named the 2016 Best Big Data Analytics Solution in the fourth Cloud & DevOps World Awards, which honor excellence and innovation in cloud computing. |
• | Splunk was named to Database Trends and Applications’ annual Big Data 50 awards. |
• | Splunk was ranked 18th on the San Francisco Business Times’ list of the 75 Largest Software Companies in the Greater Bay Area. |
• | Hosted .conf2016, the 7th annual Splunk Worldwide Users’ Conference in Orlando, drawing more than 4,500 Splunk enthusiasts, partners and experts in machine learning, data analytics, security, IT operations, cloud, DevOps, SaaS, business analytics, Internet of Things and more. |
• | Hosted SplunkLive! events in cities worldwide, including Auckland, Santa Clara, Denver, Nashville, Shanghai and Stockholm. Presentations can be found on the SplunkLive! website. |
• | Appointed Brian Goldfarb as Chief Marketing Officer. |
• | Appointed Richard Campione as Chief Product Officer. |
• | Total revenues are expected to be between $286 and $288 million. |
• | Non-GAAP operating margin is expected to be between 8% and 9%. |
• | Total revenues are expected to be between $930 and $932 million (was between $910 and $914 million per prior guidance provided on August 25, 2016). |
• | Non-GAAP operating margin is expected to be between 5% and 6% (was approximately 5% per prior guidance provided on August 25, 2016). |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenues | ||||||||||||||||
License | $ | 139,725 | $ | 104,164 | $ | 356,412 | $ | 263,996 | ||||||||
Maintenance and services | 105,064 | 70,256 | 287,082 | 184,415 | ||||||||||||
Total revenues | 244,789 | 174,420 | 643,494 | 448,411 | ||||||||||||
Cost of revenues | ||||||||||||||||
License | 2,883 | 3,136 | 8,713 | 6,110 | ||||||||||||
Maintenance and services | 45,791 | 27,455 | 124,077 | 72,606 | ||||||||||||
Total cost of revenues | 48,674 | 30,591 | 132,790 | 78,716 | ||||||||||||
Gross profit | 196,115 | 143,829 | 510,704 | 369,695 | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development | 85,659 | 56,186 | 220,254 | 149,192 | ||||||||||||
Sales and marketing | 167,330 | 130,131 | 462,709 | 343,906 | ||||||||||||
General and administrative | 34,079 | 29,857 | 100,464 | 85,489 | ||||||||||||
Total operating expenses | 287,068 | 216,174 | 783,427 | 578,587 | ||||||||||||
Operating loss | (90,953 | ) | (72,345 | ) | (272,723 | ) | (208,892 | ) | ||||||||
Interest and other income (expense), net | ||||||||||||||||
Interest income (expense), net | (823 | ) | 377 | (2,023 | ) | 1,162 | ||||||||||
Other income (expense), net | (348 | ) | (271 | ) | (2,536 | ) | (477 | ) | ||||||||
Total interest and other income (expense), net | (1,171 | ) | 106 | (4,559 | ) | 685 | ||||||||||
Loss before income taxes | (92,124 | ) | (72,239 | ) | (277,282 | ) | (208,207 | ) | ||||||||
Income tax provision (benefit) | 1,367 | 735 | 3,702 | (8,758 | ) | |||||||||||
Net loss | $ | (93,491 | ) | $ | (72,974 | ) | $ | (280,984 | ) | $ | (199,449 | ) | ||||
Basic and diluted net loss per share | $ | (0.69 | ) | $ | (0.57 | ) | $ | (2.11 | ) | $ | (1.58 | ) | ||||
Weighted-average shares used in computing basic and diluted net loss per share | 134,677 | 128,368 | 133,273 | 126,534 |
October 31, 2016 | January 31, 2016 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 365,593 | $ | 424,541 | ||||
Investments, current portion | 661,406 | 584,498 | ||||||
Accounts receivable, net | 172,489 | 181,665 | ||||||
Prepaid expenses and other current assets | 29,743 | 26,565 | ||||||
Total current assets | 1,229,231 | 1,217,269 | ||||||
Investments, non-current | 5,000 | 1,500 | ||||||
Property and equipment, net | 159,823 | 134,995 | ||||||
Intangible assets, net | 40,423 | 49,482 | ||||||
Goodwill | 124,642 | 123,318 | ||||||
Other assets | 15,845 | 10,275 | ||||||
Total assets | $ | 1,574,964 | $ | 1,536,839 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 6,395 | $ | 4,868 | ||||
Accrued payroll and compensation | 83,360 | 95,898 | ||||||
Accrued expenses and other liabilities | 78,873 | 49,879 | ||||||
Deferred revenue, current portion | 385,519 | 347,121 | ||||||
Total current liabilities | 554,147 | 497,766 | ||||||
Deferred revenue, non-current | 113,636 | 102,382 | ||||||
Other liabilities, non-current | 93,010 | 77,277 | ||||||
Total non-current liabilities | 206,646 | 179,659 | ||||||
Total liabilities | 760,793 | 677,425 | ||||||
Stockholders’ equity | ||||||||
Common stock | 136 | 132 | ||||||
Accumulated other comprehensive loss | (3,010 | ) | (3,770 | ) | ||||
Additional paid-in capital | 1,763,624 | 1,528,647 | ||||||
Accumulated deficit | (946,579 | ) | (665,595 | ) | ||||
Total stockholders’ equity | 814,171 | 859,414 | ||||||
Total liabilities and stockholders’ equity | $ | 1,574,964 | $ | 1,536,839 |
Three Months Ended | Nine Months Ended | |||||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||
Net loss | $ | (93,491 | ) | $ | (72,974 | ) | $ | (280,984 | ) | $ | (199,449 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 8,279 | 5,691 | 22,914 | 13,467 | ||||||||||||
Amortization of investment premiums | 173 | 327 | 620 | 1,049 | ||||||||||||
Stock-based compensation | 105,014 | 74,164 | 285,247 | 203,882 | ||||||||||||
Deferred income taxes | 78 | (111 | ) | (620 | ) | (11,416 | ) | |||||||||
Excess tax benefits from employee stock plans | 476 | (343 | ) | (551 | ) | (995 | ) | |||||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||||||||||
Accounts receivable, net | (41,227 | ) | (25,963 | ) | 9,176 | 2,756 | ||||||||||
Prepaid expenses, other current and non-current assets | (4,951 | ) | 3,162 | (8,128 | ) | 15,630 | ||||||||||
Accounts payable | 1,265 | 484 | 1,530 | 384 | ||||||||||||
Accrued payroll and compensation | 18,447 | 21,039 | (12,538 | ) | 12,341 | |||||||||||
Accrued expenses and other liabilities | 19,413 | 3,246 | 32,992 | (3,839 | ) | |||||||||||
Deferred revenue | 31,796 | 27,638 | 49,652 | 44,803 | ||||||||||||
Net cash provided by operating activities | 45,272 | 36,360 | 99,310 | 78,613 | ||||||||||||
Cash Flow From Investing Activities | ||||||||||||||||
Purchases of investments | (207,255 | ) | — | (523,783 | ) | (219,195 | ) | |||||||||
Maturities of investments | 156,000 | 152,145 | 446,275 | 399,145 | ||||||||||||
Acquisitions, net of cash acquired | — | — | — | (142,693 | ) | |||||||||||
Purchases of property and equipment | (12,969 | ) | (15,272 | ) | (27,219 | ) | (24,496 | ) | ||||||||
Other investment activities | — | — | (3,500 | ) | (1,500 | ) | ||||||||||
Net cash provided by (used in) investing activities | (64,224 | ) | 136,873 | (108,227 | ) | 11,261 | ||||||||||
Cash Flow From Financing Activities | ||||||||||||||||
Proceeds from the exercise of stock options | 1,752 | 1,960 | 7,355 | 12,696 | ||||||||||||
Excess tax benefits from employee stock plans | (476 | ) | 343 | 551 | 995 | |||||||||||
Proceeds from employee stock purchase plans | — | — | 15,183 | 10,906 | ||||||||||||
Taxes paid related to net share settlement of equity awards | (26,533 | ) | — | (73,355 | ) | — | ||||||||||
Net cash provided by (used in) financing activities | (25,257 | ) | 2,303 | (50,266 | ) | 24,597 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (147 | ) | (45 | ) | 235 | (95 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | (44,356 | ) | 175,491 | (58,948 | ) | 114,376 | ||||||||||
Cash and cash equivalents at beginning of period | 409,949 | 326,200 | 424,541 | 387,315 | ||||||||||||
Cash and cash equivalents at end of period | $ | 365,593 | $ | 501,691 | $ | 365,593 | $ | 501,691 |
Three Months Ended | Nine Months Ended | ||||||||||||||
October 31, | October 31, | October 31, | October 31, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net cash provided by operating activities | $ | 45,272 | $ | 36,360 | $ | 99,310 | $ | 78,613 | |||||||
Less purchases of property and equipment | (12,969 | ) | (15,272 | ) | (27,219 | ) | (24,496 | ) | |||||||
Free cash flow (Non-GAAP) | $ | 32,303 | $ | 21,088 | $ | 72,091 | $ | 54,117 | |||||||
Net cash provided by (used in) investing activities | $ | (64,224 | ) | $ | 136,873 | $ | (108,227 | ) | $ | 11,261 | |||||
Net cash provided by (used in) financing activities | $ | (25,257 | ) | $ | 2,303 | $ | (50,266 | ) | $ | 24,597 |
GAAP | Stock-based compensation | Employer payroll tax on employee stock plans | Amortization of acquired intangible assets | Adjustments related to financing lease obligation | Non-GAAP | |||||||||||||||||||
Cost of revenues | $ | 48,674 | $ | (7,610 | ) | $ | (130 | ) | $ | (2,814 | ) | $ | 276 | $ | 38,396 | |||||||||
Gross margin | 80.1 | % | 3.1 | % | 0.1 | % | 1.1 | % | (0.1 | )% | 84.3 | % | ||||||||||||
Research and development | 85,659 | (45,355 | ) | (534 | ) | (63 | ) | 559 | 40,266 | |||||||||||||||
Sales and marketing | 167,330 | (38,750 | ) | (712 | ) | (110 | ) | 1,124 | 128,882 | |||||||||||||||
General and administrative | 34,079 | (13,299 | ) | (504 | ) | — | 236 | 20,512 | ||||||||||||||||
Operating income (loss) | (90,953 | ) | 105,014 | 1,880 | 2,987 | (2,195 | ) | 16,733 | ||||||||||||||||
Operating margin | (37.2 | )% | 42.9 | % | 0.8 | % | 1.2 | % | (0.9 | )% | 6.8 | % | ||||||||||||
Net income (loss) | $ | (93,491 | ) | $ | 105,014 | $ | 1,880 | $ | 2,987 | $ | (123 | ) | (2) | $ | 16,267 | |||||||||
Net income (loss) per share(1) | $ | (0.69 | ) | $ | 0.12 |
GAAP | Stock-based compensation | Employer payroll tax on employee stock plans | Amortization of acquired intangible assets | Adjustments related to financing lease obligation | Non-GAAP | |||||||||||||||||||
Cost of revenues | $ | 30,591 | (6,384 | ) | $ | (145 | ) | $ | (2,896 | ) | $ | — | $ | 21,166 | ||||||||||
Gross margin | 82.5 | % | 3.6 | % | 0.1 | % | 1.7 | % | — | % | 87.9 | % | ||||||||||||
Research and development | 56,186 | (22,534 | ) | (510 | ) | (86 | ) | — | 33,056 | |||||||||||||||
Sales and marketing | 130,131 | (33,247 | ) | (501 | ) | (164 | ) | — | 96,219 | |||||||||||||||
General and administrative | 29,857 | (11,999 | ) | (283 | ) | — | (222 | ) | 17,353 | |||||||||||||||
Operating income (loss) | (72,345 | ) | 74,164 | 1,439 | 3,146 | 222 | 6,626 | |||||||||||||||||
Operating margin | (41.5 | )% | 42.5 | % | 0.8 | % | 1.9 | % | 0.1 | % | 3.8 | % | ||||||||||||
Net income (loss) | $ | (72,974 | ) | $ | 74,164 | $ | 1,439 | $ | 3,146 | $ | 222 | $ | 5,997 | |||||||||||
Net income (loss) per share(1) | $ | (0.57 | ) | $ | 0.05 |
GAAP | Stock-based compensation | Employer payroll tax on employee stock plans | Amortization of acquired intangible assets | Adjustments related to financing lease obligation | Non-GAAP | |||||||||||||||||||
Cost of revenues | $ | 132,790 | (22,475 | ) | $ | (600 | ) | $ | (8,612 | ) | $ | 561 | $ | 101,664 | ||||||||||
Gross margin | 79.4 | % | 3.5 | % | 0.1 | % | 1.3 | % | (0.1 | )% | 84.2 | % | ||||||||||||
Research and development | 220,254 | (102,303 | ) | (1,966 | ) | (193 | ) | 1,172 | 116,964 | |||||||||||||||
Sales and marketing | 462,709 | (118,354 | ) | (2,529 | ) | (412 | ) | 2,373 | 343,787 | |||||||||||||||
General and administrative | 100,464 | (42,115 | ) | (1,333 | ) | — | 513 | 57,529 | ||||||||||||||||
Operating income (loss) | (272,723 | ) | 285,247 | 6,428 | 9,217 | (4,619 | ) | 23,550 | ||||||||||||||||
Operating margin | (42.4 | )% | 44.4 | % | 1.0 | % | 1.4 | % | (0.7 | )% | 3.7 | % | ||||||||||||
Net income (loss) | $ | (280,984 | ) | $ | 285,247 | $ | 6,428 | $ | 9,217 | $ | 994 | (2) | $ | 20,902 | ||||||||||
Net income (loss) per share(1) | $ | (2.11 | ) | $ | 0.15 |
GAAP | Stock-based compensation | Employer payroll tax on employee stock plans | Amortization of acquired intangible assets | Acquisition-related costs and income tax effects | Adjustments related to financing lease obligation | Non-GAAP | ||||||||||||||||||||||
Cost of revenues | $ | 78,716 | $ | (18,578 | ) | $ | (806 | ) | $ | (5,379 | ) | $ | — | $ | — | $ | 53,953 | |||||||||||
Gross margin | 82.4 | % | 4.2 | % | 0.2 | % | 1.2 | % | — | % | — | % | 88.0 | % | ||||||||||||||
Research and development | 149,192 | (61,910 | ) | (2,145 | ) | (234 | ) | — | — | 84,903 | ||||||||||||||||||
Sales and marketing | 343,906 | (91,067 | ) | (2,562 | ) | (469 | ) | — | — | 249,808 | ||||||||||||||||||
General and administrative | 85,489 | (32,327 | ) | (1,465 | ) | — | (1,993 | ) | (666 | ) | 49,038 | |||||||||||||||||
Operating income (loss) | (208,892 | ) | 203,882 | 6,978 | 6,082 | 1,993 | 666 | 10,709 | ||||||||||||||||||||
Operating margin | (46.6 | )% | 45.5 | % | 1.6 | % | 1.4 | % | 0.4 | % | 0.1 | % | 2.4 | % | ||||||||||||||
Net income (loss) | $ | (199,449 | ) | $ | 203,882 | $ | 6,978 | $ | 6,082 | $ | (8,931 | ) | (2) | $ | 666 | $ | 9,228 | |||||||||||
Net income (loss) per share(1) | $ | (1.58 | ) | $ | 0.07 |
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