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 24, 2017. |
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 24, 2017. |
• | Total revenues were $280.0 million, up 32% year-over-year. |
• | Total billings were $303.4 million, up 32% year-over-year. |
• | GAAP operating loss was $82.1 million; GAAP operating margin was negative 29.3%. |
• | Non-GAAP operating profit was $14.7 million; non-GAAP operating margin was positive 5.2%. |
• | GAAP loss per share was $0.60; non-GAAP earnings per share was $0.08. |
• | Operating cash flow was $23.2 million with free cash flow of $20.3 million. |
• | Signed over 500 new customers. |
• | New and Expansion Customers Include: Athenahealth, Carnegie Mellon University, Carnival Cruise Lines, CentraCare Health System, Department of Homeland Security, DuluxGroup (Australia), Educational Testing Service, George Mason University, Harvard Business School, Klarna (Sweden), Long Beach Container Terminal, Maricopa County Office of Enterprise Technology, Panasonic Avionics, Regeneron, Shutterfly, SRT Communications, State of Montana, Swisscom (Switzerland), Uber, Verizon Enterprise Solutions and Webroot. |
• | Announced Splunk Insights for AWS Cloud Monitoring, a solution that helps organizations drive more value from their journey to the cloud. |
• | Introduced Splunk Insights for Ransomware, a new offering that delivers organizations an analytics solution to manage ransomware threats. |
• | Released new versions of Splunk Enterprise 6.6 and Splunk Cloud to make it easier than ever for a wide range of users to leverage datasets, build dashboards, gain answers and share insights. |
• | Released the latest version of Splunk Enterprise Security (ES) 4.7 to improve investigation efficiency and incident response, as well as provide insight from common SaaS applications. |
• | Splunk and Booz Allen Hamilton announced a private beta of Booz Allen Cyber4Sight for Splunk, a new solution designed to empower security analysts and threat hunters with actionable intelligence. |
• | Released new version of the Splunk Add-on for Microsoft Cloud Services in Splunkbase, which gives Splunk administrators the ability to collect events from various Microsoft Cloud Services APIs. |
• | Splunk named the market share leader in the Worldwide IT Operations Analytics Software Market by IDC. |
• | Splunk named the market share leader in the Worldwide IT Event and Log Management Software Market by IDC. |
• | Announced the findings of a new IDC InfoBrief, “Investigation or Exasperation? The State of Security Operations,” revealing security teams are struggling to keep up with the rising volume of cyberattacks. |
• | Announced the results of a new IDG Research survey, “Digital Transformation Trailblazing: A Data-Driven |
• | Launched the new Splunk Partner Portal to promote new joint business opportunities for resellers, MSPs and service providers in the Splunk Partner+ Program. |
• | Sponsored and exhibited at Palo Alto Networks Ignite 2017 to display Splunk’s comprehensive cybersecurity approach and provide demonstrations of the Palo Alto Networks App for Splunk. |
• | Sponsored the Puppet Enterprise 2017 State of DevOps Report, which found transformational leaders rely on automation and velocity is a key metric for DevOps success. |
• | Recognized as one of LinkedIn’s Top Companies at attracting and retaining talent for the second year in a row. |
• | Named one of the 40 Coolest Business Analytics Vendors in the CRN 2017 Big Data 100. |
• | Splunk ES was honored with several industry awards: Best SIEM Solution in the SC Awards Europe 2017, Security Product of the Year in the U.K.’s National Technology Awards and top SIEM solution in the Computerworld Hong Kong Awards 2017. |
• | Total revenues are expected to be between $307 million and $309 million. |
• | Non-GAAP operating margin is expected to be approximately 8%. |
• | Total billings are expected to be approximately $1.450 billion (was approximately $1.425 billion per prior guidance provided on May 25, 2017). |
• | Total revenues are expected to be between $1.210 and $1.215 billion (was approximately $1.195 billion per prior guidance provided on May 25, 2017). |
• | Non-GAAP operating margin is expected to be approximately 8% (unchanged from prior guidance). |
Three Months Ended | Six Months Ended | |||||||||||||||
July 31, | July 31, | July 31, | July 31, | |||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | ||||||||||||||||
License | $ | 142,851 | $ | 115,695 | $ | 259,577 | $ | 216,687 | ||||||||
Maintenance and services | 137,113 | 97,058 | 262,835 | 182,018 | ||||||||||||
Total revenues | 279,964 | 212,753 | 522,412 | 398,705 | ||||||||||||
Cost of revenues | ||||||||||||||||
License | 3,159 | 2,868 | 6,087 | 5,830 | ||||||||||||
Maintenance and services | 56,717 | 41,748 | 111,952 | 78,286 | ||||||||||||
Total cost of revenues | 59,876 | 44,616 | 118,039 | 84,116 | ||||||||||||
Gross profit | 220,088 | 168,137 | 404,373 | 314,589 | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development | 71,774 | 67,224 | 143,072 | 134,595 | ||||||||||||
Sales and marketing | 191,284 | 150,228 | 365,232 | 295,379 | ||||||||||||
General and administrative | 39,139 | 34,312 | 75,635 | 66,385 | ||||||||||||
Total operating expenses | 302,197 | 251,764 | 583,939 | 496,359 | ||||||||||||
Operating loss | (82,109 | ) | (83,627 | ) | (179,566 | ) | (181,770 | ) | ||||||||
Interest and other income (expense), net | ||||||||||||||||
Interest income (expense), net | (164 | ) | (797 | ) | (692 | ) | (1,200 | ) | ||||||||
Other income (expense), net | (874 | ) | (1,063 | ) | (1,482 | ) | (2,188 | ) | ||||||||
Total interest and other income (expense), net | (1,038 | ) | (1,860 | ) | (2,174 | ) | (3,388 | ) | ||||||||
Loss before income taxes | (83,147 | ) | (85,487 | ) | (181,740 | ) | (185,158 | ) | ||||||||
Income tax provision | 353 | 1,110 | 1,691 | 2,335 | ||||||||||||
Net loss | $ | (83,500 | ) | $ | (86,597 | ) | $ | (183,431 | ) | $ | (187,493 | ) | ||||
Basic and diluted net loss per share | $ | (0.60 | ) | $ | (0.65 | ) | $ | (1.33 | ) | $ | (1.42 | ) | ||||
Weighted-average shares used in computing basic and diluted net loss per share | 139,063 | 133,041 | 138,436 | 132,310 |
July 31, 2017 | January 31, 2017 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 419,810 | $ | 421,346 | ||||
Investments, current portion | 663,737 | 662,096 | ||||||
Accounts receivable, net | 208,082 | 238,281 | ||||||
Prepaid expenses and other current assets | 49,412 | 38,650 | ||||||
Total current assets | 1,341,041 | 1,360,373 | ||||||
Investments, non-current | 5,000 | 5,000 | ||||||
Property and equipment, net | 161,954 | 166,395 | ||||||
Intangible assets, net | 34,577 | 37,713 | ||||||
Goodwill | 138,681 | 124,642 | ||||||
Other assets | 22,901 | 24,423 | ||||||
Total assets | $ | 1,704,154 | $ | 1,718,546 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 8,984 | $ | 7,503 | ||||
Accrued payroll and compensation | 93,843 | 100,092 | ||||||
Accrued expenses and other liabilities | 84,002 | 81,071 | ||||||
Deferred revenue, current portion | 482,196 | 478,707 | ||||||
Total current liabilities | 669,025 | 667,373 | ||||||
Deferred revenue, non-current | 167,004 | 146,752 | ||||||
Other liabilities, non-current | 100,163 | 99,260 | ||||||
Total non-current liabilities | 267,167 | 246,012 | ||||||
Total liabilities | 936,192 | 913,385 | ||||||
Stockholders’ equity | ||||||||
Common stock | 140 | 137 | ||||||
Accumulated other comprehensive loss | (1,349 | ) | (3,013 | ) | ||||
Additional paid-in capital | 1,973,386 | 1,828,821 | ||||||
Accumulated deficit | (1,204,215 | ) | (1,020,784 | ) | ||||
Total stockholders’ equity | 767,962 | 805,161 | ||||||
Total liabilities and stockholders’ equity | $ | 1,704,154 | $ | 1,718,546 |
Three Months Ended | Six Months Ended | |||||||||||||||
July 31, | July 31, | July 31, | July 31, | |||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net loss | $ | (83,500 | ) | $ | (86,597 | ) | $ | (183,431 | ) | $ | (187,493 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 10,813 | 8,174 | 19,916 | 14,635 | ||||||||||||
Amortization of investment premiums | 125 | 189 | 342 | 447 | ||||||||||||
Stock-based compensation | 92,367 | 88,863 | 182,422 | 180,233 | ||||||||||||
Deferred income taxes | (967 | ) | (192 | ) | (866 | ) | (698 | ) | ||||||||
Excess tax benefits from employee stock plans | — | (335 | ) | — | (1,027 | ) | ||||||||||
Changes in operating assets and liabilities, net of acquisition: | ||||||||||||||||
Accounts receivable, net | (36,822 | ) | (32,655 | ) | 30,199 | 50,403 | ||||||||||
Prepaid expenses, other current and non-current assets | (826 | ) | 4,942 | (7,883 | ) | (3,177 | ) | |||||||||
Accounts payable | 1,249 | 166 | 1,963 | 265 | ||||||||||||
Accrued payroll and compensation | 4,724 | 2,742 | (6,264 | ) | (30,985 | ) | ||||||||||
Accrued expenses and other liabilities | 12,617 | 16,470 | 4,407 | 13,579 | ||||||||||||
Deferred revenue | 23,408 | 16,582 | 23,741 | 17,856 | ||||||||||||
Net cash provided by operating activities | 23,188 | 18,349 | 64,546 | 54,038 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||
Purchases of investments | (218,224 | ) | (173,741 | ) | (340,697 | ) | (316,528 | ) | ||||||||
Maturities of investments | 175,200 | 157,155 | 338,265 | 290,275 | ||||||||||||
Acquisition, net of cash acquired | (17,223 | ) | — | (17,223 | ) | — | ||||||||||
Purchases of property and equipment | (2,908 | ) | (10,541 | ) | (8,513 | ) | (14,250 | ) | ||||||||
Other investment activities | — | (3,500 | ) | — | (3,500 | ) | ||||||||||
Net cash used in investing activities | (63,155 | ) | (30,627 | ) | (28,168 | ) | (44,003 | ) | ||||||||
Cash flows from financing activities | ||||||||||||||||
Proceeds from the exercise of stock options | 486 | 3,939 | 1,973 | 5,603 | ||||||||||||
Excess tax benefits from employee stock plans | — | 335 | — | 1,027 | ||||||||||||
Proceeds from employee stock purchase plan | 19,282 | 15,183 | 19,282 | 15,183 | ||||||||||||
Taxes paid related to net share settlement of equity awards | (26,647 | ) | (25,091 | ) | (59,109 | ) | (46,822 | ) | ||||||||
Repayment of financing lease obligation | (485 | ) | — | (802 | ) | — | ||||||||||
Net cash used in financing activities | (7,364 | ) | (5,634 | ) | (38,656 | ) | (25,009 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 714 | (384 | ) | 742 | 382 | |||||||||||
Net decrease in cash and cash equivalents | (46,617 | ) | (18,296 | ) | (1,536 | ) | (14,592 | ) | ||||||||
Cash and cash equivalents at beginning of period | 466,427 | 428,245 | 421,346 | 424,541 | ||||||||||||
Cash and cash equivalents at end of period | $ | 419,810 | $ | 409,949 | $ | 419,810 | $ | 409,949 |
Three Months Ended | Six Months Ended | |||||||||||||||
July 31, | July 31, | July 31, | July 31, | |||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net cash provided by operating activities | $ | 23,188 | $ | 18,349 | $ | 64,546 | $ | 54,038 | ||||||||
Less purchases of property and equipment | (2,908 | ) | (10,541 | ) | (8,513 | ) | (14,250 | ) | ||||||||
Free cash flow (non-GAAP) | $ | 20,280 | $ | 7,808 | $ | 56,033 | $ | 39,788 | ||||||||
Net cash used in investing activities | $ | (63,155 | ) | $ | (30,627 | ) | $ | (28,168 | ) | $ | (44,003 | ) | ||||
Net cash used in financing activities | $ | (7,364 | ) | $ | (5,634 | ) | $ | (38,656 | ) | $ | (25,009 | ) |
GAAP | Stock-based compensation | Employer payroll tax on employee stock plans | Amortization of acquired intangible assets | Adjustments related to financing lease obligation | Partial release of the valuation allowance due to acquisition | Income tax effects related to non-GAAP adjustments (3) | Non-GAAP | ||||||||||||||||||||||||||
Cost of revenues | $ | 59,876 | $ | (8,410 | ) | $ | (277 | ) | $ | (2,870 | ) | $ | 309 | $ | — | $ | — | $ | 48,628 | ||||||||||||||
Gross margin | 78.6 | % | 3.0 | % | 0.1 | % | 1.0 | % | (0.1 | )% | — | % | — | % | 82.6 | % | |||||||||||||||||
Research and development | 71,774 | (25,991 | ) | (559 | ) | (55 | ) | 495 | — | — | 45,664 | ||||||||||||||||||||||
Sales and marketing | 191,284 | (42,652 | ) | (1,185 | ) | (1,316 | ) | 1,174 | — | — | 147,305 | ||||||||||||||||||||||
General and administrative | 39,139 | (15,314 | ) | (377 | ) | — | 227 | — | — | 23,675 | |||||||||||||||||||||||
Operating income (loss) | (82,109 | ) | 92,367 | 2,398 | 4,241 | (2,205 | ) | — | — | 14,692 | |||||||||||||||||||||||
Operating margin | (29.3 | )% | 32.9 | % | 0.9 | % | 1.5 | % | (0.8 | )% | — | % | — | % | 5.2 | % | |||||||||||||||||
Income tax provision | 353 | — | — | — | — | 546 | 3,356 | 4,255 | |||||||||||||||||||||||||
Net income (loss) | $ | (83,500 | ) | $ | 92,367 | $ | 2,398 | $ | 4,241 | $ | (99 | ) | (2 | ) | $ | (546 | ) | $ | (3,356 | ) | $ | 11,505 | |||||||||||
Net income (loss) per share(1) | $ | (0.60 | ) | $ | 0.08 |
GAAP | Stock-based compensation | Employer payroll tax on employee stock plans | Amortization of acquired intangible assets | Adjustments related to financing lease obligation | Income tax effects related to non-GAAP adjustments (3) | Non-GAAP | ||||||||||||||||||||||
Cost of revenues | $ | 44,616 | $ | (7,310 | ) | $ | (208 | ) | $ | (2,886 | ) | $ | 259 | $ | — | $ | 34,471 | |||||||||||
Gross margin | 79.0 | % | 3.4 | % | 0.1 | % | 1.4 | % | (0.1 | )% | — | % | 83.8 | % | ||||||||||||||
Research and development | 67,224 | (27,742 | ) | (676 | ) | (59 | ) | 555 | — | 39,302 | ||||||||||||||||||
Sales and marketing | 150,228 | (39,371 | ) | (791 | ) | (151 | ) | 1,131 | — | 111,046 | ||||||||||||||||||
General and administrative | 34,312 | (14,440 | ) | (388 | ) | — | 251 | — | 19,735 | |||||||||||||||||||
Operating income (loss) | (83,627 | ) | 88,863 | 2,063 | 3,096 | (2,196 | ) | — | 8,199 | |||||||||||||||||||
Operating margin | (39.3 | )% | 41.7 | % | 1.0 | % | 1.5 | % | (1.0 | )% | — | % | 3.9 | % | ||||||||||||||
Income tax provision | 1,110 | — | — | — | — | 651 | 1,761 | |||||||||||||||||||||
Net income (loss) | $ | (86,597 | ) | $ | 88,863 | $ | 2,063 | $ | 3,096 | $ | (147 | ) | (2) | $ | (651 | ) | $ | 6,627 | ||||||||||
Net income (loss) per share(1) | $ | (0.65 | ) | $ | 0.05 |
GAAP | Stock-based compensation | Employer payroll tax on employee stock plans | Amortization of acquired intangible assets | Adjustments related to financing lease obligation | Partial release of the valuation allowance due to acquisition | Income tax effects related to non-GAAP adjustments (3) | Non-GAAP | ||||||||||||||||||||||||||
Cost of revenues | $ | 118,039 | $ | (16,602 | ) | $ | (718 | ) | $ | (5,519 | ) | $ | 615 | $ | — | $ | — | $ | 95,815 | ||||||||||||||
Gross margin | 77.4 | % | 3.2 | % | 0.1 | % | 1.1 | % | (0.1 | )% | — | % | — | % | 81.7 | % | |||||||||||||||||
Research and development | 143,072 | (52,788 | ) | (1,810 | ) | (83 | ) | 1,026 | — | — | 89,417 | ||||||||||||||||||||||
Sales and marketing | 365,232 | (83,295 | ) | (2,957 | ) | (1,332 | ) | 2,344 | — | — | 279,992 | ||||||||||||||||||||||
General and administrative | 75,635 | (29,737 | ) | (1,054 | ) | — | 464 | — | — | 45,308 | |||||||||||||||||||||||
Operating income (loss) | (179,566 | ) | 182,422 | 6,539 | 6,934 | (4,449 | ) | — | — | 11,880 | |||||||||||||||||||||||
Operating margin | (34.4 | )% | 35.0 | % | 1.3 | % | 1.3 | % | (0.9 | )% | — | % | — | % | 2.3 | % | |||||||||||||||||
Income tax provision | 1,691 | — | — | — | — | 546 | 1,523 | 3,760 | |||||||||||||||||||||||||
Net income (loss) | $ | (183,431 | ) | $ | 182,422 | $ | 6,539 | $ | 6,934 | $ | (228 | ) | (2 | ) | $ | (546 | ) | $ | (1,523 | ) | $ | 10,167 | |||||||||||
Net income (loss) per share(1) | $ | (1.33 | ) | $ | 0.07 |
GAAP | Stock-based compensation | Employer payroll tax on employee stock plans | Amortization of acquired intangible assets | Adjustments related to financing lease obligation | Income tax effects related to non-GAAP adjustments (3) | Non-GAAP | ||||||||||||||||||||||
Cost of revenues | $ | 84,116 | $ | (14,865 | ) | $ | (470 | ) | $ | (5,798 | ) | $ | 285 | $ | — | $ | 63,268 | |||||||||||
Gross margin | 78.9 | % | 3.7 | % | 0.1 | % | 1.5 | % | (0.1 | )% | — | % | 84.1 | % | ||||||||||||||
Research and development | 134,595 | (56,948 | ) | (1,432 | ) | (130 | ) | 613 | — | 76,698 | ||||||||||||||||||
Sales and marketing | 295,379 | (79,604 | ) | (1,817 | ) | (302 | ) | 1,249 | — | 214,905 | ||||||||||||||||||
General and administrative | 66,385 | (28,816 | ) | (829 | ) | — | 277 | — | 37,017 | |||||||||||||||||||
Operating income (loss) | (181,770 | ) | 180,233 | 4,548 | 6,230 | (2,424 | ) | — | 6,817 | |||||||||||||||||||
Operating margin | (45.6 | )% | 45.2 | % | 1.1 | % | 1.6 | % | (0.6 | )% | — | % | 1.7 | % | ||||||||||||||
Income tax provision (benefit) | 2,335 | — | — | — | — | (871 | ) | 1,464 | ||||||||||||||||||||
Net income (loss) | $ | (187,493 | ) | $ | 180,233 | $ | 4,548 | $ | 6,230 | $ | 1,117 | (2) | $ | 871 | $ | 5,506 | ||||||||||||
Net income (loss) per share(1) | $ | (1.42 | ) | $ | 0.04 |
Three Months Ended | Six Months Ended | |||||||||||||||
July 31, | July 31, | July 31, | July 31, | |||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Total revenues | $ | 279,964 | $ | 212,753 | $ | 522,412 | $ | 398,705 | ||||||||
Increase in deferred revenue | 23,408 | 16,582 | 23,741 | 17,856 | ||||||||||||
Billings (non-GAAP) | $ | 303,372 | $ | 229,335 | $ | 546,153 | $ | 416,561 |
GAAP | Stock-based compensation | Employer payroll tax on employee stock plans | Non-GAAP | |||||||||||||
Cloud revenues | $ | 21,323 | $ | — | $ | — | $ | 21,323 | ||||||||
Cloud cost of revenues | $ | 15,575 | $ | (742 | ) | $ | (27 | ) | $ | 14,806 | ||||||
Cloud gross margin | 27.0 | % | 3.5 | % | 0.1 | % | 30.6 | % |
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