Splunk Inc. Q2 Revenues Grew 32%; Increases Full-Year Billings And Revenue Outlook

Written by Lorimer Wilson

Splunk Inc. (NASDAQ:SPLK), provider of the leading software platform for real-time Operational Intelligence, today announced results for its fiscal second quarter ended July 31, 2017.

About Splunk Inc.

Splunk is the market leader in analyzing machine data to deliver Operational Intelligence for security, IT and the business providing the enterprise machine data fabric that drives digital transformation to more than 14,000 customers in over 110 countries.

Second Quarter 2018 Financial Highlights  

• Total revenues: UP 32% year-over-year to $280.0 million.  
• Total billings: UP 32% to $303.4 million.  
• GAAP operating loss was $82.1 million; Non-GAAP operating profit was $14.7 million;
• GAAP operating margin was negative 29.3%; 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.

Recent Business Highlights 

• Signed over 500 new customers
• Named the market share leader in the Worldwide IT Operations Analytics Software Market by IDC.
• Named the market share leader in the Worldwide IT Event and Log Management Software Market by IDC.
• 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.
• Honored as:
  • >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.

Financial Outlook

For its fiscal third quarter 2018 (ending October 31, 2017) the company expects:

• Total revenues between $307 million and $309 million.
• Non-GAAP operating margin of approximately 8%.

For its fiscal year 2018 (ending January 31, 2018) the company expects:

• Total billings of $1.450 billion (was approximately $1.425 billion per prior guidance provided on May 25, 2017).
• Total revenues of between $1.210 and $1.215 billion (was approximately $1.195 billion per prior guidance provided on May 25, 2017).
• Non-GAAP operating margin of approximately 8% (unchanged from prior guidance).

Doug Merritt, President and CEO said in today's press release:

“...As I traveled across Europe, Asia and North America over the last two months, I was excited to see businesses, governments and universities adopting Splunk across multiple departments and use cases. Customer success and product innovation are at the heart of what we do.

I am looking forward to the more than 140 customer presentations at .conf2017, our annual users conference, September 25-28 in Washington, D.C. It is an excellent opportunity to learn the many new ways that leading organizations are using Splunk software to solve problems and gain Operational Intelligence.”