Splunk Continues To Acquire

A recent Market Research Future report published this year Billion Dollar Unicorn club member Splunk (Nasdaq: SPLK) recently announced its second quarter results that surpassed all market expectations.

Splunk’s Financials

Revenues for the quarter grew 39% over the year to $388.3 million, significantly ahead of the market’s expectations of $358.4 million. It ended the quarter with a net loss of $103.5 million, compared with $78.6 million reported a year ago. Adjusted EPS of $0.08 was also ahead of the Street’s forecast of $0.05 for the quarter.

By segment, Splunk’s license revenues grew 36% to $200.7 million. Maintenance and services revenues grew 41% to $187.6 million. Cloud revenues within the segments reported an impressive 90% growth to $39 million. During the quarter, Splunk added more than 550 new customers and expanded relationships with names like ADP, the U.K. Ministry of Defence, the U.S. Department of Defense, Dartmouth College, and Southwestern Energy.

For the current quarter, Splunk expects revenues of $430-$432 million, against the market’s forecast of $428.2 million. It expects to end the current year with revenues of $1.69 billion.

Splunk’s Acquisitions

Splunk continued its inorganic growth even in the current quarter. It recently announced the acquisition of VictorOps, a leader in DevOps incident management, for an estimated $120 million. Splunk hopes that by integrating machine data analytics and artificial intelligence from its service with incident management from VictorOps, it will deliver a platform that will be able to deliver better customer experiences. The integration will help organizations resolve and prevent issues to improve customer engagement by applying machine learning and artificial intelligence to monitoring and incident management data. Prior to the acquisition, VictorOps was privately funded having raised $33.7 million from investors including Costanoa Group, Foundry Group, and Shea Ventures. Details of its financials were not disclosed.

1 2
View single page >> |
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.