[November 19, 2015] |
|
Splunk Inc. Announces Fiscal Third Quarter 2016 Financial Results
Splunk
Inc. (NASDAQ:SPLK), provider of the leading software platform for
real-time Operational Intelligence, today announced results for its
fiscal third quarter ended October 31, 2015.
Third Quarter 2016 Financial Highlights
-
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.
"We are excited about our performance in Q3 and pleased to welcome more
than 500 new customers to the Splunk family," said Godfrey Sullivan,
Chairman and CEO. "Our customers at .conf2015 shared inspiring new use
cases and their innovation continues to guide our investments in Cloud,
IT, Security and Business Analytics solutions. We made an impressive set
of announcements including new premium solutions for IT Service
Intelligence and User Behavior Analytics, and new releases of Splunk
Enterprise and Enterprise Security."
Third Quarter 2016 and Recent Business
Highlights
Customers:
-
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.
Products:
-
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.
Strategic and Channel Partners:
-
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.
Recognition:
Events:
-
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.
Financial Outlook
The company is providing the following guidance for its fiscal fourth
quarter 2016 (ending January 31, 2016):
-
Total revenues are expected to be between $200 million and $202
million.
-
Non-GAAP operating margin is expected to be between 5% and 6%.
The company is updating its previous guidance for its fiscal year 2016
(ending January 31, 2016):
-
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).
The company is providing the following guidance for its fiscal year 2017
(ending January 31, 2017):
-
Total revenues are expected to be approximately $850 million.
All forward-looking non-GAAP financial measures contained in this
section "Financial Outlook" exclude estimates for stock-based
compensation expenses, employer payroll tax expense related to employee
stock plans, amortization of acquired intangible assets,
acquisition-related costs and ground lease expense related to a
build-to-suit lease obligation.
While a reconciliation of non-GAAP guidance measures to corresponding
GAAP measures is not available on a forward-looking basis, the company
has provided a reconciliation of GAAP to non-GAAP financial measures in
the financial statement tables for its fiscal third quarter and
year-to-date 2016 non-GAAP results included in this press release.
Conference Call and Webcast
Splunk's executive management team will host a conference call today
beginning at 1:30 p.m. PT (4:30 p.m. ET) to discuss the company's
financial results and business highlights. Interested parties may access
the call by dialing (866) 501-1535. International parties may access the
call by dialing (216) 672-5582. A live audio webcast of the conference
call will be available through Splunk's Investor Relations website at http://investors.splunk.com/events.cfm.
A replay of the call will be available through November 26, 2015 by
dialing (855) 859-2056 and referencing Conference ID 75195214.
Safe Harbor Statement
This press release contains forward-looking statements that involve
risks and uncertainties, including statements regarding Splunk's revenue
and non-GAAP operating margin targets for the company's fiscal fourth
quarter and fiscal year 2016 as well as revenue target for fiscal year
2017 in the paragraphs under "Financial Outlook" above and other
statements regarding momentum in the company's business, customer
growth, customer adoption of and value using our existing and acquired
products, product innovations, and planned investments. There are a
significant number of factors that could cause actual results to differ
materially from statements made in this press release, including:
Splunk's limited operating history and experience developing and
introducing new products and services, including its cloud offerings;
risks associated with Splunk's rapid growth, particularly outside of the
U.S.; Splunk's ability to realize value from its significant investments
in its business, including through acquisitions and product and service
innovations; Splunk's transition to a multi-product software and
services solutions oriented business; Splunk's inability to successfully
integrate acquired businesses, products and technologies; Splunk's
limited experience transitioning executive officer roles; retention of
Splunk's executives and key employees; and general market, political,
economic and business conditions.
Additional information on potential factors that could affect Splunk's
financial results is included in the company's Quarterly Report on Form
10-Q for the quarter ended July 31, 2015, which is on file with the U.S.
Securities and Exchange Commission. Splunk does not assume any
obligation to update the forward-looking statements provided to reflect
events that occur or circumstances that exist after the date on which
they were made.
About Splunk Inc.
Splunk Inc. (NASDAQ:SPLK) is the market-leading platform that powers
Operational Intelligence. We pioneer innovative, disruptive solutions
that make machine data accessible, usable and valuable to everyone. More
than 10,000 customers in over 100 countries use Splunk software and
cloud services to make business, government and education more
efficient, secure and profitable. Join hundreds of thousands of
passionate users by trying Splunk solutions for free: http://www.splunk.com/free-trials.
Social Media: Twitter
| LinkedIn
| YouTube
| Facebook
Splunk, Splunk>, Listen to Your Data, The Engine for Machine Data,
Hunk, Splunk Cloud, Splunk Light, SPL and Splunk MINT are trademarks and
registered trademarks of Splunk Inc. in the United States and other
countries. All other brand names, product names, or trademarks belong to
their respective owners. © 2015 Splunk Inc. All rights reserved.
SPLUNK INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
|
|
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|
|
|
|
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|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
October 31,
|
|
|
October 31,
|
|
|
October 31,
|
|
|
October 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License
|
|
|
|
$
|
104,164
|
|
|
|
$
|
71,754
|
|
|
|
$
|
159,832
|
|
|
|
$
|
185,109
|
|
Maintenance and services
|
|
|
|
|
70,256
|
|
|
|
|
44,275
|
|
|
|
|
114,159
|
|
|
|
|
118,374
|
|
Total revenues
|
|
|
|
|
174,420
|
|
|
|
|
116,029
|
|
|
|
|
273,991
|
|
|
|
|
303,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License
|
|
|
|
|
3,136
|
|
|
|
|
535
|
|
|
|
|
2,974
|
|
|
|
|
685
|
|
Maintenance and services
|
|
|
|
|
27,455
|
|
|
|
|
17,045
|
|
|
|
|
45,151
|
|
|
|
|
46,153
|
|
Total cost of revenues 1,2,3
|
|
|
|
|
30,591
|
|
|
|
|
17,580
|
|
|
|
|
48,125
|
|
|
|
|
46,838
|
|
Gross profit
|
|
|
|
|
143,829
|
|
|
|
|
98,449
|
|
|
|
|
225,866
|
|
|
|
|
256,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
|
56,186
|
|
|
|
|
39,534
|
|
|
|
|
93,006
|
|
|
|
|
103,455
|
|
Sales and marketing
|
|
|
|
|
130,131
|
|
|
|
|
85,720
|
|
|
|
|
213,775
|
|
|
|
|
236,776
|
|
General and administrative 4,5
|
|
|
|
|
29,857
|
|
|
|
|
21,446
|
|
|
|
|
55,632
|
|
|
|
|
75,125
|
|
Total operating expenses 1,2,3
|
|
|
|
|
216,174
|
|
|
|
|
146,700
|
|
|
|
|
362,413
|
|
|
|
|
415,356
|
|
Operating loss
|
|
|
|
|
(72,345
|
)
|
|
|
|
(48,251
|
)
|
|
|
|
(136,547
|
)
|
|
|
|
(158,711
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income (expense), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
|
|
|
|
377
|
|
|
|
|
199
|
|
|
|
|
785
|
|
|
|
|
492
|
|
Other income (expense), net
|
|
|
|
|
(271
|
)
|
|
|
|
(52
|
)
|
|
|
|
(206
|
)
|
|
|
|
(326
|
)
|
Total interest and other income (expense), net
|
|
|
|
|
106
|
|
|
|
|
147
|
|
|
|
|
579
|
|
|
|
|
166
|
|
Loss before income taxes
|
|
|
|
|
(72,239
|
)
|
|
|
|
(48,104
|
)
|
|
|
|
(135,968
|
)
|
|
|
|
(158,545
|
)
|
Income tax provision (benefit) 6
|
|
|
|
|
735
|
|
|
|
|
447
|
|
|
|
|
(9,493
|
)
|
|
|
|
1,543
|
|
Net loss
|
|
|
|
$
|
(72,974
|
)
|
|
|
$
|
(48,551
|
)
|
|
|
$
|
(126,475
|
)
|
|
|
$
|
(160,088
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share
|
|
|
|
$
|
(0.57
|
)
|
|
|
$
|
(0.40
|
)
|
|
|
$
|
(1.00
|
)
|
|
|
$
|
(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
lease 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
|
)
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPLUNK INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 31,
|
|
|
|
January 31,
|
|
|
|
|
2015
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
SPLUNK INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPLUNK INC. Non-GAAP financial measures and
reconciliations
To supplement Splunk's condensed consolidated financial statements,
which are prepared and presented in accordance with generally accepted
accounting principles in the United States ("GAAP"), Splunk provides
investors with certain non-GAAP financial measures, including non-GAAP
gross margin, non-GAAP operating income (loss), non-GAAP operating
margin, non-GAAP net income (loss) and non-GAAP net income (loss) per
share (collectively the "non-GAAP financial measures"). These non-GAAP
financial measures exclude all or a combination of the following (as
reflected in the following reconciliation table): stock-based
compensation expense, employer payroll tax expense related to employee
stock plans, amortization of acquired intangible assets,
acquisition-related costs, ground lease expense related to a
build-to-suit lease obligation and the partial release of the valuation
allowance due to acquisition. In addition, non-GAAP financial measures
include free cash flow, which represents cash from operations less
purchases of property and equipment. The presentation of the non-GAAP
financial measures is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared and
presented in accordance with GAAP. Splunk uses these non-GAAP financial
measures for financial and operational decision-making purposes and as a
means to evaluate period-to-period comparisons. Splunk believes that
these non-GAAP financial measures provide useful information about
Splunk's operating results, enhance the overall understanding of past
financial performance and future prospects and allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision making. In addition, these non-GAAP
financial measures facilitate comparisons to competitors' operating
results.
Splunk excludes stock-based compensation expense because it is non-cash
in nature and excluding this expense provides meaningful supplemental
information regarding Splunk's operational performance. In particular,
because of varying available valuation methodologies, subjective
assumptions and the variety of award types that companies can use under
FASB ASC Topic 718, Splunk believes that providing non-GAAP financial
measures that exclude this expense allows investors the ability to make
more meaningful comparisons between Splunk's operating results and those
of other companies. Splunk excludes employer payroll tax expense related
to employee stock plans in order for investors to see the full effect
that excluding that stock-based compensation expense had on Splunk's
operating results. These expenses are tied to the exercise or vesting of
underlying equity awards and the price of Splunk's common stock at the
time of vesting or exercise, which may vary from period to period
independent of the operating performance of Splunk's business. Splunk
also excludes amortization of acquired intangible assets,
acquisition-related costs, ground lease expense related to its
build-to-suit lease obligation and the partial release of the valuation
allowance due to acquisition from its non-GAAP financial measures
because these are considered by management to be outside of Splunk's
core operating results. Accordingly, Splunk believes that excluding
these expenses provides investors and management with greater visibility
to the underlying performance of its business operations, facilitates
comparison of its results with other periods and may also facilitate
comparison with the results of other companies in its industry. Splunk
considers free cash flow to be a liquidity measure that provides useful
information to management and investors about the amount of cash
generated by the business that can be used for strategic opportunities,
including investing in its business, making strategic acquisitions and
strengthening its balance sheet.
There are limitations in using non-GAAP financial measures because the
non-GAAP financial measures are not prepared in accordance with GAAP,
may be different from non-GAAP financial measures used by Splunk's
competitors and exclude expenses that may have a material impact upon
Splunk's reported financial results. Further, stock-based compensation
expense has been and will continue to be for the foreseeable future a
significant recurring expense in Splunk's business and an important part
of the compensation provided to Splunk's employees. The non-GAAP
financial measures are meant to supplement and be viewed in conjunction
with GAAP financial measures.
The following table reconciles Splunk's non-GAAP results to Splunk's
GAAP results included in this press release.
SPLUNK INC.
|
Reconciliation of GAAP to Non-GAAP Financial Measures
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
)
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151119006624/en/
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