[February 23, 2017] |
|
Splunk Inc. Announces Fiscal Fourth Quarter and Full Year 2017 Financial Results
Splunk
Inc. (NASDAQ: SPLK), provider of the leading software platform for
real-time Operational Intelligence, today announced results for its
fiscal fourth quarter and full year ended January 31, 2017.
Fourth Quarter 2017 Financial Highlights
-
Total revenues were $306.5 million, up 39% year-over-year.
-
License revenues were $190.5 million, up 35% year-over-year.
-
GAAP operating loss was $71.1 million; GAAP operating margin was
negative 23.2%.
-
Non-GAAP operating income was $35.8 million; non-GAAP operating margin
was 11.7%.
-
GAAP loss per share was $0.54; non-GAAP income per share was $0.25.
-
Operating cash flow was $102.5 million with free cash flow of $84.4
million.
Full Year 2017 Financial Highlights
-
Total revenues were $950.0 million, up 42% year-over-year.
-
License revenues were $546.9 million, up 35% year-over-year.
-
GAAP operating margin was negative 36.2%; non-GAAP operating margin
was 6.2%.
-
Operating cash flow was $201.8 million with free cash flow of $156.5
million.
"Customer success is our number one priority. More than 13,000
organizations worldwide depend on Splunk, including nearly 700 new
customers this quarter," said Doug Merritt, President and CEO, Splunk.
"It is early in our data and analytics journey - it is a big market with
a tremendous opportunity that Splunk is uniquely positioned to win. We
are confident in our long-term strategy to become the ubiquitous machine
data platform for our customers."
Fourth Quarter 2017 and Recent Business
Highlights:
Customers:
-
Signed nearly 700 new enterprise customers and ended the year with
more than 13,000 customers worldwide.
-
New and Expansion Customers Include: Aflac, Asurion, Atlassian
(Australia), Australia and New Zealand Banking Group, BM&F Bovespa
(Brazil), City and County of San Francisco, Commonwealth of Virginia,
Condé Nast, CrowdStrike, eHarmony, FedEx, Heartland Jiffy Lube,
Infoblox, National Health Service (United Kingdom), Papa John's Pizza,
Penske Truck Leasing, Randstad (Netherlands), Raymond James,
Stamps.com, Telstra (Australia), University of Maryland, University of
Minnesota and U.S. Department of State.
Products:
-
Announced version
5.0 of the Splunk App for AWS - available for the first time on Splunk
Light - delivering enhanced dashboards, advanced billing insights
into reserved versus on-demand AWS instances, and integrated machine
learning to identify cost optimization improvements and security
anomalies.
-
Announced the new Splunk
App for Jenkins, making it possible to use Splunk solutions to
collect, monitor and analyze the wealth of Jenkins data.
-
Announced new AWS
Lambda blueprints to easily stream valuable logs, events and
alerts from over 15 AWS services into Splunk to help customers gain
critical security and operational insights.
Recognition:
Events:
-
Hosted over 1,100 attendees at Splunk
GovSummit 2016 in Washington, D.C. and unveiled the winners of the Splunk
Public Sector Innovation Awards, recognizing Splunk customers and
partners for driving transformation through data in their organization.
-
Hosted SplunkLive! events in Beijing, Columbus, Long Beach, New
Brunswick, Santa Clara, Shanghai, Taipei and Utrecht (Netherlands).
Presentations can be found on the SplunkLive!
Website.
Financial Outlook
The company is providing the following guidance for its fiscal first
quarter 2018 (ending April 30, 2017):
-
Total revenues are expected to be between $231 million and $233
million.
-
Non-GAAP operating margin is expected to be between negative 2% and
negative 4%.
The company is updating its previous guidance for its fiscal year 2018
(ending January 31, 2018):
-
Total revenues are expected to be approximately $1.185 billion (was
approximately $1.175 billion per prior guidance provided on January
12, 2017).
The company is providing the following guidance for its fiscal year 2018
(ending January 31, 2018):
-
Cloud revenues are expected to be approximately $85 million.
-
Non-GAAP operating margin is expected to be approximately 8%.
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, ground lease
expense related to a build-to-suit lease obligation, acquisition-related
costs and facility exit costs.
While a reconciliation of non-GAAP guidance measures to corresponding
GAAP measures is not available on a forward-looking basis due to the
uncertainty regarding, and the potential variability of, many of these
costs and expenses that may be incurred in the future, the company has
provided a reconciliation of GAAP to non-GAAP financial measures in the
financial statement tables for its fiscal fourth quarter 2017 and fiscal
year 2017 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 March 2, 2017 by dialing
(855) 859-2056 and referencing Conference ID 66659606.
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 first
quarter and fiscal year 2018 in the paragraphs under "Financial Outlook"
above and other statements regarding future growth, long-term strategy,
customer demand and penetration, expanding use of Splunk by existing
customers, size of market opportunity, Splunk's position to capture
market share, expected benefits of new products and growth strategies.
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, including its cloud offerings; risks
associated with Splunk's rapid growth, particularly outside of the
United States; Splunk's inability to realize value from its significant
investments in its business, including product and service innovations;
Splunk's transition to a multi-product software and services business;
Splunk's inability to successfully integrate acquired businesses and
technologies; and general market, political, economic, business and
competitive market 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 October 31, 2016, 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 leader in analyzing machine
data to deliver Operational Intelligence for security, IT and the
business. Splunk® software provides the enterprise machine data fabric
that drives digital transformation. More than 13,000 customers in over
110 countries use Splunk solutions in the cloud and on-premises. Join
millions of passionate users by trying Splunk software 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,
Splunk Cloud, Splunk Light and SPL 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. © 2017 Splunk Inc. All rights reserved.
|
SPLUNK INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
January 31,
|
|
January 31,
|
|
January 31,
|
|
January 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
|
|
|
|
|
|
|
|
License
|
|
$
|
190,513
|
|
|
$
|
141,403
|
|
|
$
|
546,925
|
|
|
$
|
405,399
|
|
Maintenance and services
|
|
|
115,948
|
|
|
|
78,621
|
|
|
|
403,030
|
|
|
|
263,036
|
|
Total revenues
|
|
|
306,461
|
|
|
|
220,024
|
|
|
|
949,955
|
|
|
|
668,435
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
|
|
|
|
|
|
License
|
|
|
3,252
|
|
|
|
2,970
|
|
|
|
11,965
|
|
|
|
9,080
|
|
Maintenance and services
|
|
|
55,011
|
|
|
|
32,436
|
|
|
|
179,088
|
|
|
|
105,042
|
|
Total cost of revenues
|
|
|
58,263
|
|
|
|
35,406
|
|
|
|
191,053
|
|
|
|
114,122
|
|
Gross profit
|
|
|
248,198
|
|
|
|
184,618
|
|
|
|
758,902
|
|
|
|
554,313
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
75,596
|
|
|
|
66,117
|
|
|
|
295,850
|
|
|
|
215,309
|
|
Sales and marketing
|
|
|
190,815
|
|
|
|
161,442
|
|
|
|
653,524
|
|
|
|
505,348
|
|
General and administrative
|
|
|
52,895
|
|
|
|
36,090
|
|
|
|
153,359
|
|
|
|
121,579
|
|
Total operating expenses
|
|
|
319,306
|
|
|
|
263,649
|
|
|
|
1,102,733
|
|
|
|
842,236
|
|
Operating loss
|
|
|
(71,108
|
)
|
|
|
(79,031
|
)
|
|
|
(343,831
|
)
|
|
|
(287,923
|
)
|
|
|
|
|
|
|
|
|
|
Interest and other income (expense), net
|
|
|
|
|
|
|
|
|
Interest income (expense), net
|
|
|
(806
|
)
|
|
|
636
|
|
|
|
(2,829
|
)
|
|
|
1,798
|
|
Other income (expense), net
|
|
|
(486
|
)
|
|
|
(42
|
)
|
|
|
(3,022
|
)
|
|
|
(519
|
)
|
Total interest and other income (expense), net
|
|
|
(1,292
|
)
|
|
|
594
|
|
|
|
(5,851
|
)
|
|
|
1,279
|
|
Loss before income taxes
|
|
|
(72,400
|
)
|
|
|
(78,437
|
)
|
|
|
(349,682
|
)
|
|
|
(286,644
|
)
|
Income tax provision (benefit)
|
|
|
1,805
|
|
|
|
886
|
|
|
|
5,507
|
|
|
|
(7,872
|
)
|
Net loss
|
|
$
|
(74,205
|
)
|
|
$
|
(79,323
|
)
|
|
$
|
(355,189
|
)
|
|
$
|
(278,772
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share
|
|
$
|
(0.54
|
)
|
|
$
|
(0.61
|
)
|
|
$
|
(2.65
|
)
|
|
$
|
(2.20
|
)
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in computing basic and diluted net
loss per share
|
|
|
136,230
|
|
|
|
130,020
|
|
|
|
133,910
|
|
|
|
126,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPLUNK INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
January 31,
|
|
January 31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
421,346
|
|
|
$
|
424,541
|
|
Investments, current portion
|
|
|
662,096
|
|
|
|
584,498
|
|
Accounts receivable, net
|
|
|
238,281
|
|
|
|
181,665
|
|
Prepaid expenses and other current assets
|
|
|
38,650
|
|
|
|
26,565
|
|
Total current assets
|
|
|
1,360,373
|
|
|
|
1,217,269
|
|
|
|
|
|
|
Investments, non-current
|
|
|
5,000
|
|
|
|
1,500
|
|
Property and equipment, net
|
|
|
166,395
|
|
|
|
134,995
|
|
Intangible assets, net
|
|
|
37,713
|
|
|
|
49,482
|
|
Goodwill
|
|
|
124,642
|
|
|
|
123,318
|
|
Other assets
|
|
|
24,423
|
|
|
|
10,275
|
|
Total assets
|
|
$
|
1,718,546
|
|
|
$
|
1,536,839
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable
|
|
$
|
7,503
|
|
|
$
|
4,868
|
|
Accrued payroll and compensation
|
|
|
100,092
|
|
|
|
95,898
|
|
Accrued expenses and other liabilities
|
|
|
81,071
|
|
|
|
49,879
|
|
Deferred revenue, current portion
|
|
|
478,707
|
|
|
|
347,121
|
|
Total current liabilities
|
|
|
667,373
|
|
|
|
497,766
|
|
|
|
|
|
|
Deferred revenue, non-current
|
|
|
146,752
|
|
|
|
102,382
|
|
Other liabilities, non-current
|
|
|
99,260
|
|
|
|
77,277
|
|
Total non-current liabilities
|
|
|
246,012
|
|
|
|
179,659
|
|
Total liabilities
|
|
|
913,385
|
|
|
|
677,425
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
Common stock
|
|
|
137
|
|
|
|
132
|
|
Accumulated other comprehensive loss
|
|
|
(3,013
|
)
|
|
|
(3,770
|
)
|
Additional paid-in capital
|
|
|
1,828,821
|
|
|
|
1,528,647
|
|
Accumulated deficit
|
|
|
(1,020,784
|
)
|
|
|
(665,595
|
)
|
Total stockholders' equity
|
|
|
805,161
|
|
|
|
859,414
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,718,546
|
|
|
$
|
1,536,839
|
|
|
|
|
|
|
|
|
|
|
|
SPLUNK INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
January 31,
|
|
January 31,
|
|
January 31,
|
|
January 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Cash Flows From Operating Activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(74,205
|
)
|
|
$
|
(79,323
|
)
|
|
$
|
(355,189
|
)
|
|
$
|
(278,772
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
9,199
|
|
|
|
6,024
|
|
|
|
32,113
|
|
|
|
19,491
|
|
Amortization of investment premiums
|
|
|
220
|
|
|
|
283
|
|
|
|
840
|
|
|
|
1,332
|
|
Stock-based compensation
|
|
|
92,794
|
|
|
|
88,375
|
|
|
|
378,041
|
|
|
|
292,257
|
|
Deferred income taxes
|
|
|
294
|
|
|
|
276
|
|
|
|
(326
|
)
|
|
|
(11,140
|
)
|
Excess tax benefits from employee stock plans
|
|
|
(131
|
)
|
|
|
121
|
|
|
|
(682
|
)
|
|
|
(874
|
)
|
Non-cash facility exit charge
|
|
|
8,625
|
|
|
|
-
|
|
|
|
8,625
|
|
|
|
-
|
|
Disposal of property and equipment
|
|
|
2,739
|
|
|
|
-
|
|
|
|
2,739
|
|
|
|
-
|
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
(65,792
|
)
|
|
|
(56,008
|
)
|
|
|
(56,616
|
)
|
|
|
(53,252
|
)
|
Prepaid expenses, other current and non-current assets
|
|
|
(17,598
|
)
|
|
|
(10,955
|
)
|
|
|
(25,726
|
)
|
|
|
4,675
|
|
Accounts payable
|
|
|
1,190
|
|
|
|
581
|
|
|
|
2,720
|
|
|
|
965
|
|
Accrued payroll and compensation
|
|
|
16,732
|
|
|
|
17,685
|
|
|
|
4,194
|
|
|
|
30,026
|
|
Accrued expenses and other liabilities
|
|
|
2,153
|
|
|
|
9,335
|
|
|
|
35,145
|
|
|
|
5,496
|
|
Deferred revenue
|
|
|
126,304
|
|
|
|
100,615
|
|
|
|
175,956
|
|
|
|
145,418
|
|
Net cash provided by operating activities
|
|
|
102,524
|
|
|
|
77,009
|
|
|
|
201,834
|
|
|
|
155,622
|
|
|
|
|
|
|
|
|
|
|
Cash Flow From Investing Activities
|
|
|
|
|
|
|
|
|
Purchases of investments
|
|
|
(160,004
|
)
|
|
|
(261,415
|
)
|
|
|
(683,787
|
)
|
|
|
(480,610
|
)
|
Maturities of investments
|
|
|
158,900
|
|
|
|
123,500
|
|
|
|
605,175
|
|
|
|
522,645
|
|
Acquisitions, net of cash acquired
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(142,693
|
)
|
Purchases of property and equipment
|
|
|
(18,130
|
)
|
|
|
(26,836
|
)
|
|
|
(45,349
|
)
|
|
|
(51,332
|
)
|
Other investment activities
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,500
|
)
|
|
|
(1,500
|
)
|
Net cash used in investing activities
|
|
|
(19,234
|
)
|
|
|
(164,751
|
)
|
|
|
(127,461
|
)
|
|
|
(153,490
|
)
|
|
|
|
|
|
|
|
|
|
Cash Flow From Financing Activities
|
|
|
|
|
|
|
|
|
Proceeds from the exercise of stock options
|
|
|
396
|
|
|
|
2,573
|
|
|
|
7,751
|
|
|
|
15,269
|
|
Excess tax benefits from employee stock plans
|
|
|
131
|
|
|
|
(121
|
)
|
|
|
682
|
|
|
|
874
|
|
Proceeds from employee stock purchase plan
|
|
|
12,229
|
|
|
|
8,436
|
|
|
|
27,412
|
|
|
|
19,342
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
(40,352
|
)
|
|
|
-
|
|
|
|
(113,707
|
)
|
|
|
-
|
|
Net cash provided by (used in) financing activities
|
|
|
(27,596
|
)
|
|
|
10,888
|
|
|
|
(77,862
|
)
|
|
|
35,485
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
59
|
|
|
|
(296
|
)
|
|
|
294
|
|
|
|
(391
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
55,753
|
|
|
|
(77,150
|
)
|
|
|
(3,195
|
)
|
|
|
37,226
|
|
Cash and cash equivalents at beginning of period
|
|
|
365,593
|
|
|
|
501,691
|
|
|
|
424,541
|
|
|
|
387,315
|
|
Cash and cash equivalents at end of period
|
|
$
|
421,346
|
|
|
$
|
424,541
|
|
|
$
|
421,346
|
|
|
$
|
424,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
cost of revenues, non-GAAP gross margin, non-GAAP research and
development expense, non-GAAP sales and marketing expense, non-GAAP
general and administrative expense, 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 tables): stock-based compensation expense, employer
payroll tax expense related to employee stock plans, amortization of
acquired intangible assets, acquisition-related costs, adjustments
related to a financing lease obligation, the partial release of the
valuation allowance due to acquisition and facility exit costs. The
adjustments for the financing lease obligation are to reflect the
expense Splunk would have recorded if its build-to-suit lease
arrangement had been deemed an operating lease instead of a financing
lease and is calculated as the net of actual ground lease expense,
depreciation and interest expense over estimated straight-line rent
expense. 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, the partial release of the valuation
allowance due to acquisition, facility exit costs, and makes adjustments
related to a financing lease obligation 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 tables reconcile 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Cash Provided by
Operating Activities to Free Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
January 31,
|
|
January 31,
|
|
January 31,
|
|
January 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net cash provided by operating activities
|
|
$
|
102,524
|
|
|
$
|
77,009
|
|
|
$
|
201,834
|
|
|
$
|
155,622
|
|
Less purchases of property and equipment
|
|
|
(18,130
|
)
|
|
|
(26,836
|
)
|
|
|
(45,349
|
)
|
|
|
(51,332
|
)
|
Free cash flow (Non-GAAP)
|
|
$
|
84,394
|
|
|
$
|
50,173
|
|
|
$
|
156,485
|
|
|
$
|
104,290
|
|
Net cash used in investing activities
|
|
$
|
(19,234
|
)
|
|
$
|
(164,751
|
)
|
|
$
|
(127,461
|
)
|
|
$
|
(153,490
|
)
|
Net cash provided by (used in) financing activities
|
|
$
|
(27,596
|
)
|
|
$
|
10,888
|
|
|
$
|
(77,862
|
)
|
|
$
|
35,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP
Financial Measures
|
Three Months Ended January 31, 2017
|
|
|
GAAP
|
|
Stock-based compensation
|
|
Employer payroll tax on employee stock
plans
|
|
Amortization of acquired intangible
assets
|
|
Adjustments related to financing lease obligation
|
|
Adjustments related to facility exits
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
$
|
58,263
|
|
$
|
(8,496)
|
|
$
|
(201)
|
|
$
|
(2,649)
|
|
$
|
287
|
|
$
|
-
|
|
$
|
47,204
|
Gross margin
|
|
|
81.0%
|
|
|
2.7%
|
|
|
0.1%
|
|
|
0.9%
|
|
|
(0.1)%
|
|
|
-%
|
|
|
84.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
75,596
|
|
|
(27,085)
|
|
|
(683)
|
|
|
(40)
|
|
|
541
|
|
|
-
|
|
|
48,329
|
Sales and marketing
|
|
|
190,815
|
|
|
(42,810)
|
|
|
(865)
|
|
|
(20)
|
|
|
1,135
|
|
|
-
|
|
|
148,255
|
General and administrative
|
|
|
52,895
|
|
|
(14,403)
|
|
|
(494)
|
|
|
-
|
|
|
232
|
|
|
(11,364)
|
|
|
26,866
|
Operating income (loss)
|
|
|
(71,108)
|
|
|
92,794
|
|
|
2,243
|
|
|
2,709
|
|
|
(2,195)
|
|
|
11,364
|
|
|
35,807
|
Operating margin
|
|
|
(23.2)%
|
|
|
30.3%
|
|
|
0.7%
|
|
|
0.9%
|
|
|
(0.7)%
|
|
|
3.7%
|
|
|
11.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(74,205)
|
|
$
|
92,794
|
|
$
|
2,243
|
|
$
|
2,709
|
|
$
|
(102)
|
(2)
|
$
|
11,364
|
|
$
|
34,803
|
Net income (loss) per share(1)
|
|
$
|
(0.54)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP net loss per share calculated based on 136,230
weighted-average shares of common stock. Non-GAAP net income per
share calculated based on 139,145 diluted weighted-average shares
of common stock, which includes 2,915 potentially dilutive shares
related to employee stock awards. GAAP to Non-GAAP net income
(loss) per share is not reconciled due to the difference in the
number of shares used to calculate basic and diluted
weighted-average shares of common stock.
|
(2) Includes $2.1 million of interest expense related to
the financing lease obligation.
|
|
|
Reconciliation of GAAP to Non-GAAP
Financial Measures
|
Three Months Ended January 31, 2016
|
|
|
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
|
|
$
|
35,406
|
|
$
|
(7,479)
|
|
$
|
(147)
|
|
$
|
(2,892)
|
|
$
|
-
|
|
$
|
24,888
|
Gross margin
|
|
|
83.9%
|
|
|
3.4%
|
|
|
0.1%
|
|
|
1.3%
|
|
|
-%
|
|
|
88.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
66,117
|
|
|
(27,287)
|
|
|
(692)
|
|
|
(62)
|
|
|
-
|
|
|
38,076
|
Sales and marketing
|
|
|
161,442
|
|
|
(38,987)
|
|
|
(880)
|
|
|
(154)
|
|
|
-
|
|
|
121,421
|
General and administrative
|
|
|
36,090
|
|
|
(14,622)
|
|
|
(271)
|
|
|
-
|
|
|
(222)
|
|
|
20,975
|
Operating income (loss)
|
|
|
(79,031)
|
|
|
88,375
|
|
|
1,990
|
|
|
3,108
|
|
|
222
|
|
|
14,664
|
Operating margin
|
|
|
(35.9)%
|
|
|
40.2%
|
|
|
0.9%
|
|
|
1.4%
|
|
|
0.1%
|
|
|
6.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(79,323)
|
|
$
|
88,375
|
|
$
|
1,990
|
|
$
|
3,108
|
|
$
|
222
|
|
$
|
14,372
|
Net income (loss) per share(1)
|
|
$
|
(0.61)
|
|
|
|
|
|
|
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP net loss per share calculated based on 130,020
weighted-average shares of common stock. Non-GAAP net income per
share calculated based on 133,784 diluted weighted-average shares of
common stock, which includes 3,764 potentially dilutive shares
related to employee stock awards. GAAP to Non-GAAP net income (loss)
per share is not reconciled due to the difference in the number of
shares used to calculate basic and diluted weighted-average shares
of common stock.
|
|
Reconciliation of GAAP to Non-GAAP
Financial Measures
|
|
|
Fiscal Year Ended January 31, 2017
|
|
|
|
|
GAAP
|
|
Stock-based compensation
|
|
Employer payroll tax on employee stock
plans
|
|
Amortization of acquired intangible
assets
|
|
Adjustments related to financing lease obligation
|
|
Adjustments related to facility exits
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
$
|
191,053
|
|
$
|
(30,971)
|
|
$
|
(801)
|
|
$
|
(11,261)
|
|
$
|
849
|
|
$
|
-
|
|
$
|
148,869
|
Gross margin
|
|
|
79.9%
|
|
|
3.2%
|
|
|
0.1%
|
|
|
1.2%
|
|
|
(0.1)%
|
|
|
-%
|
|
|
84.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
295,850
|
|
|
(129,388)
|
|
|
(2,651)
|
|
|
(233)
|
|
|
1,713
|
|
|
-
|
|
|
165,291
|
Sales and marketing
|
|
|
653,524
|
|
|
(161,164)
|
|
|
(3,394)
|
|
|
(432)
|
|
|
3,508
|
|
|
-
|
|
|
492,042
|
General and administrative
|
|
|
153,359
|
|
|
(56,518)
|
|
|
(1,827)
|
|
|
-
|
|
|
745
|
|
|
(11,364)
|
|
|
84,395
|
Operating income (loss)
|
|
|
(343,831)
|
|
|
378,041
|
|
|
8,673
|
|
|
11,926
|
|
|
(6,815)
|
|
|
11,364
|
|
|
59,358
|
Operating margin
|
|
|
(36.2)%
|
|
|
39.7%
|
|
|
0.9%
|
|
|
1.3%
|
|
|
(0.7)%
|
|
|
1.2%
|
|
|
6.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(355,189)
|
|
$
|
378,041
|
|
$
|
8,673
|
|
$
|
11,926
|
|
$
|
890
|
(2)
|
$
|
11,364
|
|
$
|
55,705
|
Net income (loss) per share(1)
|
|
$
|
(2.65)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP net loss per share calculated based on 133,910
weighted-average shares of common stock. Non-GAAP net income per
share calculated based on 137,409 diluted weighted-average shares of
common stock, which includes 3,499 potentially dilutive shares
related to employee stock awards. GAAP to Non-GAAP net income (loss)
per share is not reconciled due to the difference in the number of
shares used to calculate basic and diluted weighted-average shares
of common stock.
|
(2) Includes $7.7 million of interest expense related to
the financing lease obligation.
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP
Financial Measures
|
Fiscal Year Ended January 31, 2016
|
|
|
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
|
|
$
|
114,122
|
|
$
|
(26,057)
|
|
$
|
(953)
|
|
$
|
(8,271)
|
|
$
|
-
|
|
$
|
-
|
|
$
|
78,841
|
Gross margin
|
|
|
82.9%
|
|
|
3.9%
|
|
|
0.1%
|
|
|
1.3%
|
|
|
-%
|
|
|
-%
|
|
|
88.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
215,309
|
|
|
(89,197)
|
|
|
(2,837)
|
|
|
(296)
|
|
|
-
|
|
|
-
|
|
|
122,979
|
Sales and marketing
|
|
|
505,348
|
|
|
(130,054)
|
|
|
(3,442)
|
|
|
(623)
|
|
|
-
|
|
|
-
|
|
|
371,229
|
General and administrative
|
|
|
121,579
|
|
|
(46,949)
|
|
|
(1,736)
|
|
|
-
|
|
|
(1,993)
|
|
|
(888)
|
|
|
70,013
|
Operating income (loss)
|
|
|
(287,923)
|
|
|
292,257
|
|
|
8,968
|
|
|
9,190
|
|
|
1,993
|
|
|
888
|
|
|
25,373
|
Operating margin
|
|
|
(43.1)%
|
|
|
43.8%
|
|
|
1.3%
|
|
|
1.4%
|
|
|
0.3%
|
|
|
0.1%
|
|
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(278,772)
|
|
$
|
292,257
|
|
$
|
8,968
|
|
$
|
9,190
|
|
$
|
(8,931)
|
(2)
|
$
|
888
|
|
$
|
23,600
|
Net income (loss) per share(1)
|
|
$
|
(2.20)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP net loss per share calculated based on 126,746
weighted-average shares of common stock. Non-GAAP net income per
share calculated based on 131,753 diluted weighted-average shares of
common stock, which includes 5,007 potentially dilutive shares
related to employee stock awards. GAAP to Non-GAAP net income (loss)
per share is not reconciled due to the difference in the number of
shares used to calculate basic and diluted weighted-average shares
of common stock.
|
(2) Includes $10.9 million related to the partial release
of the valuation allowance due to acquisition.
|
|
|
Reconciliation of Total Billings
|
Fiscal Year Ended January 31, 2017
|
|
|
|
Total revenues
|
|
$
|
949,955
|
Increase in deferred revenue
|
|
|
175,956
|
Billings (Non-GAAP)
|
|
$
|
1,125,911
|
|
|
|
Reconciliation of Total Cloud Billings
|
Fiscal Year Ended January 31, 2017
|
|
|
|
Total Cloud revenues
|
|
$
|
47,773
|
Increase in Cloud deferred revenue
|
|
|
47,745
|
Cloud billings (Non-GAAP)
|
|
$
|
95,518
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170223006583/en/
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