[May 25, 2017] |
|
Splunk Inc. Announces Fiscal First Quarter 2018 Financial Results
Splunk
Inc. (NASDAQ: SPLK), provider of the leading software platform for
real-time Operational Intelligence, today announced results for its
fiscal first quarter ended April 30, 2017.
First Quarter 2018 Financial Highlights
-
Total revenues were $242.4 million, up 30% year-over-year.
-
Total billings were $242.8 million, up 30% year-over-year.
-
GAAP operating loss was $97.5 million; GAAP operating margin was
negative 40.2%.
-
Non-GAAP operating loss was $2.8 million; non-GAAP operating margin
was negative 1.2%.
-
GAAP loss per share was $0.73; non-GAAP loss per share was $0.01.
-
Operating cash flow was $41.4 million with free cash flow of $35.8
million.
"We are living in a data-driven world and Splunk enables organizations
to turn massive data into answers, action and success," said Doug
Merritt, President and CEO, Splunk. "We are pleased that customers
continue to adopt the Splunk platform on-premises, in the cloud and in a
hybrid environment. This continued adoption, flexible deployment and our
strong app ecosystem is helping us deliver on our goal of increasing
their success."
First Quarter 2018 and Recent Business
Highlights:
Customers:
-
Signed nearly 500 new enterprise customers.
-
New and expansion customers include: Alabama Department of
Transportation, Airport Authority Hong Kong, Black Box Corporation,
California Department of Social Services, Cerner Corporation, Experian
Consumer Services, Jefferson County Public Schools, Lockheed Martin,
Lloyd's Bank (UK), Merck KGaA (Germany), Monash University, Party
City, Practice Fusion, STARTEK, State of Kansas, Tata Consultancy
Services (India), Take-Two, Trustpower Limited (NZ), Wirecard
Technologies (Germany), UK Ministry of Defence, University of New
Mexico, University of North Carolina at Chapel Hill and U.S. Navy.
Products:
-
Announced support
for SaaS Contracts in AWS Marketplace to enable seamless
procurement and deployment of Splunk Cloud, ensuring fast
time-to-value for customers leveraging Splunk solutions across their
Amazon Web Services (AWS) and hybrid environments.
-
Announced Splunk
DB Connect 3.0, which enables powerful connections between Splunk
and the structured data world of SQL and JDBC.
Corporate:
Strategic and Channel Partners:
Recognition:
-
Announced Splunk's position as a Leader in The
Forrester Wave™: Security Analytics Platforms, Q1 2017 report.
Forrester awarded Splunk Enterprise Security (ES) with the highest
possible scores for real-time monitoring, scalability and detection
technologies.
-
Splunk ES received a 5-Star review from SC
Magazine, which noted Splunk as an analytics-driven SIEM with
straightforward functionality at a very reasonable price.
-
Splunk won three awards in TechWorld's techies
2017: Best Security Technology of the Year, Best Cloud Technology
of the Year and the Grand Prix Award.
-
Splunk was named a 2016-17 winner in The
Cloud Awards in the category of Best Hybrid Cloud Solution.
Events:
Financial Outlook
The company is providing the following guidance for its fiscal second
quarter 2018 (ending July 31, 2017):
-
Total revenues are expected to be between $267 million and $269
million.
-
Non-GAAP operating margin is expected to be approximately 4%.
The company is updating its previous guidance for its fiscal year 2018
(ending January 31, 2018):
-
Total billings are expected to be approximately $1.425 billion (was
approximately $1.4 billion per prior guidance provided on January 12,
2017).
-
Total revenues are expected to be approximately $1.195 billion (was
approximately $1.185 billion per prior guidance provided on February
23, 2017).
-
Non-GAAP operating margin is expected to be approximately 8%
(unchanged from prior guidance).
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 and adjustments
related to a financing lease obligation.
A reconciliation of non-GAAP guidance measures to corresponding GAAP
measures is not available on a forward-looking basis without
unreasonable effort 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 first quarter 2018 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 June 1, 2017 by dialing
(855) 859-2056 and referencing Conference ID 17978057.
Safe Harbor Statement
This press release contains forward-looking statements that involve
risks and uncertainties, including statements regarding Splunk's
revenue, billings and non-GAAP operating margin targets for the
company's fiscal second quarter and fiscal year 2018 in the paragraphs
under "Financial Outlook" above and other statements regarding future
growth, strategy, subscription business, cloud adoption, customer demand
and penetration, app ecosystem, and expected benefits of new products.
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 Annual Report on Form
10-K for the fiscal year ended January 31, 2017, 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.
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SPLUNK INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months Ended
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April 30,
|
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|
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April 30,
|
|
|
|
2017
|
|
|
|
|
|
2016
|
|
Revenues
|
|
|
|
|
|
|
License
|
|
$
|
116,726
|
|
|
|
|
$
|
100,992
|
|
Maintenance and services
|
|
|
125,722
|
|
|
|
|
|
84,960
|
|
Total revenues
|
|
|
242,448
|
|
|
|
|
|
185,952
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
|
|
|
|
License
|
|
|
2,928
|
|
|
|
|
|
2,962
|
|
Maintenance and services
|
|
|
55,235
|
|
|
|
|
|
36,538
|
|
Total cost of revenues
|
|
|
58,163
|
|
|
|
|
|
39,500
|
|
Gross profit
|
|
|
184,285
|
|
|
|
|
|
146,452
|
|
|
|
|
|
|
|
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Operating expenses
|
|
|
|
|
|
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Research and development
|
|
|
71,298
|
|
|
|
|
|
67,371
|
|
Sales and marketing
|
|
|
173,948
|
|
|
|
|
|
145,151
|
|
General and administrative
|
|
|
36,496
|
|
|
|
|
|
32,073
|
|
Total operating expenses
|
|
|
281,742
|
|
|
|
|
|
244,595
|
|
Operating loss
|
|
|
(97,457
|
)
|
|
|
|
|
(98,143
|
)
|
|
|
|
|
|
|
|
Interest and other income (expense), net
|
|
|
|
|
|
Interest income (expense), net
|
|
|
(528
|
)
|
|
|
|
|
(403
|
)
|
Other income (expense), net
|
|
|
(608
|
)
|
|
|
|
|
(1,125
|
)
|
Total interest and other income (expense), net
|
|
(1,136
|
)
|
|
|
|
|
(1,528
|
)
|
Loss before income taxes
|
|
|
(98,593
|
)
|
|
|
|
|
(99,671
|
)
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Income tax provision
|
|
|
1,338
|
|
|
|
|
|
1,225
|
|
Net loss
|
|
$
|
(99,931
|
)
|
|
|
|
$
|
(100,896
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic and diluted net loss per share
|
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$
|
(0.73
|
)
|
|
|
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$
|
(0.77
|
)
|
|
|
|
|
|
|
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Weighted-average shares used in computing basic
|
|
|
|
|
|
and diluted net loss per share
|
|
|
137,785
|
|
|
|
|
|
131,494
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SPLUNK INC.
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(In thousands)
|
(Unaudited)
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|
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|
|
|
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April 30,
|
|
|
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January 31,
|
|
|
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|
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2017
|
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2017
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Assets
|
|
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|
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|
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|
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|
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Current assets
|
|
|
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Cash and cash equivalents
|
|
|
|
|
$
|
466,427
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|
|
|
|
$
|
421,346
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Investments, current portion
|
|
|
|
|
|
620,805
|
|
|
|
|
|
662,096
|
|
Accounts receivable, net
|
|
|
|
|
|
171,260
|
|
|
|
|
|
238,281
|
|
Prepaid expenses and other current assets
|
|
|
|
|
|
44,864
|
|
|
|
|
|
38,650
|
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Total current assets
|
|
|
|
|
|
1,303,356
|
|
|
|
|
|
1,360,373
|
|
|
|
|
|
|
|
|
|
|
|
Investments, non-current
|
|
|
|
|
|
5,000
|
|
|
|
|
|
5,000
|
|
Property and equipment, net
|
|
|
|
|
|
165,356
|
|
|
|
|
|
166,395
|
|
Intangible assets, net
|
|
|
|
|
|
35,022
|
|
|
|
|
|
37,713
|
|
Goodwill
|
|
|
|
|
|
124,642
|
|
|
|
|
|
124,642
|
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Other assets
|
|
|
|
|
|
25,210
|
|
|
|
|
|
24,423
|
|
Total assets
|
|
|
|
|
$
|
1,658,586
|
|
|
|
|
$
|
1,718,546
|
|
|
|
|
|
|
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|
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|
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Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
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|
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Current liabilities
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
8,239
|
|
|
|
|
$
|
7,503
|
|
Accrued payroll and compensation
|
|
|
|
|
|
89,104
|
|
|
|
|
|
100,092
|
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Accrued expenses and other liabilities
|
|
|
|
|
|
72,107
|
|
|
|
|
|
81,071
|
|
Deferred revenue, current portion
|
|
|
|
|
|
469,072
|
|
|
|
|
|
478,707
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Total current liabilities
|
|
|
|
|
|
638,522
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|
|
|
|
|
667,373
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|
|
|
|
|
|
|
|
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|
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Deferred revenue, non-current
|
|
|
|
|
|
156,720
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|
|
|
|
|
146,752
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Other liabilities, non-current
|
|
|
|
|
|
99,610
|
|
|
|
|
|
99,260
|
|
Total non-current liabilities
|
|
|
|
|
|
256,330
|
|
|
|
|
|
246,012
|
|
Total liabilities
|
|
|
|
|
|
894,852
|
|
|
|
|
|
913,385
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
138
|
|
|
|
|
|
137
|
|
Accumulated other comprehensive loss
|
|
|
|
|
|
(3,589
|
)
|
|
|
|
|
(3,013
|
)
|
Additional paid-in capital
|
|
|
|
|
|
1,887,900
|
|
|
|
|
|
1,828,821
|
|
Accumulated deficit
|
|
|
|
|
|
(1,120,715
|
)
|
|
|
|
|
(1,020,784
|
)
|
Total stockholders' equity
|
|
|
|
|
|
763,734
|
|
|
|
|
|
805,161
|
|
Total liabilities and stockholders' equity
|
|
|
|
|
$
|
1,658,586
|
|
|
|
|
$
|
1,718,546
|
|
|
SPLUNK INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
April 30,
|
|
|
|
|
April 30,
|
|
|
|
2017(1)
|
|
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(99,931
|
)
|
|
|
|
|
$
|
(100,896
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
Depreciation and amortization
|
|
|
9,103
|
|
|
|
|
|
|
6,461
|
|
Amortization of investment premiums
|
|
|
217
|
|
|
|
|
|
|
258
|
|
Stock-based compensation
|
|
|
90,055
|
|
|
|
|
|
|
91,370
|
|
Deferred income taxes
|
|
|
101
|
|
|
|
|
|
|
(506
|
)
|
Excess tax benefits from employee stock plans
|
|
|
-
|
|
|
|
|
|
|
(692
|
)
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
67,021
|
|
|
|
|
|
|
83,058
|
|
Prepaid expenses, other current and non-current assets
|
|
|
(7,057
|
)
|
|
|
|
|
|
(8,119
|
)
|
Accounts payable
|
|
|
714
|
|
|
|
|
|
|
99
|
|
Accrued payroll and compensation
|
|
|
(10,988
|
)
|
|
|
|
|
|
(33,727
|
)
|
Accrued expenses and other liabilities
|
|
|
(8,210
|
)
|
|
|
|
|
|
(2,891
|
)
|
Deferred revenue
|
|
|
333
|
|
|
|
|
|
|
1,274
|
|
Net cash provided by operating activities
|
|
|
41,358
|
|
|
|
|
|
|
35,689
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities
|
|
|
|
|
|
|
|
Purchases of investments
|
|
|
(122,473
|
)
|
|
|
|
|
|
(142,787
|
)
|
Maturities of investments
|
|
|
163,065
|
|
|
|
|
|
|
133,120
|
|
Purchases of property and equipment
|
|
|
(5,605
|
)
|
|
|
|
|
|
(3,709
|
)
|
Net cash provided by (used in) investing activities
|
|
|
34,987
|
|
|
|
|
|
|
(13,376
|
)
|
|
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
|
|
|
Proceeds from the exercise of stock options
|
|
|
1,487
|
|
|
|
|
|
|
1,664
|
|
Excess tax benefits from employee stock plans
|
|
|
-
|
|
|
|
|
|
|
692
|
|
Taxes paid related to net share settlement of equity awards
|
|
(32,462
|
)
|
|
|
|
|
|
(21,731
|
)
|
Repayment of financing lease obligation
|
|
|
(317
|
)
|
|
|
|
|
|
-
|
|
Net cash used in financing activities
|
|
|
(31,292
|
)
|
|
|
|
|
|
(19,375
|
)
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
28
|
|
|
|
|
|
|
766
|
|
Net increase in cash and cash equivalents
|
|
|
45,081
|
|
|
|
|
|
|
3,704
|
|
Cash and cash equivalents at beginning of period
|
|
|
421,346
|
|
|
|
|
|
|
424,541
|
|
Cash and cash equivalents at end of period
|
|
$
|
466,427
|
|
|
|
|
|
$
|
428,245
|
|
(1) During the current quarter, Splunk adopted Accounting
Standards Update ("ASU") No. 2016-09, Improvements to Employee
Share-Based Payment Accounting, wherein excess tax benefits from
employee stock plans are classified as an inflow from operating
activities on the statement of cash flows. Prior to the adoption of
ASU 2016-09, excess tax benefits from employee stock plans were
presented as an inflow from financing activities and an outflow from
operating activities on the statement of cash flows. Prior period
classification of cash flows related to excess tax benefits have not
been adjusted.
|
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 and adjustments related to a financing lease
obligation. 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. The non-GAAP financial measures are adjusted for Splunk's
estimated tax rate on non-GAAP income (loss). To determine the annual
non-GAAP tax rate, Splunk evaluates a financial projection based on its
non-GAAP results. The annual non-GAAP tax rate takes into account other
factors including Splunk's current operating structure, its existing tax
positions in various jurisdictions and key legislation in major
jurisdictions where Splunk operates. The annual non-GAAP tax rate
applied to the three months ended April 30, 2017 was 27%. Splunk will
utilize this annual non-GAAP tax rate in fiscal 2018 and will provide
updates to this rate on an annual basis or more frequently if material
changes occur. In addition, non-GAAP financial measures include free
cash flow, which represents cash from operations less purchases of
property and equipment, and billings, which represents revenues plus the
change in deferred revenue during the period. 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 and 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 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. Splunk considers billings to be a
useful measure for management and investors because it provides
visibility into Splunk's sales activity for a particular period, which
is not necessarily reflected in its revenues given that Splunk
recognizes term licenses and subscriptions for cloud services ratably.
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 30,
|
|
|
April 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
$
|
41,358
|
|
|
|
$
|
35,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less purchases of property and equipment
|
|
(5,605
|
)
|
|
|
|
(3,709
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow (Non-GAAP)
|
|
$
|
35,753
|
|
|
|
$
|
31,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
$
|
34,987
|
|
|
|
$
|
(13,376
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
$
|
(31,292
|
)
|
|
|
$
|
(19,375
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP
Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
|
58,163
|
|
|
$
|
(8,192
|
)
|
|
|
$
|
(441
|
)
|
|
|
$
|
(2,649
|
)
|
|
|
$
|
306
|
|
|
|
$
|
-
|
|
|
|
$
|
47,187
|
|
Gross margin
|
|
76.0
|
%
|
|
|
3.3
|
%
|
|
|
|
0.2
|
%
|
|
|
|
1.1
|
%
|
|
|
|
(0.1
|
)%
|
|
|
|
-
|
%
|
|
|
|
80.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
71,298
|
|
|
|
(26,797
|
)
|
|
|
|
(1,251
|
)
|
|
|
|
(28
|
)
|
|
|
|
531
|
|
|
|
|
-
|
|
|
|
|
43,753
|
|
Sales and marketing
|
|
173,948
|
|
|
|
(40,643
|
)
|
|
|
|
(1,772
|
)
|
|
|
|
(16
|
)
|
|
|
|
1,170
|
|
|
|
|
-
|
|
|
|
|
132,687
|
|
General and administrative
|
|
36,496
|
|
|
|
(14,423
|
)
|
|
|
|
(677
|
)
|
|
|
|
-
|
|
|
|
|
237
|
|
|
|
|
-
|
|
|
|
|
21,633
|
|
Operating loss
|
|
(97,457
|
)
|
|
|
90,055
|
|
|
|
|
4,141
|
|
|
|
|
2,693
|
|
|
|
|
(2,244
|
)
|
|
|
|
-
|
|
|
|
|
(2,812
|
)
|
Operating margin
|
|
(40.2
|
)%
|
|
|
37.1
|
%
|
|
|
|
1.7
|
%
|
|
|
|
1.1
|
%
|
|
|
|
(0.9
|
)%
|
|
|
|
-
|
%
|
|
|
|
(1.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (benefit)
|
|
1,338
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(1,833
|
)
|
|
|
|
(495
|
)
|
Net loss
|
$
|
(99,931
|
)
|
|
$
|
90,055
|
|
|
|
$
|
4,141
|
|
|
|
$
|
2,693
|
|
|
|
$
|
(130
|
)(2)
|
|
|
|
$
|
1,833
|
|
|
|
$
|
(1,339
|
)
|
Net loss per share(1)
|
$
|
(0.73
|
)
|
|
$
|
0.66
|
|
|
|
$
|
0.03
|
|
|
|
$
|
0.02
|
|
|
|
$
|
-
|
|
|
|
$
|
0.01
|
|
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Calculated based on 137,785 basic and diluted
weighted-average shares of common stock.
|
|
|
|
(2) Includes $2.1 million of interest expense related to
the financing lease obligation.
|
|
|
|
|
|
(3) Represents the tax effect of the non-GAAP adjustments
based on the estimated annual effective tax rate of 27%. Application
of this annual effective tax rate to the non-GAAP pre-tax loss
during the quarter resulted in a non-GAAP tax benefit, which is
expected to be offset by future tax expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP
Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
|
39,500
|
|
|
$
|
(7,555
|
)
|
|
|
$
|
(262
|
)
|
|
|
$
|
(2,912
|
)
|
|
|
$
|
26
|
|
|
|
$
|
-
|
|
|
|
$
|
28,797
|
|
Gross margin
|
|
78.8
|
%
|
|
|
4.0
|
%
|
|
|
|
0.1
|
%
|
|
|
|
1.6
|
%
|
|
|
|
-
|
%
|
|
|
|
-
|
%
|
|
|
|
84.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
67,371
|
|
|
|
(29,206
|
)
|
|
|
|
(756
|
)
|
|
|
|
(71
|
)
|
|
|
|
58
|
|
|
|
|
-
|
|
|
|
|
37,396
|
|
Sales and marketing
|
|
145,151
|
|
|
|
(40,233
|
)
|
|
|
|
(1,026
|
)
|
|
|
|
(151
|
)
|
|
|
|
118
|
|
|
|
|
-
|
|
|
|
|
103,859
|
|
General and administrative
|
|
32,073
|
|
|
|
(14,376
|
)
|
|
|
|
(441
|
)
|
|
|
|
-
|
|
|
|
|
26
|
|
|
|
|
-
|
|
|
|
|
17,282
|
|
Operating loss
|
|
(98,143
|
)
|
|
|
91,370
|
|
|
|
|
2,485
|
|
|
|
|
3,134
|
|
|
|
|
(228
|
)
|
|
|
|
-
|
|
|
|
|
(1,382
|
)
|
Operating margin
|
|
(52.8
|
)%
|
|
|
49.2
|
%
|
|
|
|
1.3
|
%
|
|
|
|
1.7
|
%
|
|
|
|
(0.1
|
)%
|
|
|
|
-
|
%
|
|
|
|
(0.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (benefit)
|
|
1,225
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(1,523
|
)
|
|
|
|
(298
|
)
|
Net loss
|
$
|
(100,896
|
)
|
|
$
|
91,370
|
|
|
|
$
|
2,485
|
|
|
|
$
|
3,134
|
|
|
|
$
|
1,263
|
(2)
|
|
|
|
$
|
1,523
|
|
|
|
$
|
(1,121
|
)
|
Net loss per share(1)
|
$
|
(0.77
|
)
|
|
$
|
0.70
|
|
|
|
$
|
0.02
|
|
|
|
$
|
0.02
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.01
|
|
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Calculated based on 131,494 basic and diluted
weighted-average shares of common stock.
|
|
|
|
(2) Includes $1.5 million of interest expense related to
the financing lease obligation.
|
|
|
|
|
|
(3) For consistency, prior year non-GAAP net loss has
been adjusted to reflect the tax effect of the non-GAAP
adjustments based on the annual effective tax rate of 21%.
Application of this annual effective tax rate to the non-GAAP
pre-tax loss during the quarter resulted in a non-GAAP tax
benefit, which is offset by future tax expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Billings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 30,
|
|
|
April 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
$
|
242,448
|
|
|
|
$
|
185,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in deferred revenue
|
|
|
333
|
|
|
|
|
1,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billings (Non-GAAP)
|
|
|
$
|
242,781
|
|
|
|
$
|
187,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170525005992/en/
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