Splunk Inc. Announces Fiscal Fourth Quarter and Full Year 2013 Financial Results
Company Surpasses 5,000 Customer Mark; Full Year Revenue Grows 64 percent
"We are thrilled to cross the 5,000 customer mark worldwide by adding
another 400-plus new Enterprise customers," said
Fourth Quarter 2013 Financial Highlights
-
Total revenue was
$65.2 million , up 51% year-over-year. -
License revenue was
$46.8 million , up 43% year-over-year. -
GAAP operating loss was
$5.9 million ; GAAP operating margin was negative 9.1%. -
Non-GAAP operating income was
$3.2 million ; non-GAAP operating margin was 5.0%. -
GAAP loss per share was
$0.06 ; non-GAAP income per share was$0.03 . -
Operating cash flow was
$24.8 million with free cash flow of$21.4 million .
Full Year 2013 Financial Highlights
-
Total revenue was
$198.9 million , up 64% from prior year. -
License revenue was
$135.9 million , up 54% from prior year. - GAAP operating margin was negative 11.1%; non-GAAP operating margin was negative 0.7%.
-
Operating cash flow was
$46.6 million with free cash flow of$37.6 million .
A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release.
Fourth Quarter 2013 and Recent Business Highlights
Customers:
New license customers include: DuPont,
Expansion customers include:
Product:
-
Released the
Splunk App for Enterprise Security 2.2 to take advantage ofSplunk Enterprise 5 features, enabling improved scalability for large deployments, faster performance and easier third-party threat intelligence feeds. It also contains new and improved technology add-ons and is more tablet-friendly. -
Released the
Splunk App for VMware 2.0 to enable deep operational visibility into granular performance metrics, logs, tasks, events and topology from hosts, virtual machines and virtual centers. -
Released the
Splunk App for Palo Alto Networks 3.0 to enable users to leverage their machine-generated big data to analyze risk, improve security posture and compliance and address a number of additional operational and regulatory concerns. - Announced the general availability (GA) of new software development kits (SDKs) for Java and Python. The Splunk SDK for PHP is in public preview.
-
Released the GA version of
Splunk DB Connect to deliver real-time integration betweenSplunk Enterprise and relational databases. -
Released
Splunk Shuttl to give customers several backend options to archive their data, whether in Amazon S3, Hadoop HDFS or NFS. It allows data to move automatically and, via the user interface, locate and restore data with just a few clicks.
Awards
-
Fast Company namedSplunk one of the World's Most Innovative Companies.Splunk is ranked fourth overall for "bringing big data to the masses."Fast Company also rankedSplunk the number one innovator in Big Data. -
Splunk Enterprise won the gold medal for the Best
Security Product in the "2012 Editors' Best Awards" by
Penton Media's Windows IT Pro. Splunk Enterprise was also awarded the silver medal for Best Free Tool and the bronze medal for Best Systems Monitoring Product. -
Named the 2012
Big Data Winner by
Enterprise Strategy Group .
Appointments
-
Announced
Tim Mather as the company's first Vice President of Security and Compliance Markets and Chief Information Security Officer (CISO).
Splunk4Good
- Launched the Federal Election Commission Campaign Contribution Explorer to examine who gives the most to political campaigns by occupation, location and other criteria.
- Partnered with Rock the Vote to help young voters, who get a majority of their news via social media, better follow and understand the online conversation around the 2012 U.S. election campaign. Rock the Vote and Splunk4Good worked together to build a visualization that displayed sets of real-time political data to build a unique social media view to track the issues that young voters were discussing online.
-
Selected to participate in the
FEMA Innovation Think Tank to deliver social media metrics around the impact of Hurricane Sandy.
Financial Outlook
The company is providing the following guidance for its fiscal 2014
first quarter (ending
-
Total revenue is expected to be between
$52 million and $54 million . - Non-GAAP operating margin is expected to be between negative 10% and negative 12%.
The company is providing the following guidance for its fiscal 2014 full
year (ending
-
Total revenue is expected to be between
$260 million and $270 million . - Non-GAAP operating margin is expected to be approximately zero.
All forward-looking non-GAAP financial measures contained in this section "Financial Outlook" exclude estimates for stock-based compensation expenses and employer payroll tax expense related to employee stock plans. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.
Conference Call and Webcast
Splunk's executive management team will host a conference call today
beginning at
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 2014 in the paragraphs under "Financial Outlook"
above, and other statements regarding momentum in the company's
business, growth in the number of new customers, existing customer
usage, expansion of
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
About
To learn more, please visit www.splunk.com/company.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Fiscal Year Ended | |||||||||||||||
|
|
|
January 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues | ||||||||||||||||
License | $ | 46,776 | $ | 32,814 | $ | 135,922 | $ | 88,308 | ||||||||
Maintenance and services | 18,449 | 10,385 | 63,022 | 32,652 | ||||||||||||
Total revenues | 65,225 | 43,199 | 198,944 | 120,960 | ||||||||||||
Cost of revenues | ||||||||||||||||
License | 444 | 178 | 727 | 890 | ||||||||||||
Maintenance and services | 6,191 | 3,257 | 20,697 | 10,715 | ||||||||||||
Total cost of revenues 1, 2 | 6,635 | 3,435 | 21,424 | 11,605 | ||||||||||||
Gross profit | 58,590 | 39,764 | 177,520 | 109,355 | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development 1, 2 | 13,285 | 7,334 | 41,853 | 23,561 | ||||||||||||
Sales and marketing 1, 2 | 40,345 | 26,445 | 125,098 | 74,782 | ||||||||||||
General and administrative 1, 2 | 10,884 | 6,590 | 32,602 | 19,698 | ||||||||||||
Total operating expenses | 64,514 | 40,369 | 199,553 | 118,041 | ||||||||||||
Operating loss | (5,924 | ) | (605 | ) | (22,033 | ) | (8,686 | ) | ||||||||
Other income (expense), net | ||||||||||||||||
Interest income (expense), net | 37 | (24 | ) | 152 | (94 | ) | ||||||||||
Change in fair value of preferred stock warrants | - | (519 | ) | (14,087 | ) | (2,034 | ) | |||||||||
Total other income (expense), net | 37 | (543 | ) | (13,935 | ) | (2,128 | ) | |||||||||
Loss before income taxes | (5,887 | ) | (1,148 | ) | (35,968 | ) | (10,814 | ) | ||||||||
Provision for income taxes | 275 | 128 | 713 | 178 | ||||||||||||
Net loss | $ | (6,162 | ) | $ | (1,276 | ) | $ | (36,681 | ) | $ | (10,992 | ) | ||||
Basic and diluted net loss per share | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.46 | ) | $ | (0.53 | ) | ||||
|
||||||||||||||||
Weighted-average shares used in computing basic and diluted net loss per share |
98,996 | 22,403 | 80,246 | 20,646 | ||||||||||||
1 Includes stock-based compensation expense as follows: | ||||||||||||||||
Cost of revenues | $ | 520 | $ | 51 | $ | 1,217 | $ | 134 | ||||||||
Research and development | 2,448 | 310 | 6,170 | 841 | ||||||||||||
Sales and marketing | 3,637 | 659 | 8,093 | 1,488 | ||||||||||||
General and administrative | 1,652 | 473 | 4,000 | 1,297 | ||||||||||||
$ | 8,257 | $ | 1,493 | $ | 19,480 | $ | 3,760 | |||||||||
2 Includes employer payroll tax on employee stock plans as follows: | ||||||||||||||||
Cost of revenues | $ | 7 | $ | - | $ | 7 | $ | - | ||||||||
Research and development | 180 | - | 180 | - | ||||||||||||
Sales and marketing | 458 | - | 506 | - | ||||||||||||
General and administrative | 248 | - | 462 | - | ||||||||||||
$ | 893 | $ | - | $ | 1,155 | $ | - | |||||||||
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
|
January 31, | |||||||
2013 | 2012 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 305,939 | $ | 31,599 | ||||
Accounts receivable, net | 63,948 | 34,495 | ||||||
Prepaid expenses and other current assets | 6,861 | 4,261 | ||||||
Total current assets | 376,748 | 70,355 | ||||||
Restricted cash | - | 514 | ||||||
Property and equipment, net | 13,205 | 8,919 | ||||||
Other assets | 492 | 2,435 | ||||||
Total assets | $ | 390,445 | $ | 82,223 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 1,632 | $ | 1,455 | ||||
Accrued payroll and compensation | 28,123 | 16,142 | ||||||
Accrued expenses and other liabilities | 7,636 | 7,711 | ||||||
Deferred revenue, current portion | 79,568 | 42,923 | ||||||
Term debt, current portion | - | 982 | ||||||
Total current liabilities | 116,959 | 69,213 | ||||||
Deferred revenue, non-current | 35,144 | 9,742 | ||||||
Preferred stock warrant liability | - | 2,133 | ||||||
Other liabilities, non-current | 798 | 561 | ||||||
Term debt, non-current | - | 1,307 | ||||||
Total non-current liabilities | 35,942 | 13,743 | ||||||
Total liabilities | 152,901 | 82,956 | ||||||
Convertible preferred stock | - | 40,913 | ||||||
Stockholders' equity (deficit): | ||||||||
Common stock | 101 | 23 | ||||||
Accumulated other comprehensive loss | (135 | ) | (24 | ) | ||||
Additional paid-in capital | 328,277 | 12,373 | ||||||
Accumulated deficit | (90,699 | ) | (54,018 | ) | ||||
Total stockholders' equity (deficit) | 237,544 | (41,646 | ) | |||||
Total liabilities and stockholders' equity | $ | 390,445 | $ | 82,223 | ||||
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Fiscal Year Ended | |||||||||||||||
|
|
|
January 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cash Flows From Operating Activities | ||||||||||||||||
Net loss | $ | (6,162 | ) | $ | (1,276 | ) | $ | (36,681 | ) | $ | (10,992 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 1,317 | 691 | 4,674 | 2,120 | ||||||||||||
Change in fair value of preferred stock warrants | - | 519 | 14,087 | 2,034 | ||||||||||||
Stock-based compensation | 8,257 | 1,493 | 19,480 | 3,760 | ||||||||||||
Excess tax benefits from employee stock plans | (462 | ) | - | (462 | ) | - | ||||||||||
Changes in operating assets and liabilities | ||||||||||||||||
Accounts receivable, net | (23,770 | ) | (12,968 | ) | (29,453 | ) | (20,347 | ) | ||||||||
Prepaid expenses, other current and non-current assets | (1,378 | ) | (1,281 | ) | (2,658 | ) | (3,511 | ) | ||||||||
Accounts payable | 455 | 344 | 187 | 55 | ||||||||||||
Accrued payroll and compensation | 2,408 | 5,948 | 11,981 | 8,697 | ||||||||||||
Accrued expenses and other liabilities | 3,380 | 442 | 3,446 | 2,448 | ||||||||||||
Deferred revenue | 40,746 | 16,095 | 62,047 | 30,358 | ||||||||||||
Net cash provided by operating activities | 24,791 | 10,007 | 46,648 | 14,622 | ||||||||||||
Cash Flow From Investing Activities | ||||||||||||||||
Change in restricted cash | - | 128 | 514 | 128 | ||||||||||||
Purchases of property and equipment | (3,357 | ) | (2,084 | ) | (9,077 | ) | (8,180 | ) | ||||||||
Net cash used in investing activities | (3,357 | ) | (1,956 | ) | (8,563 | ) | (8,052 | ) | ||||||||
Cash Flow From Financing Activities | ||||||||||||||||
Repayments of financing obligation under sale leaseback | - | (31 | ) | - | (173 | ) | ||||||||||
Repayments of term debt | - | (236 | ) | (2,289 | ) | (711 | ) | |||||||||
Proceeds from term debt | - | - | - | 3,000 | ||||||||||||
Proceeds from initial public offering, net of offering costs | - | - | 225,225 | - | ||||||||||||
Proceeds from exercise of warrant | 630 | 50 | 630 | 50 | ||||||||||||
Proceeds from early exercise of employee stock options | - | 404 | - | 1,139 | ||||||||||||
Issuance of common stock from exercise of stock options | 4,773 | 364 | 6,896 | 1,987 | ||||||||||||
Excess tax benefits from employee stock plans | 462 | - | 462 | - | ||||||||||||
Proceeds from employee stock purchase plan | 5,311 | - | 5,311 | - | ||||||||||||
Net cash provided by financing activities | 11,176 | 551 | 236,235 | 5,292 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 5 | - | 20 | - | ||||||||||||
Net increase in cash and cash equivalents | 32,615 | 8,602 | 274,340 | 11,862 | ||||||||||||
Cash and cash equivalents at beginning of period | 273,324 | 22,997 | 31,599 | 19,737 | ||||||||||||
Cash and cash equivalents at end of period | $ | 305,939 | $ | 31,599 | $ | 305,939 | $ | 31,599 | ||||||||
Non-GAAP financial measures and
reconciliations
To supplement Splunk's consolidated financial statements, which are
prepared and presented in accordance with generally accepted accounting
principles in
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.
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Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended | Fiscal Year Ended | ||||||||||||||||
|
|
|
January 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Reconciliation of cash provided by operating activities to free cash flow: |
|||||||||||||||||
Net cash provided by operating activities | $ | 24,791 | $ | 10,007 | $ | 46,648 | $ | 14,622 | |||||||||
Less purchases of property and equipment | (3,357 | ) | (2,084 | ) | (9,077 | ) | (8,180 | ) | |||||||||
Free cash flow (Non-GAAP) | $ | 21,434 | $ | 7,923 | $ | 37,571 | $ | 6,442 | |||||||||
Net cash used in investing activities | $ | (3,357 | ) | $ | (1,956 | ) | $ | (8,563 | ) | $ | (8,052 | ) | |||||
Net cash provided by financing activities | $ | 11,176 | $ | 551 | $ | 236,235 | $ | 5,292 | |||||||||
Operating income (loss) reconciliation: |
|||||||||||||||||
GAAP operating loss | $ | (5,924 | ) | $ | (605 | ) | $ | (22,033 | ) | $ | (8,686 | ) | |||||
Stock-based compensation expense | A | 8,257 | 1,493 | 19,480 | 3,760 | ||||||||||||
Employer payroll tax on employee stock plans | C | 893 | - | 1,155 | - | ||||||||||||
Non-GAAP operating income (loss) | $ | 3,226 | $ | 888 | $ | (1,398 | ) | $ | (4,926 | ) | |||||||
Operating margin reconciliation: |
|||||||||||||||||
GAAP operating margin | (9.1 |
)% |
|
(1.4 |
)% |
|
(11.1 |
)% |
|
(7.2 |
)% |
||||||
Stock-based compensation expense | A | 12.7 | 3.5 | 9.8 | 3.1 | ||||||||||||
Employer payroll tax on employee stock plans | C | 1.4 | - | 0.6 | - | ||||||||||||
Non-GAAP operating margin | 5.0 |
% |
|
2.1 |
% |
|
(0.7 |
)% |
|
(4.1 |
)% |
||||||
Net income (loss) reconciliation: |
|||||||||||||||||
GAAP net loss | $ | (6,162 | ) | $ | (1,276 | ) | $ | (36,681 | ) | $ | (10,992 | ) | |||||
Stock-based compensation expense | A | 8,257 | 1,493 | 19,480 | 3,760 | ||||||||||||
Change in fair value of preferred stock warrants | B | - | 519 | 14,087 | 2,034 | ||||||||||||
Employer payroll tax on employee stock plans | C | 893 | - | 1,155 | - | ||||||||||||
Non-GAAP net income (loss) | $ | 2,988 | $ | 736 | $ | (1,959 | ) | $ | (5,198 | ) | |||||||
Net income (loss) per share reconciliation: |
|||||||||||||||||
GAAP net loss per share - basic | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.46 | ) | $ | (0.53 | ) | |||||
Stock-based compensation expense | A | 0.08 | 0.07 | 0.24 | 0.18 | ||||||||||||
Change in fair value of preferred stock warrants | B | - | 0.02 | 0.18 | 0.10 | ||||||||||||
Employer payroll tax on employee stock plans | C | 0.01 | - |
0.02 |
- | ||||||||||||
Non-GAAP net income (loss) per share - basic | $ | 0.03 | $ | 0.03 | $ | (0.02 | ) | $ | (0.25 | ) | |||||||
Weighted-average shares used in computing basic GAAP and Non-GAAP net income (loss) per share: |
98,996 | 22,403 | 80,246 | 20,646 | |||||||||||||
Non-GAAP net income (loss) per share - diluted | $ | 0.03 | $ | 0.01 | $ | (0.02 | ) | $ | (0.25 | ) | |||||||
Weighted-average shares used in computing diluted Non-GAAP net income (loss) per share: |
115,615 | 90,384 | 80,246 | 20,646 | |||||||||||||
Notes: |
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(A) To eliminate stock-based compensation expense. |
|||||||||||||||||
(B) To eliminate warrant expense related to the change in the
fair value of our outstanding preferred stock warrants. The final
measurement of the warrants was recorded upon the closing of
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(C) To eliminate employer payroll tax expense related to employee stock plans. |
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slowe@splunk.com
or
jadew@lewispr.com
or
Investor
Contact:
ktinsley@splunk.com
Source:
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