Splunk Inc. Announces Fiscal Second Quarter 2018 Financial Results
Revenues Grew 32%; Company Increases Full-Year Billings and Revenue Outlook
Second Quarter 2018 Financial Highlights
-
Total revenues were
$280.0 million , up 32% year-over-year. -
Total billings were
$303.4 million , up 32% year-over-year. -
GAAP operating loss was
$82.1 million ; GAAP operating margin was negative 29.3%. -
Non-GAAP operating profit was
$14.7 million ; non-GAAP operating margin was positive 5.2%. -
GAAP loss per share was
$0.60 ; non-GAAP earnings per share was$0.08 . -
Operating cash flow was
$23.2 million with free cash flow of$20.3 million .
"I am pleased with the solid sales execution in Q2, particularly our
results in EMEA," said
Second Quarter 2018 and Recent Business Highlights:
Customers:
- Signed over 500 new customers.
-
New and Expansion Customers Include: Athenahealth,
Carnegie Mellon University ,Carnival Cruise Lines ,CentraCare Health System ,Department of Homeland Security ,DuluxGroup (Australia) ,Educational Testing Service ,George Mason University ,Harvard Business School , Klarna (Sweden ),Long Beach Container Terminal ,Maricopa County Office of Enterprise Technology ,Panasonic Avionics , Regeneron, Shutterfly,SRT Communications ,State of Montana , Swisscom (Switzerland ), Uber,Verizon Enterprise Solutions and Webroot.
Products:
- Announced Splunk Insights for AWS Cloud Monitoring, a solution that helps organizations drive more value from their journey to the cloud.
-
Introduced
Splunk Insights for Ransomware, a new offering that delivers organizations an analytics solution to manage ransomware threats. -
Released new versions of
Splunk Enterprise 6.6 and Splunk Cloud to make it easier than ever for a wide range of users to leverage datasets, build dashboards, gain answers and share insights. -
Released the latest version of
Splunk Enterprise Security (ES) 4.7 to improve investigation efficiency and incident response, as well as provide insight from common SaaS applications. -
Splunk and Booz Allen Hamilton announced a private beta ofBooz Allen Cyber4Sight forSplunk , a new solution designed to empower security analysts and threat hunters with actionable intelligence. -
Released new version of the
Splunk Add-on for Microsoft Cloud Services in Splunkbase, which givesSplunk administrators the ability to collect events from various Microsoft Cloud Services APIs.
Corporate:
-
Splunk named the market share leader in the Worldwide IT Operations Analytics Software Market by IDC. -
Splunk named the market share leader in the Worldwide IT Event and Log Management Software Market by IDC. - Announced the findings of a new IDC InfoBrief, "Investigation or Exasperation? The State of Security Operations," revealing security teams are struggling to keep up with the rising volume of cyberattacks.
-
Announced the results of a new
IDG Research survey, "Digital Transformation Trailblazing: A Data-Driven Approach," showing digital transformation initiatives are more successful when they have buy-in across the business.
-
Launched the new Splunk Partner Portal to promote new joint business
opportunities for resellers, MSPs and service providers in the
Splunk Partner+ Program. -
Sponsored and exhibited at Palo
Alto Networks Ignite 2017 to display Splunk's comprehensive
cybersecurity approach and provide demonstrations of the
Palo Alto Networks App forSplunk . - Sponsored the Puppet Enterprise 2017 State of DevOps Report, which found transformational leaders rely on automation and velocity is a key metric for DevOps success.
Recognition:
- Recognized as one of LinkedIn's Top Companies at attracting and retaining talent for the second year in a row.
- Named one of the 40 Coolest Business Analytics Vendors in the CRN 2017 Big Data 100.
- Splunk ES was honored with several industry awards: Best SIEM Solution in the SC Awards Europe 2017, Security Product of the Year in the U.K.'s National Technology Awards and top SIEM solution in the Computerworld Hong Kong Awards 2017.
Financial Outlook
The company is providing the following guidance for its fiscal third
quarter 2018 (ending
-
Total revenues are expected to be between
$307 million and$309 million . - Non-GAAP operating margin is expected to be approximately 8%.
The company is updating its previous guidance for its fiscal year 2018
(ending
-
Total billings are expected to be approximately
$1.450 billion (was approximately$1.425 billion per prior guidance provided onMay 25, 2017 ). -
Total revenues are expected to be between
$1.210 and$1.215 billion (was approximately$1.195 billion per prior guidance provided onMay 25, 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 second 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
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 third quarter and/or fiscal year 2018 in the paragraphs
under "Financial Outlook" above and other statements regarding future
growth, strategy, customer demand and penetration, expanding use of
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
About
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
|
|
|
|
|||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues | ||||||||||||||||
License | $ | 142,851 | $ | 115,695 | $ | 259,577 | $ | 216,687 | ||||||||
Maintenance and services | 137,113 | 97,058 | 262,835 | 182,018 | ||||||||||||
Total revenues | 279,964 | 212,753 | 522,412 | 398,705 | ||||||||||||
Cost of revenues | ||||||||||||||||
License | 3,159 | 2,868 | 6,087 | 5,830 | ||||||||||||
Maintenance and services | 56,717 | 41,748 | 111,952 | 78,286 | ||||||||||||
Total cost of revenues | 59,876 | 44,616 | 118,039 | 84,116 | ||||||||||||
Gross profit | 220,088 | 168,137 | 404,373 | 314,589 | ||||||||||||
Operating expenses | ||||||||||||||||
Research and development | 71,774 | 67,224 | 143,072 | 134,595 | ||||||||||||
Sales and marketing | 191,284 | 150,228 | 365,232 | 295,379 | ||||||||||||
General and administrative | 39,139 | 34,312 | 75,635 | 66,385 | ||||||||||||
Total operating expenses | 302,197 | 251,764 | 583,939 | 496,359 | ||||||||||||
Operating loss | (82,109 | ) | (83,627 | ) | (179,566 | ) | (181,770 | ) | ||||||||
Interest and other income (expense), net | ||||||||||||||||
Interest income (expense), net | (164 | ) | (797 | ) | (692 | ) | (1,200 | ) | ||||||||
Other income (expense), net | (874 | ) | (1,063 | ) | (1,482 | ) | (2,188 | ) | ||||||||
Total interest and other income (expense), net | (1,038 | ) | (1,860 | ) | (2,174 | ) | (3,388 | ) | ||||||||
Loss before income taxes | (83,147 | ) | (85,487 | ) | (181,740 | ) | (185,158 | ) | ||||||||
Income tax provision | 353 | 1,110 | 1,691 | 2,335 | ||||||||||||
Net loss | $ | (83,500 | ) | $ | (86,597 | ) | $ | (183,431 | ) | $ | (187,493 | ) | ||||
Basic and diluted net loss per share | $ | (0.60 | ) | $ | (0.65 | ) | $ | (1.33 | ) | $ | (1.42 | ) | ||||
Weighted-average shares used in computing basic and diluted net loss per share |
139,063 | 133,041 | 138,436 | 132,310 |
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
|
|
|||||||
2017 | 2017 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 419,810 | $ | 421,346 | ||||
Investments, current portion | 663,737 | 662,096 | ||||||
Accounts receivable, net | 208,082 | 238,281 | ||||||
Prepaid expenses and other current assets | 49,412 | 38,650 | ||||||
Total current assets | 1,341,041 | 1,360,373 | ||||||
Investments, non-current | 5,000 |
|
5,000 | |||||
Property and equipment, net | 161,954 |
|
166,395 | |||||
Intangible assets, net | 34,577 |
|
37,713 | |||||
|
138,681 |
|
124,642 | |||||
Other assets | 22,901 |
|
24,423 | |||||
Total assets | $ | 1,704,154 |
|
$ | 1,718,546 | |||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 8,984 |
|
$ | 7,503 | |||
Accrued payroll and compensation | 93,843 |
|
100,092 | |||||
Accrued expenses and other liabilities | 84,002 |
|
81,071 | |||||
Deferred revenue, current portion | 482,196 |
|
478,707 | |||||
Total current liabilities | 669,025 |
|
667,373 | |||||
Deferred revenue, non-current | 167,004 |
|
146,752 | |||||
Other liabilities, non-current | 100,163 |
|
99,260 | |||||
Total non-current liabilities | 267,167 |
|
246,012 | |||||
Total liabilities | 936,192 |
|
913,385 | |||||
Stockholders' equity | ||||||||
Common stock | 140 |
|
137 | |||||
Accumulated other comprehensive loss | (1,349 | ) |
|
(3,013 | ) | |||
Additional paid-in capital | 1,973,386 |
|
1,828,821 | |||||
Accumulated deficit | (1,204,215 | ) |
|
(1,020,784 | ) | |||
Total stockholders' equity | 767,962 |
|
805,161 | |||||
Total liabilities and stockholders' equity | $ | 1,704,154 |
|
$ | 1,718,546 |
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
|
|
|
|
|||||||||||||
2017 |
2016 |
2017 | 2016 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net loss | $ | (83,500 | ) | $ | (86,597 | ) | $ | (183,431 | ) | $ | (187,493 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 10,813 | 8,174 | 19,916 | 14,635 | ||||||||||||
Amortization of investment premiums | 125 | 189 | 342 | 447 | ||||||||||||
Stock-based compensation | 92,367 | 88,863 | 182,422 | 180,233 | ||||||||||||
Deferred income taxes | (967 | ) | (192 | ) | (866 | ) | (698 | ) | ||||||||
Excess tax benefits from employee stock plans | - | (335 | ) | - | (1,027 | ) | ||||||||||
Changes in operating assets and liabilities, net of acquisition: | ||||||||||||||||
Accounts receivable, net | (36,822 | ) | (32,655 | ) | 30,199 | 50,403 | ||||||||||
Prepaid expenses, other current and non-current assets | (826 | ) | 4,942 | (7,883 | ) | (3,177 | ) | |||||||||
Accounts payable | 1,249 | 166 | 1,963 | 265 | ||||||||||||
Accrued payroll and compensation | 4,724 | 2,742 | (6,264 | ) | (30,985 | ) | ||||||||||
Accrued expenses and other liabilities | 12,617 | 16,470 | 4,407 | 13,579 | ||||||||||||
Deferred revenue | 23,408 | 16,582 | 23,741 | 17,856 | ||||||||||||
Net cash provided by operating activities | 23,188 | 18,349 | 64,546 | 54,038 | ||||||||||||
Cash flow from investing activities | ||||||||||||||||
Purchases of investments | (218,224 | ) | (173,741 | ) | (340,697 | ) | (316,528 | ) | ||||||||
Maturities of investments | 175,200 | 157,155 | 338,265 | 290,275 | ||||||||||||
Acquisition, net of cash acquired | (17,223 | ) | - | (17,223 | ) | - | ||||||||||
Purchases of property and equipment | (2,908 | ) | (10,541 | ) | (8,513 | ) | (14,250 | ) | ||||||||
Other investment activities | - | (3,500 | ) | - | (3,500 | ) | ||||||||||
Net cash used in investing activities | (63,155 | ) | (30,627 | ) | (28,168 | ) | (44,003 | ) | ||||||||
Cash flow from financing activities | ||||||||||||||||
Proceeds from the exercise of stock options | 486 | 3,939 | 1,973 | 5,603 | ||||||||||||
Excess tax benefits from employee stock plans | - | 335 | - | 1,027 | ||||||||||||
Proceeds from employee stock purchase plan | 19,282 | 15,183 | 19,282 | 15,183 | ||||||||||||
Taxes paid related to net share settlement of equity awards | (26,647 | ) | (25,091 | ) | (59,109 | ) | (46,822 | ) | ||||||||
Repayment of financing lease obligation | (485 | ) | - | (802 | ) | - | ||||||||||
Net cash used in financing activities | (7,364 | ) | (5,634 | ) | (38,656 | ) | (25,009 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 714 | (384 | ) | 742 | 382 | |||||||||||
Net decrease in cash and cash equivalents | (46,617 | ) | (18,296 | ) | (1,536 | ) | (14,592 | ) | ||||||||
Cash and cash equivalents at beginning of period | 466,427 | 428,245 | 421,346 | 424,541 | ||||||||||||
Cash and cash equivalents at end of period | $ | 419,810 | $ | 409,949 | $ | 419,810 | $ | 409,949 |
|
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
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 GAAP results to Splunk's non-GAAP results included in this press release.
|
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 | Six Months Ended | |||||||||||||||
|
|
|
|
|||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net cash provided by operating activities | $ | 23,188 | $ | 18,349 | $ | 64,546 | $ | 54,038 | ||||||||
Less purchases of property and equipment | (2,908 | ) | (10,541 | ) | (8,513 | ) | (14,250 | ) | ||||||||
Free cash flow (non-GAAP) | $ | 20,280 | $ | 7,808 | $ | 56,033 | $ | 39,788 | ||||||||
Net cash used in investing activities | $ | (63,155 | ) | $ | (30,627 | ) | $ | (28,168 | ) | $ | (44,003 | ) | ||||
Net cash used in financing activities | $ | (7,364 | ) | $ | (5,634 | ) | $ | (38,656 | ) | $ | (25,009 | ) |
Reconciliation of GAAP to Non-GAAP Financial Measures |
||||||||||||||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||||||||||
GAAP |
Stock-based |
Employer payroll |
Amortization of |
Adjustments |
Partial release of |
Income tax |
Non-GAAP | |||||||||||||||||||||||||
Cost of revenues | $ | 59,876 | $ | (8,410 | ) | $ | (277 | ) | $ | (2,870 | ) | $ | 309 |
$ |
- |
$ | - | $ | 48,628 | |||||||||||||
Gross margin | 78.6 | % | 3.0 | % | 0.1 | % | 1.0 | % | (0.1 | )% | - | % |
- |
% |
82.6 | % | ||||||||||||||||
Research and development | 71,774 | (25,991 | ) | (559 | ) | (55 | ) | 495 | - | - | 45,664 | |||||||||||||||||||||
Sales and marketing | 191,284 | (42,652 | ) | (1,185 | ) | (1,316 | ) | 1,174 | - | - | 147,305 | |||||||||||||||||||||
General and administrative | 39,139 | (15,314 | ) | (377 | ) | - | 227 | - | - | 23,675 | ||||||||||||||||||||||
Operating income (loss) | (82,109 | ) | 92,367 | 2,398 | 4,241 | (2,205 | ) | - | - | 14,692 | ||||||||||||||||||||||
Operating margin | (29.3 | )% | 32.9 | % | 0.9 | % | 1.5 | % | (0.8 | )% | - | % | - | % | 5.2 | % | ||||||||||||||||
Income tax provision | 353 | - | - | - | - | 546 | 3,356 | 4,255 | ||||||||||||||||||||||||
Net income (loss) | $ | (83,500 | ) | $ | 92,367 | $ | 2,398 | $ | 4,241 | $ | (99 | ) |
(2) |
$ | (546 | ) | $ | (3,356 | ) | $ | 11,505 | |||||||||||
Net income (loss) per share(1) | $ | (0.60 | ) | $ | 0.08 | |||||||||||||||||||||||||||
(1) GAAP net loss per share calculated based on 139,063 weighted-average shares of common stock. Non-GAAP net income per share calculated based on 142,852 diluted weighted-average shares of common stock, which includes 3,789 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 |
||||||||||||||||||||||||||||||||
(3) Represents the tax effect of the non-GAAP adjustments based on the estimated annual effective tax rate of 27%. |
Reconciliation of GAAP to Non-GAAP Financial Measures |
||||||||||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||||||
GAAP |
Stock-based |
Employer payroll |
Amortization of |
Adjustments |
Income tax |
Non-GAAP | ||||||||||||||||||||||
Cost of revenues | $ | 44,616 | $ | (7,310 | ) | $ | (208 | ) | $ | (2,886 | ) | $ | 259 | $ | - | $ | 34,471 | |||||||||||
Gross margin | 79.0 | % | 3.4 | % | 0.1 | % | 1.4 | % | (0.1 | )% | - | % | 83.8 | % | ||||||||||||||
Research and development | 67,224 | (27,742 | ) | (676 | ) | (59 | ) | 555 | - | 39,302 | ||||||||||||||||||
Sales and marketing | 150,228 | (39,371 | ) | (791 | ) | (151 | ) | 1,131 | - | 111,046 | ||||||||||||||||||
General and administrative | 34,312 | (14,440 | ) | (388 | ) | - | 251 | - | 19,735 | |||||||||||||||||||
Operating income (loss) | (83,627 | ) | 88,863 | 2,063 | 3,096 | (2,196 | ) | - | 8,199 | |||||||||||||||||||
Operating margin | (39.3 | )% | 41.7 | % | 1.0 | % | 1.5 | % | (1.0 | )% | - | % | 3.9 | % | ||||||||||||||
Income tax provision | 1,110 | - | - | - | - | 651 | 1,761 | |||||||||||||||||||||
Net income (loss) | $ | (86,597 | ) | $ | 88,863 | $ | 2,063 | $ | 3,096 | $ | (147 | ) |
(2) |
$ | (651 | ) | $ | 6,627 | ||||||||||
Net income (loss) per share(1) | $ | (0.65 | ) | $ | 0.05 | |||||||||||||||||||||||
(1) GAAP net loss per share calculated based on 133,041 weighted-average shares of common stock. Non-GAAP net income per share calculated based on 136,430 diluted weighted-average shares of common stock, which includes 3,389 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 |
||||||||||||||||||||||||||||
(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%. |
Reconciliation of GAAP to Non-GAAP Financial Measures |
||||||||||||||||||||||||||||||||
Six Months Ended |
||||||||||||||||||||||||||||||||
GAAP |
Stock-based |
Employer payroll |
Amortization of |
Adjustments |
Partial release of |
Income tax |
Non-GAAP | |||||||||||||||||||||||||
Cost of revenues | $ | 118,039 | $ | (16,602 | ) | $ | (718 | ) | $ | (5,519 | ) | $ | 615 | $ | - | $ | - | $ | 95,815 | |||||||||||||
Gross margin | 77.4 | % | 3.2 | % | 0.1 | % | 1.1 | % | (0.1 | )% | - | % | - | % | 81.7 | % | ||||||||||||||||
Research and development | 143,072 | (52,788 | ) | (1,810 | ) | (83 | ) | 1,026 | - | - | 89,417 | |||||||||||||||||||||
Sales and marketing | 365,232 | (83,295 | ) | (2,957 | ) | (1,332 | ) | 2,344 | - | - | 279,992 | |||||||||||||||||||||
General and administrative | 75,635 | (29,737 | ) | (1,054 | ) | - | 464 | - | - | 45,308 | ||||||||||||||||||||||
Operating income (loss) | (179,566 | ) | 182,422 | 6,539 | 6,934 | (4,449 | ) | - | - | 11,880 | ||||||||||||||||||||||
Operating margin | (34.4 | )% | 35.0 | % | 1.3 | % | 1.3 | % | (0.9 | )% | - | % | - | % | 2.3 | % | ||||||||||||||||
Income tax provision | 1,691 | - | - | - | - | 546 | 1,523 | 3,760 | ||||||||||||||||||||||||
Net income (loss) | $ | (183,431 | ) | $ | 182,422 | $ | 6,539 | $ | 6,934 | $ | (228 | ) |
(2) |
$ | (546 | ) | $ | (1,523 | ) | $ | 10,167 | |||||||||||
Net income (loss) per share(1) | $ | (1.33 | ) | $ | 0.07 | |||||||||||||||||||||||||||
(1) GAAP net loss per share calculated based on 138,436 weighted-average shares of common stock. Non-GAAP net income per share calculated based on 142,602 diluted weighted-average shares of common stock, which includes 4,166 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 |
||||||||||||||||||||||||||||||||
(3) Represents the tax effect of the non-GAAP adjustments based on the estimated annual effective tax rate of 27%. |
Reconciliation of GAAP to Non-GAAP Financial Measures |
||||||||||||||||||||||||||||
Six Months Ended |
||||||||||||||||||||||||||||
GAAP |
Stock-based |
Employer payroll |
Amortization of |
Adjustments |
Income tax |
Non-GAAP | ||||||||||||||||||||||
Cost of revenues | $ | 84,116 | $ | (14,865 | ) | $ | (470 | ) | $ | (5,798 | ) | $ | 285 | $ | - | $ | 63,268 | |||||||||||
Gross margin | 78.9 | % | 3.7 | % | 0.1 | % | 1.5 | % | (0.1 | )% | - | % | 84.1 | % | ||||||||||||||
Research and development | 134,595 | (56,948 | ) | (1,432 | ) | (130 | ) | 613 | - | 76,698 | ||||||||||||||||||
Sales and marketing | 295,379 | (79,604 | ) | (1,817 | ) | (302 | ) | 1,249 | - | 214,905 | ||||||||||||||||||
General and administrative | 66,385 | (28,816 | ) | (829 | ) | - | 277 | - | 37,017 | |||||||||||||||||||
Operating income (loss) | (181,770 | ) | 180,233 | 4,548 | 6,230 | (2,424 | ) | - | 6,817 | |||||||||||||||||||
Operating margin | (45.6 | )% | 45.2 | % | 1.1 | % | 1.6 | % | (0.6 | )% | - | % | 1.7 | % | ||||||||||||||
Income tax provision (benefit) | 2,335 | - | - | - | - | (871 | ) | 1,464 | ||||||||||||||||||||
Net income (loss) | $ | (187,493 | ) | $ | 180,233 | $ | 4,548 | $ | 6,230 | $ | 1,117 |
(2) |
$ | 871 | $ | 5,506 | ||||||||||||
Net income (loss) per share(1) | $ | (1.42 | ) | $ | 0.04 | |||||||||||||||||||||||
(1) GAAP net loss per share calculated based on 132,310 weighted-average shares of common stock. Non-GAAP net income per share calculated based on 135,348 diluted weighted-average shares of common stock, which includes 3,038 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 |
||||||||||||||||||||||||||||
(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%. |
Reconciliation of Total Billings |
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Three Months Ended | Six Months Ended | |||||||||||
|
|
|
|
|||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
Total revenues | $ | 279,964 | $ | 212,753 | $ | 522,412 | $ | 398,705 | ||||
Increase in deferred revenue |
23,408 | 16,582 | 23,741 | 17,856 | ||||||||
Billings (non-GAAP) | $ | 303,372 | $ | 229,335 | $ | 546,153 | $ | 416,561 | ||||
Reconciliation of GAAP to Non-GAAP Cloud Gross Margin |
||||||||||||||||
Three Months Ended |
||||||||||||||||
GAAP |
Stock-based |
Employer payroll |
Non-GAAP | |||||||||||||
Cloud revenues | $ | 21,323 | $ | - | $ | - | $ | 21,323 | ||||||||
Cloud cost of revenues | $ | 15,575 | $ | (742 | ) | $ | (27 | ) | $ | 14,806 | ||||||
Cloud gross margin | 27.0 | % | 3.5 | % | 0.1 | % | 30.6 | % |
View source version on businesswire.com: http://www.businesswire.com/news/home/20170824006141/en/
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