Company profile

Ticker
SPLK
Exchange
Website
CEO
Douglas Merritt
Employees
Location
Fiscal year end
SEC CIK
IRS number
861106510

SPLK stock data

(
)

Calendar

4 Dec 19
11 Dec 19
31 Jan 20

News

Company financial data Financial data

Quarter (USD) Oct 19 Jul 19 Apr 19 Jan 19
Revenue 626.34M 516.56M 424.85M 622.09M
Net income -57.64M -100.87M -155.43M 2.13M
Diluted EPS -0.38 -0.67 -1.04 0.02
Net profit margin -9.20% -19.53% -36.58% 0.34%
Operating income -47.49M -86.9M -144.99M 24.16M
Net change in cash -798.54M -163.22M -40.94M 8.05M
Cash on hand 873.47M 1.67B 1.84B 1.88B
Cost of revenue 107.82M 98.31M 95.82M 93.73M
Annual (USD) Jan 19 Jan 18 Jan 17 Jan 16
Revenue 1.8B 1.27B 949.96M 668.44M
Net income -275.58M -190.22M -347.46M -278.77M
Diluted EPS -1.89 -1.36 -2.59 -2.2
Net profit margin -15.28% -14.97% -36.58% -41.71%
Operating income -251.17M -185.41M -336.1M -287.92M
Net change in cash 1.33B 124.6M -3.2M 37.23M
Cash on hand 1.88B 545.95M 421.35M 424.54M
Cost of revenue 344.68M 256.41M 191.05M 114.12M

Financial data from Splunk earnings reports

Financial report summary

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Risks
  • Our future operating results may fluctuate significantly, we are transitioning our business model, and our recent operating results may not be a good indication of our future performance.
  • If we fail to effectively manage our growth, our business and operating results could be adversely affected.
  • We face intense competition in our markets, and we may be unable to compete effectively against our current and future competitors.
  • Because our business substantially depends on sales of licenses, maintenance and services related to one software product, failure of this offering to satisfy customer demands or to achieve increased market acceptance would adversely affect our results of operations, financial condition and growth prospects.
  • If customers do not expand their use of our offerings beyond the current predominant use cases, our ability to grow our business and operating results may be adversely affected.
  • We employ multiple, unique and evolving pricing models, which subject us to various pricing and licensing challenges that could make it difficult for us to derive value from our customers and may adversely affect our operating results.
  • Our business and growth depend substantially on customers entering into, renewing, upgrading and expanding their term licenses, agreements for cloud services and maintenance and support agreements with us. Any decline in our customer renewals, upgrades or expansions could adversely affect our future operating results.
  • Failure to protect our intellectual property rights could adversely affect our business and our brand.
  • We have been, and may in the future be, subject to intellectual property rights claims by third parties, which are extremely costly to defend, could require us to pay significant damages and could limit our ability to use certain technologies.
  • We have a history of losses, and we may not be profitable in the future.
  • If we or our third-party service providers experience a security breach or unauthorized parties otherwise obtain access to our customers’ data, our data, or our cloud services, our offerings may be perceived as not being secure, our reputation may be harmed, demand for our offerings may be reduced, and we may incur significant liabilities.
  • Interruptions or performance problems associated with our technology and infrastructure, and our reliance on Software-as-a-Service (“SaaS”) technologies from third parties, may adversely affect our business operations and financial results.
  • Splunk Cloud, as well as cloud services for other products, require costly and continual infrastructure investments, and market adoption of these cloud services could adversely affect our business.
  • If we do not effectively expand, train, manage changes to, and retain our sales force, we may be unable to add new customers or increase sales to our existing customers, and our revenue growth and business could be adversely affected.
  • Our sales cycle is long and unpredictable, particularly with respect to large customers, and our sales efforts require considerable time and expense.
  • Our international sales and operations subject us to additional risks and challenges that can adversely affect our business operations and financial results.
  • If we are unable to maintain successful relationships with our channel partners, and to help our channel partners enhance their ability to independently sell and deploy our offerings, our business operations, financial results and growth prospects could be adversely affected.
  • Incorrect or improper implementation or use of our software could result in customer dissatisfaction, customer data loss or corruption and negatively affect our business, operations, financial results and growth prospects.
  • We are subject to governmental export and import controls that could impair our ability to compete in international markets or subject us to liability if we violate the controls.
  • If our new offerings and product enhancements do not achieve sufficient market acceptance, our financial results and competitive position will suffer.
  • Our business depends, in part, on sales to the public sector, and significant changes in the contracting or fiscal policies of the public sector could have a material adverse effect on our business.
  • Failure to comply with laws or regulations applicable to our business could cause us to lose customers in the public sector, subject us to fines and penalties, or negatively impact our ability to contract with the public sector.
  • Real or perceived errors, failures or bugs in our offerings could adversely affect our financial results and growth prospects.
  • We offer free trials, trial-to-buy and other next-generation go-to-market strategies, and we may not be able to realize the benefits of these strategies.
  • If we are not able to maintain and enhance our brand, our business and operating results may be adversely affected.
  • Our future performance depends in part on proper use of our community website, Splunkbase, expansion of our developer ecosystem, and support from third-party software developers.
  • Our use of “open source” software could negatively affect our ability to sell our offerings and subject us to possible litigation, and our participation in open source projects may impose unanticipated burdens or restrictions.
  • We are subject to a number of legal requirements, contractual obligations and industry standards regarding security, data protection, and privacy and any failure to comply with these requirements, obligations or standards could have an adverse effect on our reputation, business, financial condition and operating results.
  • If we are unable to attract and retain leadership and key personnel, our business could be adversely affected.
  • We have in the past made and may in the future make acquisitions that could prove difficult to integrate and/or adversely affect our business operations and financial results.
  • If poor advice or misinformation is spread through our community website, Splunk Answers, users of our offerings may experience unsatisfactory results from using our offerings, which could adversely affect our reputation and our ability to grow our business.
  • Prolonged economic uncertainties or downturns could materially adversely affect our business.
  • We may require additional capital to support business growth, and this capital might not be available on acceptable terms, if at all.
  • If currency exchange rates fluctuate substantially in the future, our financial results, which are reported in U.S. dollars, could be adversely affected.
  • Changes in U.S. tax laws could materially impact our business, cash flow, results of operations or financial conditions.
  • Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.
  • Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, value added or similar taxes, and we could be subject to liability with respect to past or future sales, which could adversely affect our financial results.
  • Our international operations subject us to potentially adverse tax consequences.
  • We could be subject to additional tax liabilities.
  • Our financial results may be adversely affected by changes in accounting principles applicable to us.
  • Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt.
  • Conversion of the Notes may dilute the ownership interest of our stockholders or may otherwise depress the price of our common stock.
  • The conditional conversion feature of the Notes, if triggered, may adversely affect our financial condition and operating results.
  • The accounting method for convertible debt securities that may be settled in cash, such as the Notes, could have a material effect on our reported financial results.
  • The Capped Calls may affect the value of our common stock.
  • We are subject to counterparty risk with respect to the Capped Calls.
  • Our stock price has been volatile, may continue to be volatile and may decline regardless of our financial performance.
  • If securities or industry analysts publish negative reports about our business, or cease coverage of our company, our share price and trading volume could decline.
  • The requirements of being a public company and a growing and increasingly complex organization may strain our resources, divert management’s attention and affect our ability to attract and retain executive management and qualified board members.
  • We are obligated to develop and maintain proper and effective internal control over financial reporting. These internal controls may not be determined to be effective, which may adversely affect investor confidence in our company and, as a result, the value of our common stock.
  • We do not intend to pay dividends for the foreseeable future.
  • Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of our company more difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our common stock.
Management Discussion
  • The increase in license revenues was primarily driven by our total number of customers, sales to existing customers and the number of large orders. Maintenance and services revenues are primarily driven by sales of our maintenance agreements, sales of our cloud services, as well as sales of our professional services resulting from the growth of our installed customer base.
  • Total revenues increased $493.9 million, or 37.7%, primarily due to the following:
  • Total revenues increased $365.6 million, or 38.7%, primarily due to the following:
Content analysis ?
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Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Good
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