Q4 Total Revenues Grew 37%; Billings Up
44%;Company Increases Fiscal 2019 Revenue and Profitability
Outlook
Splunk Inc. (NASDAQ: SPLK), first in delivering “aha” moments
from machine data, today announced results for its fiscal fourth
quarter and full year ended January 31, 2018.
Fourth Quarter 2018 Financial
Highlights
- Total revenues were $419.7 million, up
37% year-over-year.
- Total billings were $622.8 million, up
44% year-over-year.
- GAAP operating loss was $23.9 million;
GAAP operating margin was negative 5.7%.
- Non-GAAP operating income was $73.0
million; non-GAAP operating margin was 17.4%.
- GAAP loss per share was $0.18; non-GAAP
income per share was $0.37.
- Operating cash flow was $146.1 million
with free cash flow of $139.5 million.
Full Year 2018 Financial
Highlights
- Total revenues were $1.271 billion, up
34% year-over-year.
- Total billings were $1.551 billion, up
38% year-over-year.
- GAAP operating margin was negative
20.0%; non-GAAP operating margin was positive 9.2%.
- Operating cash flow was $262.9 million
with free cash flow of $242.4 million.
“Organizations around the world are increasingly turning to
Splunk to get strategic business answers from their machine
data. Our opportunity is massive," said Doug Merritt,
President and CEO, Splunk. “We reached the milestone of more than
$1.2 billion in revenue by keeping a relentless focus on customer
success. We will continue to invest in our customers by delivering
great products, and I’m excited by our agreement to acquire Phantom
to bring in a new age of analytics-driven security.”
Fourth Quarter 2018 and Recent Business
Highlights:
Customers:
- Signed more than 570 new enterprise
customers.
- New and Expansion Customers
Include: American University, Broadridge Financial Solutions,
Deutsche Bahn (Germany), Domino’s Australia, GTBank Ghana (Ghana),
Guardian Life Insurance Company, Los Angeles World Airports,
Nashville Electric Service, NTT Security (Japan), Shopify, State of
Delaware, Statnett (Norway), Surrey Satellite Technology (England),
Tampa Electric Company, TDC (Denmark), The Pennsylvania State
University, University of California: San Diego, U.S. Department of
State- Diplomatic Security, Viasat, The Washington Post, Worldpay
(United Kingdom)
Products:
- Released Splunk Enterprise Security
5.0, which accelerates incident response and streamlines
investigations through Investigation Workbench.
- Released new security analytics stories
via Splunk Enterprise Security Content Update to help customers
better detect cybersquatting, phishing and corporate
espionage.
- Released the Splunk Add-on for Google
Cloud Platform, allowing organizations to collect, index and
analyze Google Cloud Platform events, logs, performance metrics and
billing data.
- Released the Campus Compliance Toolkit
for NIST 800-171, a free app developed in partnership with
Blackwood Associates to help universities achieve NIST 800-171
compliance.
Corporate:
- Announced a definitive agreement to
acquire Phantom Cyber Corporation, a leader in Security
Orchestration, Automation and Response (SOAR).
- Splunk AVP Frank Dimina gave testimony
during “CDM, The Future of Federal Cybersecurity?”, a congressional
hearing on Capitol Hill focused on the challenges and opportunities
presented by the U.S. Department of Homeland Security CDM program
and the role of data analytics in protecting the federal government
from cyberthreats.
- Shared Splunk’s 2018 industry
predictions across machine learning, IT operations, security and
IoT.
Strategic and Channel Partners:
- Announced new integrations with Amazon
Kinesis Firehose and Amazon GuardDuty to deliver real-time
analytics for joint customers across IT, security, big data and IoT
use cases.
- Introduced “Ask Splunk” for Alexa for
Business, a conversational way for users to ask meaningful
questions of data in Splunk and enterprise sources.
Recognition:
- Named a Leader in the 2017 Gartner
Magic Quadrant for Security Information and Event Management (SIEM)
for the fifth consecutive year.
- Named a Leader in the IDC MarketScape
Asia/Pacific Big Data and Analytics Platform 2017 for delivering
critical technology capabilities and customer value in Big Data
Analytics market.
- Splunk Enterprise 6.5 honored as a CRN
2017 Product of the Year in the “Enterprise Software” category for
its advanced analytics capabilities.
- Voted Best Business Software Provider
by the readers of V3 in the V3 Technology Awards 2017.
Events:
- Hosted SplunkLive! events in cities
around the world, including Dallas, Stockholm and Utrecht.
Appointments:
- Appointed Richard Timperlake as Vice
President of Sales, EMEA.
Financial Outlook
The company is providing the following guidance for its fiscal
first quarter 2019 (ending April 30, 2018):
- Total revenues are expected to be
between $295 million and $297 million.
- Non-GAAP operating margin is expected
to be approximately negative 6.0%.
The company is updating its previous guidance provided on
November 16, 2017 for its fiscal year 2019 (ending January 31,
2019):
- Total revenues are expected to be
approximately $1.625 billion (was approximately $1.550
billion).
- Non-GAAP operating margin is expected
to be approximately 11.5% (was approximately 10.5%).
The company is providing the following guidance for its fiscal
year 2019 (ending January 31, 2019):
- Cloud revenues are expected to be
approximately $160 million.
Splunk has adopted the new revenue standard ASC 606 as of
February 1, 2018, and therefore the financial outlook provided is
based on projected revenue under ASC 606.
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,
adjustments related to a financing lease obligation and
acquisition-related adjustments.
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 fourth 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-presentations. A replay of the
call will be available through March 8, 2018 by dialing (855)
859-2056 and referencing Conference ID 9993278.
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/or fiscal year 2019 in the
paragraphs under “Financial Outlook” above and other statements
regarding our market opportunity, future growth, strategy,
expectations for our industry and business, customer demand and
penetration, expanding use of Splunk by customers, and expected
benefits of new products, product innovations and acquisitions.
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 and through acquisitions;
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 fiscal quarter ended October 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) turns machine data into answers.
Organizations use market-leading Splunk solutions with machine
learning to solve their toughest IT, Internet of Things and
security challenges. Join millions of passionate users and discover
your “aha” moment with Splunk today: http://www.splunk.com.
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. © 2018 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,
2018 2017 2018 2017 Revenues License $
254,298 $ 190,513 $ 693,704 $ 546,925 Maintenance and services
165,425 115,948 577,084
403,030 Total revenues 419,723
306,461 1,270,788 949,955
Cost of revenues
License
4,298 3,252 13,398 11,965 Maintenance and services 69,905
55,011 243,011 179,088
Total cost of revenues 74,203 58,263
256,409 191,053 Gross profit
345,520 248,198 1,014,379
758,902 Operating expenses
Research and development
83,962 75,596 301,114 295,850 Sales and marketing 237,821 190,815
808,417 653,524 General and administrative 47,651
52,895 159,143 153,359
Total operating expenses 369,434 319,306
1,268,674 1,102,733 Operating
loss (23,914 ) (71,108 ) (254,295 )
(343,831 ) Interest and other income (expense), net Interest
income (expense), net 571 (806 ) 149 (2,829 ) Other income
(expense), net (1,829 ) (486 ) (3,600 )
(3,022 ) Total interest and other income (expense), net
(1,258 ) (1,292 ) (3,451 ) (5,851 ) Loss
before income taxes (25,172 ) (72,400 ) (257,746 ) (349,682 )
Income tax provision (benefit) (102 ) 1,805
1,357 5,507 Net loss $ (25,070 ) $
(74,205 ) $ (259,103 ) $ (355,189 ) Basic and diluted
net loss per share $ (0.18 ) $ (0.54 ) $ (1.85 ) $ (2.65 )
Weighted-average shares used in computing
basic and diluted net loss per share
142,074 136,230 139,866
133,910
SPLUNK INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
(Unaudited) January 31, January
31, 2018 2017 Assets Current
assets Cash and cash equivalents $ 545,947 $ 421,346 Investments,
current portion 619,203 662,096 Accounts receivable, net 391,799
238,281 Prepaid expenses and other current assets 70,021
38,650 Total current assets 1,626,970
1,360,373 Investments, non-current
5,375
5,000 Property and equipment, net 160,880
166,395 Intangible assets, net 48,142
37,713 Goodwill 161,382
124,642 Other assets 41,711
24,423 Total assets $ 2,044,460
$ 1,718,546
Liabilities and Stockholders'
Equity Current liabilities Accounts payable $ 11,040
$ 7,503 Accrued payroll and compensation 145,365
100,092 Accrued expenses and other liabilities 77,160
81,071 Deferred revenue, current portion 635,253
478,707 Total current liabilities 868,818
667,373 Deferred revenue, non-current 269,954
146,752 Other liabilities, non-current 98,383
99,260 Total non-current liabilities 368,337
246,012 Total liabilities 1,237,155
913,385 Stockholders' equity Common stock 143
137 Accumulated other comprehensive loss 156
(3,013 ) Additional paid-in capital 2,086,893
1,828,821 Accumulated deficit (1,279,887 )
(1,020,784 ) Total stockholders' equity 807,305
805,161 Total liabilities and stockholders' equity $
2,044,460
$ 1,718,546
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, 2018 2017
2018 2017 Cash flows from operating
activities Net loss $ (25,070 ) $ (74,205 ) $ (259,103 ) $
(355,189 ) Adjustments to reconcile net loss to net cash provided
by operating activities: Depreciation and amortization 10,902 9,199
40,941 32,113 Amortization of investment premiums (accretion of
discounts) (114 ) 220 259 840 Stock-based compensation 91,930
92,794 358,463 378,041 Deferred income taxes (1,979 ) 294 (4,656 )
(326 ) Excess tax benefits from employee stock plans - (131 ) -
(682 ) Non-cash facility exit adjustment - 8,625 (5,191 ) 8,625
Disposal of property and equipment - 2,739 - 2,739 Changes in
operating assets and liabilities, net of acquisitions: Accounts
receivable, net (127,302 ) (65,792 ) (153,518 ) (56,616 ) Prepaid
expenses, other current and non-current assets (37,276 ) (17,598 )
(45,777 ) (25,726 ) Accounts payable (1,510 ) 1,190 3,409 2,720
Accrued payroll and compensation 28,858 16,732 44,484 4,194 Accrued
expenses and other liabilities 4,538 2,153 3,845 35,145 Deferred
revenue 203,094 126,304 279,748
175,956 Net cash provided by operating
activities 146,071 102,524
262,904 201,834
Cash flow from
investing activities Purchases of investments (127,858 )
(160,004 ) (645,762 ) (683,787 ) Maturities of investments 173,475
158,900 687,485 605,175 Acquisitions, net of cash acquired - -
(59,350 ) - Purchases of property and equipment (6,572 ) (18,130 )
(20,503 ) (45,349 ) Other investment activities (375 )
- (375 ) (3,500 ) Net cash provided by
(used in) investing activities 38,670 (19,234
) (38,505 ) (127,461 )
Cash flow from
financing activities Proceeds from the exercise of stock
options 1,701 396 4,175 7,751 Proceeds from employee stock purchase
plan 14,762 12,229 34,044 27,412 Taxes paid related to net share
settlement of equity awards (49,179 ) (40,352 ) (137,830 ) (113,707
) Repayment of financing lease obligation (509 ) - (1,808 ) -
Excess tax benefits from employee stock plans -
131 - 682 Net cash used
in financing activities (33,225 ) (27,596 )
(101,419 ) (77,862 ) Effect of exchange rate changes
on cash and cash equivalents 1,117 59
1,621 294 Net increase (decrease) in
cash and cash equivalents 152,633 55,753 124,601 (3,195 ) Cash and
cash equivalents at beginning of period 393,314
365,593 421,346 424,541
Cash and cash equivalents at end of period $ 545,947 $
421,346 $ 545,947 $ 421,346
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): expenses
related to stock-based compensation and related employer payroll
tax, amortization of acquired intangible assets, adjustments
related to a financing lease obligation, adjustments related to
facility exits and acquisition-related adjustments, including the
partial release of the valuation allowance due to acquisitions. 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
also 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 and twelve months ended January 31, 2018 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, adjustments related to facility exits,
acquisition-related costs, including the partial release of the
valuation allowance due to acquisitions, 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 GAAP results to Splunk’s
non-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, 2018 2017 2018 2017 Net cash
provided by operating activities $ 146,071 $ 102,524 $ 262,904 $
201,834 Less purchases of property and equipment (6,572 )
(18,130 ) (20,503 ) (45,349 ) Free cash flow
(non-GAAP) $ 139,499 $ 84,394 $ 242,401 $
156,485 Net cash provided by (used in) investing activities
$ 38,670 $ (19,234 ) $ (38,505 ) $ (127,461 ) Net cash used
in financing activities $ (33,225 ) $ (27,596 ) $ (101,419 ) $
(77,862 )
Reconciliation of
GAAP to Non-GAAP Financial Measures
Three Months
Ended January 31, 2018
GAAP
Stock-basedcompensation
andrelated employerpayroll tax
Amortization
ofacquiredintangible assets
Adjustmentsrelated
tofinancing leaseobligation
Income taxeffects related
tonon-GAAPadjustments (3)
Non-GAAP Cost of revenues $ 74,203 $ (9,378 ) $
(3,995 ) $ 328 $ - $ 61,158 Gross margin 82.3 % 2.2 % 1.0 % (0.1 )%
- % 85.4 % Research and development 83,962 (29,643 ) (279 )
475 - 54,515 Sales and marketing 237,821 (40,322 ) (16 ) 1,170 -
198,653 General and administrative 47,651 (15,519 ) - 233 - 32,365
Operating income (loss) (23,914 ) 94,862 4,290 (2,206 ) - 73,032
Operating margin (5.7 )% 22.6 % 1.0 % (0.5 )% - % 17.4 %
Income tax provision (benefit) (102 ) - - - 20,043 19,941 Net
income (loss) $ (25,070 ) $ 94,862 $ 4,290 $ (124 )
(2)
$ (20,043 ) $ 53,915 Net income (loss) per share(1) $ (0.18 ) $
0.37 (1) GAAP net loss per share calculated based on 142,074
weighted-average shares of common stock. Non-GAAP net income per
share calculated based on 147,047 diluted weighted-average shares
of common stock, which includes 4,973 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. (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 January 31, 2017
GAAP
Stock-basedcompensation
andrelated employerpayroll tax
Amortization
ofacquiredintangible assets
Adjustmentsrelated
tofinancing leaseobligation
Adjustmentsrelated
tofacility exits
Income taxeffects related
tonon-GAAPadjustments (3)
Non-GAAP Cost of revenues $ 58,263 $ (8,697 ) $
(2,649 ) $ 287 $ - $ - $ 47,204 Gross margin 81.0 % 2.8 % 0.9 %
(0.1 )% - % - % 84.6 % Research and development 75,596
(27,768 ) (40 ) 541 - - 48,329 Sales and marketing 190,815 (43,675
) (20 ) 1,135 - - 148,255 General and administrative 52,895 (14,897
) - 232 (11,364 ) - 26,866 Operating income (loss) (71,108 ) 95,037
2,709 (2,195 ) 11,364 - 35,807 Operating margin (23.2 )% 31.0 % 0.9
% (0.7 )% 3.7 % - % 11.7 % Income tax provision 1,805 - - -
- 5,883 7,688 Net income (loss) $ (74,205 ) $ 95,037 $ 2,709 $ (102
)
(2)
$ 11,364 $ (5,883 ) $ 28,920 Net income (loss) per share(1) $ (0.54
) $ 0.21 (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. (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
Fiscal Year Ended
January 31, 2018
GAAP
Stock-basedcompensation
andrelated employerpayroll tax
Amortization
ofacquiredintangible assets
Adjustmentsrelated
tofinancing leaseobligation
Adjustmentsrelated
tofacility exits
Acquisition-relatedadjustments
Income taxeffects related
tonon-GAAPadjustments (3)
Non-GAAP Cost of revenues $ 256,409 $ (34,814 ) $
(12,387 ) $ 1,259 $ - $ - $ - $ 210,467 Gross margin 79.8 % 2.7 %
1.0 % (0.1 )% - % - % - % 83.4 % Research and development
301,114 (109,743 ) (492 ) 1,990 - - - 192,869 Sales and marketing
808,417 (164,363 ) (1,909 ) 4,684 - - - 646,829 General and
administrative 159,143 (61,192 ) - 927 5,191 (643 ) - 103,426
Operating income (loss) (254,295 ) 370,112 14,788 (8,860 ) (5,191 )
643 - 117,197 Operating margin (20.0 )% 29.0 % 1.2 % (0.7 )% (0.4
)% 0.1 % - % 9.2 % Income tax provision 1,357 - - - - 2,540
29,082 32,979 Net income (loss) $ (259,103 ) $ 370,112 $ 14,788 $
(463 )
(2)
$ (5,191 ) $ (1,897 ) $ (29,082 ) $ 89,164 Net income (loss) per
share(1) $ (1.85 ) $ 0.62 (1) GAAP net loss per share
calculated based on 139,866 weighted-average shares of common
stock. Non-GAAP net income per share calculated based on 144,862
diluted weighted-average shares of common stock, which includes
4,996 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
$8.4 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%.
Reconciliation of
GAAP to Non-GAAP Financial Measures
Fiscal Year Ended
January 31, 2017
GAAP
Stock-basedcompensation
andrelated employerpayroll tax
Amortization
ofacquiredintangible assets
Adjustmentsrelated
tofinancing leaseobligation
Adjustmentsrelated
tofacility exits
Income taxeffects related
tonon-GAAPadjustments (3)
Non-GAAP Cost of revenues $ 191,053 $ (31,772 ) $
(11,261 ) $ 849 $ - $ - $ 148,869 Gross margin 79.9 % 3.3 % 1.2 %
(0.1 )% - % - % 84.3 % Research and development 295,850
(132,039 ) (233 ) 1,713 - - 165,291 Sales and marketing 653,524
(164,558 ) (432 ) 3,508 - - 492,042 General and administrative
153,359 (58,345 ) - 745 (11,364 ) - 84,395 Operating income (loss)
(343,831 ) 386,714 11,926 (6,815 ) 11,364 - 59,358 Operating margin
(36.2 )% 40.6 % 1.3 % (0.7 )% 1.2 % - % 6.2 % Income tax
provision 5,507 - - - - 7,348 12,855 Net income (loss) $ (355,189 )
$ 386,714 $ 11,926 $ 890
(2)
$ 11,364 $ (7,348 ) $ 48,357 Net income (loss) per share(1) $ (2.65
) $ 0.35 (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. (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
Fiscal Year Ended January 31, January 31,
2018 2017 Total revenues $ 1,270,788 $ 949,955
Increase in deferred revenue 279,748 175,956
Billings (non-GAAP) $ 1,550,536 $ 1,125,911
Reconciliation of
Total Cloud Billings
Fiscal Year Ended January 31, January 31,
2018 2017 Total Cloud revenues $ 94,035 $ 47,773
Increase in Cloud deferred revenue 87,444
47,745 Cloud billings (non-GAAP) $ 181,479 $ 95,518
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180301006505/en/
Media ContactSplunk Inc.Tom Stilwell,
415-852-5561tstilwell@splunk.comorInvestor ContactSplunk
Inc.Ken Tinsley, 415-848-8476ktinsley@splunk.com
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