Splunk (SPLK): Small License Beat, Big Billings Deceleration : UBS
- Wall St. set to open lower, weighed down by GE
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
- General Electric (GE) Tops Q3 EPS by 2c; Updates FY16 EPS Outlook
- Pre-Open Stock Movers 10/21: (ALKS) (RAI) (PFPT) (MSFT) Higher; (SGY) (TWLO) (RRGB) Lower (more...)
- Oil rises on Russia's output freeze commitment
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
UBS analyst, Brent Thill, reiterated his Buy rating on shares of Splunk (NASDAQ: SPLK) after headline results beat across the board, However, the analyst thinks investors are likely to fixate on two items 1) the smallest license beat in 5 Qs, especially in the context of (disappointingly) inline deferred revenue, and 2) the ~800bps q/q deceleration in calculated billings growth.
Key points in the quarter include:
1) Cloud is now $100M TCV of run rate billings; orders 2x y/y with largest booking Q to date more than double mgmt's plan with 4 of 10 largest deals in the Q Cloud (each 7 figures)
2) public sector traction also up (notably EAAs); encouraging for an F2Q
3) FY17 to mark GM trough
4) Security use case still strong, consistent at 40% of biz.
No change to the price target of $68 based on 6x NTM Sales.
Shares of Splunk closed at $65.10 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Maxim Integrated Products (MXIM): Chip Recovery Has Begun - Wells Fargo
- Wedbush Reiterates Outperform on Pool Corp. (POOL) Following 3Q Report
- Proofpoint (PFPT): Separating From The Pack - Wedbush
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!