Splunk (SPLK) Reports Mixed Quarter in the Midst of Multiple Transitions, KeyBanc Reiterates Sector Weight

KeyBanc analyst Michael Turits reiterated a Sector Weight rating on Splunk (NASDAQ: SPLK) after the company reported a mixed but stable quarter during multiple transitions: from term license to cloud subscription, from hosted Splunk Cloud to the new multi-tenant Splunk Cloud Platform (SCP) and from log based IT Ops to the new Observability Cloud. ARR of $2,468M (+39%) beat consensus of $2,424M (+37%). Cloud ARR of $877M (83% y/y) beat consensus of $857M (79% y/y), maintaining 83% growth from last quarter. Revenue of $502M (+16% y/y) beat consensus of $493M (+14% y/y) by $9M or 2%. The F2Q revenue guide of $550M-$570M (12-16% y/y) met consensus of $561M but the ARR guide of $2,590M-$2,610M (34-36% y/y) missed consensus of $2,610M.

The analyst stated "F1Q saw modest revenue and ARR beats and a roughly in line F2Q guide, although meaningful misses on GM/EBIT margin--not surprising given the degree of operational change. On this basis we are roughly maintaining our ARR outlook, but lowering EBIT/CFFO. While we remain positive on Splunk as a core, pervasive, enterprise data platform, we see an elevated level of risk given these transitions during CY22".

For an analyst ratings summary and ratings history on Splunk click here. For more ratings news on Splunk click here.

Shares of Splunk closed at $111.98 yesterday.

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• Intuitive Surgical (ISRG) PT Raised to $435 at Piper Sandler
• Alpine Income Property Trust (PINE) PT Lowered to $18 at Jones Trading