Splunk (SPLK) Tops Q1 EPS by 2c, Beats on Revenues; Boosts FY Revenue Outlook Above Consensus
Splunk (NASDAQ: SPLK) reported Q1 EPS of ($0.07), $0.02 better than the analyst estimate of ($0.09). Revenue for the quarter came in at $311.6 million versus the consensus estimate of $297.67 million.
First Quarter 2019 Financial Highlights
- Total revenues were $311.6 million, up 37% year-over-year.
- Software revenues were $172.5 million, up 43% year-over-year.
- GAAP operating loss was $121.5 million; GAAP operating margin was negative 39.0%.
- Non-GAAP operating loss was $14.7 million; non-GAAP operating margin was negative 4.7%.
- GAAP loss per share was $0.83; non-GAAP loss per share was $0.07.
- Operating cash flow was $76.5 million with free cash flow of $74.2 million.
Splunk adopted the new revenue standard ASC 606 as of February 1, 2018. Prior period information, including all comparative references, has been adjusted to reflect the adoption of the new standard. Additionally, the financial outlook provided below is based on projected revenue under ASC 606.
“Our increasing product innovation is fueling customers’ success and our continued growth,” said Doug Merritt, President and CEO, Splunk. “We are uniquely positioned to help our customers get answers from their data, and I am excited about the innovation across our product portfolio. We have expanded artificial intelligence capabilities in the Splunk platform, introduced new products such as Splunk Insights for Infrastructure and Splunk Industrial Asset Intelligence, and acquired Phantom - a leading technology in security orchestration, automation and response.”
Financial Outlook
The company is providing the following guidance for its fiscal second quarter 2019 (ending July 31, 2018):
- Total revenues are expected to be between $356 million and $358 million.
- Non-GAAP operating margin is expected to be approximately 2.0%.
The company is updating its previous guidance provided on March 1, 2018 for its fiscal year 2019 (ending January 31, 2019):
- Total revenues are expected to be approximately $1.645 billion (was approximately $1.625 billion).
- Non-GAAP operating margin is expected to be approximately 11.5% (unchanged from prior guidance).
GUIDANCE:
Splunk sees FY2019 revenue of $1.645 billion, versus the consensus of $1.63 billion.
For earnings history and earnings-related data on Splunk (SPLK) click here.