Splunk (SPLK) Reports In-Line Q2 EPS, Revenues Miss; Offers 3Q Revenue Guidance Below Consensus
Splunk (NASDAQ: SPLK) reported Q2 EPS of ($0.33), in-line with the analyst estimate of ($0.33). Revenue for the quarter came in at $492 million versus the consensus estimate of $522.52 million.
Second Quarter 2021 Financial Highlights
- Cloud ARR was $568 million, up 89% year-over-year.
- Total ARR was $1.93 billion, up 50% year-over-year.
- Cloud revenue was $126 million, up 79% year-over-year.
- Total revenues were $492 million, down 5% year-over-year.
- 396 customers with ARR greater than $1 million.
“As organizations continue to adapt to tectonic societal shifts brought on by COVID-19, one thing is constant: the power of data to radically transform business,” said Doug Merritt, President and CEO, Splunk. “I’m pleased to see the role Splunk’s Data-to-Everything platform has played in helping our customers drive meaningful insights as they advance into The Data Age to meet the challenges of 2020 and beyond.”
“Splunk’s cloud business continues to accelerate, now representing more than half of our software bookings in the quarter - a major milestone in our cloud journey,” Merritt continued. “I’m very proud of our team, strong execution and continued momentum as we look forward to revealing our line-up of trendsetting product innovations at .conf20.”
“Splunk’s rapid transformation to the cloud has enabled us to reach key milestones ahead of schedule. Cloud ARR growth accelerated to 89%, or $568 Million, far exceeding our expectations. We also now have nearly 400 customers with ARR in excess of $1 million as more and more businesses embrace our cloud platform,” said Jason Child, chief financial officer, Splunk. “Our customers want the flexibility to transition to cloud, and with our diligent planning, we’ve continued to advance our mission to remove the barriers between data and action.”
GUIDANCE:
Splunk sees Q3 2021 revenue of $600-621 million, versus the consensus of $644.74 million.
The company is providing the following guidance for its fiscal third quarter 2021 (ending October 31, 2020):
- Total revenues are expected to be between $600 million and $630 million.
- Non-GAAP operating margin is expected to be between 2% and 5%.
For earnings history and earnings-related data on Splunk (SPLK) click here.