Splunk Inc (NASDAQ: SPLK) stock fell over 4.7% in the pre-market session of June 3rd, 2021 (Source: Google finance) after the company posted mixed results for the first quarter of FY 22. SPLK in the first quarter of FY 22 has reported the adjusted loss per share of 91 cents, missing the analysts’ estimates for the adjusted loss per share of 70 cents.
Splunk’s cloud-based annual recurring revenue grew 83% from a year ago, to $877 million. Cloud revenue itself grew 73%, to $194 million. Total annual recurring revenue grew 39%, to $2.47 billion. The company also said it has 203 customers with cloud revenue clocking in at more than $1 million a year, up 99% from a year ago. In total, it now has 537 customers with annualized revenue of more than $1 million, up 46%. The company has been steadily pushing its customers to cloud-based versions of its software. That has seen its revenue model change from one that’s based on perpetual licenses to cloud subscriptions, which provide a more predictable income stream. The company delivers the only cloud data platform that is able to simultaneously serve the multitude of teams tasked with driving this shift for application development, infrastructure management and cyber security
For the second quarter, Splunk expects revenue to be in range of $550 million to $570 million. The midpoint of that range was just below Wall Street’s forecast of $561.4 million in revenue. For fiscal second quarter 2022 (ending July 31, 2021), the company expects Cloud ARR to be between $950 million and $960 million, total ARR is expected to be between $2.59 billion and $2.61 billion and Non-GAAP operating margin is expected to be approximately negative 25%.
Meanwhile, the company acquired cloud-native security startup TruSTAR Technology Inc. The company plans to use the startup’s technology to advance its ability to offer comprehensive security solutions in the cloud, helping customers to detect and respond to cyberthreats more easily.
Further, Carahsoft Technology Corp., The Trusted Government IT Solutions Provider, and Splunk, Inc., provider of the Data-to-Everything Platform, had announced the availability of Splunk Enterprise Transformation with Azure for public sector customers. This solution brings together the full capabilities of Splunk® Enterprise, Microsoft Azure and partner led services to deliver a cloud-based, real-time data analytics platform.