Splunk Inc (NASDAQ: SPLK) stock lost over 1.5% in the after-hours session of August 26th, 2020 (Source: Google finance) though the company posted lower than expected results for the second quarter of FY 21. The company delivered 50% year-over-year increase in total annual recurring revenue (ARR) to $1.93 billion. Cloud ARR grew 89% year-over-year to $568 million. Cloud revenue grew 79% year-over-year to $126 million. In the second quarter there were 396 customers with ARR greater than $1 million. Splunk’s cloud business continues to accelerate, & it now forms more than half of the software bookings in the quarter, which is a major milestone.
SPLK in the second quarter of FY 21 has reported the adjusted loss per share of 33 cents, missing the analysts’ estimates for the adjusted loss per share of 32 cents, according to the Zacks Consensus Estimate. The company had reported 5 percent fall in the adjusted revenue to $491.66 million in the second quarter of FY 21, missing the analysts’ estimates for revenue 5.62%.
For the fiscal third quarter 2021, that ends October 31, 2020, the company expects total revenues to be in the range of $600 million and $630 million. Non-GAAP operating margin is projected to be between 2% and 5%. SPLK has appointment of Sean Boyle to its Board of Directors.
Meanwhile, the company has offered offer, subject to market conditions and other factors, $900 million principal amount of Convertible Senior Notes due 2027 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The company also plans to grant the initial purchasers of the notes an option to purchase up to an additional $135 million principal amount of notes. The company plans to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions described below and to repurchase for cash up to $500.0 million aggregate principal amount of Splunk’s outstanding 0.500% Convertible Senior Notes due 2023 (the “2023 notes”). The company intends to use the remainder of the net proceeds for working capital or other general corporate purposes. The company may also use a portion of the net proceeds to acquire complementary businesses, products, services or technologies, although it has no commitments for any acquisitions at this time.