Splunk Inc(NASDAQ: SPLK) stock rallied over 9.7% today (as of 11:09AM EDT on August 25th, 2017; Source: Google finance) post their better than estimated second quarter update and a decent guidance. The stock generated a total returns of over 29.2% in this year to date (As of 11:20AM EDT on August 25th, 2017; Source: Google finance)
Splunk Total revenues surged 32% yoy to $280.0 million, during the second quarter of 2018 while Total billings rose 32% yoy to $303.4 million. But GAAP operating loss reached $82.1 million while GAAP operating margin was negative 29.3%. However, Non-GAAP operating profit reached $14.7 million while non-GAAP operating margin was positive 5.2%. The group reported an Operating cash flow of $23.2 million while free cash flow reached $20.3 million.
Strong performance in EMEA has mainly contributed to the group’s results. They Signed over 500 new customers and expanding Customers in diverse areas including Athenahealth, Carnegie Mellon University, Carnival Cruise Lines etc. The group introduced Splunk Insights for AWS Cloud Monitoring, to drive more value from their journey to the cloud. They also launched Splunk Insights for Ransomware, an analytics solution to manage ransomware threats. Splunk Enterprise 6.6 and Splunk Cloud new version enables users to leverage datasets, build dashboards, gain answers and share insights. Splunk Enterprise Security (ES) 4.7 enhances investigation efficiency and incident response, as well as provide insight from common SaaS applications. They released new version of the Splunk Add-on for Microsoft Cloud Services in Splunkbase, which gives Splunk administrators the ability to collect events from various Microsoft Cloud Services APIs.
For third quarter 2018 (ending October 31, 2017), Splunk forecasts a revenues in the range of $307 million and $309 million while Non-GAAP operating margin is forecasted to be over 8%. Overall billings are forecasted to be over $1.450 billion from their earlier $1.425 billion guidance. The group also enhanced their Total revenues forecasts which are now forecasted to be in the range of $1.210 and $1.215 billion against $1.195 billion. Non-GAAP operating margin is forecasted to be over 8%.