Splunk, Inc. (SPLK) – ARR and margin expansion leads to growth

Splunk, Inc. (SPLK) (Q1FY24)

Introduction

Splunk Inc., together with its subsidiaries, develops and markets cloud services and licensed software solutions in the United States and internationally.

The company offers unified security and observability platform, including Splunk Security which helps security leaders fortify their organization’s digital resilience by mitigating cyber risk and meeting compliance requirements; and Splunk Observability, which provides visibility across the full stack of infrastructure, applications, and the digital customer experience.

It also provides application programming interfaces, software development kits, and other interfaces that enables its network of third-party developers, partners, and customers to build content, including pre-built data inputs, workflows, searches, reports, alerts, custom dashboards, flexible user interface components, custom data visualizations, and integration actions and methods that configures and extends its solutions to accommodate specific use cases.

The company also offers adoption and implementation, education, and customer support services. It sells its offerings directly through field and inside sales, and indirectly through various routes to market with various partners.

Highlights

At the end of Q1, the company had 810 customers with $1 million or more in ARR, which is an increase of 120 from the same time last year and 20 from the last quarter. Among these customers, there were 433 with Cloud ARR over $1 million, which is a 32% increase compared to last year.

Stock performance

Over the past year, Splunk stock price has decreased by 6.92%. Its highest price in the last 52 weeks was $116.84, while its 52-weeks low was $65. However, over the past three months, the stock price has been trending upward and has provided a return of 26.52%, thanks to the strong Q1 performance.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages; 32

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