Splunk, Inc. (SPLK) – Splunk joins Cisco with a “BUY”

Splunk, Inc. (SPLK) (Q2FY24)

Stock Performance: Over the past year, Splunk stock price has risen by 78.63%. Its highest point in the last 52 weeks was $147.14, while its lowest was $65. In the past three months, the price has been trending upward and after the announcement of SPLK’s acquisition by CISCO, it gave a return of 40.46%

Quarter Performance: For Q2FY24, Total Revenue increased by 14% to $910.6mn as compared to $798.8mn in Q2FY23.

In Q2FY24, Net Income improved to ($63.2mn) as compared to ($209.7mn) in Q2FY23 due to a higher increase in revenue and a decrease in expenses.

Guidance: Total ARR is expected to be ~$3.98bn. Total revenues are expected to be between $1.02bn and $1.035mn. Non-GAAP operating margin is expected to be between 24.7% and 25.3%. Free cash flow is expected to be ~ $75mn which implies a trailing twelve
months free cash flow of $834 million.

Highlights

Splunk’s cloud revenue increased by 29% year-over-year, totaling $445mn and accounting for 49% of the total revenue. This growth was largely due to the adoption of its Splunk Cloud platform and its new cloud-native observability solutions, such as Splunk Observability Cloud and Splunk Log Observer.

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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

Crispidea Coverage

No of Pages: 34

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