Big Data and analytics software pioneer Splunk is down $2.67, or 2%, at $113.64, after its report of fiscal Q1 revenue of $311.6 million and a net loss of 7 cents a share, both above consensus for $298 million and 9 cents per share.

The forecast for this quarter’s revenue, and for the full year, was also higher than consensus, but the issue appears to be in the billings. Mizuho’s Abhey Lamba writes this evening that billings of $288 million, up 18%, is below consensus for $290 million, and it’s also a step down from the 44% growth last quarter and 35% in the year-ago quarter.

"We believe buy-side expectations were higher on the billings metric going into the print, so results could be disappointing,” writes Lamba.

Splunk Inc. SPLK, +7.49% shares surged in the extended session Thursday after the data-analytics software company topped Wall Street estimates for the quarter and raised its outlook for the year. Splunk shares rallied 9.4% after hours, following a 0.8% gain to close the regular session at $107.73. The company reported a second-quarter loss of $103.5 million, or 71 cents a share, compared with $78.6 million, or 57 cents a share, in the year-ago period. Adjusted earnings were 8 cents a share. Revenue rose to $388.3 million from $280.2 million in the year-ago period. Analysts surveyed by FactSet had estimated 5 cents a share on revenue of $377.5 million. Splunk estimates revenue of $430 million and $432 million for the third quarter, and about $1.69 billion, up from a previous estimate of $1.65 billion, for the year. Analysts expect revenue of $427.5 million for the third quarter, and $1.65 billion for the year.

Third Quarter 2019 Financial Highlights

• Software revenues were $325 million, up 49% year-over-year.
• Total revenues were $481 million, up 40% year-over-year.
• GAAP operating loss was $50 million; GAAP operating margin was negative 10.4%.
• Non-GAAP operating income was $65.4 million; non-GAAP operating margin was 13.6%.
• GAAP loss per share was $0.38; non-GAAP income per share was $0.38.
• Operating cash flow was $59.1 million with free cash flow of $51.8 million.

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“The strength of our results is a testament to Splunk’s pioneering innovation and the rising demand for data-driven insights across all industries,” said Doug Merritt, President and CEO, Splunk. “At .conf18, we announced the largest wave of product innovation in our history, unveiled Splunk Next - our vision to take Splunk beyond IT and security at scale, and released our first Internet of Things product, Splunk for Industrial IoT. Customer feedback is overwhelmingly positive, and Splunk is positioned to continue to lead through this data revolution.”

Third Quarter 2019 and Recent Business Highlights:Customers:
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• Signed more than 500 new enterprise customers.
• New and Expansion Customers Include: ATB Financial (Canada), Chicago Public Schools, City of Austin, Clemson University, Department of Home Affairs (Australia), Fleetcor Technologies, GVB (Netherlands), Jabil, Norfolk Southern, Paddy Power Betfair (Ireland), Randstad (Netherlands), Softbank (Japan), SundaySky (Israel), Teachers Mutual Bank (Australia), University of Portsmouth (UK), Vanderbilt University Medical Center

Financial Outlook

The company is providing the following guidance for its fiscal fourth quarter 2019 (ending January 31, 2019):

• Total revenues are expected to be approximately $560 million.
• Non-GAAP operating margin is expected to be between 25% and 26%.

The company is updating its previous guidance provided on August 23, 2018 for its fiscal year 2019 (ending January 31, 2019):

• Total revenues are expected to be approximately $1.740 billion (was approximately $1.685 billion).
• Non-GAAP operating margin is expected to be between 11.5% and 12.0% (was approximately 11.5%).

The company is updating its previous guidance for its fiscal year 2020 (ending January 31, 2020):

• Total revenues are expected to be approximately $2.15 billion (was approximately $2.0 billion).

Splunk Inc. Announces Fiscal Fourth Quarter and Full Year 2019 Financial Results

Feb 28, 2019

Software Revenues Grew 42% in Q4; Full Year Up 44%

Company Increases Fiscal 2020 Revenue Outlook

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 28, 2019-- Splunk Inc. (NASDAQ: SPLK), delivering actions and outcomes from the world of data, today announced results for its fiscal fourth quarter and full year ended January 31, 2019.

Fourth Quarter 2019 Financial Highlights

• Software revenues were $464 million, up 42% year-over-year.
• Total revenues were $622 million, up 35% year-over-year.
• GAAP operating income was $24.2 million; GAAP operating margin was 3.9%.
• Non-GAAP operating income was $166.4 million; non-GAAP operating margin was 26.8%.
• GAAP income per share was $0.01; non-GAAP income per share was $0.93.
• Operating cash flow was $127.4 million with free cash flow of $119.4 million.

Full Year 2019 Financial Highlights

• Software revenues were $1.2 billion, up 44% year-over-year.
• Total revenues were $1.8 billion, up 38% year-over-year.
• GAAP operating margin was negative 13.9%; non-GAAP operating margin was positive 12.7%.
• Operating cash flow was $296.5 million with free cash flow of $273.3 million.

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Nutanix plunges 25 percent on a sales forecast that’s way below estimates

Shares of Nutanix plunged 25 percent in extended trading after the provider of cloud infrastructure technology gave a weaker-than-expected forecast in its fiscal second quarter earnings report. For the latest quarter, the company beat analyst expectations on the top and bottom lines.

Here are the key numbers:

• Earnings: Loss of 23 cents per share vs. 25 cents per share expected, per Refinitiv
• Revenue: $335 million vs. $331 million expected, per Refinitiv

Nutanix expects revenue between $290 million to $300 million in the third quarter, compared to the $348 million analysts expected.

In the earnings release, Nutanix CFO Duston Williams said he expects the next quarter to reflect “the impact of inadequate marketing spending for pipeline generation and slower than expected sales hiring.”

First Quarter 2020 Financial Highlights

• Software revenues were $265 million, up 54% year-over-year.
• Total revenues were $425 million, up 36% year-over-year.
• GAAP operating loss was $145 million; GAAP operating margin was negative 34.1%.
• Non-GAAP operating loss was $7.8 million; non-GAAP operating margin was negative 1.8%.
• GAAP loss per share was $1.04; non-GAAP income per share was $0.02.
• Operating cash flow was $35.0 million with free cash flow of $20.1 million.

Financial Outlook

The company is providing the following guidance for its fiscal second quarter 2020 (ending July 31, 2019):

• Total revenues are expected to be approximately $485 million.
• Non-GAAP operating margin is expected to be approximately 3%.

The company is updating its previous guidance provided on February 28, 2019 for its fiscal year 2020 (ending January 31, 2020) as follows:

• Total revenues are expected to be approximately $2.25 billion (was approximately $2.20 billion).
• Non-GAAP operating margin is expected to be approximately 14% (unchanged from previous guidance).

Twilio's stock drops after another lowered profit outlook, citing 'calculation error'

Nov 4, 2019

Shares of Twilio Inc. are down 3.2% toward a 10-month low in morning trading Monday, after the chat software company disclosed a "calculation error" that led it to lower its full-year profit outlook for a second time in less than a week. In a filing with the Securities and Exchange Commission, the company said it now expects 2019 adjusted earnings per share of 12 cents to 13 cents, compared with the FactSet consensus of 14 cents. Last Thursday, the stock plummeted 10.3% after Twilio reported late-Wednesday third-quarter earnings that beat expectations but provided a downbeat outlook, cutting its 2019 adjusted EPS guidance range to 16 cents to 17 cents from 17 cents to 18 cents.