Merger Overview - Splunk Inc. has received unconditional antitrust approval from the EU for its $28 billion merger with Cisco Systems Inc., marking Cisco's largest deal to date [1] - The merger is part of Cisco's strategy to enhance its software business, particularly in the AI sector, while addressing the slowdown in post-pandemic demand [1] Regulatory Approval - The European Commission found no competition concerns regarding the merger, noting the minimal impact on competitive landscapes due to the presence of alternative players [1] - The commission emphasized that the merged entity would not have the ability to stifle competition, ensuring a level playing field in relevant markets [1] Strategic Benefits - The merger is expected to enhance Cisco's AI-driven service offerings by leveraging Splunk's expertise in advanced AI-powered solutions [2] - This strategic alignment reflects the growing convergence of cybersecurity and AI, with increasing demand for AI-driven security solutions as organizations navigate complex digital ecosystems [2] Innovation and Development - Splunk stands to benefit from Cisco's resources and global reach, facilitating accelerated research and development initiatives [3] - The collaboration is positioned to create synergistic solutions that address evolving cybersecurity challenges, heralding a new era of innovation in AI-driven cybersecurity solutions [3] Company Profiles - Splunk provides software solutions for real-time operational intelligence, enabling enterprises to analyze and act on machine and big data, with applications in security analytics, business analytics, and IT operations [4] - Splunk's stock has increased by 74.4% over the past year, outperforming the industry's growth of 66.9% [4]

Core Insights - Splunk Inc. reported strong fourth-quarter fiscal 2024 results, with both revenue and net income exceeding Zacks Consensus Estimates, driven by operational efficiency and growth in cloud services [1][2] Financial Performance - GAAP net income for the fourth quarter was $426.5 million or $2.28 per share, up from $268.8 million or $1.44 per share year-over-year, primarily due to top-line growth [2] - Non-GAAP net income for the quarter was $579.2 million or $3.08 per share, significantly surpassing the Zacks Consensus Estimate of $1.87 [2] - For fiscal 2024, GAAP earnings were $263.7 million or $1.52 per share, a recovery from a net loss of $277.9 million or $1.71 per share in fiscal 2023 [2] Revenue Growth - Total revenues for the fourth quarter increased to $1.49 billion from $1.25 billion in the prior year, exceeding the consensus estimate of $1.26 billion [3] - Fiscal 2024 revenues reached $4.22 billion, up from $3.65 billion in fiscal 2023, driven by demand in cloud services, cybersecurity, and observability [3] - Cloud services revenues rose to $503.4 million from $413.9 million year-over-year, reflecting increased demand [3] Annual Recurring Revenue (ARR) - Total ARR was $4.21 billion, representing a 15% year-over-year increase, with 899 customers having an ARR of over $1 million [4] - Cloud ARR increased by 23% year-over-year to $2.19 billion [4] Profitability Metrics - Gross profit for the fourth quarter increased to $1.26 billion from $1.05 billion in the prior-year quarter [5] - Non-GAAP gross margin from cloud services was reported at 74.5% [5] - Non-GAAP operating income was $710.7 million, up from $474.3 million in the prior-year period, with respective margins of 47.8% and 37.9% [5] Cash Flow and Liquidity - Splunk generated $1.01 billion in net cash from operating activities in fiscal 2024, compared to $449.6 million in fiscal 2023 [6] - As of January 31, 2024, the company had $1.64 billion in cash and cash equivalents and $3.11 billion in long-term debt [6]

Core Insights - Splunk reported revenue of $1.49 billion for the quarter ended January 2024, reflecting an 18.8% increase year-over-year [1] - The company's EPS was $3.08, up from $2.04 in the same quarter last year, indicating strong earnings growth [1] - Revenue exceeded the Zacks Consensus Estimate of $1.26 billion by 17.96%, and EPS surpassed the consensus estimate of $1.87 by 64.71% [1] Financial Metrics - Total Annual Recurring Revenue (ARR) reached $4.21 billion, slightly above the estimated $4.17 billion [2] - Cloud ARR was reported at $2.19 billion, slightly below the average estimate of $2.21 billion [2] - License revenues were $810.13 million, significantly higher than the estimated $586.92 million, marking a year-over-year increase of 20.9% [2] - Maintenance and services revenues totaled $172.64 million, exceeding the estimate of $163.87 million, with a year-over-year change of 3.3% [2] - Cloud services revenues were $503.38 million, close to the estimate of $503.83 million, showing a year-over-year increase of 21.6% [2] Stock Performance - Splunk shares have returned 1.2% over the past month, compared to a 3.8% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Splunk Inc (NASDAQ: SPLK) is trading up in extended hours on Tuesday after reporting market-beating financial results for its fourth quarter.Splunk saw operating expenses increase 6.5% in Q4Copy link to sectionThe stock is being rewarded because the cybersecurity company saw its cloud revenue jump a whopping 26% year-on-year to $1.837 billion in Q4. Adjusted operating margin stood at 47.8% in the fourth quarter, as per the press release. According to Gary Steele – the chief executive of Splunk Inc:We’re pl ...

Financial Performance - Total Annual Recurring Revenue (ARR) increased by 15% to $4.2 billion, with Cloud ARR growing 23% to $2.186 billion[7]. - Total revenues for Q4 2024 reached $1.486 billion, up 19% year-over-year, while full-year revenues totaled $4.216 billion, a 15% increase[7]. - GAAP net income for Q4 was $427 million, and for the full year, it was $264 million, compared to a loss of $277.9 million in the previous year[7][16]. - Operating cash flow for the year exceeded $1 billion, with adjusted free cash flow increasing by 136% to $1.007 billion[3][7]. - Net income for the three months ended January 31, 2024, was $426,549, compared to a net income of $268,792 for the same period in 2023, representing a year-over-year increase of 58.7%[20]. - Total cash provided by operating activities for the fiscal year ended January 31, 2024, was $1,008,363, up from $449,630 in 2023, indicating a significant increase of 124.7%[29]. - Free cash flow (non-GAAP) for the three months ended January 31, 2024, was $416,777, compared to $268,621 in the same period of 2023, reflecting a growth of 55.2%[29]. - The company reported a significant increase in deferred revenue, with $611,917 for the three months ended January 31, 2024, compared to $489,026 in the same period of 2023, marking an increase of 25.1%[20]. - The company reported a net cash increase of $717,630 for the three months ended January 31, 2024, compared to a decrease of $142,342 in the same period of 2023[20]. Expenses and Margins - GAAP operating margin for Q4 was 29.1%, while non-GAAP operating margin was 47.8%[7]. - Operating income for the fiscal year ended January 31, 2024, was $239,504, with an operating margin of 5.7%[33]. - The company reported a gross margin of 79.8% for the cost of revenues in the fiscal year ended January 31, 2024[33]. - Cloud services gross margin improved to 74.5% for the three months ended January 31, 2024, compared to 71.4% in the previous quarter[30]. - Research and development expenses for the fiscal year ended January 31, 2024, totaled $943,933, with a reduction of $327,036 after adjustments[33]. - Sales and marketing expenses for the fiscal year ended January 31, 2024, were $1,671,102, showing a decrease of $253,216 after adjustments[33]. - General and administrative expenses were $454.531 million, with a net adjustment of $325.773 million[34]. - Stock-based compensation for the fiscal year ended January 31, 2024, was $786,824, slightly down from $789,138 in 2023, indicating a marginal decrease of 0.3%[20]. Strategic Initiatives - Splunk launched new security innovations, including Splunk Enterprise Security 7.3 and Splunk SOAR 6.2, enhancing security incident management[8]. - The pending acquisition by Cisco is expected to close in late Q1 or early Q2 2024, subject to regulatory approvals[5]. - The company expects continued growth in cloud services, with strategic investments planned for new product development and market expansion[30]. - Future outlook includes continued investment in cloud services and technology development[34]. - The company plans to expand its market presence through strategic acquisitions and partnerships[34]. Assets and Cash Flow - Splunk's total assets increased to $6.687 billion, up from $6.344 billion a year earlier[18]. - The company reported a significant increase in cash and cash equivalents, rising to $1.643 billion from $690.6 million year-over-year[18]. - The company incurred $23,354 in losses on facility exits for the three months ended January 31, 2024, compared to no losses reported in the same period of 2023[20]. - Cash paid for merger-related expenses was $1,132 for the three months ended January 31, 2024, with a total of $21,057 for the fiscal year[29]. - The company reported a net cash used in financing activities of $96,106 for the three months ended January 31, 2024, compared to $4,070 in the same period of 2023, showing a significant increase in cash outflow[29].

Splunk Inc. (SPLK) is scheduled to report fourth-quarter fiscal 2024 results on Feb 27, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 38.4%. It delivered a trailing four-quarter average earnings surprise of 99.3%.Based in San Francisco, CA, the software solutions company is expected to record higher revenues year over year, backed by healthy customer engagement, large-scale implementation of its cloud solutions, advanced AI capabilities and aggressive ac ...

Group 1 - Splunk's stock closed at $154.50, with a slight increase of +0.05% from the previous day, outperforming the S&P 500's decline of 1.37% [1] - Over the past month, Splunk's shares have gained 1.16%, while the Computer and Technology sector and the S&P 500 have increased by 8.88% and 5.1%, respectively [1] - Analysts expect Splunk to report earnings of $1.87 per share on February 27, 2024, reflecting a year-over-year decline of 8.33%, with revenue projected at $1.25 billion, a 0.28% increase from the previous year [1] Group 2 - Recent modifications to analyst estimates for Splunk indicate evolving short-term business trends, with positive revisions reflecting analysts' confidence in the company's performance [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows Splunk holding a Zacks Rank of 3 (Hold) with no changes in the consensus EPS estimate over the last 30 days [2] Group 3 - Splunk is currently trading at a Forward P/E ratio of 31.42, which is lower than the industry average of 33.08, suggesting a comparative discount [3] - The company has a PEG ratio of 1.06, while the industry average PEG ratio is 1.75, indicating favorable valuation metrics [3] - The Internet - Software industry, which includes Splunk, has a Zacks Industry Rank of 79, placing it in the top 32% of over 250 industries [3]

In the latest market close, Splunk (SPLK) reached $153.34, with a -0.02% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 1.25%. Meanwhile, the Dow experienced a rise of 0.97%, and the technology-dominated Nasdaq saw an increase of 1.3%.Heading into today, shares of the maker of software that helps companies collect and analyze internal data had gained 0.8% over the past month, lagging the Computer and Technology sector's gain of 2.42% and the S&P 500's gai ...

Splunk (SPLK) closed at $153.36 in the latest trading session, marking a +0.04% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.07%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.36%.Heading into today, shares of the maker of software that helps companies collect and analyze internal data had gained 0.82% over the past month, lagging the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 3 ...

Shares of Splunk Inc. (SPLK) surged 77% in 2023 on traction from healthy customer engagement, evident from the competitive win rates alongside solid momentum with large orders overall. Earnings estimates for the current fiscal have soared 69.2% over the past year, while that for the next fiscal are up 63.4%, implying solid inherent growth potential. With healthy fundamentals, this Zacks Rank #1 (Strong Buy) stock appears primed for a similar performance in 2024. You can see the complete list of today’s Zack ...