Call Start: 15:55 January 1, 0000 4:30 PM ET Splunk Inc. (NASDAQ:SPLK) Morgan Stanley Technology, Media & Telecom Conference Call March 6, 2023 15:55 ET Company Participants Gary Steele - President & Chief Executive Officer Brian Roberts - Senior Vice President & Chief Financial Officer Conference Call Participants Keith Weiss - Morgan Stanley Keith Weiss Excellent. Thank you, everyone, for joining. My name is Keith Weiss. I run the U.S. software research team here at Morgan Stanley. And very pleased to hav ...

Financial Data and Key Metrics Changes - In Q4 2023, total ARR grew by 80% year-over-year to $3.674 billion, with quarterly revenues exceeding $1 billion for the first time, up 39% to $1.25 billion [8][29] - Cloud ARR increased by 33% to $1.778 billion, while operating expenses (OpEx) growth was limited to just 2% year-over-year [9][30] - Free cash flow reached $427 million for the year, almost four times the level of the previous year, with a record Q4 non-GAAP operating margin of 38% [10][31] Business Line Data and Key Metrics Changes - The company reported strong performance in both security and observability solutions, with significant wins in Q4, including a large US retailer and a federal government department [15][16] - The cloud revenue increased by 54% for the year, contributing to the overall revenue growth despite delays in cloud migrations [30] Market Data and Key Metrics Changes - The company noted that the current macroeconomic environment has led to increased deal scrutiny and delays in cloud migrations, but this is viewed as a timing issue rather than a demand issue [8][9] - The company has a strong competitive advantage in hybrid and multi-cloud environments, which is expected to be beneficial as organizations look to consolidate tools [9][10] Company Strategy and Development Direction - The company is focused on balancing long-term growth with profitability and free cash flow, emphasizing the importance of ARR and free cash flow as key metrics [11][26] - Splunk is committed to enhancing its security offerings and expanding its observability solutions, with plans for product innovation and deeper customer engagement [14][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about growth in the coming year, acknowledging the uncertainty in the operating environment but committed to delivering meaningful top-line growth [11][26] - The company expects to exit fiscal 2024 with total ARR between $4.125 billion and $4.175 billion, reflecting a net new ARR of approximately $450 million to $500 million [36] Other Important Information - The company has implemented a single seller model to enhance customer engagement and drive sales efficiency [19][75] - A significant reduction in equity burn is expected in fiscal 2024, with a focus on reducing share dilution [40][81] Q&A Session Summary Question: What does the top of the funnel look like for demand generation? - Management feels good about pipeline build and is focused on capturing demand from existing customers and expanding the customer base [44][45] Question: Can you describe the dynamics of the cloud and on-premise business? - The company reaffirmed its commitment to on-prem solutions, which has led to increased customer willingness to expand their on-prem footprint [47][48] Question: How is customer retention and expansion performing? - Renewal rates remained strong, with expansion driven by additional use cases in security and observability [54][55] Question: What is the outlook for free cash flow and operational efficiency? - Management is confident in the long-term opportunity to increase efficiency and drive incremental cash flow [58][59] Question: How does the company plan to allocate capital moving forward? - The company plans to discuss long-term capital allocation strategies at the upcoming Analyst Day, with a focus on reducing share dilution [80][81]

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Splunk Inc. (NASDAQ:SPLK) Q3 2023 Results Conference Call November 30, 2022 4:30 PM ET Company Participants Ken Tinsley - Corporate Treasurer, VP of IR Gary Steele - President, CEO Conference Call Participants Brad Zelnick - Deutsche Bank Brad Sills - B&A Securities John DiFucci – Guggenheim Kash Rangan - Goldman Sachs Matt Hedberg - RBC Capital Markets Mike Cikos - Needham & Company Raimo Lenschow – Barclays Steve Koenig – SMBC Operator Ladies and gentlemen, thank you for standing by, and welcome to the S ...

Table of Contents Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.001 per share SPLK The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF TH ...

Splunk Inc. (NASDAQ:SPLK) Goldman Sachs Communacopia + Technology Conference September 13, 2022 10:30 AM ET Company Participants Gary Steele – President and Chief Executive Officer Ken Tinsley – Investor Relations Conference Call Participants Unidentified Analyst Good, good early morning. Thanks for showing up at such an early time of the day on the second day of our conference. As you may have heard by now, the conference is off to a great start. Thanks for support. We are off to record registrations, offi ...

Financial Data and Key Metrics Changes - Total revenues for Q2 2023 were $799 million, representing a 32% increase year-over-year, exceeding expectations [7][18] - Cloud revenue reached $346 million, up 59% year-over-year, indicating strong adoption of the Cloud Platform [18] - Total annual recurring revenue (ARR) was $3.33 billion, up 27% year-over-year, while Cloud ARR was just over $1.5 billion, up 55% [19] - Operating margin improved to 4%, significantly better than expectations due to top-line performance and expense optimization efforts [20][21] Business Line Data and Key Metrics Changes - Professional services and education accounted for 7% of total revenues in Q2 [18] - The company ended the quarter with 723 customers having ARR greater than $1 million, an increase of 33 customers from the previous quarter [7][19] - Renewal and expansion rates remained strong, with a dollar-based net retention rate (DBNRR) of 129% for cloud [19] Market Data and Key Metrics Changes - RPO bookings were $794 million, up 17% year-over-year, but lower than planned due to customer caution in expansions [19] - The company observed a trend of customers opting for shorter contract durations, down about two months compared to the previous year [19] Company Strategy and Development Direction - The company is focused on balancing growth with profitability, emphasizing the importance of cloud transformation for customers [6][14] - There is a strategic emphasis on strengthening relationships with Chief Security Officers (CSOs) to drive broader business resilience initiatives [14][34] - The company plans to continue investing in R&D to fuel long-term growth while optimizing operational efficiencies [29][52] Management's Comments on Operating Environment and Future Outlook - Management noted that customer hesitance in cloud migrations is primarily due to the complexity of existing environments and macroeconomic uncertainties, not a lack of confidence in Splunk [26][27] - The company is adjusting its full-year total ARR target to $3.65 billion and Cloud ARR to $1.8 billion due to slower customer migrations [21] - Management expressed confidence in the long-term growth potential of the company despite near-term headwinds [17][21] Other Important Information - The company is implementing cost-cutting measures, including rationalizing outside services and optimizing real estate, to improve operational efficiency [22][52] - Free cash flow is now being emphasized as the primary cash generation metric, with expectations to generate at least $400 million this year [23] Q&A Session Summary Question: Why are customers hesitating to shift more to cloud? - Management indicated that the hesitance is due to the complexity of migrations and not a lack of confidence in Splunk [26][27] Question: How does the company view R&D investment? - Management affirmed that innovation is critical and will continue to invest in R&D to drive long-term growth [29] Question: What is the impact of slower cloud migrations on the business? - Management noted that the slowdown is primarily due to macroeconomic factors and complex migrations rather than competitive pressures [37][46] Question: How consistent were new logo wins in the first half? - Management reported consistent new logo wins across the first half, with no significant changes in Q2 compared to Q1 [43] Question: How is the company addressing customer concerns about cloud expansion? - Management is focused on making migrations easier for customers and providing necessary support to facilitate the process [73]

Splunk Inc. (NASDAQ:SPLK) Q1 2023 Earnings Conference Call May 25, 2022 4:30 PM ET Company Participants Ken Tinsley - Corporate Treasurer & Vice President of Investor Relations Gary Steele - Interim Chief Executive Officer Jason Child - Chief Financial Officer Conference Call Participants Kash Rangan - Goldman Sachs Brent Thill - Jefferies Brad Zelnick - Deutsche Bank Raimo Lenschow - Barclays Phil Winslow - Credit Suisse Sanjit Singh - Morgan Stanley Chirag Ved - Evercore ISI Steve Koenig - SMBC Nikko ...