Splunk(US:SPLK)2024-02-26 16:00Financial 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].