Splunk (SPLK) Beats Q4 Earnings Estimates on Solid Revenues

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]