|Bid||114.56 x 800|
|Ask||116.60 x 800|
|Day's range||112.70 - 117.16|
|52-week range||55.92 - 121.64|
|PE ratio (TTM)||N/A|
|Earnings date||22 Aug 2018 - 27 Aug 2018|
|Forward dividend & yield||N/A (N/A)|
|1y target est||125.72|
Splunk's (SPLK) acquisition of VictorOps will help it to address the needs of DevOps, which is a rapidly growing domain of software engineering.
Data analytics company Splunk (SPLK) announced yesterday that it’s set to acquire VictorOps for $120 million. In the chart above, we can see the acquisitions made by Splunk over the last five years. The combination of Splunk’s data analytics platforms with VictorOps’s incident-management functions may help the company to quickly settle and avoid issues that could upset customer engagement.
Inc. on Monday said it signed a definitive agreement to acquire DevOps incident-management company VictorOps Inc. for about $120 million in cash and securities. VictorOps was backed by at least $33.7 million from venture-capital investors including Shea Ventures, Foundry Group and Costanoa Ventures. DevOps, which combines “development” and “IT operations,” refers to a set of practices that help software developers and IT operations staff work together.
Splunk Inc. (SPLK), first in delivering “aha” moments from machine data, today announced a definitive agreement to acquire VictorOps, Inc., a leader in DevOps incident management. Under the terms of the agreement, Splunk will acquire VictorOps for a total purchase price of approximately $120 million, subject to adjustment, to be paid in cash and Splunk securities. The acquisition is expected to close during Splunk’s fiscal second quarter, subject to customary closing conditions.
Splunk’s (SPLK) US business has grown solidly over the last five years, at a compound annual rate of 41%, buoyed by robust demand for data services across industries, large contract wins, and higher customer adoption of Splunk products. As shown in the graph above, in fiscal 2018, Splunk’s US revenue rose 29% YoY (year-over-year) to ~$937 million. Strong global IT spending driven by an improving economy and the shift of databases to the cloud boosted Splunk’s international revenue.
Splunk (SPLK) has continued to sign high-value contracts, buoyed by demand for the company’s data analytics products due to enterprises’ growing need for proper data analysis and collection. To tap this growing market, the company has launched new products such as Splunk Enterprise Security 5.0, Splunk Enterprise Security Content (which helps clients discover cybersquatting, phishing, and corporate espionage), and Splunk Add-on for Google (GOOGL) Cloud Platform (which helps enterprises collect, index, and analyze Google Cloud Platform events, logs, performance metrics, and billing data).
Of the 41 analysts covering Splunk (SPLK) on May 14, 33 (~78%) recommended “buy,” three rated it as “overweight,” and six recommended “hold.” Their average target price was $112.74, and the company’s closing price was $112.10.
Splunk (SPLK) has maintained strong customer growth, driven by higher IT (information technology) spending and data proliferation buoyed by increased demand for machine learning across different industries. The company’s strategic alliances with Amazon (AMZN) Web Services and Accenture (ACN) may continue to support the company’s customer growth. In the last five years, Splunk has added 10,200 new customers to its account at an average of ~2,040 clients per year.
Splunk (SPLK) has continued to generate strong free cash flow, driven by high-value deals and a growing customer base. Splunk has added ~6,400 customers in the last three years at an average of more than 2,100 per year, highlighting the growing popularity of the company’s products across various industries. Given its lower capital expenditure and there being no sign of it enhancing investors’ wealth through capital returns, the company’s free cash flow may rise going forward.
Big data company Splunk (SPLK) has continued to drive its product portfolio through enhanced AI features, which may improve performance, profitability, and data security. Its open-source platform is available on the cloud, saving time and cost to deploy.
Splunk’s (SPLK) operating expenses have grown continuously over the last five years, mainly driven by the higher research and development expenses and selling and marketing costs. To boost its presence in US and international markets, the company expects to maintain high sales and marketing expenses. The chart above shows how Splunk’s operating costs have risen over the last five years, growing at a compound annual rate of 41%.
Splunk’s (SPLK) license segment, which contributes more than 50% of its total business, has seen strong growth thanks to the company’s ability to rapidly provide insights into collected data sets, strong product portfolio, and innovative product launches. In the last five years, Splunk’s license business has grown at a compound annual rate of 37%. The graph above shows how Splunk’s license segment and maintenance and service segment revenue has grown by double digits.
The operational-intelligence specialist is arming customers with new AI and machine-learning features. Here's what investors need to know.
Splunk received several price-target increases Friday in the wake of an earnings report and revenue outlook that beat estimates.
Splunk (SPLK) has maintained steady bottom-line growth in the last five quarters, buoyed by growing demand for machine learning across different industries and high-value contracts. In the last three years, the company has signed 14 deals worth more than $10 million.
The stock market was mixed to close out the week ahead of the three-day Memorial Day weekend. PayPal received an analyst upgrade.
Splunk (SPLK) has completed its $350 million acquisition of Phantom Cyber, a pioneer in SOAR (security orchestration, automation, and response). The acquisition could boost Splunk’s SOC (security operations center) by automating workloads, organizing tasks, enhancing collaboration, and speeding up incident response.
What’s driving Splunk’s deferred revenue growth? Splunk’s (SPLK) deferred revenue has continued to grow, supported by large contract wins and customer additions. The adoption of its products, including Splunk Enterprise Security and Splunk IT Service Intelligence, has grown. The graph above shows how Splunk’s deferred revenue has grown over the last five years, by a compound annual rate of 55.1%.
Stock futures rose early Friday. Splunk, Veeva, Ross Stores and Deckers Outdoor closed in buy range, but were active overnight on earnings. Autodesk, near a buy point, also reported earnings.
Regarding the selloff this evening in Nutanix—the stock is now down only 4%, versus a 7% drop earlier—I spoke with CEO Dheeraj Pandey by phone a short while ago. Nutanix is very focused on free cash flow, he repeated. Pandey’s larger point was that the company is balancing growth and profit, by focusing on free cash flow.
Splunk reported first-quarter earnings that beat the consensus on the top and bottom lines and presented an outlook that was also ahead of expectations.