![]() I also was happy to see the company shortlist new customer acquisitions this quarter. High double digit growth in ARR along with Cloud provided me with confidence in the company’s ability to execute on these core strategies, and while the overall revenue and profit hasn’t yet caught up, I felt the large volume of customers (396) that are now spending more than a million dollars a year with Splunk, indicate customer acceptance, which was a mild concern when it announced changes last year. And when a company makes this kind of pivot, you have to expect a few hiccups between initiating change and realizing results. These two areas, along with the company’s “ Data to Everything” strategy, have been the hallmarks of the company’s transformation–This included disrupting the on-prem business along with the revenue model last year. Especially the numbers for ARR (Recurring Revenue) and Cloud. The other side of the coin can be reflected in the highlights above. Revenue was down 5% year over year (I call this flat in Covid-19 times), and earnings at a loss of 33 cents per share also, while meeting targets, doesn’t exactly stand out as “Exciting” The traditional numbers that fuel most earnings conversations weren’t spectacular. 396 customers with ARR greater than $1 million.Īnalyst Take: For me, this quarter is a bit of a two sided coin.Total revenues were $492 million, down 5% year-over-year.Cloud revenue was $126 million, up 79% year-over-year.Total ARR was $1.93 billion, up 50% year-over-year.Cloud ARR was $568 million, up 89% year-over-year.The company provided the following bulleted highlights in its earnings release: ![]() ![]() SPLK, +6.44% shares fluctuated between gains and losses in the extended session Wednesday after the cloud-based enterprise software company’s revenue and outlook fell below Wall Street estimates but a subscription metric came in above expectations.
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