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Press Release

Splunk Inc. Announces Fiscal Third Quarter 2014 Financial Results

Revenues Grow 51%; More than 450 New Customers – Highest in Company History

SAN FRANCISCO - Nov. 21, 2013Splunk Inc. (NASDAQ: SPLK), provider of the leading software platform for real-time operational intelligence, today announced results for its fiscal third quarter ended October 31, 2013.

  • Total revenues were $78.6 million, up 51% year-over-year.
  • License revenues were $50.9 million, up 47% year-over-year.
  • GAAP operating loss was $16.8 million or 21% of revenues.
  • Non-GAAP operating income was $0.9 million or 1% of revenues.
  • GAAP loss per share was $0.16; non-GAAP EPS was $0.00.
  • Operating cash flow was $13.3 million.

“We are pleased to welcome a record number of new customers to Splunk this quarter,” said Godfrey Sullivan, Chairman and CEO, Splunk. “There is tremendous value to be found in machine data. As a result, more customers are adopting Splunk software as their enterprise standard. We expanded our product portfolio this quarter with the release of Splunk Enterprise® 6, Splunk Cloud™ and Hunk™: Splunk Analytics for Hadoop, providing more power, functionality and flexibility for our customers.”

Third Quarter 2014 and Recent Business Highlights


  • Signed more than 450 new customers, ending the quarter with more than 6,400 customers worldwide.
  • New license customers include: Alabama Department of Transportation,, BizMobile Inc. (Japan), bonprix (Germany), Digicel Jamaica Ltd. (Jamaica), Erie Insurance Group, Gretech Corp. (Korea), Freshview (Australia), ING DIRECT (Australia), KAIST (Korea), Korea Federation of Community Credit Cooperatives (Korea), MegaFon (Russia), NASDAQ OMX, Natixis (Hong Kong), OOCL (Hong Kong), Ohio Department of Public Safety, Omaha Public Power District, SABIC - Saudi Basic Industries Corporation (Saudi Arabia), Skanska S.A. (Poland), Tesla Motors, University of New South Wales, University of Sydney, Zennisshoku Chain (Japan).
  • Expansion customers include: Betsson Malta Ltd. (Malta), Cadence Design Systems, Charlotte Russe, Chunghwa Telecom Co., Ltd. (Taiwan), CONSOL Energy, Constant Contact, Coupang (Korea), Dell Kace, U.S. Department of Energy, Discovery Communications, Domino's Pizza, HelloWallet, IDT Corporation, Intuit, KT Cloud (Korea), Li & Fung Ltd. (Hong Kong), Otto Group (Germany), Newell Rubbermaid, SunGard, Texas Health and Human Services Commission, University of California, Los Angeles, Urban Outfitters, U.S. Army, VGTRK - All-Russia State Television and Radio Broadcasting Company (Russia), zulily.


  • Announced the general availability of Splunk® Enterprise 6, the latest version of the company’s award-winning platform for machine data.
  • Announced the general availability of Splunk Cloud™, a new service that delivers Splunk Enterprise in the cloud. With the introduction of Splunk Cloud for large-scale production environments, Splunk Storm, the cloud-based service introduced last year, significantly expanded its free developer offerings to 20GB of total storage per month.
  • Announced the general availability of Hunk™: Splunk Analytics for Hadoop. Hunk is a fully integrated analytics platform for Hadoop that enables everyone in an organization to interactively explore, analyze and visualize historical data in Hadoop.
  • Released the Splunk App for Unix and Linux, which provides rapid insights and operational visibility into large-scale Unix and Linux environments.
  • Released the Splunk App for Okta, which brings the power of the Splunk Search Processing Language to data from the Okta service enabling users to visualize logins and app utilization, as well as monitor suspicious activity.


  • Announced the acquisition of BugSense Inc., a leading analytics solution for machine data generated by mobile devices. The addition of BugSense will enhance the ability of Splunk customers to analyze machine data directly from mobile devices and correlate it with other machine-generated data to gain operational intelligence.

Strategic and Channel Partners:

  • Announced Amazon Machine Images (AMIs) for Splunk Enterprise 6 and Hunk on the Amazon Web Services (AWS) Marketplace. Splunk also released the new version of the Splunk App for AWS, which leverages the newly announced Amazon CloudTrail, a service that logs all AWS API calls.
  • Signed a reseller agreement with Hitachi Solutions to distribute Splunk Enterprise across Japan.
  • Announced with Systex the launch of Systex SBOX, which is available to APAC channel partners and customers.


  • Received an award naming Splunk Enterprise as the “Most Innovative Big Data Tool” in the competition “Best Big Data in 2013” by COMPUTERWOCHE, a leading German-language weekly magazine for enterprise IT managers and IT professionals.
  • Won the best SIEM category in the 2013 Readers' Choice Awards by Information Security magazine and for Splunk Enterprise.


  • Participated in a White House event, Data to Knowledge to Action: Building New Partnerships, as part of the Obama Administration’s call for technology leaders to help harness big data to advance national goals. Splunk4Good is analyzing data to create a new, public interface to better enable citizens to explore federal regulatory data.
  • Announced the Ford OpenXC Connected Car Dashboards, a collaborative project with Ford Motor Company that collected and analyzed data from vehicles to gain insight into driving patterns and vehicle performance.


Financial Outlook

The company is providing the following guidance for its fiscal fourth quarter 2014 (ending January 31, 2014):

  • Total revenues are expected to be between $88 million and $90 million.
  • Non-GAAP operating margin is expected to be between 6% and 8%.

The company is updating its previous guidance for its fiscal year 2014 (ending January 31, 2014):

  • Total revenues are expected to be between $291 million and $293 million (were previously expected to be between $275 million and $281 million as of August 29, 2013).
  • Non-GAAP operating margin is expected to be approximately zero (unchanged from August 29, 2013).

All forward-looking non-GAAP financial measures contained in this section “Financial Outlook” exclude estimates for stock-based compensation expenses, employer payroll tax expense related to employee stock plans, a non-recurring non-cash charge for impairment of a long-lived asset, acquisition-related costs, amortization of acquired intangible assets as well as the partial release of the valuation allowance due to acquisition.

While a reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis, the company has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its fiscal third quarter 2014 and YTD fiscal 2014 non-GAAP results included in this press release.

Conference Call and Webcast

Splunk’s executive management team will host a conference call today beginning at 1:30 p.m. PT (4:30 p.m. ET) to discuss the company’s financial results and business highlights.  Interested parties may access the call by dialing (866) 501-1535.  International parties may access the call by dialing (216) 672-5582. A live audio webcast of the conference call will be available through Splunk’s Investor Relations website at  A replay of the call will be available through November 28, 2013 by dialing (855) 859-2056 and referencing Conference ID# 93820373.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding Splunk’s revenue and non-GAAP operating margin targets for the company’s fiscal fourth quarter and fiscal year 2014 in the paragraphs under “Financial Outlook” above and other statements regarding momentum in the company’s business, growth in the number of new customers, new product offerings, customer value and standardization, expected benefits of our recent acquisition, expansion of existing customer usage, intended use and success of acquired products, and product investments and developments.  There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: Splunk’s limited operating history, particularly as a relatively new public company; risks associated with Splunk’s rapid growth, particularly outside of the U.S.; Splunk’s inability to realize value from its significant investments in its business; Splunk’s transition to a multi-product software and services business; Splunk’s inability to successfully integrate acquired businesses and technologies, and general market, political, economic and business conditions.

Additional information on potential factors that could affect Splunk’s financial results is included in the company’s Quarterly Report on Form 10-Q for the quarter ended July 31, 2013, which is on file with the U.S. Securities and Exchange Commission. Splunk does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

About Splunk Inc.

Splunk Inc. (NASDAQ: SPLK) provides the engine for machine data™. Splunk® software collects, indexes and harnesses the machine-generated big data coming from the websites, applications, servers, networks, sensors and mobile devices that power business. Splunk software enables organizations to monitor, search, analyze, visualize and act on massive streams of real-time and historical machine data. More than 6,400 enterprises, universities, government agencies and service providers in over 90 countries use Splunk Enterprise to gain Operational Intelligence that deepens business and customer understanding, improves service and uptime, reduces cost and mitigates cybersecurity risk. Splunk Cloud™ is a service that delivers Splunk Enterprise in the cloud for large-scale production environments. Splunk Storm®, a cloud-based subscription service, is used by organizations developing and running applications in the cloud. Hunk™: Splunk Analytics for Hadoop is a fully integrated analytics platform for Hadoop that enables everyone in an organization to interactively explore, analyze and visualize historical data in Hadoop.

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Non-GAAP financial measures and reconciliations

To supplement Splunk's consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), Splunk provides investors with certain non-GAAP financial measures, including non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) and non-GAAP net income (loss) per share (collectively the "non-GAAP financial measures"). These non-GAAP financial measures exclude all or a combination of the following (as reflected in the following reconciliation table): stock-based compensation expense, employer payroll tax expense related to employee stock plans, amortization of acquired intangible assets, ground lease expense related to a build-to-suit lease obligation, impairment of a long-lived asset, acquisition-related costs and the partial release of the valuation allowance due to acquisition. In addition, non-GAAP financial measures include free cash flow, which represents cash from operations less purchases of property and equipment. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Splunk uses these non-GAAP financial measures for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Splunk believes that these non-GAAP financial measures provide useful information about Splunk's operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. In addition, these non-GAAP financial measures facilitate comparisons to competitors' operating results.

Splunk excludes stock-based compensation expense because it is non-cash in nature and excluding this expense provides meaningful supplemental information regarding Splunk's operational performance. In particular, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, Splunk believes that providing non-GAAP financial measures that exclude this expense allows investors the ability to make more meaningful comparisons between Splunk's operating results and those of other companies. Splunk excludes employer payroll tax expense related to employee stock plans in order for investors to see the full effect that excluding that stock-based compensation expense had on Splunk's operating results. These expenses are tied to the exercise or vesting of underlying equity awards and the price of Splunk's common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of Splunk's business. Splunk also excludes the non-cash charge for previously capitalized Storm research and development expense (reflected as an impairment of a long-lived asset) as a result of its strategic decision to start making its Storm product available at no cost to customers, a decision that Splunk expects to be infrequent in nature. Splunk also excludes acquisition-related costs, amortization of acquired intangible assets and ground lease expense related to its build-to-suit lease obligation from its non-GAAP financial measures because these are considered by management to be outside of Splunk's core operating results. Splunk further excludes the partial release of the valuation allowance due to acquisition from non-GAAP net income (loss) and non-GAAP net income (loss) per share because it is also considered by management to be outside Splunk's core operating results. Accordingly, Splunk believes that excluding these expenses provides investors and management with greater visibility to the underlying performance of its business operations, facilitates comparison of its results with other periods and may also facilitate comparison with the results of other companies in its industry. Splunk considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in its business, making strategic acquisitions and strengthening its balance sheet.

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by Splunk's competitors and exclude expenses that may have a material impact upon Splunk's reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in Splunk's business and an important part of the compensation provided to Splunk's employees. The non-GAAP financial measures are meant to supplement and be viewed in conjunction with GAAP financial measures.

The following table reconciles Splunk's non-GAAP results to Splunk's GAAP results included in this press release.


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For more information, please contact:
Media Contact
Tom Stilwell
Splunk Inc.
Investor Contact
Ken Tinsley
Splunk Inc.

Splunk, Splunk>, Listen to Your Data, The Engine for Machine Data, Hunk, Splunk Cloud, Splunk Light, SPL and Splunk MINT are trademarks and registered trademarks of Splunk Inc. in the United States and other countries. All other brand names, product names, or trademarks belong to their respective owners. © 2016 Splunk Inc. All rights reserved.