Splunk Inc. (NASDAQ: SPLK) on Thursday, 21 May 2020 announced its financial results for Fiscal first quarter 2021. The company saw a strong financial standing for the first quarter. The total revenues were recorded at $434 million, an increase of 2%. While the revenues from Cloud services increased to $112 million, up by 81%. ARR increased by 52% amounting to $1.775 billion.
Doug Merritt, President and CEO, Splunk in the press release stated that, “COVID-19 has transformed the world into one that requires rapidly accelerated digital transformation to keep organizations moving – we are seeing some resilient customers complete three-to-five-year projects in just months. As customers continue to adapt to this new normal, data matters more than ever, evidenced by our continued strong momentum this quarter.”
“Data helps save lives. Data re-imagines business. I’m extremely proud of our team’s product vision and tenacity as we help our customers bring data to COVID-19 response and help get the world back to work.”
Recent Business Developments
- Customers and New Expansions: Allied Irish Bank (Ireland), Autodesk, Experian, Hitachi Capital (England), Take-Two Interactive Software, TD Ameritrade, Transurban (Australia), Zoom, Kayak, Mount Sinai Health System, Santander Bank (Spain), Statkraft (Norway), Square Enix (Japan), Shopify, State of Illinois.
- Splunk Helps Bring Data to COVID-19 Response: In the times of the pandemic the company is trying its best to provide its support to all of its stakeholders. In view of this, it has released a series of free downloadable resources including the ‘Spunk Remote Work Insights’. This helps businesses take action on data, gain real-time visibility across disparate systems, and maintain workforce productivity and high performance of critical business activities.
- Splunk & Coalition Launches COVID-19 Testing and Data Response Platform: In collaboration with Accenture, Adobe, Oracle, NuHarbor Security, DataHouse, Globant, Why line, and the nonprofit Alliance for Innovation the company announced the launch of COVID-19 Testing and Data Response Platform. The platform provides a free end-to-end COVID-19 test management process. This includes online COVID-19 risk screening and critical symptom evaluation, test scheduling, test site management and data analytics, and dash-boarding for use by public health officials.
- New DevOps Solutions Help Customers Unlock Real-Time Observability: The newest version of SignalFx Microservices APM was announced. It is the only application that provides a performance monitoring solution that provides complete observability into modern, cloud-native environments, SignalFx helps produce meaningful business outcomes regardless of scale.
- Splunk & Google Cloud Turn Data Into Doing: The company announced a new strategic partnership with Google Cloud. This partnership would result in bringing the Splunk Cloud to Google Cloud. This would allow the customers to unlock the value of their data, enable fast decisions across the enterprise and drive actionable insights.
- Splunk & AWS Help Customers Bring Data to Everything: Launch of new products along with AWS such as- Workload Migration program which would help migrate on-premises legacy Splunk Enterprise workloads to Splunk Cloud running on AWS. And Lambda Ready (AWS Service Ready program), which helps recognize Splunk’s proven solutions for customers to build, manage and run serverless applications.
- Splunk Achieves #1 Market Share According to Gartner: According to Gartner’s Market Share: Enterprise Infrastructure Software, Worldwide, 2019: The company ranked number 1 in terms of market share in Performance Analysis in the AIOps, ITIM and Other Monitoring Tools subsegment. It ranked number 1 with a 16.5% market share according to the report.
(Source: Business Quant)
The company has seen an increase in the Gross Profits earned in the recent quarters. The outbreak of the pandemic has enabled the business to move forward with new technological advancements and innovations. The company is able to effectively cover all of its costs and move forward. It was recorded at 663.3 million for the quarter. The total Gross Margin was reported at 76% for the quarter.
The company expects the figures to increase in the future with the world moving forward towards digitization in a wider sense.
For the Investors
The company being from the “Technology” sector will not see a negative impact of the pandemic on its financials. On the other hand, it has seen a boost for the business with new advancements in its sectors. Investors can look at the stock as a good investment option for the long term. The company is stable in terms of its revenue generations and resource allocations.
The company will further be able to expand its operations once the pandemic situation normalizes with new opportunities for technological advancements in the market. The stakeholders for the company are seen to be in no risk regarding their investments in the stock.