Splunk Inc. (SPLK) saw its loss narrow to $74.20 million, or $0.54 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $79.32 million, or $0.61 a share. On the other hand, adjusted net income for the quarter stood at $34.80 million, or $0.25 a share compared with $14.37 million or $0.11 a share, a year ago. Revenue during the quarter surged 39.29 percent to $306.46 million from $220.02 million in the previous year period. Gross margin for the quarter contracted 292 basis points over the previous year period to 80.99 percent. Operating margin for the quarter stood at negative 23.20 percent as compared to a negative 35.92 percent for the previous year period.
Operating loss for the quarter was $71.11 million, compared with an operating loss of $79.03 million in the previous year period.
However, the adjusted operating income for the quarter stood at $35.81 million compared to $14.66 million in the prior year period. At the same time, adjusted operating margin improved 502 basis points in the quarter to 11.68 percent from 6.66 percent in the last year period.
"Customer success is our number one priority. More than 13,000 organizations worldwide depend on Splunk, including nearly 700 new customers this quarter," said Doug Merritt, president and chief executive officer, Splunk. "It is early in our data and analytics journey it is a big market with a tremendous opportunity that Splunk is uniquely positioned to win. We are confident in our long-term strategy to become the ubiquitous machine data platform for our customers."
For fiscal year 2018, Splunk Inc. expects revenue to be $1,185 million. It projects adjusted operating income to grow at 8 percent for the same period.
For the first-quarter, Splunk Inc. projects revenue to be in the range of $231 million to $233 million. It projects adjusted operating income to decline in the range of 2 percent to 4 percent for same period.
Operating cash flow improves significantly
Splunk Inc. has generated cash of $201.83 million from operating activities during the year, up 29.70 percent or $46.21 million, when compared with the last year. The company has spent $127.46 million cash to meet investing activities during the year as against cash outgo of $153.49 million in the last year.
The company has spent $77.86 million cash to carry out financing activities during the year as against cash inflow of $35.48 million in the last year period.
Cash and cash equivalents stood at $421.35 million as on Jan. 31, 2017, down 0.75 percent or $3.19 million from $424.54 million on Jan. 31, 2016.
Working capital decreases marginally
Splunk Inc. has witnessed a decline in the working capital over the last year. It stood at $693 million as at Jan. 31, 2017, down 3.68 percent or $26.50 million from $719.50 million on Jan. 31, 2016. Current ratio was at 2.04 as on Jan. 31, 2017, down from 2.45 on Jan. 31, 2016.
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