Splunk Inc. (SPLK) saw its loss widen to $93.49 million, or $0.69 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $72.97 million, or $0.57 a share. On the other hand, adjusted net income for the quarter stood at $16.27 million, or $0.12 a share compared with $6 million or $0.05 a share, a year ago.
Revenue during the quarter surged 40.34 percent to $244.79 million from $174.42 million in the previous year period. Gross margin for the quarter contracted 235 basis points over the previous year period to 80.12 percent. Operating margin for the quarter stood at negative 37.16 percent as compared to a negative 41.48 percent for the previous year period.
Operating loss for the quarter was $90.95 million, compared with an operating loss of $72.34 million in the previous year period.
However, the adjusted operating income for the quarter stood at $16.73 million compared to $6.63 million in the prior year period. At the same time, adjusted operating margin improved 304 basis points in the quarter to 6.84 percent from 3.80 percent in the last year period.
"Our market opportunity is tremendous," said Doug Merritt, president and chief executive officer. "Splunk provides the market leading platform that powers Operational Intelligence to enable customers to cost effectively get value from machine data. We want to make it easier to collect and analyze even larger volumes and varieties of data to help our customers gain more insights and value from Splunk solutions. Our passionate customers and their innovations with the Splunk platform are at the core of our success."
For financial year 2017, Splunk Inc. projects revenue to be in the range of $930 million to $932 million. It projects adjusted operating income to grow in the range of 5 percent to 6 percent for the same period.
For the fourth-quarter, Splunk Inc. projects revenue to be in the range of $286 million to $288 million. It projects adjusted operating income to grow in the range of 8 percent to 9 percent for the same period.
Operating cash flow improves significantly
Splunk Inc. has generated cash of $99.31 million from operating activities during the nine month period, up 26.33 percent or $20.70 million, when compared with the last year period.
The company has spent $108.23 million cash to meet investing activities during the nine month period as against cash inflow of $11.26 million in the last year period
The company has spent $50.27 million cash to carry out financing activities during the nine month period as against cash inflow of $24.60 million in the last year period.
Cash and cash equivalents stood at $365.59 million as on Oct. 31, 2016, down 27.13 percent or $136.10 million from $501.69 million on Oct. 31, 2015.
Working capital decreases marginally
Splunk Inc. has witnessed a decline in the working capital over the last year. It stood at $675.08 million as at Oct. 31, 2016, down 2.50 percent or $17.32 million from $692.40 million on Oct. 31, 2015. Current ratio was at 2.22 as on Oct. 31, 2016, down from 2.72 on Oct. 31, 2015.
Days sales outstanding went down to 51 days for the quarter compared with 59 days for the same period last year.
At the same time, days payable outstanding went down to 10 days for the quarter from 13 for the same period last year.
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