Splunk earnings3/28/2023 ![]() Cloud transformation is a time- and cost-intensive strategy as we've talked about on these calls, and we support the pace our customers take. Our customers tell us that they understand the importance of moving to the cloud and that they remain on their path to migrate and expand their highly complex infrastructure over time. As many of our customers opted for shorter-term commitments with Splunk beginning in the second half of the quarter, this lower-than-expected cloud adoption resulted in lower Cloud ARR and as a result, total ARR. This is largely due to the slowing of a number of larger cloud migrations and expansions as customers became more cautious with their Q2 budgets. We ended the quarter with 723 customers with total annual recurring revenue or ARR of more than $1 million, up by 33 customers from last quarter and up 24% year-over-year.ĭespite our solid top and bottom line, our cloud ARR and total ARR came in short of our own expectations. We continue to see good customer engagement during the quarter with strong competitive win rates consistent with what we've seen in the past couple of years, a high net retention rate and good business momentum. Our team achieved this top line outperformance while also exceeding our op margin expectation for the quarter as our focus on balancing growth with profitability began to deliver. The value we bring to customers is evident in our second quarter results with total revenues growing 32% to $799 million, exceeding our expectations. Why? Well, simply put, no one else can do what we do. Our customers appreciate what we do for them, and they are looking to invest more and drive greater value with Splunk. Looking across the software landscape, I am confident that we are uniquely positioned for long-term durable growth and profitability. Splunk is deeply embedded within the tech stacks of the world's largest enterprises. After four months of leading this incredible team of Splunkers and meeting with more than 100 customers in 100 days, the reason that drove my decision to join Splunk are as true now as they were the day I started. Q2 was my first full quarter as Splunk's CEO. ![]() Good afternoon, and thanks for joining today's call. A reconciliation of GAAP and non-GAAP results is provided in the press release and on our website. We will also discuss non-GAAP financial measures which are not prepared in accordance with generally accepted accounting principles. If this call is reviewed after today, the information presented during this call may not contain current or accurate information. These forward-looking statements are being made as of today, and we disclaim any obligation to update or revise these statements. Those documents contain risks and other factors that may cause our actual results to differ from those contained in our forward-looking statements. Please refer to documents we file with the SEC, including the Form 8-K filed with today's press release. These statements are subject to risks and uncertainties and based on our assumptions as to the macroeconomic environment and reflect our best judgment based on factors currently known to us.Īctual events or results may differ materially. On today's call, we will be making forward-looking statements, including financial guidance and expectations including our long-term growth and profitability, our forecast for our third quarter and full year of fiscal 2023 and our future expectations of revenues, cloud mix, total ARR and cloud ARR, cloud gross margin, operating margin, operating and free cash flows and Rule of 40 scale as well as trends in our markets and our business, our strategies and expectations regarding our business, products, technology customers, demand and markets. This conference call is being broadcast live via webcast, and following the call, an audio replay will be available on our website. After market closed today, we issued our press release, which is also posted on our Investor Relations website, along with supplemental material. With me on the call today are Gary Steele and Jason Child. I would now like to hand the conference over to your speaker today, Ken Tinsley. ![]() Please be advised that today's conference is being recorded. After the speakers' presentation, there will be a question-and-answer session. At this time, all participants are in listen-only mode. Welcome to Splunk Inc.'s Second Quarter 2023 Financial Results Conference Call. Gary Steele - Interim Chief Executive Officer ( NASDAQ: SPLK) Q2 2023 Results Conference Call Aug4:30 PM ET
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