0001353283false00013532832024-02-272024-02-27


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

____________________________________________________

FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported)

February 27, 2024
____________________________________________________
  
Splunk Inc.
(Exact name of registrant as specified in its charter)
 
Delaware 001-35498 86-1106510
(State or other jurisdiction of
incorporation)		 (Commission File Number) (IRS Employer
Identification No.)
 
250 Brannan Street
San Francisco, California 94107
(Address of principal executive offices, including zip code)
 
(415) 848-8400
(Registrant’s telephone number, including area code)
____________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareSPLKThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02                              Results of Operations and Financial Condition.
 
On February 27, 2024, Splunk Inc. (the “Company”) issued a press release that included preliminary unaudited financial information for the quarter and fiscal year ended January 31, 2024. A copy of the related press release is attached hereto as Exhibit 99.1 and is incorporated into this Item 2.02 by reference.

Item 7.01                              Regulation FD Disclosure.

The Company also posted supplemental material dated February 27, 2024, on the “Events and Presentations” section of its website (http://investors.splunk.com). The Company webcasts earnings calls and certain events it participates in or hosts with members of the investment community on its investor relations website (http://investors.splunk.com). Additionally, it provides notifications of news or announcements regarding its financial performance, including SEC filings, investor events, press and earnings releases, as part of its investor relations website. It uses its investor relations website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. The contents of this website are not intended to be incorporated by reference into this report or in any other report or document the Company files.
 
The information under Item 2.02 and Item 7.01, including the financial information for the quarter and fiscal year ended January 31, 2024 in the press release attached hereto as Exhibit 99.1, is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
 

Item 9.01                                Financial Statements and Exhibits.
 
(d)                                Exhibits
 
Exhibit
Number		 Description
 
104Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document
*Furnished herewith
2

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
Date: February 27, 2024
  SPLUNK INC.
   
   
 By:/s/ Brian Roberts
  Brian Roberts
  Senior Vice President and Chief Financial Officer

3


Exhibit 99.1
splunklogoa17.jpg
P R E S S   R E L E A S E 


Splunk Announces Fiscal Fourth Quarter and Full Year 2024 Financial Results

Increased Annual Recurring Revenue 15% to $4.2 Billion
Achieved Q4 GAAP Net Income of $427 Million
Generated over $1 Billion in Annual Operating Cash Flow and Adjusted Free Cash Flow


SAN FRANCISCO – February 27, 2024 – Splunk Inc. (NASDAQ: SPLK), the cybersecurity and observability leader, today announced results for its fiscal fourth quarter and full year ended January 31, 2024, as compared to the corresponding period of the last fiscal year:

Fourth Quarter 2024 Financial Highlights
•Total ARR was $4.208 billion, up 15%; Cloud ARR was $2.186 billion, up 23%.
•Total revenues were $1.486 billion, up 19%; Cloud revenue was $503 million, up 22%.
•GAAP operating expenses increased 6.5%; non-GAAP operating expenses decreased 3.1%.
•GAAP operating margin was 29.1%; non-GAAP operating margin was 47.8%.
•GAAP net income was $427 million; non-GAAP net income was $579 million.
•Operating cash flow was $421 million, up 53%; adjusted free cash flow was $418 million, up 56%.
•899 customers with Total ARR greater than $1 million, an increase of 109 customers.


Full Year 2024 Financial Highlights
•Total revenues were $4.216 billion, up 15%; Cloud revenue was $1.837 billion, up 26%.
•GAAP operating expenses increased 1.6%; non-GAAP operating expenses decreased 1.8%.
•GAAP operating margin was 5.7%; non-GAAP operating margin was 28.9%.
•GAAP net income was $264 million; non-GAAP net income was $1.032 billion.
•Operating cash flow was $1.008 billion, up 124%; adjusted free cash flow was $1.007 billion, up 136%.

"We delivered a solid finish to FY24 as our team doubled down on helping organizations worldwide keep their digital systems resilient," said Gary Steele, President and CEO of Splunk. "In Q4, we grew Total ARR to $4.2 billion, and we finished FY24 with nearly 900 customers each generating more than $1 million in ARR. We’re pleased to bring this momentum to Cisco, and we believe there is an incredible opportunity to meet the ever-increasing security and observability needs of the world’s largest and most complex enterprises."

“Q4 was a capstone to a strong year of execution, with ARR growing 15% while we reduced quarterly non-GAAP operating expenses 3% year-over-year. This progress helped drive $427 million of quarterly GAAP net income and over $1 billion of annual adjusted free cash flow, up 136% year-over-year,” said Brian Roberts, CFO of Splunk.

Fourth Quarter Investor Presentation and Stockholder Letter

Visit the Splunk investor relations website to download the company’s quarterly investor presentation, which includes Splunk President and CEO Gary Steele’s letter to stockholders.

Pending Acquisition by Cisco

In light of the pending transaction with Cisco, Splunk will not be hosting an earnings conference call to review the fourth quarter or providing a financial outlook. While the closing of the acquisition by Cisco remains subject to regulatory approvals
and conditions, given the positive regulatory approvals to date, the transaction is now expected to close in late calendar Q1 or early calendar Q2.


Recent Business Highlights:

•Splunk Security Innovations Strengthen Digital Resilience: Splunk delivered Splunk Enterprise Security 7.3 to provide an enhanced security analyst experience as well as enrich risk context for seamless security incident triage. In addition, Splunk SOAR 6.2 (Security Orchestration Automation and Response) allows users to configure logic loops directly in the Visual Playbook Editor and leverage a new set of firewall management apps.
•Splunk Observability Enhancements Simplify Telemetry Data Collection: Splunk’s latest observability innovation, Splunk Add-On for OpenTelemetry Collector, simplifies getting started with Splunk Observability Cloud and enables additional consistency in how customers manage data collection at scale.
•Hundreds of Public Sector Leaders Attend Splunk’s Annual GovSummit Conference: Public sector partners and customers connected on U.S. national cyber strategy and digital resilience during Splunk’s largest public sector event. A recent Splunk and Foundry survey of cybersecurity professionals revealed 80% of all decision makers said their organizations are using AI to address cybersecurity, and almost half of public sector respondents said they plan to use AI to increase productivity.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding Splunk’s opportunities; Splunk’s proposed acquisition by Cisco and expected timing of the completion of the acquisition and receipt of regulatory approvals, as well as the benefits of the acquisition; trends in customer demand and engagement as well as Splunk’s operating and financial performance; statements regarding our operating efficiency, growth, profitability and cash flows; statements regarding our products, projects, technology and ongoing product development, including recently announced products; statements regarding our partnerships; statements regarding our market opportunity as well as our ability to meet customer needs; and trends in the markets for our products, including the security and observability markets. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: the risk that the proposed transaction with Cisco is not completed on the anticipated terms or in the time anticipated, including risks related to obtaining regulatory approvals, anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of Splunk’s business and other conditions to the completion of the transaction; significant transaction costs associated with the proposed transaction; potential litigation relating to the proposed transaction; the risk that disruptions from the proposed transaction will harm Splunk’s business, including current plans and operations; the ability of Splunk to implement its business strategy; the impact of the macroeconomic environment, including inflationary pressures, economic uncertainty and impacts on information technology spending; risks associated with Splunk’s growth; the impact of Splunk’s restructuring plans; risks associated with Splunk’s ability to successfully introduce and gain market acceptance for new products and technologies; Splunk’s inability to realize value from its significant investments in the company’s business, including product and service innovations and through acquisitions; Splunk’s shift from sales of licenses to sales of cloud services which impacts the timing of revenue and margins; Splunk’s transition to a multi-product software and services business; Splunk’s inability to successfully integrate acquired businesses and technologies; Splunk’s inability to service its debt obligations or other adverse effects related to the company’s convertible notes; and general market, political, economic, business and competitive market 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 fiscal quarter ended October 31, 2023, which is on file with the U.S. Securities and Exchange Commission (“SEC”) and Splunk’s other filings with the SEC. 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) helps build a safer and more resilient digital world. Organizations trust Splunk to prevent security, infrastructure and application incidents from becoming major issues, absorb shocks from digital disruptions, and accelerate digital transformation.

Splunk and Splunk> 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. © 2024 Splunk Inc. All rights reserved.

For more information, please contact:

Media Contact
Patricia Hogan
Splunk Inc.
press@splunk.com

Investor Contact
Katie White
Splunk Inc.
ir@splunk.com
Splunk Inc. | www.splunk.com




Splunk Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
 
 Three Months Ended January 31,Fiscal Year Ended January 31,
2024202320242023
Revenues
Cloud services$503,375 $413,934 $1,837,418 $1,457,295 
License810,133 670,005 1,706,358 1,521,116 
Maintenance and services172,639 167,166 671,819 675,297 
Total revenues1,486,147 1,251,105 4,215,595 3,653,708 
Cost of revenues
Cloud services144,219 128,360 544,807 490,299 
License2,137 1,253 7,623 5,312 
Maintenance and services 77,196 75,670 300,233 320,384 
Total cost of revenues223,552 205,283 852,663 815,995 
Gross profit1,262,595 1,045,822 3,362,932 2,837,713 
Operating expenses
Research and development235,341 243,027 943,933 997,170 
Sales and marketing 439,378 427,589 1,671,102 1,621,518 
General and administrative156,062 109,135 508,393 454,531 
Total operating expenses830,781 779,751 3,123,428 3,073,219 
Operating income (loss)431,814 266,071 239,504 (235,506)
Interest and other income (expense), net
Interest income23,912 12,482 103,255 25,401 
Interest expense(9,860)(11,230)(42,505)(46,026)
Other income (expense), net(3,683)(1,772)(3,083)(9,320)
Total interest and other income (expense), net10,369 (520)57,667 (29,945)
Income (loss) before income taxes442,183 265,551 297,171 (265,451)
Income tax provision (benefit)15,634 (3,241)33,437 12,411 
Net income (loss)$426,549 $268,792 $263,734 $(277,862)
Basic net income (loss) per share$2.52 $1.64 $1.58 $(1.71)
Diluted net income (loss) per share$2.28 $1.44 $1.52 $(1.71)
Weighted-average shares used in computing basic net income (loss) per share169,092 164,262 167,136 162,376 
Weighted-average shares used in computing diluted net income (loss) per share191,452 187,002 175,363 162,376 
 

Splunk Inc. | www.splunk.com



Splunk Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
January 31, 2024January 31, 2023
Assets 
Current assets 
Cash and cash equivalents$1,643,141 $690,587 
Investments, current360,412 1,316,347 
Accounts receivable, net1,840,928 1,572,604 
Prepaid expenses and other current assets162,472 174,388 
Deferred commissions, current145,339 116,758 
Total current assets4,152,292 3,870,684 
Investments, non-current37,529 41,700 
Accounts receivable, non-current493,312 314,286 
Operating lease right-of-use assets132,016 186,981 
Property and equipment, net84,279 108,540 
Intangible assets, net66,963 119,588 
Goodwill1,416,920 1,416,920 
Deferred commissions, non-current268,568 242,731 
Other assets35,477 42,493 
Total assets$6,687,356 $6,343,923 
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable$34,715 $15,299 
Accrued compensation363,959 357,550 
Accrued expenses and other liabilities178,604 229,480 
Deferred revenue, current1,980,616 1,657,685 
Debt, current— 775,656 
Total current liabilities2,557,894 3,035,670 
Debt, non-current3,106,928 3,099,289 
Operating lease liabilities154,644 202,268 
Deferred revenue, non-current98,609 91,102 
Other liabilities, non-current28,672 26,107 
Total non-current liabilities3,388,853 3,418,766 
Total liabilities5,946,747 6,454,436 
Stockholders’ equity
Common stock177 171 
Accumulated other comprehensive loss(1,203)(6,363)
Additional paid-in capital5,245,088 4,671,776 
Treasury stock, at cost(980,452)(989,362)
Accumulated deficit(3,523,001)(3,786,735)
Total stockholders’ equity (deficit)740,609 (110,513)
Total liabilities and stockholders’ equity$6,687,356 $6,343,923 

Splunk Inc. | www.splunk.com



Splunk Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 Three Months Ended January 31,Fiscal Year Ended January 31,
2024202320242023
Cash flows from operating activities
Net income (loss)$426,549 $268,792 $263,734 $(277,862)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization19,665 26,024 88,675 99,470 
Amortization of deferred commissions29,914 29,796 127,007 111,205 
Amortization of investment premiums (accretion of discounts), net7,634 (2,590)2,725 (4,652)
Loss on strategic equity investments, net1,000 — 4,414 97 
Amortization of debt discount and issuance costs2,002 2,401 8,644 10,279 
Losses on facility exits23,354 — 29,085 10,000 
Non-cash operating lease costs(1,058)3,403 (6,086)324 
Stock-based compensation209,360 187,393 786,824 789,138 
Deferred income taxes2,572 (1,261)2,079 (2,695)
Loss on disposal of assets224 782253 782
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable, net(959,065)(745,160)(447,212)(337,177)
Prepaid expenses and other assets (31,037)(54,633)22,884 42,075 
Deferred commissions(63,250)(65,130)(181,425)(167,496)
Accounts payable 29,488 (3,134)19,416 (43,907)
Accrued compensation81,352 109,392 6,409 (39,402)
Accrued expenses and other liabilities30,726 30,887 (49,501)(15,337)
Deferred revenue 611,917 489,026 330,438 274,788 
Net cash provided by operating activities 421,347 275,988 1,008,363 449,630 
Cash flows from investing activities
Purchases of property and equipment(1,440)(4,391)(10,626)(13,620)
Capitalized software development costs(3,130)(2,976)(12,091)(8,782)
Purchases of marketable securities(358,176)(547,654)(1,681,651)(1,536,558)
Maturities of marketable securities752,034 163,086 2,640,278 515,950 
Purchases of strategic investments(150)(375)(3,493)(6,734)
Sale of strategic investments3,000 — 3,000 — 
Acquisition, net of cash acquired— (21,950)— (21,950)
Other investment activities251 — 251 1,534 
Net cash provided by (used in) investing activities 392,389 (414,260)935,668 (1,070,160)
Cash flows from financing activities
Proceeds from the exercise of stock options110 59 523 1,457 
Proceeds from employee stock purchase plan30,534 29,722 81,735 78,318 
Repayment of 2023 Notes— — (776,661)— 
Taxes paid related to net share settlement of equity awards(126,750)(33,851)(294,623)(197,349)
Net cash used in financing activities (96,106)(4,070)(989,026)(117,574)
Net increase (decrease) in cash, cash equivalents, and restricted cash 717,630 (142,342)955,005 (738,104)
Cash, cash equivalents, and restricted cash at beginning of period 927,962 832,929 690,587 1,428,691 
Cash, cash equivalents, and restricted cash at end of period$1,645,592 $690,587 $1,645,592 $690,587 
Splunk Inc. | www.splunk.com



Splunk Inc.
Operating Metrics

Total Annual Recurring Revenue (“Total ARR”) represents the annualized value of active cloud services, term licenses and maintenance contracts at the end of a reporting period. Cloud Annual Recurring Revenue (“Cloud ARR”) represents the annualized value of active cloud services contracts at the end of a reporting period.

Non-GAAP Financial Measures and Reconciliations

To supplement Splunk’s consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), Splunk provides investors with the following non-GAAP financial measures: cloud services cost of revenues, cloud services gross margin, cost of revenues, gross margin, research and development expense, sales and marketing expense, general and administrative expense, operating expenses, operating income (loss), operating margin, income tax provision (benefit), net income (loss), free cash flow and adjusted free cash flow (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 tables): expenses related to stock-based compensation and related employer payroll tax, amortization of intangible assets, acquisition-related adjustments, restructuring and facility exit charges, merger-related expenses, capitalized software development costs, non-cash interest expense related to convertible senior notes and a net loss on strategic equity investments. The non-GAAP financial measures are also adjusted for Splunk's current and deferred tax rate on non-GAAP income (loss). Splunk uses a long-term projected non-GAAP tax rate to provide consistency across interim reporting periods. We base our rate on non-GAAP financial projections. In determining our tax rate, we exclude the impact of nonrecurring items, and we make assumptions including those about tax legislation and our tax positions. We applied a 20% non-GAAP tax rate to the three and twelve months ended January 31, 2024 and 2023. In addition, non-GAAP financial measures include free cash flow and adjusted free cash flow. Free cash flow represents net cash provided by operating activities, less purchases of property and equipment and capitalized software development costs. Adjusted free cash flow is a non-GAAP measure that additionally excludes from free cash flow the impact of cash paid for costs incurred as a result of the proposed Cisco merger. Splunk believes that free cash flow and adjusted free cash flow provide investors useful information to better understand the factors and trends affecting the Company’s performance and liquidity. Both of these free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures.

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 and 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. Employer payroll tax expense is 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 amortization of intangible assets, acquisition-related adjustments, restructuring and facility exit charges, merger-related expenses, capitalized software development costs, non-cash interest expense related to convertible senior notes and a net loss on strategic equity investments from the applicable non-GAAP financial measures because these adjustments are considered by management to be outside of Splunk’s core operating results. A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. For example, stock-based compensation-related charges, including related employer payroll tax-related items, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP financial results included in this release.

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 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. The non-GAAP financial measures are meant to supplement and be viewed in conjunction with GAAP financial measures.


Splunk Inc. | www.splunk.com



Splunk Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands)
(Unaudited)


Reconciliation of Cash Provided By Operating Activities to Adjusted Free Cash Flow
Three Months Ended January 31,Fiscal Year Ended January 31,
2024202320242023
Net cash provided by operating activities$421,347 $275,988 $1,008,363 $449,630 
Less purchases of property and equipment(1,440)(4,391)(10,626)(13,620)
Less capitalized software development costs(3,130)(2,976)(12,091)(8,782)
Free cash flow (non-GAAP)$416,777 $268,621 $985,646 $427,228 
Cash paid for merger-related expenses1,132 — 21,057 — 
Adjusted free cash flow (non-GAAP)$417,909 $268,621 $1,006,703 $427,228 
Net cash provided by (used in) investing activities$392,389 $(414,260)$935,668 $(1,070,160)
Net cash used in financing activities$(96,106)$(4,070)$(989,026)$(117,574)


The following tables reconcile Splunk’s GAAP results to Splunk’s non-GAAP results included in this press release.


Reconciliation of GAAP to Non-GAAP Financial Measures
Three Months Ended January 31, 2024
GAAPStock-based compensation and related employer payroll taxAmortization of intangible assets
Restructuring and facility exit charges(2)
Merger-related expensesCapitalized software development costsNon-cash interest expense related to convertible senior notesLoss on strategic equity investments, net
Income tax adjustment (1)
Non-GAAP
Cloud services cost of revenues$144,219 $(5,055)$(6,647)$(558)$— $(3,395)$— $— $— $128,564 
Cloud services gross margin71.4 %1.0 %1.3 %0.1 %— %0.7 %— %— %— %74.5 %
Cost of revenues223,552 (22,686)(7,875)(2,097)— (3,395)— — — 187,499 
Gross margin85.0 %1.5 %0.5 %0.1 %— %0.2 %— %— %— %87.4 %
Research and development235,341 (77,695)— (8,458)— 3,130 — — — 152,318 
Sales and marketing439,378 (65,770)(3,578)(15,112)— — — — — 354,918 
General and administrative156,062 (47,720)— (26,254)(1,352)— — — — 80,736 
Operating expenses830,781 (191,185)(3,578)(49,824)(1,352)3,130 — — — 587,972 
Operating income431,814 213,871 11,453 51,921 1,352 265 — — — 710,676 
Operating margin29.1 %14.4 %0.8 %3.5 %0.1 %— %— %— %— %47.8 %
Income tax provision 15,634 — — — — — — — 129,176 144,810 
Net income$426,549 $213,871 $11,453 $51,921 $1,352 $265 $2,003 $1,000 $(129,176)$579,238
_________________________
(1)                Represents the income tax adjustment using our estimated non-GAAP tax rate of 20%.                                                            
(2)            Excludes $2,807 of total stock-based compensation restructuring charges, which are included under Stock-based compensation and related employer payroll tax.


Reconciliation of GAAP to Non-GAAP Financial Measures
Three Months Ended January 31, 2023
GAAPStock-based compensation and related employer payroll tax Amortization of intangible assetsRestructuring and facility exit chargesCapitalized software development costsNon-cash interest expense related to convertible senior notes
Income tax adjustment (1)
Non-GAAP
Cloud services cost of revenues$128,360 $(6,226)$(8,209)$— $(3,788)$— $— $110,137 
Cloud services gross margin69.0 %1.5 %2.0 %— %0.9 %— %— %73.4 %
Cost of revenues205,283 (21,775)(9,438)— (3,788)— — 170,282 
Gross margin83.6 %1.7 %0.8 %— %0.3 %— %— %86.4 %
Research and development243,027 (88,741)— — 2,976 — — 157,262 
Sales and marketing427,589 (61,690)(4,908)(3,968)— — — 357,023 
General and administrative109,135 (16,850)— — — — — 92,285 
Operating expenses779,751 (167,281)(4,908)(3,968)2,976 — — 606,570 
Operating income266,071 189,056 14,346 3,968 812 — — 474,253 
Operating margin21.3 %15.1 %1.1 %0.3 %0.1 %— %— %37.9 %
Income tax provision (benefit)(3,241)— — — — — 98,468 95,227 
Net income$268,792 $189,056 $14,346 $3,968 $812 $2,401 $(98,468)$380,907 
_________________________
(1)               Represents the income tax adjustment using our estimated non-GAAP tax rate of 20%.
          


Reconciliation of GAAP to Non-GAAP Financial Measures
Fiscal Year Ended January 31, 2024
GAAPStock-based compensation and related employer payroll taxAmortization of intangible assets
Restructuring and facility exit charges(2)
Merger-related expensesCapitalized software development costsNon-cash interest expense related to convertible senior notesLoss on strategic equity investments, net
Income tax adjustment (1)
Non-GAAP
Cloud services cost of revenues$544,807 $(22,970)$(31,165)$(1,065)$— $(14,216)$— $— $— $475,391 
Cloud services gross margin70.4 %1.3 %1.7 %0.1 %— %0.8 %— %— %— %74.1 %
Cost of revenues852,663 (89,166)(36,080)(3,701)— (14,216)— — — 709,500 
Gross margin79.8 %2.1 %0.9 %0.1 %— %0.3 %— %— %— %83.2 %
Research and development943,933 (327,036)— (25,099)— 12,091 — — — 603,889 
Sales and marketing1,671,102 (253,216)(16,545)(19,475)— — — — — 1,381,866 
General and administrative508,393 (138,034)— (45,274)(23,571)— — — — 301,514 
Operating expenses3,123,428 (718,286)(16,545)(89,848)(23,571)12,091 — — — 2,287,269 
Operating income239,504 807,452 52,625 93,549 23,571 2,125 — — — 1,218,826 
Operating margin5.7 %19.2 %1.3 %2.2 %0.6 %0.1 %— %— %— %28.9 %
Income tax provision33,437 — — — — — — — 224,473 257,910 
Net income$263,734 $807,452 $52,625 $93,549 $23,571 $2,125 $8,644 $4,414 $(224,473)$1,031,641 
_________________________
(1)            Represents the income tax adjustment using our estimated non-GAAP tax rate of 20%.
(2)            Excludes $6,544 of total stock-based compensation restructuring charges, which are included under Stock-based compensation and related employer payroll tax.

     


Reconciliation of GAAP to Non-GAAP Financial Measures
Fiscal Year Ended January 31, 2023
GAAPStock-based compensation and related employer payroll taxAmortization of intangible assetsAcquisition-related adjustmentsRestructuring and facility exit chargesCapitalized software development costsNon-cash interest expense related to convertible senior notesLoss on strategic equity investments, net
Income tax adjustment (1)
Non-GAAP
Cloud services cost of revenues$490,299 $(23,082)$(30,943)$— $— $(12,777)$— $— $— $423,497 
Cloud services gross margin66.4 %1.6 %2.0 %— %— %0.9 %— %— %— %70.9 %
Cost of revenues815,995 (87,837)(35,859)— — (12,777)— — — 679,522 
Gross margin77.7 %2.4 %1.0 %— %— %0.3 %— %— %— %81.4 %
Research and development997,170 (345,679)— — — 8,782 — — — 660,273 
Sales and marketing1,621,518 (252,952)(20,522)— (3,968)— — — — 1,344,076 
General and administrative454,531 (118,066)— (692)(10,000)— — — — 325,773 
Operating expenses3,073,219 (716,697)(20,522)(692)(13,968)8,782 — — — 2,330,122 
Operating income (loss)(235,506)804,534 56,381 692 13,968 3,995 — — — 644,064 
Operating margin(6.4)%22.0 %1.5 %— %0.4 %0.1 %— %— %— %17.6 %
Income tax provision12,411 — — — — — — — 112,488 124,899 
Net income (loss)$(277,862)$804,534 $56,381 $692 $13,968 $3,995 $10,279 $97 $(112,488)$499,596 
_________________________
(1)                Represents the income tax adjustment using our estimated non-GAAP tax rate of 20%.
            



Splunk Inc. | www.splunk.com

v3.24.0.1
Cover Page
Feb. 27, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 27, 2024
Entity Registrant Name Splunk Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-35498
Entity Tax Identification Number 86-1106510
Entity Address, Address Line One 250 Brannan Street
Entity Address, City or Town San Francisco
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94107
City Area Code 415
Local Phone Number 848-8400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol SPLK
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001353283
Amendment Flag false
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