Cloud ARR Grew 83%; Nearly Doubles Number of $1M+ Cloud Customers
Splunk Inc., provider of the Data-to-Everything Platform, announced results for its fiscal first quarter ended April 30, 2021.
First Quarter 2022 Financial Highlights
- Cloud ARR was $877 million, up 83% year-over-year.
- Total ARR was $2.47 billion, up 39% year-over-year.
- Cloud revenue was $194 million, up 73% year-over-year.
- Total revenues were $502 million, up 16% year-over-year.
- 203 customers with Cloud ARR greater than $1 million, up 99% year-over-year.
- 537 customers with Total ARR greater than $1 million, up 46% year-over-year.
“Our first quarter success was defined by customers accelerating their move to the cloud,” said Doug Merritt, President and CEO of Splunk. “Data became an essential service in the past year as the pandemic solidified the urgent importance of digital transformation. Splunk delivers the only cloud data platform that is able to simultaneously serve the multitude of teams tasked with driving this shift for application development, infrastructure management and cyber security.”
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“We saw continued improvement in demand during the first quarter and customer engagement remains high across our portfolio of products and cloud services,” said Jason Child, Chief Financial Officer, Splunk. “Our Cloud ARR exceeded 70% for the sixth straight quarter and we now have more than 200 customers with Cloud ARR over a m**************. As we look forward, we have great confidence in our ability to deliver continued high growth, particularly within our cloud business.”
Business Highlights:
New and Expansion Customers Include: Bank of New Zealand, Chipotle, CVS Health, CyberCX (Australia), Deloitte Canada, E-Hälsomyndigheten (Sweden), Fastweb (Italy), Florida Department of Economic Opportunity, Kommunal Landspensjonskasse (KLP) (Norway), PRISMA Health, SCI Shared Resources, LLC, Sharp Healthcare, UVM Medical, TDC Net, ISTAT (Italy)
- Splunk’s New Observability Cloud Helps Customers Conquer Complexity at Any Scale: The Splunk Observability Cloud, including its entire data-driven observability product portfolio, has been made generally available to Splunk customers.
- Splunk’s Expanded Partner Ecosystem Further Drives Business Growth and Customer Success: Splunk Cloud became available through Google Cloud Marketplace and AWS was recognized as the 2021 Global Alliance Partner of the Year for its commitment to the Splunk Partner+ Program.
- Splunk Solidifies its Position as One of the World’s Top Employers: Splunk was named one of Fortune’s 100 Best Places to Work and one of the top 10 Best Workplaces in Technology, ranked among the top five on the San Francisco Business Times’ Best Places to Work in the Bay Area, and was recognized by the Human Rights Campaign as one of the Best Places to Work for LGBTQ Equality.
- Splunk Expands Executive Bench: Splunk announced the appointment of Teresa Carlson as President and Chief Growth Officer and the appointment of Shawn Bice as President of Products and Technology.
- Splunk Providing Mission-Critical Services to the Department of Defense (DoD): Working in close partnership with Carahsoft Technology Corp., Splunk is providing the DoD with asset management and cybersecurity software as part of the Core Enterprise Technology Agreement (CETA) by the DoD. The CETA designation, valued at $833M over 10 years, is part of the DoD’s Enterprise Software Initiative (ESI).
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Financial Outlook
The company is providing the following guidance for its fiscal second quarter 2022 (ending July 31, 2021):
- Cloud ARR is expected to be between $950 million and $960 million.
- Total ARR is expected to be between $2.59 billion and $2.61 billion.
- Total revenues are expected to be between $550 million and $570 million.
- Non-GAAP operating margin is expected to be approximately negative 25%.
All forward-looking non-GAAP financial measures contained in this section “Financial Outlook” exclude estimates for stock-based compensation and related employer payroll tax, acquisition-related adjustments, amortization of intangible assets and capitalized software costs.
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, many of these costs and expenses that may be incurred in the future. The company has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its fiscal first quarter 2022 non-GAAP results included in this press release.
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