Attached files
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| 8-K - 8-K - SPLUNK INC | asc606adoptionfy188-k.htm |
Exhibit 99.1
SPLUNK INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||
April 30, 2017 | July 31, 2017 | October 31, 2017 | January 31, 2018 | |||||||||||||||||||||||||||||
Restated for ASC 606 | Previously Reported | Restated for ASC 606 | Previously Reported | Restated for ASC 606 | Previously Reported | Restated for ASC 606 | Previously Reported | |||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
License | $ | 102,562 | $ | 116,726 | $ | 147,231 | $ | 142,851 | $ | 193,810 | $ | 179,829 | $ | 297,699 | $ | 254,298 | ||||||||||||||||
Maintenance and services | 124,206 | 125,722 | 132,993 | 137,113 | 148,679 | 148,824 | 161,952 | 165,425 | ||||||||||||||||||||||||
Total revenues | 226,768 | 242,448 | 280,224 | 279,964 | 342,489 | 328,653 | 459,651 | 419,723 | ||||||||||||||||||||||||
Cost of revenues | ||||||||||||||||||||||||||||||||
License | 2,928 | 2,928 | 3,159 | 3,159 | 3,013 | 3,013 | 4,298 | 4,298 | ||||||||||||||||||||||||
Maintenance and services | 55,235 | 55,235 | 56,717 | 56,717 | 61,154 | 61,154 | 69,905 | 69,905 | ||||||||||||||||||||||||
Total cost of revenues | 58,163 | 58,163 | 59,876 | 59,876 | 64,167 | 64,167 | 74,203 | 74,203 | ||||||||||||||||||||||||
Gross profit | 168,605 | 184,285 | 220,348 | 220,088 | 278,322 | 264,486 | 385,448 | 345,520 | ||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||
Research and development | 71,298 | 71,298 | 71,774 | 71,774 | 74,080 | 74,080 | 83,962 | 83,962 | ||||||||||||||||||||||||
Sales and marketing | 173,461 | 173,948 | 186,637 | 191,284 | 198,266 | 205,364 | 219,512 | 237,821 | ||||||||||||||||||||||||
General and administrative | 36,496 | 36,496 | 39,139 | 39,139 | 35,857 | 35,857 | 47,651 | 47,651 | ||||||||||||||||||||||||
Total operating expenses | 281,255 | 281,742 | 297,550 | 302,197 | 308,203 | 315,301 | 351,125 | 369,434 | ||||||||||||||||||||||||
Operating income (loss) | (112,650 | ) | (97,457 | ) | (77,202 | ) | (82,109 | ) | (29,881 | ) | (50,815 | ) | 34,323 | (23,914 | ) | |||||||||||||||||
Interest and other income (expense), net | (1,136 | ) | (1,136 | ) | (1,038 | ) | (1,038 | ) | (19 | ) | (19 | ) | (1,258 | ) | (1,258 | ) | ||||||||||||||||
Income (loss) before income taxes | (113,786 | ) | (98,593 | ) | (78,240 | ) | (83,147 | ) | (29,900 | ) | (50,834 | ) | 33,065 | (25,172 | ) | |||||||||||||||||
Income tax provision (benefit) | 1,338 | 1,338 | 353 | 353 | (232 | ) | (232 | ) | (102 | ) | (102 | ) | ||||||||||||||||||||
Net income (loss) | $ | (115,124 | ) | $ | (99,931 | ) | $ | (78,593 | ) | $ | (83,500 | ) | $ | (29,668 | ) | $ | (50,602 | ) | $ | 33,167 | $ | (25,070 | ) | |||||||||
Net income (loss) per share | ||||||||||||||||||||||||||||||||
Basic | $ | (0.84 | ) | $ | (0.73 | ) | $ | (0.57 | ) | $ | (0.60 | ) | $ | (0.21 | ) | $ | (0.36 | ) | $ | 0.23 | $ | (0.18 | ) | |||||||||
Diluted | $ | (0.84 | ) | $ | (0.73 | ) | $ | (0.57 | ) | $ | (0.60 | ) | $ | (0.21 | ) | $ | (0.36 | ) | $ | 0.23 | $ | (0.18 | ) | |||||||||
Weighted-average shares used in computing net income (loss) per share | ||||||||||||||||||||||||||||||||
Basic | 137,785 | 137,785 | 139,063 | 139,063 | 140,413 | 140,413 | 142,074 | 142,074 | ||||||||||||||||||||||||
Diluted | 137,785 | 137,785 | 139,063 | 139,063 | 140,413 | 140,413 | 147,047 | 142,074 | ||||||||||||||||||||||||
Restated results reflect the adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which we adopted on February 1, 2018.
Splunk Inc. | www.splunk.com
SPLUNK INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
April 30, 2017 | July 31, 2017 | October 31, 2017 | January 31, 2018 | |||||||||||||||||||||||||||||
Restated for ASC 606 | Previously Reported | Restated for ASC 606 | Previously Reported | Restated for ASC 606 | Previously Reported | Restated for ASC 606 | Previously Reported | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 466,427 | $ | 466,427 | $ | 419,810 | $ | 419,810 | $ | 393,314 | $ | 393,314 | $ | 545,947 | $ | 545,947 | ||||||||||||||||
Investments, current | 620,805 | 620,805 | 663,737 | 663,737 | 665,075 | 665,075 | 619,203 | 619,203 | ||||||||||||||||||||||||
Accounts receivable, net | 179,404 | 171,260 | 213,754 | 208,082 | 270,318 | 264,497 | 396,413 | 391,799 | ||||||||||||||||||||||||
Prepaid expenses and other current assets | 44,864 | 44,864 | 49,412 | 49,412 | 44,545 | 44,545 | 70,021 | 70,021 | ||||||||||||||||||||||||
Deferred commissions, current | 32,747 | — | 36,147 | — | 41,459 | — | 52,451 | — | ||||||||||||||||||||||||
Total current assets | 1,344,247 | 1,303,356 | 1,382,860 | 1,341,041 | 1,414,711 | 1,367,431 | 1,684,035 | 1,626,970 | ||||||||||||||||||||||||
Investments, non-current | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 5,375 | 5,375 | ||||||||||||||||||||||||
Property and equipment, net | 165,356 | 165,356 | 161,954 | 161,954 | 161,249 | 161,249 | 160,880 | 160,880 | ||||||||||||||||||||||||
Intangible assets, net | 35,022 | 35,022 | 34,577 | 34,577 | 52,434 | 52,434 | 48,142 | 48,142 | ||||||||||||||||||||||||
Goodwill | 124,642 | 124,642 | 138,681 | 138,681 | 161,382 | 161,382 | 161,382 | 161,382 | ||||||||||||||||||||||||
Deferred commissions, non-current | 27,480 | — | 27,790 | — | 30,464 | — | 37,920 | — | ||||||||||||||||||||||||
Other assets | 25,210 | 25,210 | 22,901 | 22,901 | 28,284 | 28,284 | 41,711 | 41,711 | ||||||||||||||||||||||||
Total assets | $ | 1,726,957 | $ | 1,658,586 | $ | 1,773,763 | $ | 1,704,154 | $ | 1,853,524 | $ | 1,775,780 | $ | 2,139,445 | $ | 2,044,460 | ||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||||||
Accounts payable | $ | 8,239 | $ | 8,239 | $ | 8,984 | $ | 8,984 | $ | 12,409 | $ | 12,409 | $ | 11,040 | $ | 11,040 | ||||||||||||||||
Accrued compensation | 89,104 | 89,104 | 93,843 | 93,843 | 115,733 | 115,733 | 145,365 | 145,365 | ||||||||||||||||||||||||
Accrued expenses and other liabilities | 73,761 | 72,107 | 89,051 | 84,002 | 79,296 | 74,680 | 84,631 | 77,160 | ||||||||||||||||||||||||
Deferred revenue, current | 336,101 | 469,072 | 351,799 | 482,196 | 382,682 | 516,401 | 489,913 | 635,253 | ||||||||||||||||||||||||
Total current liabilities | 507,205 | 638,522 | 543,677 | 669,025 | 590,120 | 719,223 | 730,949 | 868,818 | ||||||||||||||||||||||||
Deferred revenue, non-current | 116,470 | 156,720 | 117,116 | 167,004 | 126,780 | 185,712 | 178,792 | 269,954 | ||||||||||||||||||||||||
Other liabilities, non-current | 99,610 | 99,610 | 100,163 | 100,163 | 99,140 | 99,140 | 98,383 | 98,383 | ||||||||||||||||||||||||
Total non-current liabilities | 216,080 | 256,330 | 217,279 | 267,167 | 225,920 | 284,852 | 277,175 | 368,337 | ||||||||||||||||||||||||
Total liabilities | 723,285 | 894,852 | 760,956 | 936,192 | 816,040 | 1,004,075 | 1,008,124 | 1,237,155 | ||||||||||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||||||||||||||
Common stock | 138 | 138 | 140 | 140 | 141 | 141 | 143 | 143 | ||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (3,589 | ) | (3,589 | ) | (1,349 | ) | (1,349 | ) | (2,074 | ) | (2,074 | ) | 156 | 156 | ||||||||||||||||||
Additional paid-in capital | 1,887,900 | 1,887,900 | 1,973,386 | 1,973,386 | 2,028,455 | 2,028,455 | 2,086,893 | 2,086,893 | ||||||||||||||||||||||||
Accumulated deficit | (880,777 | ) | (1,120,715 | ) | (959,370 | ) | (1,204,215 | ) | (989,038 | ) | (1,254,817 | ) | (955,871 | ) | (1,279,887 | ) | ||||||||||||||||
Total stockholders’ equity | 1,003,672 | 763,734 | 1,012,807 | 767,962 | 1,037,484 | 771,705 | 1,131,321 | 807,305 | ||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,726,957 | $ | 1,658,586 | $ | 1,773,763 | $ | 1,704,154 | $ | 1,853,524 | $ | 1,775,780 | $ | 2,139,445 | $ | 2,044,460 | ||||||||||||||||
Restated results reflect the adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which we adopted on February 1, 2018.
Splunk Inc. | www.splunk.com
SPLUNK INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||
April 30, 2017 | July 31, 2017 | October 31, 2017 | January 31, 2018 | |||||||||||||||||||||||||||||
Restated for ASC 606 | Previously Reported | Restated for ASC 606 | Previously Reported | Restated for ASC 606 | Previously Reported | Restated for ASC 606 | Previously Reported | |||||||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||||||||||||||
Net loss | $ | (115,124 | ) | $ | (99,931 | ) | $ | (78,593 | ) | $ | (83,500 | ) | $ | (29,668 | ) | $ | (50,602 | ) | $ | 33,167 | $ | (25,070 | ) | |||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 9,103 | 9,103 | 10,813 | 10,813 | 10,123 | 10,123 | 10,902 | 10,902 | ||||||||||||||||||||||||
Amortization of deferred commissions | 10,317 | — | 10,336 | — | 12,156 | — | 13,844 | — | ||||||||||||||||||||||||
Amortization of investment premiums (accretion of discounts) | 217 | 217 | 125 | 125 | 31 | 31 | (114 | ) | (114 | ) | ||||||||||||||||||||||
Stock-based compensation | 90,055 | 90,055 | 92,367 | 92,367 | 84,111 | 84,111 | 91,930 | 91,930 | ||||||||||||||||||||||||
Deferred income taxes | 101 | 101 | (967 | ) | (967 | ) | (1,811 | ) | (1,811 | ) | (2,145 | ) | (2,145 | ) | ||||||||||||||||||
Non-cash facility exit adjustment | — | — | — | — | (5,191 | ) | (5,191 | ) | — | — | ||||||||||||||||||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||||||||||||||||||||||||||
Accounts receivable, net | 66,056 | 67,021 | (34,350 | ) | (36,822 | ) | (56,564 | ) | (56,415 | ) | (126,095 | ) | (127,302 | ) | ||||||||||||||||||
Prepaid expenses and other assets | (7,057 | ) | (7,057 | ) | (826 | ) | (826 | ) | (618 | ) | (618 | ) | (37,110 | ) | (37,110 | ) | ||||||||||||||||
Deferred commissions | (10,276 | ) | — | (14,046 | ) | — | (20,142 | ) | — | (32,292 | ) | — | ||||||||||||||||||||
Accounts payable | 714 | 714 | 1,249 | 1,249 | 2,956 | 2,956 | (1,510 | ) | (1,510 | ) | ||||||||||||||||||||||
Accrued compensation | (10,988 | ) | (10,988 | ) | 4,724 | 4,724 | 21,890 | 21,890 | 28,858 | 28,858 | ||||||||||||||||||||||
Accrued expenses and other liabilities | (7,905 | ) | (8,210 | ) | 16,012 | 12,617 | (5,533 | ) | (5,100 | ) | 7,393 | 4,538 | ||||||||||||||||||||
Deferred revenue | 16,145 | 333 | 16,344 | 23,408 | 40,547 | 52,913 | 159,243 | 203,094 | ||||||||||||||||||||||||
Net cash provided by operating activities | 41,358 | 41,358 | 23,188 | 23,188 | 52,287 | 52,287 | 146,071 | 146,071 | ||||||||||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||||||||||||||
Purchases of investments | (122,473 | ) | (122,473 | ) | (218,224 | ) | (218,224 | ) | (177,207 | ) | (177,207 | ) | (127,858 | ) | (127,858 | ) | ||||||||||||||||
Maturities of investments | 163,065 | 163,065 | 175,200 | 175,200 | 175,745 | 175,745 | 173,475 | 173,475 | ||||||||||||||||||||||||
Acquisitions, net of cash acquired | — | — | (17,223 | ) | (17,223 | ) | (42,127 | ) | (42,127 | ) | — | — | ||||||||||||||||||||
Purchases of property and equipment | (5,605 | ) | (5,605 | ) | (2,908 | ) | (2,908 | ) | (5,418 | ) | (5,418 | ) | (6,572 | ) | (6,572 | ) | ||||||||||||||||
Other investment activities | — | — | — | — | — | — | (375 | ) | (375 | ) | ||||||||||||||||||||||
Net cash provided by (used in) investing activities | 34,987 | 34,987 | (63,155 | ) | (63,155 | ) | (49,007 | ) | (49,007 | ) | 38,670 | 38,670 | ||||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||||||||||||
Proceeds from the exercise of stock options | 1,487 | 1,487 | 486 | 486 | 501 | 501 | 1,701 | 1,701 | ||||||||||||||||||||||||
Proceeds from employee stock purchase plan | — | — | 19,282 | 19,282 | — | — | 14,762 | 14,762 | ||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | (32,462 | ) | (32,462 | ) | (26,647 | ) | (26,647 | ) | (29,542 | ) | (29,542 | ) | (49,179 | ) | (49,179 | ) | ||||||||||||||||
Repayment of financing lease obligation | (317 | ) | (317 | ) | (485 | ) | (485 | ) | (497 | ) | (497 | ) | (509 | ) | (509 | ) | ||||||||||||||||
Net cash used in financing activities | (31,292 | ) | (31,292 | ) | (7,364 | ) | (7,364 | ) | (29,538 | ) | (29,538 | ) | (33,225 | ) | (33,225 | ) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 28 | 28 | 714 | 714 | (238 | ) | (238 | ) | 1,117 | 1,117 | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 45,081 | 45,081 | (46,617 | ) | (46,617 | ) | (26,496 | ) | (26,496 | ) | 152,633 | 152,633 | ||||||||||||||||||||
Cash and cash equivalents at beginning of period | 421,346 | 421,346 | 466,427 | 466,427 | 419,810 | 419,810 | 393,314 | 393,314 | ||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 466,427 | $ | 466,427 | $ | 419,810 | $ | 419,810 | $ | 393,314 | $ | 393,314 | $ | 545,947 | $ | 545,947 | ||||||||||||||||
Restated results reflect the adoption of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which we adopted on February 1, 2018.
Splunk Inc. | www.splunk.com
SPLUNK INC.
Non-GAAP financial measures and reconciliations
To supplement Splunk’s condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Splunk provides investors with certain non-GAAP financial measures, including non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) and non-GAAP net income (loss) per share (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 acquired intangible assets, adjustments related to a financing lease obligation, adjustments related to facility exits and acquisition-related adjustments, including the partial release of the valuation allowance due to acquisitions. The adjustments for the financing lease obligation are to reflect the expense Splunk would have recorded if its build-to-suit lease arrangement had been deemed an operating lease instead of a financing lease and is calculated as the net of actual ground lease expense, depreciation and interest expense over estimated straight-line rent expense. The non-GAAP financial measures are also adjusted for Splunk's estimated tax rate on non-GAAP income (loss). To determine the annual non-GAAP tax rate, Splunk evaluates a financial projection based on its non-GAAP results. The annual non-GAAP tax rate takes into account other factors including Splunk's current operating structure, its existing tax positions in various jurisdictions and key legislation in major jurisdictions where Splunk operates. The non-GAAP tax rate applied to fiscal 2018 was 27%. In addition, non-GAAP financial measures include free cash flow, which represents cash from operations less purchases of property and equipment. 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.
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. These expenses are 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 acquired intangible assets, adjustments related to facility exits, acquisition-related costs, including the partial release of the valuation allowance due to acquisitions, and makes adjustments related to a financing lease obligation from its non-GAAP financial measures because these are considered by management to be outside of Splunk’s core operating results. Accordingly, Splunk believes that excluding these expenses provides investors and management with greater visibility to the underlying performance of its business operations, facilitates comparison of its results with other periods and may also facilitate comparison with the results of other companies in its industry. Splunk considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in its business, making strategic acquisitions and strengthening its balance sheet.
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 non-GAAP financial measures are meant to supplement and be viewed in conjunction with GAAP financial measures.
The following tables reconcile Splunk’s GAAP results to Splunk’s non-GAAP results included in this press release.
Splunk Inc. | www.splunk.com
SPLUNK INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||
April 30, 2017 | July 31, 2017 | October 31, 2017 | January 31, 2018 | |||||||||||||||||||||||||||||
Restated for ASC 606 | Previously Reported | Restated for ASC 606 | Previously Reported | Restated for ASC 606 | Previously Reported | Restated for ASC 606 | Previously Reported | |||||||||||||||||||||||||
GAAP gross margin | 74.4 | % | 76.0 | % | 78.6 | % | 78.6 | % | 81.3 | % | 80.5 | % | 83.9 | % | 82.3 | % | ||||||||||||||||
Stock-based compensation and related employer payroll tax | 3.7 | 3.5 | 3.1 | 3.1 | 2.4 | 2.4 | 2.0 | 2.2 | ||||||||||||||||||||||||
Amortization of acquired intangible assets | 1.2 | 1.1 | 1.0 | 1.0 | 0.8 | 0.9 | 0.9 | 1.0 | ||||||||||||||||||||||||
Adjustments related to financing lease obligation | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||||||||||||
Non-GAAP gross margin | 79.2 | % | 80.5 | % | 82.6 | % | 82.6 | % | 84.4 | % | 83.7 | % | 86.7 | % | 85.4 | % | ||||||||||||||||
GAAP operating income (loss) | $ | (112,650 | ) | $ | (97,457 | ) | $ | (77,202 | ) | $ | (82,109 | ) | $ | (29,881 | ) | $ | (50,815 | ) | $ | 34,323 | $ | (23,914 | ) | |||||||||
Stock-based compensation and related employer payroll tax | 94,196 | 94,196 | 94,765 | 94,765 | 86,289 | 86,289 | 94,862 | 94,862 | ||||||||||||||||||||||||
Amortization of acquired intangible assets | 2,693 | 2,693 | 4,241 | 4,241 | 3,564 | 3,564 | 4,290 | 4,290 | ||||||||||||||||||||||||
Adjustments related to financing lease obligation | (2,244 | ) | (2,244 | ) | (2,205 | ) | (2,205 | ) | (2,205 | ) | (2,205 | ) | (2,206 | ) | (2,206 | ) | ||||||||||||||||
Acquisition-related costs | — | — | — | — | 643 | 643 | — | — | ||||||||||||||||||||||||
Adjustments related to facility exits | — | — | — | — | (5,191 | ) | (5,191 | ) | — | — | ||||||||||||||||||||||
Non-GAAP operating income (loss) | $ | (18,005 | ) | $ | (2,812 | ) | $ | 19,599 | $ | 14,692 | $ | 53,219 | $ | 32,285 | $ | 131,269 | $ | 73,032 | ||||||||||||||
GAAP operating margin | (49.7 | )% | (40.2 | )% | (27.6 | )% | (29.3 | )% | (8.7 | )% | (15.5 | )% | 7.5 | % | (5.7 | )% | ||||||||||||||||
Stock-based compensation and related employer payroll tax | 41.6 | 38.8 | 33.9 | 33.8 | 25.1 | 26.3 | 20.7 | 22.6 | ||||||||||||||||||||||||
Amortization of acquired intangible assets | 1.2 | 1.1 | 1.5 | 1.5 | 1.0 | 1.1 | 0.9 | 1.0 | ||||||||||||||||||||||||
Adjustments related to financing lease obligation | (1.0 | ) | (0.9 | ) | (0.8 | ) | (0.8 | ) | (0.6 | ) | (0.7 | ) | (0.5 | ) | (0.5 | ) | ||||||||||||||||
Acquisition-related costs | — | — | — | — | 0.2 | 0.2 | — | — | ||||||||||||||||||||||||
Adjustments related to facility exits | — | — | — | — | (1.5 | ) | (1.6 | ) | — | — | ||||||||||||||||||||||
Non-GAAP operating margin | (7.9 | )% | (1.2 | )% | 7.0 | % | 5.2 | % | 15.5 | % | 9.8 | % | 28.6 | % | 17.4 | % | ||||||||||||||||
GAAP net income (loss) | $ | (115,124 | ) | $ | (99,931 | ) | $ | (78,593 | ) | $ | (83,500 | ) | $ | (29,668 | ) | $ | (50,602 | ) | $ | 33,167 | $ | (25,070 | ) | |||||||||
Stock-based compensation and related employer payroll tax | 94,196 | 94,196 | 94,765 | 94,765 | 86,289 | 86,289 | 94,862 | 94,862 | ||||||||||||||||||||||||
Amortization of acquired intangible assets | 2,693 | 2,693 | 4,241 | 4,241 | 3,564 | 3,564 | 4,290 | 4,290 | ||||||||||||||||||||||||
Adjustments related to financing lease obligation | (2,244 | ) | (2,244 | ) | (2,205 | ) | (2,205 | ) | (2,205 | ) | (2,205 | ) | (2,206 | ) | (2,206 | ) | ||||||||||||||||
Acquisition-related costs | — | — | — | — | 643 | 643 | — | — | ||||||||||||||||||||||||
Adjustments related to facility exits | — | — | — | — | (5,191 | ) | (5,191 | ) | — | — | ||||||||||||||||||||||
Interest expense related to the financing lease obligation | 2,114 | 2,114 | 2,106 | 2,106 | 2,094 | 2,094 | 2,083 | 2,082 | ||||||||||||||||||||||||
Partial release of the valuation allowance due to acquisition | — | — | (546 | ) | (546 | ) | (1,994 | ) | (1,994 | ) | — | — | ||||||||||||||||||||
Income tax effects related to non-GAAP adjustments | 5,935 | 1,833 | (4,681 | ) | (3,356 | ) | (13,166 | ) | (7,515 | ) | (35,769 | ) | (20,043 | ) | ||||||||||||||||||
Non-GAAP net income (loss) | $ | (12,430 | ) | $ | (1,339 | ) | $ | 15,087 | $ | 11,505 | $ | 40,366 | $ | 25,083 | $ | 96,427 | $ | 53,915 | ||||||||||||||
Non-GAAP net income (loss) per share | ||||||||||||||||||||||||||||||||
Basic | $ | (0.09 | ) | $ | (0.01 | ) | $ | 0.11 | $ | 0.08 | $ | 0.29 | $ | 0.18 | $ | 0.68 | $ | 0.38 | ||||||||||||||
Diluted | $ | (0.09 | ) | $ | (0.01 | ) | $ | 0.11 | $ | 0.08 | $ | 0.28 | $ | 0.17 | $ | 0.66 | $ | 0.37 | ||||||||||||||
Weighted-average shares used in computing non-GAAP net income (loss) per share | ||||||||||||||||||||||||||||||||
Basic | 137,785 | 137,785 | 139,063 | 139,063 | 140,413 | 140,413 | 142,074 | 142,074 | ||||||||||||||||||||||||
Diluted | 137,785 | 137,785 | 142,852 | 142,852 | 144,415 | 144,415 | 147,047 | 147,047 | ||||||||||||||||||||||||
Splunk Inc. | www.splunk.com
The following table reconciles GAAP net income (loss) per share to non-GAAP net income (loss) per share. For certain financial periods, GAAP net income (loss) per share to non-GAAP net income (loss) per share was not reconciled due to the difference in the number of shares used to calculate basic and diluted weighted-average shares of common stock.
Three Months Ended | Three Months Ended | |||||||||||
April 30, 2017 | January 31, 2018 | |||||||||||
Restated for ASC 606 | Previously Reported | Restated for ASC 606 | ||||||||||
GAAP net income (loss) per share | $ | (0.84 | ) | $ | (0.73 | ) | $ | 0.23 | ||||
Stock-based compensation and related employer payroll tax | 0.69 | 0.69 | 0.65 | |||||||||
Amortization of acquired intangible assets | 0.02 | 0.02 | 0.03 | |||||||||
Adjustments related to financing lease obligation | (0.02 | ) | (0.02 | ) | (0.02 | ) | ||||||
Interest expense related to the financing lease obligation | 0.02 | 0.02 | 0.01 | |||||||||
Income tax effects related to non-GAAP adjustments | 0.04 | 0.01 | (0.24 | ) | ||||||||
Non-GAAP net income (loss) per share | $ | (0.09 | ) | $ | (0.01 | ) | $ | 0.66 | ||||
Splunk Inc. | www.splunk.com