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Summit Research Reiterates On Splunk

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After posting a strong beat on earnings Thursday, shares of Splunk (NASDAQ: SPLK) are trading up Friday. Summit Research has reiterated its Buy rating and maintained its $55 price target.

Analyst Srini Nandury noted that "Splunk now has beaten the mid-point of guidance by an average of 9.2 percent during each of the last nine quarters by an average of $6 million or 9.2 percent."

Thanks to new applications and new use cases along with investment in R&D, Splunk's momentum is expected to maintain upward velocity. After a conversation with management, Summit says it is "increasingly confident Splunk is rapidly becoming a platform for unstructured data, akin to Oracle/MS-SQL server platforms."

Aside from Splunk's sticky ecosystem, its "plethora of applications being built but its customers" will make it difficult for other companies to displace the tech company's ecosystem.

  Q3 2015 Revenue Full Year 2015 Revenue
Splunk $105-$107 million $423-$428 million
Consensus $104 million $412 million

Key takeaways from the quarter according to Summit:

  • More than 70 percent of license bookings came from existing customers
  • 500 new customers added this quarter, bringing total customers to about 7900
  • 226 orders greater than $100,000, with record number of transactions
  • Quota carrying sales force increased to 226, up from 220 in 4Q
  • Expected to finish the year with 300-310 quota carrying sales force
  • Only 60 percent of quota carriers were tenured 12 months or more

Shares of Splunk were up 18.5 percent nearing Friday's close.


Latest Ratings for SPLK

Dec 2014Summit Research PartnersInitiates Coverage onBuy
Dec 2014Piper JaffrayAssumesNeutral
Nov 2014Morgan StanleyMaintainsOverweight

View More Analyst Ratings for SPLK
View the Latest Analyst Ratings

Posted-In: Srini Nandury Summit ResearchAnalyst Color Earnings Guidance Price Target Reiteration Analyst Ratings


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