Full-year revenue fell 5% to $2.23 billion, but ARR was $2.36 billion in the fiscal fourth quarter, up 41% year over year. No worries here, though, because using annual recurring revenue (ARR) - all term- and cloud-based revenue - gives the more accurate picture for fiscal 2021. The pandemic accelerated the transition for Splunk customers to the cloud model, meaning the company went from recognizing all of those billings upfront to now recognizing them over time. #Splunk meaning softwareTo recap, this rapid transition from legacy software (billed to customers on a term basis) to cloud (billed upfront with revenue recognized over time) is responsible for the decline in revenue. Of the total, cloud revenue was $171 million, up 72% year over year. Revenue came in at $745 million, down 6% from the year prior. sort ofĪs was the case all year, Splunk reported another decline in revenue during its fiscal 2021 fourth quarter (the three months ended Jan. Thus, Splunk is starting to look like a serious value. However, as Splunk has been migrating its customer billing from legacy software to cloud, that growth still goes mostly misunderstood. Yet in that time, the leading data analysis company has continued to grow - driven by the popularity of its cloud-based software. The stock erased what was a 50% advance through last summer and is now down about 10% from where it was a year ago at the onset of the pandemic. Shares of Splunk ( SPLK) have taken a beating in recent months.
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