5 Things Splunk Management Wants You to Know
When Splunk (NASDAQ: SPLK) released fiscal second-quarter 2020 results last week, it was surprising at first to see shares of the operational-intelligence platform leader plunge in response. After all, Splunk's revenue soared 33%, to $516.6 million -- far above its own guidance for $485 million -- which translated into adjusted net income of $0.30 per share, trouncing estimates for $0.12 per share.
But Splunk also reduced its full-year cash flow guidance for the second time in as many reports -- this time telling investors to expect negative operating cash flow of $300 million in fiscal 2020, marking a massive reduction from its old target for positive $250 million. With echoes of its previous quarterly update in late May, management blamed the negative impact on cash collections of Splunk's faster-than-expected acceleration away from perpetual licenses and toward a cloud-based renewable model.
Now that the dust has settled, let's dig deeper in an effort to better understand what's driving Splunk today. To that end, here are five key points management discussed during this quarter's conference call.
Source Fool.com
