SPLK - Earnings call transcript Q4 2018

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Operator

Ladies and gentlemen, good afternoon, and welcome to the Splunk Inc. Fourth Quarter 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session, and instructions will follow at that time.

As a reminder, this conference call is being recorded. to call like host, to now Mr. would turn over the your I Treasurer of Vice Tinsley, and Ken Corporate President Investor Relations. Please sir. go ahead,

Ken Tinsley

you, a it press is afternoon, good after close call Merritt Amanda, on today me release Dave Thank and market and issued the Doug today our everyone. We Conte. posted of on are Great. With and website.

Trends These and events statements website. information. made are presented differ statements. cause we our may investments reviewed update from replay broadcast press is and results operating judgment subscription product, reflect fiscal differ of following adoption to SEC, the Additionally, this be If and the the will customer's expectations being statements to from available Please services, those and currently may actual statements, this on or results contain as guidance today, regarding webcast be Form international current file conference Those trends including call, model our year filed information call XXX forward-looking we forward-looking via including revenue release. materially. resulting contained and contain impact after our we this to with as statements. our these accurate not any or call call live refer documents the our of These may other documents today, quarter fiscal that in and revise factors or us obligation the our our during On deal disclaim on planned making forward-looking mix, known to expectations statements. today's of and in factors X-K ASC best our actual transaction, based expectations is with to and and full XXXX. will our investments forecast an and the audio of this revenue for and fiscal size, as well financial being financial XXXX call for including risks

Generally also and Principles. is non-GAAP reconciliation are GAAP which with of on Accepted Accounting financial release in accordance the results website. our will We A press non-GAAP discuss measures, provided in not prepared and

turn I Analyst Meeting Go end at forward and there. we're we Investor you I that of over remind to want to our seeing Before and the it the holding ahead, Doug, month, to look Doug. you

Douglas Merritt

our to execution Thanks, Ken. from us. flown Having opportunity our confidence of call. in am higher. welcome our Sales about front of FY the I and the XXXX Kickoff, talking couldn't and to in and into FY Hello, you everyone, in Annual delivery excited to just be our all proud I'm be XXXX heading

Europe of Our in where year. Saudi in energy Department last of GTBank delivered as Tax, a total Splunk We revenue, $XXX with solutions win Africa Domino's with Middle XX% in and with and at Deutsche for globally, Zakat APAC from a Australia, we QX, Bahn, in such up saw Ghana. with great over Income demand in strong East million comes the

$X.XXX revenue For billion, the up year-over-year. year, totaled XX% full

was changes existing the customers, who Splunker for thank was and their we that opportunity. It on with I'd go-to-market be source and mutual rolling At our we the XX,XXX the critical Susan growth that to also our ensure And our Most out. the alignment continue Our partner. Day in capitalize inspiration inspiring expanding is around with every driving customers. every we importantly, of our shared number year, to cloud. than to our the our year new partners us Kickoff. customers a teams Analyst to the and combination that one collective so you model last both from to from deployments come more of Sales world at like continues on-prem exited joined see

optimizing activities and to and investing accelerate generation our are and field customer We segmentation success. coverage demand

Leader of we thus the Richard the our we continue am our part thrilled far, Sales. validate said Richard welcome to where happy Sales and new made before. he strong EMEA Global Timperlake as have changes As was are I results joins go-to-market EVP what us with Susan. under we of evolution, from Qlik, our to

threat known opportunity handle we're Splunk in our decision-making. is technology our of help Our and and Security agreement Enterprise this and the market a leader stay acquire Splunk Response, still massive. complexity accounts. early talent we the Security alerts products, even Splunk the platform, Automation on will and journey analytics announced to and evolving Phantom's of combination the Earlier and largest landscape growing Phantom, within The as attack And better also of SOAR. fast adoption customers Orchestration, ahead for week,

security, continues harness Sourabh what on and forward databases automation gain does also to more operational and our Phantom's questions our our today no warehouses. the them the same different gaining transactional insights for R&D from is and as Splunk the There and Oliver, the is do, own store in platform be the ask across strategy are their platform data best Phantom about we to solution around data solution context customers Organizations capabilities data than like it machine other ability market these multiple that other they is looking cases. to data fit the IT We Splunk cases. addition Splunk's forward to data In of use family. ever the behind sets ecosystem their customers to unique using into of look our and leveraging enable to gives use we're increasingly leveraging before. the What to the of intelligence. us these teams to Technologies data provide critical customers are to extension an efforts. the welcoming broad to team to

These them introduce platform. previewed recipes from Splunk at Splunk providing became the that our .conf. regulation. customers' a help and infrastructure to delivery recipes our are as we're can reliability and running instrumental Project as GDPR have We're implemented learn Enterprise QX, of designed Security partners. Netic, who An for customers using prescriptive This upcoming customers solutions customers we to GDPR minutes. critical comply which of and as experiences Thanks solution our both continue partner customer for opportunity. case. prescriptive engineers our well a is rapidly Splunk the ramp TDC, who calling on Splunk good help solution Enterprise We was points built largest pain to we makes is purchasing our new the in easy new Splunk's Denmark's Waitomo, recipes the A be with Splunkbase and example quickly. Essentials, telco, and solve for and administrators In use this is monitoring in and systems tried site to may help up specifically to Splunk never ability to need get example recipe these

ops cloud. they to Marketplace IT resolve provider, Cloud. and who spin extended expand Moving who Splunk Splunk apps. include added and proactively the IT on saw help to our Starting ITSI, or both business in workloads identify QX, Service with and as with of AWS and their platform use cases issues in Intelligence, their app Worldpay, wins their new we out new win premium Insurance quarter in use in our support continued Splunk Splunk the of A delivery, IT to and momentum payments global Companies Cincinnati the use joint

get virtualization licenses container to and Splunk intelligence via Other They technology IT and recently security proactive, the The Splunk Governor provide wins their cases a as and major New Splunk customer Tampa training visibility complete and operations, customer Splunk Carney. infrastructure ed Company a support into quarter storage, include We're Delaware also Worldpay made grow. into artificial they environments, include for upgrade free this higher and helping State digital more some is proud of introduced response. very taking Electric and initiatives. to on use Pledge, of significant a Statnett. workforce network initiatives investigation transformation by to cybersecurity institution visibility

Moving reduce CIOs, San system new of their continue IT Surrey and Enterprise, a Marcos User State risk an customer legacy to operations story Satellite IT layer to this Analytics Behavior deploy expanded UBA use customers center where Splunk Notable a protect structured since Enterprise from entire cases; university accounts additional wide security university which security a to to and use led satellite XXXX, around provider, system, to help SIM British their approach. security quarter. presented range an who's security include: threat with detection and their all to of Splunk to wins Technology, customer; the University (XX:XX), a their user analytics-based further adds to success ES brand. Texas DeCiso added at Splunk for and we company's insider our the migrate ITSI

take security and In has success been a to Nashville and and Splunk Australian from compliance and stay Other for also Enterprise see use data their measures issues we Enterprise, QX, cyber provide heavy proud auditing and across a longtime entire services business Splunk State wins Splunk an IT customer to The monitor and their mandates. their ensure City marketing and security is going that better to Splunk their Splunk to customers provide including County for Health save the meet the State Angeles e-commerce and uses to Digital using for is ITSI used to against multiple is University In of breakages. improving time sent money company times. as preemptive Los continued SIM, campus-wide Washington EAA data we always to are the faculty websites visibility students and during cases of campus organization, and to data activities, State Airports, Agency. Splunk available. ES future, management load and rates. ITSI to including and Splunk to Francisco to Penn ensure by DevOps World MTTI applications include: threats who's using Francisco San platform, are MTTR. Splunk, plans satellites and into the and the always operations. take missions reducing subscription avoid monitoring home use While directly improve their Post, San and to Penn on monitoring customer online connected and Electric to defend standardize in processes Penn ES Enterprise Service

part data machine systems. will use experience the ITSI. insights expansion quarter with everyday. Splunk on Shopify, ticket. management their of customer use of EAA with Another when finally, and Internet The deployed Systel, Yelp core DB its EAA streaming Enterprise maintain a Deutsche to company several Yelp their in Splunk maintenance expand trends. transformation, operational to from customer than of commerce Yelp point expansion AWS and books Splunk support And digital years leading Splunk one get cases internal expanded could signing train around through an correlate ES is deliver the Enterprise, going and someone this its IT business helps Splunk Enterprise. supplier, answers originally platform Things the questions. its intelligence locomotive use like and analyze purchased all is XX of company Splunk in across all for their in predictive uses improving platform customer log to a application more everything transport logistics to and Bahn commerce This of Today, enhance ago operational data central system so and people to business, to terabytes Splunk

also We momentum. continue cloud our its saw business

approach operating Splunk Splunk in in best. operations their The and win sampling of guidelines made to a Center previously our Splunk in legacy network came After use the Vermont DevOps, that application replace such and app Insurance meet its goals and of corporate hybrid monitoring SIM, include, classic University of who Cloud. use quarter and wins use some through to ES Life expanded reach significant Marketplace. leveraging their AWS ES Splunk for Enterprise ensure and a systems cloud As Company, new Guardian regulatory using IT hospital's Guardian cases are our critical bought is to will expansion is proactive Medical alerting another performance. and the as and This IT the of at

global a company. with at QX several on partnership AWS. on and including our work XXX our EAA It opportunities, our the momentum saw with the great wins together strategic ever larger Moving ecosystem, on Fortune an We of joint is largest AWS Marketplace. one win QX entertainment with to

Firehose Data help We our Kinesis from AWS integrations latest data. value customers more their Amazon get to also announced Amazon GuardDuty, new integrations with our and

enable other Accenture's passionate and platform Accenture's better our customers to a this joint vendor-specific created Accenture, partner, gives of community detect, security Slunk from that Splunk practice the practice to It's and strategic within time for Splunk cyber place This them Ultimately, has learn community customers experts community will defend within their business. security our new up users. Accenture unit. quarter, unique new made first access a business remediate established of a threats. knowledge-sharing This gives specifically of to their

our Splunk continued advance to their efficiently. the their uniquely capture proactively expects expanded find summary, their service their Finally, XXXX. security part it We're in whole quarter Enterprise. a finish and are a will in we of and partner, license it of threats to much managed In us believes more Splunk opportunity NTT and current enhancing great offerings to aggressively. Security, great FY NTT investment of as complement their offering with execute proud positioned response front I'm the really team. and tremendous Splunk was pursuing customers

on-prem their thanks for both value and in everybody for our and Again, in we partners thanks who customers. with all Splunk. investing early to our and adoption We're Splunk platform for their as are and journey, of are our works to expanding data cloud. and machine delivering We scale to analytics, We're high the growth. of customers

Now Dave the our let call me over Conte. to turn CFO,

David F. Conte

quarter Thank last were year. afternoon, quarter, XX% right. over a Splunk. Thanks year which for joining caps another of Fourth $XXX for revenues solid Good All report a call. million, pleased Doug. to QX strong everyone. increase you, I'm the

up the up last up XX% were the cloud totaled full and year, the XX% software year, total fiscal QX XX%. over last full year, billion, million over license billings and QX And billion, million. $X.XX year $XX full were revenues XXX% million, for XXXX. $X.XXX $XXX million were were total over $XX.X is were year. $XXX of last Cloud was revenues revenues, $XXX XX% revenue For up which billings year and software from nearly year Full total up in million, full cloud, year.

as Now execution, pleased our we as are we're with not satisfied.

us market continue groups, we ensure customer for pace as on added for have heard a QX, will to unique our our you've our data a fiscal field ending And globally XX,XXX XX,XXX our product standard and in coverage focused to investments customers. analytics, success. over to we we establish XXXX new customers opportunity and our customers their As target we say, X,XXX and our customers. the Splunk in added To of year, XXX full that, cloud new overall over customers with portfolio, the

our six of are teams year, Splunk. XX%. total company see teams start to continued six-figure around recorded international we Splunk than as adoption. XX And XX% more well commitments revenue eight-figure pricing for our continuing international platform we was innovations fiscal product In from customers Our to contributed of term, to And and year our along packaging the path International Full to annual programs, help XXXX. operations booked revenues. our and contribution QX of their with expect and we contribute continue between XXX through orders. which as solutions, orders, full X,XXX XX% longer inception XX% more total accelerating compares as XXX QX, and the than six-figure seven-figure orders orders,

increase this Overall, $XX,XXX license large-scale and from large reflected represented revenues in $XX,XXX, fiscal awareness XXXX, reached and ROI X% our suite, year. is broad $XX,XXX. increased In education complemented The of orders services type to compelling in by up of QX. this ASPs together in adoption. growing driving and levels are prior professional of Our product ASP

XX%, gross average XXX fully year-over-year representing using margins comparable and million, QX XX.X% count to margin other million Now million $X.XX income positive non-GAAP. basis. was operating $XX turning $XX.X QX on or was share all diluted share was QX are net overall results, of weighted of margin which per a shares. income and a a

translate performance. on weighted top was strength of million. year, our share from QX million or line of X.X% million flow due free of $XX.X full flow shares. in above expectations diluted $XXX share the of was income million fully operating to per results XXX.X $X.XX cash margin a overall and our based Net the cash For count operations $XXX average to These

flow flow cash $XXX $XXX year we almost million, and For Free $X.X from in the million. billion investments. full with cash the operations year, ended was and was cash

fiscal continued guidance, full billion, in strong to $X.XX to and $X.XX up the billion fiscal expectation increasing business, based we the to previously guided. year we momentum are XXXX turning the revenue finish XXXX our on from Now

We million revenues. in also should billion are our $XXX $X XXXX target about of and of revenue contribute million. total XXXX $XXX cloud fiscal reiterating about Fiscal billings of

financial Our fun as topic, the evident statements This adopted of the will impact of ASC of XXX, forward. which the February we face X. be on going

guidance retrospective XXXX our so been results XXXX XXXX fiscal equivalent you'll of the an our compare will all and and basis, method, full fiscal be we revenue recast. on the XXXX a fiscal option on elected basis. and able ASC have retro Under reporting Importantly, has to fully XXX be

XXXX billion XXXX XXX XXX. XXX. $XXX FY $X.XXX under fiscal million ASC Specifically, under increase under $X.XXX to billion ASC XXX become of of revenues $XXX revenues ASC ASC under will will million

what of ASC So XXXX, four consecutive now XXXX, you on revenue results have all and XXXX, basis. guidance, and XXXX XXX years a fiscal is

me XXX. heard deferred tailwinds tailwind now about bookings, will be headwind talk ASC the which largest you've largest and revenue recognized is of headwinds and reduction revenue the the term from is Now upfront. to Clearly, license

expect subscription a generally contracts the transactions Additionally, the of about overall size XXXX, two-third in sizes for as are with contribution fiscal we another subscription order perpetual headwind order. growing of

these all Now the our XXXX are revenue guidance. fiscal updated net fiscal XXXX included items impact of in and

compares which Our to in fiscal amounts, we have XX% and include XXXX all XXXX. to cloud-related mix, updated subscription XX% fiscal was

same fiscal fiscal mix Without XX%. FY XXXX and XX% was of XXXX this fiscal in this in adjustment, XXXX and XXXX XX% XX% Our was outlook are basis. on

no will we provide adopting sheet longer impact guidance. given the XXX, billings Now on balance the from ASC overall

sales be expense fully commission also comes requirement the we in with Up to will standards. capitalize now, certain XXX, quarter new accordance ASC earned. disclosures accounting the the and to it was amortize forward, commissions. in Going With

be which back that will range, product expect the initiatives. of will reinvest the We to benefit margin operating we commissions capitalizing into field from X% in likely both X% and

op we margin up guided. So the outperformance to in margin increasing from fiscal the previously benefit are to our changes, op the fiscal we commission given expectation XXXX expect receive our from XX.X% XXXX XX.X%, considering and we for

number absolute on remain priority growth product focus success. top ensure how of coverage investments to about disciplined expand our we line We one our and continues lines to at our continue these customer We delivering will deliver our model levels. company

Given our an previously that for performance XX% op fiscal achieve our range. high it fiscal to will end fiscal XXXX at margin of and in performance XXXX, likely we is expectation XXXX guided the XX%

Now of looking weighting ASC fiscal half to $XXX in $XXX with at the will XXXX, total of quarterization on call, XX% revenues steeper. half and I Likely, we XXX as the largest impact to be mentioned, of second QX, where revenues expect to the XX% the cause million. million first last between

as impacted Our margin be seasonally op well. will

expect seen QX, of and X% QX non-GAAP in operating historically. in in QX we've We then margin negative consistent positive slightly the QX, with ramping trend a turning and

this, are our moving more path especially capabilities to around The for and generating in QX rate strong, $XXX With average years loss transition since expect estimated to on contracts. year to results this flow full fiscal $XXX subscription dollar the count about XX% of we you annually from year also for cash to use we flow about reducing in this particularly move, of shares cash and to subscription. and position full effective performance has to in typically The laws, our closing, on with an year customers of cash think million. to million business on XXXX, operating a operating as QX, should expect tax growth as In some of free cloud million XXX when fun, trajectory $X start provided. we're XX% our transactions current changes impact are share add two an and your tax Just shorten solid. pay Reflecting calculations. billion for under duration And beyond. were our you finally, our flow of we about flows, subscription calculations, recent XX% cash EPS be term previously should

investments our is driving our capabilities. are success, execution customer product expansion field Our and enhancing overall

most much month. is as you, interest. later Splunk strategy this fuel Look forward continue Our of working customers. in for at the for open it drive adoption and our make up we well of Day pace to I Thanks our platform machine now data to your And hope, the we'll and to Analyst we time questions. will seeing for

Operator

sir. you, Thank

the from comes from Rangan line question Lynch. first Kash of Your Merrill

open. Your line is

Kash Rangan

turning (XX:XX). big Thank Man, Hi. Bit wants He's a Rush rebel a That's signal very a Congratulations lyrics the you. New and World data you machine. run leaky a to he green, runner, guys. the much. he's thing for of

and to to should a revenue risk Thank company build you've Just billion in sales? of be think do to transition and be the at going $X of are companies have simple see the question Question to that you wants that way development, it space I billion, Dave, be get the right? think how for Especially you transaction, experience the become product, like since you on defining. Doug, the intend to been the And changing the to strategy the to about for what market in your It to lyrics go-to-market, wanted foundation company? multi-billion for ahead recognition you. to is dollar exemplify is as company. you Do revenue $X undisputed view is for will revenue product how be smaller and contracts? companies, it revenue you really accelerated, dollar that thoughts the that. marketing, you, the will subscription turning salespeople going there for the a exist, that guys be you. larger applicationization the think those is your not maybe a actually comes doesn't go do that revenue when going you strategies – given the how Clearly, company the a guys are green. And we position the So that incentivized become subscription used ones potential you looks work company sell success employing signal through. billion a usually license tactics that recognition

David F. Conte

Thanks, the Kash, and on-prem its will on-prem same. to where rev-rec about Obviously, sell rev-rec simplest in us, cloud, the be both the Dave. we think the way for is treated

data historically fiscal have subscription our been will really a be would the which the implementation, you term all our upfront use basically and changes in terms XXXX like of contract. fiscal company. on-prem a method customers revenue time cloud so and and guidance. recognized only implications we case to XXX plus is view between which ASC over contract, to reflected these a XXX we provide it XX% in full important felt firewall the be we dependent was recognized products the four-year on a The as just but give the perpetual location the of cloud. a and on or retro for not the on-prem basis, deploy in XXXX growth ASC for behind subscription, adopt XXXX move term trajectory So outlook And for to And would the XX% XXXX of

Douglas Merritt

first for and the you Rush thank Kash, on question, intro. And the

David F. Conte

the was Kash. album, That Signals

Douglas Merritt

main all us that you turn do. continued important as orientation. bring of and We you've probably disruptive do. growth, of business perpetual company knobs was largely the given front model for addition the need we to light, feel Day transition, on an album. one in a To that all highlighting core and highlighted, to or it company more there to subscription the subscription virtually this focused on in that is both But Good to eventually can moving got subscription from company processes things critically that market on that Analyst to are really all felt the opportunity three

as got beginning the to more from monetizeable drive introduce could effective company migration, continuing and you we the have heavy right well, online, branding Analyst I of the of key. awareness direct strategy. Day viral, complement is highlighted to we so demand talk gen about as was sales, group level platformization, more effective getting approach and a vertical think, ecosystem size transition but much effective couple continued in on function And the on effective high we've of product, segmentation. growing that both high Splunk, still remains as You've I of at product blended of mean The and more to platformization partners and about touchless, the continued with a the really talked both at activities much calls, to very a and a marketing segmentation and sales also continued aggressive doing.

exceed we're margin and invest So those a transitions ensure that's the we've continue taking momentum, deliver going we – the continuing back exceed of our all, – talked to transition. and their a we're – that investing those it we're portion to are expectation in about our company on on to and subscription

Ken Tinsley

Okay, thanks.

Next question please.

Operator

Barclays. Your next question Lenschow comes from the Raimo from line of

open. is line Your

Raimo Lenschow

wanted of then guys I like of question, comes. this And on Hey, the congrats numbers first to quarter, came much just my how question all, did double-click me quick from question? you well. Phantom, security thanks have for and my as number taking real a from

David F. Conte

was Hey, with Raimo. Yeah, the about quarter, the prior XX%. consistent security contribution

Raimo Lenschow

Okay.

David F. Conte

benefit customers moving from analytics-based getting that of lot approach. we're mentioned, Doug a to As

Raimo Lenschow

perfect. And okay,

So then, question for actually. was the Doug

Phantom question detail billion, with and sure do good $X Kash's make going you. a become and that to back billion a company time great just deeper it's to Doug, to you to Thank go security over $X higher want deep that going term? longer and you don't go it's security. you're security, a So have How to we into into to strong have leadership

Douglas Merritt

customers that enthusiastic of we to framework orchestration automation the We very, You family. that share bet, We're incredibly adding have. very are start the with obviously with Phantom Raimo. Splunk Yeah. some about off this overall good to an they

the be – would actually there's many leverage and like the security are increasingly has capability were continuing of (XX:XX) important users directly going going remediation through way discovery to customers SOC that bat, range potential the full of Our to of Splunk. Off underlying our process. Security effective AI But footprint between ensure all Splunk. our solutions the a that the so componentry from steps of will on available all highlight the partners to, our an customers typical to all we're and contribute to much it's participant it's ensuring – action impact addition they and that to UBA, data to and be Enterprise and

wind intersection IT provides really you you talked on surfacing analytics is the also land automation and part is we've up the specific tight. for elements actually have were relies examples continued where know, interesting And and of with we a the what we they we and Cybersecurity IoT. solution. of between the IT in over provisions cases. landed saw as both to under orchestration Splunk. them. is the cross and script Washington University use cases, about dimensions where then see Post and group security platform two IT in Splunk should different Splunk a and wraps But than the they and But State business occupying. Penn security, with The value where business about As operations over different those in

Raimo Lenschow

Okay, perfect.

out then spot a it's you can landing from okay. there, and branch So,

Douglas Merritt

in company. value market entry that security And the is Haiyan of sad using for something down deeper up and they responding very Ammar up Splunk. practice, a IT wakes around just deeper to and security. are with looking day very, road. a – Rick customers But for between AppDev for topical for what whole us, and so and universe additional for And provides I wakes for the about we're as as just is who point really security them, the leads ops and ecosystem go point predicament for just IoT. success wakes the care think, the It's and aggressively that hungry our all Splunk as Haiyan hungry is entire collaboration that, And groups the they obviously, as the up is every

Raimo Lenschow

Thank done. Well Perfect. you.

Ken Tinsley

Thanks, Raimo.

Douglas Merritt

Ciao. (XX:XX)

Operator

Your comes next line of Credit from question Brad Suisse. the from Zelnick

Your line is open.

Brad Alan Zelnick

stellar a the and Phenomenal themes just with are follow-up much well. and performance. incentivizing you've the because for Sales to what so got My QX. plan, very behavior force It congrats, year seems Doug. this in seems last Dave I've you Kickoff, from and guys. what it's performance And come much back momentum like Thanks into as the different for comp question tough beat. off you're having Doug, are sales such a of it in first instilling year come like

Douglas Merritt

Well, thank you, Brad.

core key focused to a company I cares from of We around execute the of front about that around. couple customer is We think colossal Splunk. centered elements in of us. opportunity of really the to was continue what – a So got SKO strategy on the product, theme the with

successful decision pillar a to and more of real-time of basis. time first operational is The intelligence decision in execution that

single of getting another action. the on every The look and overall is as we're those not Phantom decision that cost ideally, to coming which to data-driven, and is trustworthiness there'll going more humans And we but second SOAR. in and be, be see we of response much third decisions, as years, opportunity, the involved, forward yeah, with

reps team the From all as us. degree the commission partners decisions So cloud. you've it transparency of how do made our veracity to you right that make surface the that with with sure our feel with themselves sales the data to focus the you guessed, very comfortable continues and algorithms plan that we around being and valuable lead to are term make a and for so of the perspective, and

and the forward for this team solve specific deal quickly right to a increasingly bring all So architecture And some got the well whole account. as increasing and we be a use Essentials subscription well Splunk Splunk as then product of will is plays helps the that drive and march lean a this to to – continue oriented exciting partner that that can going of as term a subscription-based we've to problem with line-up pretty be approach company. and series case be

Brad Alan Zelnick

and By how together year to Thanks. where of way, thought be you're But for look the ago? what do as rate you Phantom might what ahead versus you raise customer really fans we're today would the ago. I should going a you pre-acquisition appreciate on are cloud? huge view have take you cloud that. Dave, we And deliver to to Dave, your of think cloud be and thought about able a year to you of on to What preference guys forward need XXXX see one.

David F. Conte

address. folks down us. lots really and to the of customer's is the sweet to workloads they're really and vote the particular, it trying continually Ultimately, I loudest Brad. a problem the for that around leveraging And Hey, specificity public the mean, Yeah. in to cloud gets cloud, spot with that's moving

real-time. with all I it put be to to information in think, and the is across service underlying that neutrality the their access then have, We these public in providers cloud confidence and give locations customers we able to

I overall want where the it be momentum customer's going they and they over to of going locate So pair growth want from contribution is cloud. the whatever firewall, they then on behind around time, really to the impact with their the data how have rate biggest or to the to retain that think, that's

Brad Alan Zelnick

Excellent. Again, Thank guys. you job so nice much.

Ken Tinsley

Brad. you Thank

David F. Conte

Thanks Brad.

Operator

from comes Your next Philip the from line question Wells of Winslow Fargo.

Your line is open.

Philip Winslow

new expansion congrats expansion, and just question I've customer like off quarter great click year lot Thanks as well. phenomenal to of new on a right. just call year wins guys a just and performance. because a this and All a continue looks year customers and end got it, fabulous of was obviously, the you on, it

As new strong longer-term trend the you expecting are mix just quite of and that on side, you just particularly, terms here. then coming to obviously your in forward of look expansion just sort how customer then, because the this and is guidance, year right

there just great. So color would any be

Douglas Merritt

this again we our area, them very we example, our An product is think, Project can why point populate auto priorities And We're click, happy expect this over impact of of focus Yeah. have SREs new data something I owners. at welcomed will part infrastructure over is that last coverage initiatives really and remains our SPL, to that. low year, customers do over. you, that investments a engineers, one which the and year. company. than It's lot absolutely and We and we reliability and on that .conf. site we of to products this initiatives specifically year continue refreshed Phil. top investment a Thank X,XXX we But of simple that and drive year are to customers on about to this talked product geared better for announced and Splunk a we new that is specifically Waitomo, focused metric across

think traditional principally, both set. that install. some technical the that data to and to fills screens get I footprint participants much that where marketing hit That's actions, without populate so alerts opportunity recommended Splunk in that can may to just will trying that sales, attack example time and of want and of potential, use it it a information expertise then of you we're within one something easier new value to So new Splunk installs, to ways minutes customer the product, the up this starts channel

David F. Conte

Hey, for after the initial Phil, roughly about XXx past the several five years purchase, data be of they'll the talked And it's from We've in the of economics. times Dave. at cohort Xx that that's customers. amount

a majority initiative So almost multi-department at back transactions, when us, composition been vast customers of for other our look customers, from standardization at are EAA. ultimately, about as I one but orders existing tied broader and And look single to the we that of we new if instance talk has to move the the in success. XXX, all large year. long-standing largest customer The vast, our the initiatives to they adoption seven-figure orders, of composition

and we But XX,XXX six-figure have and value that's we from provided getting that So transactions. optimizing get are in are of we focused around And customer mile ensuring equally the I on the terms marker. Splunk it. think our metrics seven-figure ultimate to I've ensuring their depicted and on do eight-figure customers that investment that

Philip Winslow

great. that's No,

question You actually size, answered about I going other to ask was deal my Dave. the

congratulation for And then guys. thanks that. So,

Ken Tinsley

it. Appreciate Phil. Thanks,

David F. Conte

All Phil. right,

Douglas Merritt

Thank you, Phil.

Operator

Jefferies. John DiFucci You next question comes from the from line of

DiFucci, line open. open. is Your line John is your

John DiFucci

that about Sorry, guys.

okay, me right? hear You

Ken Tinsley

do. we Yes,

John DiFucci

do I a question have So, on...

Ken Tinsley

breaking you. let's Amanda, next up. we'll come We hear can't you're John, to back to question, the John, you. go please. Yeah,

Operator

Certainly.

Your next Adam line of from Holt comes question from the MoffettNathanson.

open. Your line is

Adam Holt

much. Hi, good guess... It's call. on be to thanks Splunk I very back a

Douglas Merritt

back, Welcome Adam.

Adam Holt

missed The deals or the next both the inflicted there you back really couple large of you comp billings in XX% general, the of into fourth quarter, still you has made that have large tough, saw just momentum the think to you. I a in a of sales look the a on larger of look some you of the quarters and I you deals changes billing at business and and strength, but as billings. what deal follow-up the the really on momentum? I was The around and was your Do activity. easier, a QX little phenomenon Thanks. guess, bit lot question. Phil's

Douglas Merritt

make the well. but that initiatives of that there we $X their there attention investments gen is guide what enough that help with help some time with you versus and of more with the say to deal think enough and as and account. field, ratio yang a existing striking think across commercial accounts yin effective well I as that approach number billion virality I and understanding dealing on and I so of whatever of can with set overall buy can the accounts teams below, use and this and on and as understanding, I the And and – in I accounts Dave you're need had we that products the call where leaned deals more across been for resources seven-figure so Splunk reps to to that to commercial the kind Susan's were below that that of good continue XXXX of surgical more new greenfield did make well there's to The that egging ham or Head we indicators, was good strengthened you do the we But think increasing lot of and the enough. in we're better – past new to XXXX And account demand in how that and case accounts well adoption. sure back-and-forth billion add do, Field, deploy $X volume further rep propensity organization. the territories with that that opportunities fiscal the sure as in of the reducing the on FY as balancing a seven was both from you of those what eight-figure get volume we customers until have go-to-market a those that greenfield resource

Adam Holt

That's great.

David F. Conte

(XX:XX).

Adam Holt

ask just – ahead. go me Let

David F. Conte

I as would transactions No, fourth seasonally history, of in And that quarter. largest quarter of mean, had point I about talked your seven-figure orders of and But on recall to orders expect, our in of you our might our to quarters fourth call, many momentum, two you we we terms quarter going that occur was was the just fourth our And say good the closed largest representation last in our about cloud is all across the year. four QX. largest.

and it's occur some So because seeing types fourth just We're both massive it's of broadly adoption abroad. and domestically transactions these quarter. inflection the not

Adam Holt

That's the terrific. question If I one could on just ask guidance.

we should flow cash that there we flow. So we get on the mechanics only considering or factor point a as versus that's looks is – top year? think But line the cash XX%, next on momentum guide durations slower are at Thanks. flow, potential which factors look growth, the for cash the XX% like, little impact and about around as call driving bit the the that it, in other be

David F. Conte

the The flow is the bet. billings of a duration, derivative duration. you cash Yeah,

a So that the down mentioned remarks. duration I customers elements the expect pay was, for and in under we prepared subscription to ease as contract One to typical pool gets two annually. larger is there's again, behavior

higher contracts that a elongates, of the of than to actually is subscription size duration levels impact perpetual. The the other the get as smaller is we unless

flow, So part XXXX subscription. as both it we relates parcel from the to think cash of primarily those transition again, perpetual fiscal is, primarily impact on-prem our outlook which to to and

Adam Holt

That's great. you. Thank

David F. Conte

All Adam. right, Thanks.

Ken Tinsley

Thanks, Adam.

Operator

Mizuho comes from question line Lamba from of Abhey next the Your Securities.

Your open. line is

Abhey Rattan Lamba

Yeah. you making And additions. product Doug, you're customer some about new to the increase congrats and Thank of a net quarter. on changes talked great you,

escalate to anything go year-over-year the metric? is comp fiscal this I Because that kind think, XXX XXXX. the things fiscal on XXXX you're market of into to as going time of was down side doing you some in are had kind in, last that than you However, and less lines,

to the what go trying to pull up? to are new you customers trying metric go that see to net other just are So get and levers of

Douglas Merritt

It's multi-pronged Yeah. a approach.

bringing both a I to that sure where most key. a much is do team important making chance think partner – more as sale making experienced bag right are drive can we greenfield know that I new a and how types that go have sure entry community critical. The and is that factor. still believe – But channel and – that the well that is on says lining people customers the that the leadership behavior and exists. experienced, transactional building Because, carried is have of as all to as coverage I to also and incentives right and and highest Dave we up who's they the of making have anyone wherever I'm the current over the of over, going money has most

be development would business will traditionally good reps I sales inside beyond. that for XXXX and segment, segment. the a the commercial for allocated in everything from be making, XXXX in And hiring think to the sales our Susan to and that to impact build investments that development FY more rate FY we're continue So area us a allowed teams much the and XXXX the did of commercial aggressive FY make the in segmentation beginnings

Abhey Rattan Lamba

it. Got Thank you.

Ken Tinsley

Thanks Abhey

Operator

question comes next Your from Kirk ISI. Materne of the from line Evercore

open. is line Your

Kirk Materne

finish congrats to nice Thanks very my year. a much and on I'll the add

ones. quick two Just I for guess, Doug. first

think more using progress sort direct XXXX what's force, front? force did do of the and signs your getting And out where hope you that? of to augment multiplier a you on channel more And your year? are leverage terms the for that of we own of on In this of channel help I sales see guess, as

Douglas Merritt

enablement guys night, from feel partners. very really certification in training. SKO back got the we partner can This serious, And to was community resources, the they technical reg year continuous journey very, to tone that and points we a actually proof partners different partner that Yeah. paid a enormous probably really and it's register really online years move on the that development last us. midnight happening had – in I to going to We've community (XX:XX). continuous universal understand are it. We've channel any to investments like one the that's releases negative a automated so at your channel so with The consistent that are this so partner We've to ago, that I where We partner see were invest in the type for. been so can where aligned the that year, get from had nice with all we had it. I online partner first of has started we we with reps have portal partner they were it ramp response the minimize then more all opportunity of help two .conf but resources a the a field. literally and It neutral didn't right in Last that we maybe our flew them is try year neutralized automation – company with to the got some now be believe after conflicts community, get to in really and people September and to from years and to funds levels. year whether this started interact at just could the slightly you beginning deal year partner enough we're see can now up landscape marketing and at activities, this year, have that positive investment. effective we Two

So and XXXX it's a much about way grounded into the more feeling beyond. FY a channel – partner going I'm confident in

Kirk Materne

one sort don't or up. for to year. much operational Thanks. get this doesn't guy's Obviously, something then to operational seem you this Dave, Okay. structural you're I'm And investments a sense, some sort get Dave. as the you about, of it where a but back of decision operating ramp from trying you perspective Was to it of little of obviously, of like on to year, year XXX ton that this into purely bit just expansion? talked but XXXX then next a leverage pull more maybe your just on just year, when guiding fiscal to looks ASC obviously, one guidance just at normalize back forward an leverage margin there for a a you quick or explicit out sort get the adjustment, is part op ramp maybe look

David F. Conte

it's commentary invest And a continue decision-making get the so of really to that around to in lot providing No, more Yes. appetite the we've ROI. our do is around best we been where the offerings product coverage. and far the and

think We we'd the to that have mentioned these fruit. we like all of customer initiatives that which adoption, right of side, a around is address product better customers. acquisition having about then is go-to-market on the and right And bearing do Doug go lot needs structure those the which the portfolio obviously to certainly,

we think at the we accounting. up top increased had at then We we end end We we So looked XX%. implications XX% we'd three we forward, it project is expected what And into months ago. our to XX.X% that outlook. from the built of to from guided which as before, what

all terms we disciplined in very want So results a me, to kind explicit of approach in and to deliver. what of

Kirk Materne

Thanks guys. much, Great. very

Ken Tinsley

Thanks, Kirk.

David F. Conte

man. Thanks, Kirk. right, All

Operator

Cunningham comes question the of from next Your Nate Guggenheim. from line

Your open. is line

Nate Cunningham

little and talk those like the if to on-prem been scalability are offering. what bit And you've sounds more Hi, to I products was Cloud taking customers a guys. parity. It steps two getting to about positive wondering on of could relative you your Splunk bring features

Douglas Merritt

line see we've and a trimmings And automation we cloud around continued where cloud-oriented allow update the it become way what to is on-prem. access all product ease-of-use is to actually other and in the cloud, are in toward get now, approach, half, and code year bit. cloud minus capability start you point that types time capabilities. the that the of that little interface past a can you been interfaces people year, working question, need and in same any more continuous and are to can't really at parity. shouldn't around like any actually cadence configuration self-service the that deep a type Nate. the I'd from where much flip A at command Right vendor, this and products to It's lot to you'll and getting cloud the good everything the deployment of through some our

to. again, of the velocity So back offering will working and on a and of it's I deliver on-prem quality been the like on-prem. doing customers happen lot we years cloud that have of way that we've can our what we we're a and cloudiness eventually there's through, we disrupting see we work the transitions been our without think the is need continued move two past And at that that package other level

Nate Cunningham

Makes sense. Thank you.

Ken Tinsley

Nate. Thanks,

Douglas Merritt

Thanks, Nate.

Operator

Your next question comes James. Turits from Raymond of from Michael line the

line is Your open.

Michael Turits

guys. quarter. Hey, Great

Let of cash that XXXX the me overhang XXXX, questions. If in cash normalized more from to year just steadiness should we more duration be into in jump have into at or duration to back terms therefore, and into going we still flow XXXX? a an flows that return the point, is look

David F. Conte

weighted transactions pool Yeah. We it's that that a the to should duration multiyear. and as some our of duration the I largest ease are of continues expect Hey, down. Michael, grow, contracts give subscription obviously,

again, of it it what expect in I ease But will that's So to is. play duration down. – out terms

element jump dramatic. subscription XX% from Meaning, get rate expecting in subscription is terms change then less the go to I fiscal in do growth you we when think that flow in and we're of to other cash a to in and to to the a XX%. get normalized like XX% terms where transition XXXX of is

actually then subscription translates cash starts slow growth. I in to normalized to And a change flow of the XXXX. So level fiscal think to that

Michael Turits

had a and the big And DSOs XQ, you then in little less of flow but because other fiscal helpful. That's the and beat question, just out deals Great. still collections a billings, one little you high. heck slow cash cash of flow

there making to maybe wait Or are collections year So catch and these on in back-end loaded? deals terms given any bigger DSOs just are up we flow? should adjustments have now to a you're or here that later cash of

David F. Conte

has much third and those going a large to the impact are with to think in are in for of in on we quarter, as it so I that close had more the obviously, seven Yes, month typically And linearity big momentum normalize, than orders the around orders they first. so eight-figure DSO.

result a as you is So what DSO. in uptick see an

In health and of the as ever aging solid mean, I've of collectability, it's terms as the I seen.

concerns is a how seasonal perspective. I have best. And don't in team collections the Our any moves terms at all DSO the from of

actual flat-line growth, the in DSO, then collection but terms don't terms around result. momentum up. in we of activity, expect way, means these that's got flat-line I on hope flat-lining because catch of I we to and get are we we adoption you'd growth, In transactions, were with on a continued the that a think not the to overall and flat-lined if in the But growth.

how going think that's time. over I play out to it's So

Michael Turits

All right awesome quarter. you Thank very much.

Ken Tinsley

Michael. Thanks,

David F. Conte

Michael. Thanks,

Operator

Boolani Fatima from UBS. from comes question next Your

Your open. line is

Fatima Boolani

And there better what of the Splunk Good And one. you for get afternoon. taking Essentials. for to Doug, you monetization a Thank is if sense a there I time wanted Dave. is, spent angle questions. a for about Doug, the question to A start. lot talking of follow-up

Douglas Merritt

– I you Hey, out. about at hear you talking – that just cut Fatima, I moment, and didn't say that (XX:XX) critical

Fatima Boolani

for Essentials. I The monetization goal mean that...? is and Splunk

Douglas Merritt

Essentials? Splunk

Fatima Boolani

Splunk Essentials.

Douglas Merritt

Yeah. with Thank doing I'm we're Splunk really Essentials. what you. enthusiastic about

ITSI. Splunk it's (XX:XX) But or So customers like, need transformed be there's that scale schema call rate goal kind customer, the with use level, open levels what in their is work doesn't to it, on do is easiest or Splunk find up Splunk, what do need that almost journey a ML these and be what the Enterprise – we've a all application. and how pre-baked is should basically and with them. you there's we're you start with go But sources The – that to should the effective of they'd community. with a detailed been them, implement us we or if that full any they lowest on technical is premium by go is very looks striped across occur. above the And to they kind of of wide what that's Essentials layer or go-to-market have to stored way fits. a routines how them But still being has Security customer opened we Essentials. test hurdle there a started and the that recipe, of lowest at like help the after, with in. this consistent to course information handled they're three – be will outcome. the the come Splunk – The Waitomo year, where we interfaces would to out, investment should partner go should the partner, And data generally a looking for partners and solution kind what internally way, you follow them, with be and of themselves some visualizations you what to over assistance sub-module case that's remediation them. with of And need What the surround given They're Insights, a the aperture. be

level And of. a on is is and Project of How monitoring monitoring, top just more where mission the do these be more smaller focused that blade use bit should premium a are case. teams three much which a little ITSI Waitomo then more probably piece component the it or support broad-based very be target the and And broad-based, level. managerial – rung agile or on and to teams smaller teams, there top would we So development two a almost investment, them. get is they of or created specific systems become infrastructural solutions pain them

Fatima Boolani

putting remarks incentives follow-up – a the and into the of around on lot you That of have increasingly customers cloud. the you And talked you're that makes adoption cloud Dave, sense. for both a in prepared a adopting ton

process Thank to cloud you're going what with So out with should that of adoption. the incentives with it That's for momentum is the the I sort go-to-market cloud seeing uptake or and you're how you're sort that the the with you. I'm we your me. wondering rolling encourage in mean, thought year incentives to decelerating. reconcile growth next that of providing

David F. Conte

Sure, Fatima.

translates balance incentive been our we me, And to are the of field. always from fiscal to customers from as And So how perspective, is, neutrality XXXX, that the much really context subscription comp challenge. that to back what an behavior is always have an we've in more toward ever slightly that in to enable striking incenting working so perspective we're plan vote. for and possible incentive leaning on a as the

get the millions the smaller large think – when then are the when growth and I of are tens talking growth rate numbers from rates numbers the growth get about bigger. very of a perspective, rates you're dollars

and terms I'm transactions best? contribution and doing forward achieved them more cloud So happy XXXX cloud forward. certainly to serve want what ultimately, the more with fiscal customer pick. looking we've of – I do just the how don't cloud we in we But Like and transactions going to in

Fatima Boolani

All Thank it. Got right. you.

Ken Tinsley

Thanks, Fatima.

Operator

next of RBC Your the question comes from Capital line Markets. Hedberg Matt from

open. is line Your

Daniel Bergstrom

taking it's questions. Hi, our Matt Bergstrom for Dan for Thanks Hedberg.

wondering, AWS another to I Sqrrl good Palo are service. could success But you and and and you just of from Alto for So on AWS out then impressive partners you, its guess, you both Ultimately, ingest? for complementary these Alto's source I'm new comment AWS's data on technologies Palo acquisition are called of good the logging momentum call. got

Douglas Merritt

a the people or is adding Yes. ecosystem services, business Splunk the offer want how or we game with know and job have those Cisco to ecosystem. play with that them game same do addition in the play value and platform both or And top that to of And more keep more services, to Oracle our I services, job continue view Microsoft ecosystem that AWS's people all would community. – got around in to would on to infrastructure It's to AWS. is the tech. more to the so still that's to

ultimately, execution complementary around that of we technology help data, manipulation getting every with of focus well and the more the discovery done value data, more data. to out leverage data, and storage the drive capability get day power, to more their And and our is other on data technologies. the as of continue the to ease-of-use, that of decisions single AWS, So to enrichment as

great Kinesis a example. is great a product. integration So Kinesis is the

for CSO the that on visibility Kafka, very the additional technologies Flink. so them effective very can their We, around value Palo most into sure and to technologies the insight sources. so XXX over data the to in visibility is the to over well find, be has and that thing Palo landscape. is So Alto But Fire that provide got provide diverse to of of able think, average volatile the Alto actions – the XX different Alto Alto whole of data. one top importantly, And landscape (XX:XX:XX) the create ability provide of same Palo insight, able is journey technologies, sit and around driving. it And help on I the and We've the Palo data our correlation we is the open line-up with more be reporting to is that Palo Palo lineup, that us that surrounds Spark, the lineup. and got to and are get be They've across meaningful Alto well tech (XX:XX:XX), action Alto.

Palo and IT and is entire security (XX:XX:XX) user, make the beyond center help right but that intervening to give float to capability Palo we nerve analytics key to sure Alto So security Alto the we the with landscape.

Daniel Bergstrom

Great. Thanks.

Ken Tinsley

Thanks, Dan.

Operator

comes question from Hulsing Sachs. next of from Your the Jesse line Goldman

open. is line Your

Jesse Hulsing

guys. two. you, thank Yeah, I have

I Dave, First a And under were fiscal call, minor Thanks. those I first you've few the was that changes? the org. you tweaks? the for first sales expect major are I sales the or do quarter? for changes growth XXXX? for small rate or to guess, references or revenue we to how throughout mean, XXX, then these big Doug. guess, compare? org what in made tweaks to Can you can in a have disclose ASC so And any quarter the impact changes

Douglas Merritt

changing. high of is joy company done Sort that a of being the never are you growth

this I'd the sure want the and message forward. of XXXX approach both growth set The her lean magnitude to growth teams to that at event our have other that and field the SKO actually, and the a the is customers and company, at last learning the of high and to each the mindset different. have just say region-wise to what provide beyond. existing lean is opportunity have each right to that sure year new the it to address still theater that depends growth on different stage were if continuously you part core make as we're need So Susan a of that had Obviously, all direct whatever the segmentation before we to a be year no mentality changes that partner, and was pro and success, both and job But made were to a X you opportunity sure us for But make it customer Susan maturity every in and we we to of make FY avenues, make customer forward And changes. year focus growth. within landscape dials every move that, tweaks and is for were February than make focused year. changes a you forward last less those month, quarter sales, sustain on year taking every is so material with our and there to were make customers. can the pre-sales, right can changes serve, theater that to because bigger

David F. Conte

Dave. it's Hey, Yes.

of so is preliminary QX our a ASC about million, for prior XXX under basis, So on estimate current year million. $XXX $XXX

Jesse Hulsing

guys. Thanks, Awesome.

Douglas Merritt

thanks. Okay,

David F. Conte

Thanks, Jesse.

Operator

Your comes next of question Piper the Zukin from from line Alex Jaffray.

Your line open. is

Taylor J. Reiners

drove in seat? of why as the was then wondering the region. the in some especially searching into a significantly Richard to he Alex. earlier accelerated Sales called business Europe VP quarter. looking recovery, Taylor during XXXX, And still great on a is little out challenges moves in quarter. This dig It international that your in what a are for like new Excellent. of looks on bit some to you I Timperlake's international. on for know Reiners you Congrats And I year. priorities were wanted I the what

Douglas Merritt

distractions and the teams let especially and in to Yes, ability incredibly not focus our their of get the international in, way. team proud dig the of any for EMEA

track. talked the about we de over level quarters, we of key issue, that had COO right but any that the past made really Susan who the QX Head facto kept before make Europe, a and on the the sure As from strong couple AVP hand to person of in across changes, was the came of was before we Susan of Eastern there EMEA leadership region the combination

orientation proud that we sure of making exactly strong ball Really, really, really job sub last markets, around of half half I South, XXXX made AVP think of XXXX moving the building QX, theater forward. the level, the and progress this team operational North, in as so second strategic sure second principally think that – of What that management did and saw emerging that And at think the overall really we FY that it's of I change. not that FY cadence the et But those dramatic those AVP COO theaters. hang right in got heads, year of guidance kept a that leadership, I hiring strong why QX, implemented is and cetera, tight, combined leaders and region, QX it had making leadership within the we U.K. What top-level we're we've we that really different level our in right out effective sub-theater place there. that in built we first region, cadence and because and the Susan's the I'm was saw I operating appears, think team. within with because as QX a that. Central,

challenge and make got (XX:XX:XX), leverage be services. in the well. set we've as very He, inherits foundation. however, as still Americas, is, areas of customer segment the similar mature better So the a the has of year as EMEA APAC a got lot on momentum driven good deal right which partner-driven There's I think APAC There's lot a us. the of in and this and and a tends front Head big one solid the our of Head a there. continue (XX:XX:XX) we've Richard of SDR of well. cadence to of has for same and got continue drive. Boey got He's focus contribution lean in gotten got to and to for – continue structuring talent. But sure EMEA double key BDR, orientation initiatives hard to continues partner partner going grow adoption term He's leader, down top, that And strategic to the forward our the have. he channel. top to And with commercial year bring segment, we that to the to He's the of talent this true to across we

Taylor J. Reiners

then the called I opportunity as you've there to local, some partners of changes was maybe a of a seen as state, performance accelerate other to organization out strong And what sales that you're after the some is opportunities? Similar follow-up. the looking you a so, well are to your wondering and just quick team. within if go adoption operational suggest Excellent. a education lot verticals. logos And out those conversations really similar Thanks. make of with of to

Douglas Merritt

a I great Yeah. that verticalization successful And for local and focus and a as also huge (XX:XX:XX), think of because – talk state sec we in It's approach really in a lot size follow-on lot customer government, on of well. a U.S. we opportunity has segmentation. have question, the pub education segment us. But that there's the there's federal been and

more in examples. a couple mirrored two mature good of being have UK, We regions, Australia that our approach

the scene. given talked to, have non-formal maturity, strong telecommunications uniqueness. the that formal the continue and management healthcare a about roll full those, critical actually infrastructure, services, to to just continue for manufacturing for just momentum as and approach Susan to with out not and and that any comes a where is decent financial at come the dedication very architecture organizational IoT team casting will that verticalization. we afford and we But so rep segments enough that And a momentum increasingly markets And Splunk we're we we've there. other overhead mass and on have areas And field those on now, for can taking there's look with top-tier while some then

David F. Conte

and right then, verticalization specific for the Dave. in coverage. geographic the transportation I around requires repeatability parcel it's and very overall get investing right think to might great the into do us our Taylor, then sure or part really our hey, there. work in we've coverage to make coverage segment get additionally, And Yeah. in And to in critical got to go-to-market, the opportunities just philosophy leverage our It's or healthcare, There's in more in of what retail, telco. field. mass or we its just

So judiciously that's would go certainly something GTM expect. it we'll that is you attack our as on roadmap. And

Taylor J. Reiners

Excellent. Thanks and congrats. again,

Ken Tinsley

Thanks, Taylor.

David F. Conte

Thank you.

Douglas Merritt

Thank you.

Operator

line Your last question from Stifel. of the Brad Reback comes from

is line open Your sir.

Brad Robert Reback

hopefully to pretty XXX and historically? a happen much backlog quick you have one. very the ASC do Dave, Thanks under

David F. Conte

looking later on be that now. when have we we're the at disclosure and don't We get We'll year that the certainly ASC in reporting XXX numbers.

Brad Robert Reback

much. Okay. Thanks very

Ken Tinsley

Thank you.

Ken Tinsley

right, All thanks. Okay.

any it up. wrap thanks, help Thanks, your if I'll have good participation. for here clarifying Amanda, a tonight your evening. later And you questions. everybody, you today. We're have around Okay, for Thank and

Operator

have today's day. gentlemen, wonderful conclude and does you, Thank Ladies this a and conference.

You may now disconnect.

Splunk (SPLK) 1 Mar 182018 Q4 Earnings call transcript