Splunk Expands Partner Capabilities

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Big data player Splunk (NASDAQ: SPLK) continues to expand its PaaS capabilities by adding to its partner offerings. The company recently announced its quarterly results that surpassed market expectations.

Splunk’s Financials

Revenues for the third quarter grew 19% to $665 million, surpassing the market’s expectations of $646.52 million. Adjusted loss of $0.37 per share was higher than the market’s estimate of a loss of $0.53 per share.

By segment, license revenues grew 2.4% to $249.02 million. Maintenance and service revenues fell 0.54% to $176.69 million. Cloud revenues grew 67.95% over the year to $243.04 million.

Among other metrics, Annual Recurring Revenue (ARR) grew 37% over the year to $2.83 billion.

Splunk forecast revenues of $740-$760 million for the fourth quarter, compared with the market’s forecast of $826.65 million. For the fiscal year, Splunk forecasts revenues of $2.51-$2.56 billion, compared with the market’s forecast of $2.58 billion.

Splunk’s Product Expansion

Splunk recently announced its new Splunk Partnerverse Program, meant to empower its network of more than 2,200 partners to expand technical expertise, demonstrate core competencies with a new badge system, and showcase joint customer success. The Partnerverse Program differentiates partner competencies and enhances offerings across industries, technology, and use cases. It has a badging system that allows its participants to earn different badges that help customers identify the partners who have the right expertise to meet certain needs. The badges include Cloud Migration Services, Zero Trust Services, Observability, Security, Managed Service, System Integration, and Authorized Learning. Partners can build on their technical expertise through clear, progressive enablement pathways and certifications. It provides access to a set of benefits that deepen customer access and contributions to Splunk and offers additional marketing support to position the partner’s unique offerings and solutions. Splunk’s active partners include names like BlueVoyant, deepwatch, Orange Cyberdefense, and TekStream, all of whom will be able to access the new program framework.

It also announced the Government Logging Modernization Program, meant to help Federal government agencies with meeting the requirements of cyber incident response. The program includes new Splunk Cloud FedRAMP packages that help to lower cost, accelerate compliance, and improve cybersecurity resilience to expand storage options with lower costs, providing customers with the ability to speed up investigative and remediation capabilities. It also has comprehensive Splunk Cloud FedRAMP migration assessment and customized services in addition to assigned security expert services, assisting agencies with navigating requirements outlined in logging maturity model stages.

Its stock is currently trading at $117.99 with a market capitalization of $19.1 billion. It hit a 52-week high of $185.73 in December last year and a 52-week low of $108.08 in May.

Disclosure:?All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research of product-market fit, channel execution, and other factors. My primary interest is in product strategy. While this may have bearing on stock movements, my writings tend to focus on long-term implications. The information presented is illustrative and educational, but should not be regarded as a complete analysis nor recommendation to buy or sell the securities mentioned herein. I am not a registered investment adviser and I am not receiving compensation for this article.

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