$SPLK,...Splunk soars as Street praises FQ2 report; DATA, QLIK also up
A 33% FQ2 price cut for the Splunk Cloud machine data analytics platform (Amazon price cuts were passed on) appears to be paying off, says CLSA after taking stock of Splunk's (SPLK +19.4%) FQ2 beat and strong guidance. The firm thinks the cuts, along with the launch of an online sandbox for prospective buyers led to "an influx" of new entry-level clients in FQ2.
Cowen likes the fact term licenses (as opposed to perpetual licenses) made up 37% of license bookings, much better than the firm's 25% forecast and "indicative of an even stronger quarter than it initially appears." Pac Crest is pleased with CC remarks (transcript) about improving sales productivity (a recent concern) and strong government orders.
Morgan Stanley likes Splunk's top-line and customer growth, but remains worried about competition (rival Sumo Logic has been claiming strong growth) and notes management has hinted at further price cuts.
Analytics/data visualization software vendors Tableau (DATA +6.3%) and Qlik (QLIK +1.9%) are following Splunk higher.
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