![]() ![]() Versus that revenue expectation, Splunk trades at just 7.5x EV/FY23 revenue. Wall Street analysts, meanwhile, are expecting $3.08 billion in revenue for next year (FY23 data from Yahoo Finance), when Splunk's cloud transition is less of a headwind to current revenue. After we net off the $1.88 billion of cash and $2.33 billion of debt on Splunk's most recent balance sheet, the company's resulting enterprise value is $23.13 billion. At Splunk's current share prices near $139, the stock has a market cap of $22.68 billion. I see significant opportunity for Splunk to expand its presence outside of the U.S.Įspecially with Splunk's year-to-date slide, I think Splunk continues to trade at attractive valuation multiples. Currently, only about ~35% of its revenue base comes from international markets (and an even smaller ~20% slice of the cloud business is overseas). Splunk has become a global brand name, and it's time for Splunk to chase more opportunities overseas. Significant international expansion opportunity. ![]() We note as well that Splunk's ~$2.5 billion annual revenue scale makes it nearly three times larger than its next-closest competitor, Datadog. Splunk focuses on visualizing and analyzing machine data (information passively generated by computers, phones, and other endpoints within networks). ![]() The company's closest large/public peers are the monitoring companies like Datadog ( DDOG) and New Relic ( NEWR), which primarily focus on monitoring the performance and uptime of applications and infrastructure. It's also the largest company in the space.
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