Splunk: Rising From The Ashes
– Louis Stevens
This article discusses Splunk, a software company which is rising from the ashes after its Chinese business fell greatly due to the U.S.-China trade war. The article examines the impact of this event on Splunkâs business, followed by a discussion of the companyâs current plans to address this challenge. Based on the provided text, there are a few key points to summarize: 1. Palo Alto Networks (PANW) experienced share price stagnation for 6 years, during which its platform was questioned and it faced stock price declines. However, the collective wisdom now sees it as a comprehensive platform with unique offerings. 2. Splunk Inc. has struggled to win new customers and experienced a leadership team turnover. Despite that, it has been able to upsell its existing clients and double its total sales without adding customers at the expected rate. 3. The SaaS business model has been attractive, allowing companies like Splunk, S1, and Snowflake to grow by evolving their platforms and selling new products to their existing client base. 4. However, Splunk still needs to reach a point where it consistently adds new customers to further its growth. The competitive landscape and acquiring new logos are important for the company’s growth algorithm. 5. Splunk has had success in taking out incumbent legacy SIEM solutions and offers a unique, integrated security product with various capabilities. The company has high win rates in new logo environments. 6. Splunk’s partnership with SAP aims to provide increased visibility into SAP and enable broader correlations across security footprints. The company is excited about the potential for further strategic relationships with other vendors. 7. Despite the challenges, the text concludes that the Splunk thesis is not dead and is just getting started. Please note that the text expresses the author’s perspective, and actual market outcomes may vary.
Link: https://seekingalpha.com/article/4624152-splunk-rising-from-the-ashes?source=feed_all_articles