- Splunk shares have pulled back more than 30% following its pre-announcement and the departure of its CEO. Investors were concerned that Splunk might lower its FY2023 guidance.
- Splunk beat F3Q estimates and guided F4Q revenue below estimates due to accelerating cloud transition. But Total F3Q and FY2023 ARR guidance was ahead of estimates, providing a significant relief.
- Splunk's position within the industry is solid; the growth drivers are intact, and the company is in a better position than the valuation reflects.
- Splunk is cheap on most metrics we care about when compared to its peer group. Adjusting for growth makes Splunk even more compelling.
- We urge investors to buy shares here. A new CEO will be a positive catalyst as well as continued beat and raises we expect.
For further details see:
Splunk: Baby Dumped With The Bathwater, Buy Now