2023-07-12 09:02:28 ET
Splunk ( NASDAQ: SPLK ) is slated to host its annual flagship .conf conference next week, which investment firm Monness, Crespi, Hardt believes is likely to be heavily focused on security.
Analyst Brian White, who has a neutral rating on Splunk ( SPLK ), said following the company's "disruptive" cloud transition, the company now has a stronger platform. And with the focus on the cloud and observability cloud, along with security, the conference should provide more insight for investors.
"Splunk called out experiencing continued delays in workloads migrating and expanding in the cloud on its 1Q:FY24 earnings call, combined with increased deal scrutiny," White wrote in an investor note. "For the fifth consecutive quarter, the YoY revenue growth rate for Splunk’s cloud services decelerated, falling to 30% in 1Q:FY24 from 43% in 4Q:FY23, and well below the 66% increase posted a year ago in 1Q:FY23."
White also noted that it's expected that Splunk ( SPLK ) will mention its abilities with generative artificial intelligence in security.
"In the end, we expect Splunk to leverage generative AI in security, and across its platform; however, we believe this will prove a long-term journey," White added.
Splunk ( SPLK ) shares rose 1.7% in pre-market trading on Wednesday.
More on Splunk
- Splunk: Cloud Transition Impacts Revenue Growth, But Still On Track
- Splunk: ARR And Margin Expansion Will Fuel Rally
- Splunk: Leading Observability Platform At A Bargain
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Splunk's flagship conference likely to focus on security: Monness, Crespi, Hardt