Splunk ceo resigns12/24/2023 ![]() ![]() So, if you can handle the volatility, it may prove to be a good long-term play. With cybersecurity threats on the rise, investors are keen to be in this area of growth. Indeed, the data analytics firm has had the US government as a customer for over a decade. Splunk prides itself on keeping the nation safe with its cybersecurity solutions. ![]() Q2 earnings per share (EPS) of -62 cents beat consensus estimates and significantly improved the 91-cent loss in Q1. Q3 earnings results will come out on 1 December 2021, so it might be prudent to wait and see how it fares. Therefore, some investors may like to take a closer look. ![]() This includes revenue estimates of $660 million, beating analyst estimates of $646 million.įurthermore, the consensus from 38 FactSet analysts gives an Overweight rating to the SPLK share price with a target price of $179. Along with the resignation announcement came preliminary results for fiscal Q3 2022. Should you buy Splunk shares in this dip? Revenue in its fiscal year ended January 2021 fell 5.5% year-over-year. While the share price initially rose, most likely on the back of sector hype and enthusiasm, the pandemic undoubtedly presented operational challenges to Splunk. Source: FactSet financial data and analytics Since then, it had been gradually recovering until yesterday's news thwarted that recovery with a significant share price drop. But between October and June 2021, the Splunk share price cratered. The Splunk share price has endured a volatile few years, with COVID-19 uncertainty initially hitting it hard, followed by buoyancy through to Autumn 2020. Shareholders are used to SPLK share price volatility This may signify their influence over the future direction of the company. The change of CEO announcement comes less than five months after private equity firm Silver Lake invested $1 billion in the business. Indeed, it has grown its revenue from $302 million in fiscal 2014 to nearly $3 billion in ARR in Q3 of fiscal 2022. Merritt also pointed out that Splunk has evolved significantly since he joined the business. “As the Board and I considered how to best position Splunk for long-term success and continued growth, we determined now is the right time to transition to our next phase of leadership - in particular, the Board is focused on identifying a leader with a proven track record of scaling operations and growing multi-billion dollar enterprises.” This is temporary until a permanent replacement is appointed to the position.Ĭommenting on the news, Doug Merritt said: He is being replaced initially by Graham Smith, current chairman of the board. Merritt has been in the CEO position for six years and intends to stay on as an advisor to help with a smooth transition. Doug Merritt's resignation compounds this uncertainty, and shares finished the day down 18% on the news. Splunk has been attempting to pivot to the cloud from its position as a traditional software provider, but the transition has been less than smooth in the eyes of investors. It also offers solutions for IT operations, cybersecurity, IoT, application analytics, business analytics and various industries. Splunk is a software provider with a suite of product offerings, including Splunk cloud, Splunk light and Splunk enterprise. This is a blow for the company that had been showing signs of share price recovery. Cloud service provider Splunk (NASDAQ: SPLK) has seen its share price take another slump on the news it's CEO, Doug Merritt, announce that he's stepping down. ![]()
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