Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/splunk-inc" target="_blank" data-smartkarma-citation="entities:12849:1" rel="noopener">Splunk Inc (SPLK US)</a> , a leading American provider of machine-generated data platform and established software vendor, announced strong 1QFY23 earnings results. </li>
<li>Total revenues grew to $674M, up 34% YoY, the highest revenue growth rate for the last 3 years. Cloud revenues jumped by 66%, reflecting customer adoption of the cloud platform.</li>
<li>WSJ reported that Cisco made a <strong>$20B</strong>+ takeover offer for Splunk. However, no deal was on the table, but if talks resume, Cisco could pay $20B+, according to The NYT.   </li>
</ul>



Splunk Inc (SPLK US) , a leading American provider of machine-generated data platform and established software vendor, announced strong 1QFY23 earnings results. 
Total revenues grew to $674M, up 34% YoY, the highest revenue growth rate for the last 3 years. Cloud revenues jumped by 66%, reflecting customer adoption of the cloud platform.
WSJ reported that Cisco made a $20B+ takeover offer for Splunk. However, no deal was on the table, but if talks resume, Cisco could pay $20B+, according to The NYT.   


1QFY23 Revenue Growth Accelerated As Cloud-Driven Transformation Goes Well

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Credit

<ul><li>Splunk had a fairly decent 2021 good growth in annual recurring revenue (ARR), more specifically the cloud ARR growth.</li><li>The company has successfully played around with its pricing and expanded the cloud gross margin.</li><li>The company onboarded Fred Loya Insurance who purchased Splunk cloud with workload pricing for safeguarding data of its customers and for automating security initiatives.</li></ul>

Splunk had a fairly decent 2021 good growth in annual recurring revenue (ARR), more specifically the cloud ARR growth.The company has successfully played around with its pricing and expanded the cloud gross margin.The company onboarded Fred Loya Insurance who purchased Splunk cloud with workload pricing for safeguarding data of its customers and for automating security initiatives.

Splunk Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Equity Capital Markets

<ul><li>Splunk had an excellent finish to a strong year with solid annual recurring revenue, cloud DBNRR, and cloud ARR growth.</li><li>Splunk is able to take a fundamentally unique approach because they have a huge scalable data platform with advanced analytics.</li><li>The company onboarded Fred Loya Insurance who purchased Splunk cloud with workload pricing for safeguarding data of its customers and for automating security initiatives.</li></ul>

Splunk had an excellent finish to a strong year with solid annual recurring revenue, cloud DBNRR, and cloud ARR growth.Splunk is able to take a fundamentally unique approach because they have a huge scalable data platform with advanced analytics.The company onboarded Fred Loya Insurance who purchased Splunk cloud with workload pricing for safeguarding data of its customers and for automating security initiatives.

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<li>
<a href="https://www.smartkarma.com/entities/elastic-nv" target="_blank" data-smartkarma-citation="entities:27526:1" rel="noopener">Elastic NV (ESTC US)</a>  has grown its ARR from ~$207 million as of Jul-18 to ~$760 million today and may become a multi-billion dollar unicorn in the future.  </li>
<li>We like the subscription-based freemium business model, strong net expansion rate, and acceleration in revenue growth of Elastic Cloud business, which currently represents ~33% of total revenue. </li>
<li>Elastic Search is one of the most popular search engines globally, and the company’s products have been downloaded more than 350 million times since 2013. </li>
</ul>



Elastic NV (ESTC US)  has grown its ARR from ~$207 million as of Jul-18 to ~$760 million today and may become a multi-billion dollar unicorn in the future.  
We like the subscription-based freemium business model, strong net expansion rate, and acceleration in revenue growth of Elastic Cloud business, which currently represents ~33% of total revenue. 
Elastic Search is one of the most popular search engines globally, and the company’s products have been downloaded more than 350 million times since 2013. 


Elastic: High-Profile Search Company With Attractive Fundamentals

<ul><li>Splunk delivered a decent third-quarter result with strong business momentum resulting in the company’s first $1 billion cloud quarter.</li><li>Its cloud ARR reaching $1.1 billion and growing by 75% year over year.</li><li>Given its cheap valuation despite the strong future potential, in a fast-growing yet highly competitive market, we give Splunk a ‘Buy’ rating with a revised target price.</li></ul>

Splunk delivered a decent third-quarter result with strong business momentum resulting in the company’s first $1 billion cloud quarter.Its cloud ARR reaching $1.1 billion and growing by 75% year over year.Given its cheap valuation despite the strong future potential, in a fast-growing yet highly competitive market, we give Splunk a ‘Buy’ rating with a revised target price.

Splunk: A Genuinely Cheap Cloud Stock? (12/2021)

United States

Splunk Inc. develops web based application software. The Company provides software that collects and analyzes machine data generated by websites, applications, servers, networks, and mobile devices. Splunk serves customers worldwide.

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Splunk Inc (SPLK US)

1QFY23 Revenue Growth Accelerated As Cloud-Driven Transformation Goes Well

Cloud ARR growth has accelerated, and we expect Splunk shares may outperform Nasdaq Composite and publicly listed peers in 2022

Andrei Zakharov

Splunk Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Splunk had a fairly decent 2021 good growth in annual recurring revenue (ARR), more specifically the cloud ARR growth. The company has...

Baptista Research

Splunk Inc.: Financial & Price Forecasts

Splunk had an excellent finish to a strong year with solid annual recurring revenue, cloud DBNRR, and cloud ARR growth. Splunk is able to take a...

Baptista Research

Elastic: High-Profile Search Company With Attractive Fundamentals

Elastic is a high-profile search technology company and we believe current valuations look attractive for long-term investors

Andrei Zakharov

Splunk: A Genuinely Cheap Cloud Stock? (12/2021)

Splunk delivered a decent third-quarter result with strong business momentum resulting in the company’s first $1 billion cloud quarter. Its cloud...

Baptista Research

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