The outbreak has accelerated the digital transformation of the world, and to adapt to this new normal, data is more important than ever.

-Editor's Note

Splunk is one of the beneficiaries of this digital boom, and at the same time, the company is accelerating its SaaS transformation.. The two hot topics are integrated into one, and the take-off of Splunk is obvious to all.Since the outbreak in March, the company's share price has doubled to an all-time high.

"Data to Everything" is a platform and trademark of Splunk, a data processing company that translates data into data for all platforms and aims to investigate, monitor, analyze and process data of any size.The company's products can help the company analyze machine data and learn about the company's operations in real time to obtain operational information.

In the annual report of the 2019 global IT Operations Management (ITOM) software announced by IDC yesterdaySplunk ranked first in ITOM market share and market revenue in 2019 and achieved the largest market revenue growth among ITOM suppliers.This is the second year in a row that it has been named the leader of the ITOM annual report.

Without fear of epidemic situation, cloud service helps the company to achieveIncomeHigh growth

Recently, the company released its results for the first quarter of fiscal year 2021. The report shows that the company has achieved steady growth in FY2021Q1.Annual recurrent income (ARR) reached $1.775 billion, an increase of 52 per cent year-on-year.Among themCloud services generated $480 million in revenue, an increase of 82% more than the company's overall business.ARR is a reliable indicator of a company's growth and stability, and Splunk's first-quarter financial results clearly show that the impact of the epidemic on it is limited.

Splunk began to emphasize the development of cloud business in FY2021Q1.Revenue from cloud services has become one of the important sources of revenue for the company.According to the quarterly report, FY2021Q1 cloud services account for 44% of total software revenue, compared with 25% at FY2020Q1.

In terms of gross margin, FY2021Q1's overall gross margin has fallen, down 5 per cent compared with the same period last year. But,The gross profit margin of cloud services is on the rise.

Affected by the increase in R & D investment, Splunk's net profit figures for the first quarter are not good-looking.NON-GAAP EPS was just-0.56, breaking the record for seven consecutive quarters of positive earnings.But according to historical data, Splunk's net profit figures tend to perform poorly in the first quarter.Under the guarantee of high ARR growth, the net profit figures for the next three quarters are worth looking forward to.

Our shift to the SaaS model is accelerating, with cloud computing driving nearly half of software bookings in the quarter and ARR up 52% year-on-year. We are also pleased to have recently joined the Fortune 1000, which is a huge recognition of a software company and proves the importance of data in today's world.

-Jason Child, Chief Financial Officer of Splunk

SaaS is still going on. AWS and Google Cloud escort you.

In the first quarter of fiscal year 2021Splunk continues to strengthen its strategic relationship with AWS and cooperate across products and fields.Recently, Splunk and AWS launched a workload migration program to help Splunk user enterprises migrate local workloads to the Splunk cloud running on AWS. Splunk and AWS also announced a new AWS services ready program, Lambda Ready.

Besides,Splunk has also established a strategic partnership with Google Cloud, and a strong partner ecosystem continues to grow.This partnership will bring Splunk Cloud to Alphabet Inc-CL C Cloud, enabling customers to unleash the value of their data, enhance operational space, and make quick decisions across the enterprise.

Splunk released the latest enhanced version of Splunk Cloud on May 29th to help customers realize the full potential of all kinds of data in making every decision, solving every problem, and taking every action.These enhancements consolidate the basic technology of the Splunk platform and expand its cloud services capabilities.

Splunk is not just talking about the SaaS transformation of data analysis.

Analysts at Wells Fargo Securities have a target price of $250 for the Splunk.