Bottom line fell 12% year over year
That's a negative earnings
6 replies (most recent on top)
Spending 28 billion buying a company has revenue of $400 million, what is the profit of 400 million? 20 million profit ...
Splunk on its own hasn't see quarterly (not annual) revenue at or below $400M since 2018 and the last reported numbers I can readily find before the acquisition were $1.067B for the quarter ending on October 31, 2023. EBITDA income was $138M for that quarter, although they don't have a sustained track record yet. The $400M number from the call was "Splunk contributed $413 million in revenue in the partial quarter post-close." Revenue growth from April 30, 2021 through October 31, 2023 was double digits every quarter. If Cisco can keep Splunk growing by double digits and provide consistent earnings (not a given) it becomes a very different calculation.
Splunk makes over $3b and profits over $1b. Agree with the general sentiment it’s overpaid as fu-k from Chuck the cuck but holy he-l do a little fu--ing research before
You post
Not to mention the debt interest and earnings interest the cash would have made sitting in the market.
In particular when you used to pay good money for splunk licenses and their product had to be integrated in your systems
Buying companies at this scale doesn't work like paying your mom back for the loan to buy your favourite lollypop dude.
Spending 28 billion buying a company has revenue of $400 million, what is the profit of 400 million? 20 million profit out of 400 million revenue, takes hope long to payback 28 billion from 20 million revenue generated from splunk? That is 1400 years to pay back 28 billion buying splunk, with inflation adjusted, 28billion is 280 trillion 1400 from now, only if anything is still exist
Splunk CEO must be a good salesman