Splunk is a hybrid cloud-computing platform company that helps businesses collect and categorize their data so they can better understand how to use it. Think of it this way: Companies are generating so much data from their customers that they’re having a hard time making sense of it all. And Splunk’s AI-powered platform helps address that.
Splunk has used machine-learning data — a type of AI — to make sense of businesses’s big data for several years. The company’s CEO said back in 2016:
Digital transformation has changed the way organizations work. The big secret is that all of the change is underpinned by machine data. Machine learning enables organizations to get deeper insights from their machine data and ultimately increases the opportunity our customers can gain from digital transformation.
To stay ahead of its competition, Splunk has frequently snatched up smaller companies, including machine-learning company SignalSense late in 2017 and VictorOps last year. So far, the company’s moves have paid off: In the most recent quarter, its software sales were up 42% from the year-ago quarter, and total revenue jumped 35%.
Splunk’s shares are up about 24% over the past 12 months — with the most recent jump coming when the company’s management raised its full-year revenue guidance — but investors know there’s likely some volatility ahead for the company as it continues to carve out its niche in the hybrid AI/cloud-computing space.