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On Thursday, Splunk Inc (SPLK) reported its second quarter earnings and discussed the following topics in its earnings conference call. Take a look.
John DiFucci – JPMorgan: I have a question for Godfrey and a follow-up for Dave. Godfrey the question is on the new offerings and I know Splunk for VMware and Splunk Storm, are relatively new here. But I guess I think most of us have been out at VMworld and it seems like there is quite an ecosystem around virtualization right now and I just – when you – this was in beta for quite some – for a while. I guess could you tell us what kind of traction are you seeing? It sounds you have a lot of interest, it sounds like you had interest in the beta versions here for both for VMware and Splunk Storm, but if you could maybe talk to us, give us a little more color about what we might expect going forward? Also tell us if there’s anything implied in the guidance for any kind of uptick from these products?
Godfrey R. Sullivan – Chairman and CEO: So the app for VMware (NYSE:VMW) is free. So don’t – we are not building any guidance or revenue assumptions into that product. But I will tell you that enthusiasm from the customer base is not just the ability to look at all layers of a virtualization infrastructure, it’s the ability to correlate that across everything else, across your security posture, your transaction environment, your website, et cetera. So it’s one more important layer of the stack and it’s hard to get at because they don’t publish their source feeds and the kind of dark hole. So it was hard work to get it all and now that we have it customers are very happy about it. Its Enterprise software so it will take some time for us to be able to report back in terms of transaction metrics and all that sort of thing, but very pleased with where we are. The first version is heavy on data source development and less heavy on graphics, and as we continue to move on, we’ll continue to improve the presentation layer. On Storm, we’ve been GA for two days, so really, we were just tracking what’s going on with signups, what’s going on with customers registering for new projects and all that, and we’ve seen a noticeable uptick, but I wouldn’t want to create a trend line out of two days’ worth of activity. So it’s been two to three times our normal activity levels of July, August just in the last two days, but again, you can’t extrapolate that yet, it’s too soon. No, we don’t have any revenue for Splunk Storm built into our models, but we are certainly pleased with the customer feedback so far. I think it will be a lot better in Q – probably by Q3 earnings call, we’ll be in a much better position to report on that.
John DiFucci – JPMorgan: Is it – because the App for VMware, I think it was listed on your website as a premium offering. That’s why I thought perhaps it was paid for, but is it also the App for Palo Alto Networks and the App for Active Directory would or I’d assume those are also free offerings?
Godfrey R. Sullivan – Chairman and CEO: Those are also free offerings.
John DiFucci – JPMorgan: Dave, a follow-up on the renewal rate, up above 90%, which is – you were in the 80s for a while and (proceed) above 90%, I mean, that’s Enterprise – I mean, Enterprise class is up near around 90%, but it’s nice to see above 90%. Are you doing anything different there or is it just the continued efforts of your team to try to improve on those numbers?
David F. Conte – CFO: Well, I think we are doing some stuff specifically around like focus in the field organization, and John, you and I talked specifically about our investments in dedicated folks around the renewal teams both – most recently in APAC, prior to that EMEA and initially in the U.S., so I think we’re seeing the benefit of that investment and that’s really been the area for us. We’re not doing anything else beyond that besides providing them some of the apps that Godfrey mentioned we introduced this quarter I think is certainly helping as well.
Customer Account Growth
Phil Winslow – Credit Suisse: Looking at the customer account growth here is really pretty impressive, north of 30% year-over-year. Godfrey just kind of a question to you, is you’ve sort of balanced what you guys talked about it, deepening your penetration in existing customers but also just kind of continue to acquire customers at this rate and just how do you balance that just from just go-to-market perspective?
Godfrey R. Sullivan – Chairman and CEO: I can’t tell you that I do balance it. I wish it were that scientific. What we really do is we look at markets, we try to understand markets that are ready where we could put additional resource and we do that as much data as we can, plus experience. We drive events all over the world, as you’ve come to a few of our Storm lives and thanks for that and so you’ve seen what happens when a roomful of customers hears from other customers about expanded use cases. We are bringing our cloud offering and we just push it all and then the numbers kind of are what the numbers are. I can’t tell you that I have a magic formula for how much is new versus expanded, you just have to go out and do your work and then that number sort of falls out of it.
Phil Winslow – Credit Suisse: Just one follow up on deal size, obviously it seems like you had a pretty good strength in deals north of $100,000. Just what you’re seeing there in terms of deal size and just what your expectations are?
Godfrey R. Sullivan – Chairman and CEO: It speaks to the fact that on expanded field organization can have an impact on that big time. You have seen our customers how they moved from a single use case to multi-department use case and on and on. I think about 25 of our 100 new customers – of our six figure transactions, I think about a fourth of them were actually new customers and about three-fourths of them were expansion or upgrade customers. So that just kind of shows that it’s a combination of more people, more marketing events, more go-to-market stuff, all that stuff adds up and having more people to carry the water close to the customer really matters for us. So I think it’s just all of that. There was nothing in the quarter that was unique or some big one-time whatever, it was just a bread-and-butter quarter of lots of activity all over the world.
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