Could the 'Fiscal Cliff' Kill Splunk's Big Data Boom?
Splunk's big data business is growing worldwide and has yet to experience any slowdown from "fiscal cliff" fears, Godfrey Sullivan, chairman and CEO of the company, said Friday on CNBC's "Squawk on the Street."
"We had revenue growth in all three geographies, Asia, Europe and the Americas, all above 60 percent. So we have actually seen strength all over the world," Sullivan said. "We haven't seen too much reaction on the cliff."
Splunk reported earnings of six cents a share on revenue of $52 million, up 67 percent from reported revenue a year ago. The company also gained 350 new enterprise customers in the quarter and saw revenues from licensing climb about 50 percent, Sullivan said.
Splunk's growth, like many other companies, could be negatively impacted if Congress doesn't come up with a plan to keep the US government from going over the fiscal cliff of tax hikes and spending cuts that hit at the end of the year.
"If taxes go up significantly, I would suspect that would have a contractionary force," he said.
However, Sullivan said if Congress does pass even a bare-bones plan to avoid the fiscal cliff, he doesn't think corporations will feel a significant impact.
"I don't think it will have an immediate impact," Sullivan said. "I don't think it's going to have much impact on corporate spend...I don't think there is too much impact on corporate decision making."