5 Fastest-Growing Software Companies

4. Splunk Inc. (NASDAQ: SPLK)

    Revenue(2015): $450.7 million

    Revenue(2020): $2.35 billion

    Employees: 5,800

Splunk is a software company that produces tools that analyze and monitor machine-generated data from the websites, applications, and devices that make up a company’s IT structure. It creates software that allows companies to index and search files logged in the system.

It uses a Web-style data interface to capture and correlate data in real-time. Founded in 2003, Splunk makes data processing for companies easy and simplified. The machine data collates a time-stamped record of transactions, security threats, user activities, and more. Splunk processes this data in a comprehensive way that monitors and analyzes data.

Blue Hawk Investment Group said in its Q4 letter that Splunk Inc. was the top detractor of their long book portfolio but they continue to maintain their position in the company. Here is what Blue Hawk Investment Group stated:

“One name of note we wanted to highlight is Splunk, the worst performing long in the quarter. A disappointing Q3’20 and high investor expectations led to a precipitous 23% drop in one trading session following the report. We believe the stock is offering a rare opportunity, as uncertainty caused by the company’s business model transition from license to cloud, among other transitory factors, has spooked investors. This is a very high-quality company with mission-critical software, an attractive competitive position with distribution that will be very challenging to dislodge, and the opportunity to move into tangential opportunities via acquisition. In addition, we think the stock is an under-the-radar recovery play with a very undemanding valuation, rare in the software space. Splunk remains a top five position at year-end.”