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Splunk Inc. Announces Fiscal First Quarter 2020 Financial Results
![](https://i1.wp.com/picante.today/wp-content/uploads/2019/05/logo_splunk_white_high.jpg?fit=150%2C150&ssl=1)
Software Revenues Up 54%
Company Increases Full Year Revenue Outlook
SAN FRANCISCO–(BUSINESS WIRE)–Splunk
Inc. (NASDAQ: SPLK), delivering actions and outcomes from the world
of data, today announced results for its fiscal first quarter ended
April 30, 2019.
First Quarter 2020 Financial Highlights
- Software revenues were $265 million, up 54% year-over-year.
- Total revenues were $425 million, up 36% year-over-year.
-
GAAP operating loss was $145 million; GAAP operating margin was
negative 34.1%. -
Non-GAAP operating loss was $7.8 million; non-GAAP operating margin
was negative 1.8%. - GAAP loss per share was $1.04; non-GAAP income per share was $0.02.
-
Operating cash flow was $35.0 million with free cash flow of $20.1
million.
“Our customers are successful because they can unlock value from their
growing data landscapes with the unique Splunk platform, and this is
what fuels our strong performance,” said Doug Merritt, President and
CEO, Splunk. “In Q1, we released Splunk Connected Experiences and Splunk
Business Flow, new products that are part of our vision to take Splunk
beyond IT and security and to bring our customers closer to their data.
These products further differentiate Splunk as we strive to bring data
to every question, every decision and every outcome for any
organization.”
Business Highlights:
Customers:
- Signed more than 400 new enterprise customers.
-
New and Expansion Customers Include: Brink’s, Cerner
Corporation, Chipotle, City University of Hong Kong, El Corte Inglés
(Spain), Entertainment One (Canada), LATAM Airlines Group (Chile), PCL
Construction, Slack, SumTotal Systems, University of Alabama at
Birmingham Health System, Vancouver City Savings Credit Union (Canada)
and West Bend Mutual Insurance.
Corporate:
-
New Innovations Bring Customers Closer to Their Data: Splunk
unveiled a wide range of new technologies including Splunk®
Connected Experiences, which helps customers bring the power of
data where they need it through augmented reality, Splunk Mobile and
Splunk TV. Splunk
Business Flow expands Splunk’s reach, enabling business operations
professionals to quickly discover bottlenecks that threaten business
performance and identify opportunities for improvement. Splunk also
unveiled new versions of Splunk
ITSI, Splunk
ES, Splunk
UBA, Splunk
Phantom and Splunk
App for Infrastructure. -
Research Reveals Data Opportunity: Splunk released a new
research report, The
State of Dark Data, which found that, on average, business and IT
decision makers estimate that 55 percent of their data is dark
(unknown or untapped) despite widespread belief that such data is
highly valuable and drives meaningful business outcomes. The report
also explored how automation via AI and machine learning is believed
to impact the future of jobs, and how the data opportunity is
impacting career growth. -
Employee Success Celebrated Around the Globe: Splunk was
recognized for being a great
place to work around the world: LinkedIn, the San Francisco
Business Times, Great Place to Work Asia and Washingtonian all named
Splunk as a top employer. Splunk is committed to celebrating and
empowering employees to build an inclusive culture. -
Executive and Board Appointments: The company celebrated two
new additions to its executive team: Jason Child as Chief Financial
Officer and Carrie Palin as Chief Marketing Officer. Splunk also
announced the appointment of Board member Graham Smith, former CFO at
Salesforce, as the Chairman of the Board of Directors, and welcomed
Atlassian CTO Sri Viswanath to the Board. -
Global Partner Summit: The company deepened relationships with
strategic partners and announced a host of new updates that make it
easier than ever for partners to be successful with Splunk at Global
Partner Summit.
Financial Outlook
The company is providing the following guidance for its fiscal second
quarter 2020 (ending July 31, 2019):
- Total revenues are expected to be approximately $485 million.
- Non-GAAP operating margin is expected to be approximately 3%.
The company is updating its previous guidance provided on February 28,
2019 for its fiscal year 2020 (ending January 31, 2020) as follows:
-
Total revenues are expected to be approximately $2.25 billion (was
approximately $2.20 billion). -
Non-GAAP operating margin is expected to be approximately 14%
(unchanged from previous guidance).
All forward-looking non-GAAP financial measures contained in this
section “Financial Outlook” exclude estimates for stock-based
compensation and related employer payroll tax, and amortization of
acquired intangible assets.
A reconciliation of non-GAAP guidance measures to corresponding GAAP
measures is not available on a forward-looking basis without
unreasonable effort due to the uncertainty regarding, and the potential
variability of, many of these costs and expenses that may be incurred in
the future. The company has provided a reconciliation of GAAP to
non-GAAP financial measures in the financial statement tables for its
fiscal first quarter 2020 non-GAAP results included in this press
release.
Conference Call and Webcast
Splunk’s executive management team will host a conference call today
beginning at 1:30 p.m. PT (4:30 p.m. ET) to discuss the company’s
financial results and business highlights. Interested parties may access
the call by dialing (866) 501-1535. International parties may access the
call by dialing (216) 672-5582. A live audio webcast of the conference
call will be available through Splunk’s Investor Relations website at http://investors.splunk.com/events-presentations.
A replay of the call will be available through May 30, 2019 by dialing
(855) 859-2056 and referencing Conference ID 1946609.
Safe Harbor Statement
This press release contains forward-looking statements that involve
risks and uncertainties, including statements regarding Splunk’s revenue
and non-GAAP operating margin targets for the company’s fiscal second
quarter and fiscal year 2020 in the paragraphs under “Financial Outlook”
above and other statements regarding Splunk’s new products, innovations
and product development, Splunk’s market opportunity, future growth,
current momentum, strategy, expectations for Splunk’s industry and
business, customer demand and penetration, Splunk’s partner
relationships, customer success and expanding use of Splunk by
customers. There are a significant number of factors that could cause
actual results to differ materially from statements made in this press
release, including: risks associated with Splunk’s rapid growth,
particularly outside of the United States; Splunk’s inability to realize
value from its significant investments in its business, including
product and service innovations and through acquisitions; Splunk’s shift
from sales of perpetual licenses in favor of sales of term licenses and
subscription agreements for our cloud services; Splunk’s transition to a
multi-product software and services business; Splunk’s inability to
successfully integrate acquired businesses and technologies; Splunk’s
inability to service its debt obligations or other adverse effects
related to Splunk’s convertible notes; and general market, political,
economic, business and competitive market conditions.
Additional information on potential factors that could affect Splunk’s
financial results is included in Splunk’s Annual Report on Form 10-K for
the fiscal year ended January 31, 2019, which is on file with the U.S.
Securities and Exchange Commission (“SEC”) and Splunk’s other filings
with the SEC. Splunk does not assume any obligation to update the
forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were made.
About Splunk Inc.
Splunk Inc. (NASDAQ: SPLK) helps organizations ask questions, get
answers, take actions and achieve business outcomes from their data.
Organizations use market-leading Splunk solutions with machine learning
to monitor, investigate and act on all forms of business, IT, security,
and Internet of Things data. Join millions of passionate users and try
Splunk for free today.
Splunk, Splunk>, Listen to Your Data, The Engine for Machine Data,
Splunk Cloud, Splunk Light and SPL are trademarks and registered
trademarks of Splunk Inc. in the United States and other countries. All
other brand names, product names, or trademarks belong to their
respective owners. © 2019 Splunk Inc. All rights reserved.
Splunk Inc. | |||||||||
Condensed Consolidated Statements of Operations | |||||||||
(In thousands, except per share amounts) | |||||||||
(Unaudited) | |||||||||
Three Months Ended April 30, | |||||||||
2019 | 2018 | ||||||||
Revenues | |||||||||
License | $ | 202,862 | $ | 138,975 | |||||
Maintenance and services | 221,988 | 172,664 | |||||||
Total revenues | 424,850 | 311,639 | |||||||
Cost of revenues | |||||||||
License | 5,682 | 5,124 | |||||||
Maintenance and services | 90,141 | 72,846 | |||||||
Total cost of revenues | 95,823 | 77,970 | |||||||
Gross profit | 329,027 | 233,669 | |||||||
Operating expenses | |||||||||
Research and development | 129,290 | 86,357 | |||||||
Sales and marketing | 278,961 | 218,036 | |||||||
General and administrative | 65,762 | 50,742 | |||||||
Total operating expenses | 474,013 | 355,135 | |||||||
Operating loss | (144,986 | ) | (121,466 | ) | |||||
Interest and other income (expense), net | |||||||||
Interest income | 16,346 | 3,187 | |||||||
Interest expense | (23,017 | ) | (2,073 | ) | |||||
Other income (expense), net | (539 | ) | (135 | ) | |||||
Total interest and other income (expense), net | (7,210 | ) | 979 | ||||||
Loss before income taxes | (152,196 | ) | (120,487 | ) | |||||
Income tax provision (benefit) | 3,233 | (1,988 | ) | ||||||
Net loss | $ | (155,429 | ) | $ | (118,499 | ) | |||
Basic and diluted net loss per share | $ | (1.04 | ) | $ | (0.83 | ) | |||
Weighted-average shares used in computing basic and diluted net loss per share |
149,060 | 143,548 | |||||||
Splunk Inc. | |||||||||||||
Condensed Consolidated Balance Sheets | |||||||||||||
(In thousands) | |||||||||||||
(Unaudited) | |||||||||||||
April 30, 2019 | January 31, 2019 | ||||||||||||
Assets | |||||||||||||
Current assets | |||||||||||||
Cash and cash equivalents | $ | 1,835,229 | $ | 1,876,165 | |||||||||
Investments, current | 840,215 | 881,220 | |||||||||||
Accounts receivable, net | 285,300 | 469,658 | |||||||||||
Prepaid expenses and other current assets | 79,102 | 73,197 | |||||||||||
Deferred commissions, current | 74,976 | 78,223 | |||||||||||
Total current assets | 3,114,822 | 3,378,463 | |||||||||||
Investments, non-current | 146,159 | 110,588 | |||||||||||
Operating lease right-of-use assets | 201,675 | – | |||||||||||
Property and equipment, net | 89,615 | 158,276 | |||||||||||
Intangible assets, net | 84,497 | 91,622 | |||||||||||
Goodwill | 503,388 | 503,388 | |||||||||||
Deferred commissions, non-current | 61,433 | 64,766 | |||||||||||
Other assets | 205,155 | 193,140 | |||||||||||
Total assets | $ | 4,406,744 | $ | 4,500,243 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Current liabilities | |||||||||||||
Accounts payable | $ | 23,407 | $ | 20,418 | |||||||||
Accrued compensation | 163,284 | 226,061 | |||||||||||
Accrued expenses and other liabilities | 155,145 | 125,641 | |||||||||||
Deferred revenue, current | 631,732 | 673,018 | |||||||||||
Total current liabilities | 973,568 | 1,045,138 | |||||||||||
Convertible senior notes, net | 1,653,479 | 1,634,474 | |||||||||||
Operating lease liabilities | 179,227 | – | |||||||||||
Deferred revenue, non-current | 173,999 | 204,929 | |||||||||||
Other liabilities, non-current | 445 | 95,245 | |||||||||||
Total non-current liabilities | 2,007,150 | 1,934,648 | |||||||||||
Total liabilities | 2,980,718 | 2,979,786 | |||||||||||
Stockholders’ equity | |||||||||||||
Common stock | 150 | 149 | |||||||||||
Accumulated other comprehensive loss | (3,165 | ) | (2,506 | ) | |||||||||
Additional paid-in capital | 2,809,273 | 2,754,858 | |||||||||||
Accumulated deficit | (1,380,232 | ) | (1,232,044 | ) | |||||||||
Total stockholders’ equity | 1,426,026 | 1,520,457 | |||||||||||
Total liabilities and stockholders’ equity | $ | 4,406,744 | $ | 4,500,243 | |||||||||
Splunk Inc. | ||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended April 30, | ||||||||||
2019 | 2018 | |||||||||
Cash flows from operating activities | ||||||||||
Net loss | $ | (155,429 | ) | $ | (118,499 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||||
Depreciation and amortization | 13,415 | 11,416 | ||||||||
Amortization of deferred commissions | 30,032 | 15,788 | ||||||||
Amortization of investment premiums (accretion of discounts) | (2,859 | ) | (176 | ) | ||||||
Amortization of debt discount and issuance costs | 19,005 | – | ||||||||
Stock-based compensation | 123,063 | 94,621 | ||||||||
Deferred income taxes | (20 | ) | (239 | ) | ||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||||
Accounts receivable, net | 184,358 | 195,576 | ||||||||
Prepaid expenses and other assets | (17,900 | ) | (23,299 | ) | ||||||
Deferred commissions | (23,452 | ) | (14,716 | ) | ||||||
Accounts payable | 2,925 | (1,078 | ) | |||||||
Accrued compensation | (62,777 | ) | (44,435 | ) | ||||||
Accrued expenses and other liabilities | (3,116 | ) | (14,340 | ) | ||||||
Deferred revenue | (72,216 | ) | (24,132 | ) | ||||||
Net cash provided by operating activities | 35,029 | 76,487 | ||||||||
Cash flows from investing activities | ||||||||||
Purchases of investments | (289,425 | ) | (22,875 | ) | ||||||
Maturities of investments | 298,425 | 174,125 | ||||||||
Acquisitions, net of cash acquired | – | (284,170 | ) | |||||||
Purchases of property and equipment | (14,900 | ) | (2,296 | ) | ||||||
Other investment activities | (375 | ) | (4,375 | ) | ||||||
Net cash used in investing activities | (6,275 | ) | (139,591 | ) | ||||||
Cash flows from financing activities | ||||||||||
Proceeds from the exercise of stock options | 360 | 1,113 | ||||||||
Taxes paid related to net share settlement of equity awards | (69,007 | ) | (779 | ) | ||||||
Repayment of financing lease obligation | – | (589 | ) | |||||||
Net cash used in financing activities | (68,647 | ) | (255 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,043 | ) | (762 | ) | ||||||
Net decrease in cash and cash equivalents | (40,936 | ) | (64,121 | ) | ||||||
Cash and cash equivalents at beginning of period | 1,876,165 | 545,947 | ||||||||
Cash and cash equivalents at end of period | $ | 1,835,229 | $ | 481,826 | ||||||
SPLUNK INC.
Non-GAAP Financial Measures and Reconciliations
To supplement Splunk’s condensed consolidated financial statements,
which are prepared and presented in accordance with generally accepted
accounting principles in the United States (“GAAP”), Splunk provides
investors with certain non-GAAP financial measures, including non-GAAP
cost of revenues, non-GAAP gross margin, non-GAAP research and
development expense, non-GAAP sales and marketing expense, non-GAAP
general and administrative expense, non-GAAP operating income (loss),
non-GAAP operating margin, non-GAAP income tax provision (benefit),
non-GAAP net income (loss) and non-GAAP net income (loss) per share
(collectively the “non-GAAP financial measures”). These non-GAAP
financial measures exclude all or a combination of the following (as
reflected in the following reconciliation tables): expenses related to
stock-based compensation and related employer payroll tax, amortization
of acquired intangible assets, adjustments related to a financing lease
obligation, acquisition-related adjustments, including the partial
release of the valuation allowance due to acquisitions and non-cash
interest expense related to convertible senior notes that was issued in
the fiscal third quarter of 2019. The adjustments for the financing
lease obligation are to reflect the expense Splunk would have recorded
if its build-to-suit lease arrangement had been deemed an operating
lease instead of a financing lease and is calculated as the net of
actual ground lease expense, depreciation and interest expense over
estimated straight-line rent expense. The non-GAAP financial measures
are also adjusted for Splunk’s estimated tax rate on non-GAAP income
(loss). To determine the annual non-GAAP tax rate, Splunk evaluates a
financial projection based on its non-GAAP results. The annual non-GAAP
tax rate takes into account other factors including Splunk’s current
operating structure, its existing tax positions in various jurisdictions
and key legislation in major jurisdictions where Splunk operates. The
non-GAAP tax rate applied to the three months ended April 30, 2019 was
20%. Splunk will utilize this annual non-GAAP tax rate in fiscal 2020
and will provide updates to this rate on an annual basis, or more
frequently if material changes occur. In addition, non-GAAP financial
measures includes free cash flow, which represents cash from operations
less purchases of property and equipment. The presentation of the
non-GAAP financial measures is not intended to be considered in
isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with GAAP. Splunk uses
these non-GAAP financial measures for financial and operational
decision-making purposes and as a means to evaluate period-to-period
comparisons. Splunk believes that these non-GAAP financial measures
provide useful information about Splunk’s operating results, enhance the
overall understanding of past financial performance and future prospects
and allow for greater transparency with respect to key metrics used by
management in its financial and operational decision making. In
addition, these non-GAAP financial measures facilitate comparisons to
competitors’ operating results.
Splunk excludes stock-based compensation expense because it is non-cash
in nature and excluding this expense provides meaningful supplemental
information regarding Splunk’s operational performance and allows
investors the ability to make more meaningful comparisons between
Splunk’s operating results and those of other companies. Splunk excludes
employer payroll tax expense related to employee stock plans in order
for investors to see the full effect that excluding that stock-based
compensation expense had on Splunk’s operating results. These expenses
are tied to the exercise or vesting of underlying equity awards and the
price of Splunk’s common stock at the time of vesting or exercise, which
may vary from period to period independent of the operating performance
of Splunk’s business. Splunk also excludes amortization of acquired
intangible assets, adjustments related to a financing lease obligation,
acquisition-related adjustments, including the partial release of the
valuation allowance due to acquisitions and non-cash interest expense
related to convertible senior notes from the applicable non-GAAP
financial measures because these expenses are considered by management
to be outside of Splunk’s core operating results. Accordingly, Splunk
believes that excluding these expenses provides investors and management
with greater visibility to the underlying performance of its business
operations, facilitates comparison of its results with other periods and
may also facilitate comparison with the results of other companies in
its industry. Splunk considers free cash flow to be a liquidity measure
that provides useful information to management and investors about the
amount of cash generated by the business that can be used for strategic
opportunities, including investing in its business, making strategic
acquisitions and strengthening its balance sheet.
There are limitations in using non-GAAP financial measures because the
non-GAAP financial measures are not prepared in accordance with GAAP,
may be different from non-GAAP financial measures used by Splunk’s
competitors and exclude expenses that may have a material impact upon
Splunk’s reported financial results. Further, stock-based compensation
expense has been and will continue to be for the foreseeable future a
significant recurring expense in Splunk’s business and an important part
of the compensation provided to Splunk’s employees. The non-GAAP
financial measures are meant to supplement and be viewed in conjunction
with GAAP financial measures.
The following tables reconcile Splunk’s GAAP results to Splunk’s
non-GAAP results included in this press release.
Splunk Inc.
Reconciliation of GAAP to Non-GAAP Financial
Measures
(In thousands, except per share data)
(Unaudited)
Reconciliation of Cash Provided by |
|||||||||||
Three Months Ended April 30, | |||||||||||
2019 | 2018 | ||||||||||
Net cash provided by operating activities | $ | 35,029 | $ | 76,487 | |||||||
Less purchases of property and equipment | (14,900 | ) | (2,296 | ) | |||||||
Free cash flow (non-GAAP) | $ | 20,129 | $ | 74,191 | |||||||
Net cash used in investing activities | $ | (6,275 | ) | $ | (139,591 | ) | |||||
Net cash used in financing activities | $ | (68,647 | ) | $ | (255 | ) | |||||
Reconciliation of GAAP to Non-GAAP |
|||||||||||||||||||||||
Three Months Ended April 30, 2019 |
|||||||||||||||||||||||
GAAP |
Stock-based |
Amortization of |
Non-cash interest |
Income tax effects |
Non-GAAP | ||||||||||||||||||
Cost of revenues | $ | 95,823 | $ | (11,674 | ) | $ | (5,922 | ) | $ | – | $ | – | $ | 78,227 | |||||||||
Gross margin | 77.4 | % | 2.8 | % | 1.4 | % | – | % | – | % | 81.6 | % | |||||||||||
Research and development | 129,290 | (43,445 | ) | (249 | ) | – | – | 85,596 | |||||||||||||||
Sales and marketing | 278,961 | (53,403 | ) | (955 | ) | – | – | 224,603 | |||||||||||||||
General and administrative | 65,762 | (21,546 | ) | – | – | – | 44,216 | ||||||||||||||||
Operating loss | (144,986 | ) | 130,068 | 7,126 | – | – | (7,792 | ) | |||||||||||||||
Operating margin | (34.1 | )% | 30.6 | % | 1.7 | % | – | % | – | % | (1.8 | )% | |||||||||||
Income tax provision | 3,233 | – | – | – | (2,432 | ) | 801 | ||||||||||||||||
Net income (loss) | $ | (155,429 | ) | $ | 130,068 | $ | 7,126 | $ | 19,005 | $ | 2,432 | $ | 3,202 | ||||||||||
Net income (loss) per share (1) | $ | (1.04 | ) | $ | 0.02 | ||||||||||||||||||
(1) GAAP net loss per share calculated based on 149,060 weighted-average shares of common stock. Non-GAAP net income per share calculated based on 155,427 diluted weighted-average shares of common stock, which includes 6,367 potentially dilutive shares related to employee stock awards. GAAP to non-GAAP net income (loss) per share is not reconciled due to the difference in the number of shares used to calculate basic and diluted weighted-average shares of common stock. |
|||||||||||||||||||||||
(2) Represents the tax effect of the non-GAAP adjustments based on the estimated annual effective tax rate of 20%. |
Reconciliation of GAAP to Non-GAAP |
|||||||||||||||||||||||||||||
Three Months Ended April 30, 2018 |
|||||||||||||||||||||||||||||
GAAP |
Stock-based |
Amortization of |
Adjustments |
Acquisition- |
Income tax effects |
Non-GAAP | |||||||||||||||||||||||
Cost of revenues | $ | 77,970 | $ | (9,549 | ) | $ | (4,250 | ) | $ | 312 | $ | – | $ | – | $ | 64,483 | |||||||||||||
Gross margin | 75.0 | % | 3.0 | % | 1.4 | % | (0.1 | )% | – | % | – | % | 79.3 | % | |||||||||||||||
Research and development | 86,357 | (28,238 | ) | (278 | ) | 489 | – | – | 58,330 | ||||||||||||||||||||
Sales and marketing | 218,036 | (45,840 | ) | (178 | ) | 1,170 | – | – | 173,188 | ||||||||||||||||||||
General and administrative | 50,742 | (17,287 | ) | – | 234 | (3,304 | ) | – | 30,385 | ||||||||||||||||||||
Operating loss | (121,466 | ) | 100,914 | 4,706 | (2,205 | ) | 3,304 | – | (14,747 | ) | |||||||||||||||||||
Operating margin | (39.0 | )% | 32.4 | % | 1.5 | % | (0.7 | )% | 1.1 | % | – | % | (4.7 | )% | |||||||||||||||
Income tax benefit | (1,988 | ) | – | – | – | 3,313 |
(3) |
|
|
(3,665 | ) | (2,340 | ) | ||||||||||||||||
Net loss | $ | (118,499 | ) | $ | 100,914 | $ | 4,706 | $ | (136 |
)(2) |
|
|
$ | (9 | ) | $ | 3,665 | $ | (9,359 | ) | |||||||||
Net loss per share (1) | $ | (0.83 | ) | $ | 0.70 | $ | 0.03 | $ | – | $ | – | $ | 0.03 | $ | (0.07 | ) | |||||||||||||
(1) Calculated based on 143,548 basic and diluted weighted-average shares of common stock. |
|||||||||||||||||||||||||||||
(2) Includes $2.1 million of interest expense related to the financing lease obligation. |
|||||||||||||||||||||||||||||
(3) Represents the partial release of the valuation allowance due to acquisition. |
|||||||||||||||||||||||||||||
(4) Represents the tax effect of the non-GAAP adjustments based on the estimated annual effective tax rate of 20%. Application of this annual effective tax rate to the non-GAAP pre-tax loss during the quarter resulted in a non-GAAP tax benefit, which was offset by future tax expense during fiscal 2019. |
Contacts
Media Contact
Tom Stilwell
Splunk Inc.
press@splunk.com
Investor Contact
Ken Tinsley
Splunk Inc.
IR@splunk.com
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Innocan
Innocan Pharma Submits Investigational New Animal Drug Application to FDA’s Veterinary Center
![innocan-pharma-submits-investigational-new-animal-drug-application-to-fda’s-veterinary-center](https://grassnews.net/wp-content/uploads/2024/07/61449-innocan-pharma-submits-investigational-new-animal-drug-application-to-fdas-veterinary-center.jpg)
HERZLIYA, Israel and CALGARY, AB, July 26, 2024 /PRNewswire/ — Innocan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) (“Innocan” or the “Company”), a pioneer in the pharmaceutical and biotechnology industries, is pleased to announce that the FDA’s Center for Veterinary Medicine (CVM) has granted the Company a sponsor fee waiver and assigned an Investigational New Animal Drug (INAD) number for its LPT-CBD (Liposome Platform Technology-Cannabidiol) product. This represents a significant step for the Company, as an INAD designation facilitates correspondence and data exchange with CVM to support LPT-CBD development as a new veterinary drug.
The Company further announced that following the assessment of LPT-CBD’s scientific package, the CVM recognized Innocan’s contribution to pursuing innovative animal drug products and technology and granted the company a sponsor fee waiver for fiscal year 2024.
Innocan’s LPT-CBD is a proprietary drug delivery platform designed to provide prolonged-release CBD for chronic pain and well-being management in animals. Over the past year, repeated administration of LPT-CBD in dogs and other animals has demonstrated both efficacy and tolerability, providing sufficient evidence for the INAD application.
“We are thrilled by CVM’s response,” said Prof. Chezy Barenholz, CSO of Innocan Pharma. “The granted INAD will allow us to advance the investigational studies of LPT-CBD and share knowledge to support future discussions with CVM on LPT-CBD’s development plan. Moreover, the fee waiver, granted by CVM, supports our development and pursuit of innovative animal drug products and technology, further validating our approach and potential impact in veterinary medicine.”
Dr. Eyal Kalo, R&D Director at Innocan, added, “LPT-CBD is a unique technology that has proven itself worthy of the INAD fee waiver granted by CVM. This will streamline our efforts to deliver a unique solution for chronic pain management to the animal market.”
About Innocan Pharma:
Innocan is a pharmaceutical tech company that operates under two main segments: Pharmaceuticals and Consumer Wellness. In the Pharmaceuticals segment, Innocan focuses on developing innovative drug delivery platform technologies comprises with cannabinoids science, to treat various conditions to improve patients’ quality of life. This segment involves two drug delivery technologies: (i) LPT CBD-loaded liposome platform facilitating exact dosing and the prolonged and controlled release of CBD into the blood stream. The LPT delivery platform research is in the preclinical trial phase for two indications: Epilepsy and Pain Management. In the Consumer Wellness segment, Innocan develops and markets a wide portfolio of innovative and high-performance self-care products to promote a healthier lifestyle. Under this segment Innocan has established a Joint Venture by the name of BI Sky Global Ltd. that focuses developing on advanced targeted online sales. https://innocanpharma.com/
Contact Information:
For Innocan Pharma Corporation:
Iris Bincovich, CEO
+1 5162104025
+972-54-3012842
+442037699377
info@innocanpharma.com
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Caution Regarding Forward-Looking Information
Certain information set forth in this news release, including, without limitation, the Company’s plans for human trials of its LPT-CBD platform, is forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond Innocan’s control. . The forward-looking information contained in this news release is based on certain key expectations and assumptions made by Innocan, including expectations and assumptions concerning the anticipated benefits of the products, satisfaction of regulatory requirements in various jurisdictions and satisfactory completion of production and distribution arrangements.
Forward-looking information is subject to various risks and uncertainties that could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release. The key risks and uncertainties include but are not limited to: global and local (national) economic, political, market and business conditions; governmental and regulatory requirements and actions by governmental authorities; and potential disruption of relationships with suppliers, manufacturers, customers, business partners and competitors. There are also risks that are inherent in the nature of product distribution, including import/export matters and the failure to obtain any required regulatory and other approvals (or to do so in a timely manner). The anticipated timeline for entry to markets may change for a number of reasons, including the inability to secure necessary regulatory requirements, or the need for additional time to conclude and/or satisfy the manufacturing and distribution arrangements. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release. A comprehensive discussion of other risks that impact Innocan can be found in Innocan’s public reports and filings which are available under Innocan’s profile at www.sedarplus.ca.
Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Innocan does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law.
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Cannabis
Verano Announces the Opening of Zen Leaf Fairless Hills, the Company’s Newest Affiliated Dispensary in Pennsylvania, in Prime New Location
![](https://grassnews.net/wp-content/uploads/2024/07/verano-announces-the-opening-of-zen-leaf-fairless-hills-the-companys-newest-affiliated-dispensary-in-pennsylvania-in-prime-new-location.gif)
- Zen Leaf Fairless Hills, the Company’s newest affiliated dispensary in Pennsylvania, relocated from its former home in Chester to 203 Lincoln Highway, a busy thoroughfare with daily traffic of over 17,000 vehicles per day1
- As the first medical cannabis dispensary in the city, Zen Leaf Fairless Hills will offer an elevated experience for area patients, including increased convenience and accessibility with numerous point-of-sale stations and kiosks for seamless in-store browsing and ordering
- Verano’s active operations span 13 states, comprised of 142 dispensaries and 13 cultivation and processing facilities with more than 1 million square feet of cultivation capacity
CHICAGO, July 26, 2024 (GLOBE NEWSWIRE) — Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced the opening of Zen Leaf Fairless Hills in Pennsylvania on Friday, July 26th, following a ceremonial ribbon cutting at 11 a.m. local time. Zen Leaf Fairless Hills is located at 203 Lincoln Highway and will be open Monday through Saturday from 9 a.m. to 8 p.m. and Sunday from 10 a.m. to 6 p.m. local time.
The dispensary is located in Bucks County, the fourth largest county in the Commonwealth with a total population of over 630,0002 residents. To increase accessibility and convenience, Zen Leaf Fairless Hills features large in-store kiosks and numerous point-of-sale stations to enhance the browsing and ordering experience for patients. To celebrate the grand opening of Zen Leaf Fairless Hills and following a ceremonial ribbon cutting, patients will be greeted with complimentary deals and doorbusters on featured branded products.
“We are excited to bring the Zen Leaf experience to local patients in Fairless Hills, where our talented team members will continue to deliver hospitality-driven care and top-quality products for local patients,” said George Archos, Verano Founder and Chief Executive Officer. “As the Pennsylvania medical cannabis patient population continues to grow, we are grateful for the opportunity to deepen our roots in Bucks County at our newest Zen Leaf location in the Commonwealth, and look forward to providing a warm and welcoming environment for current and future patients.”
Zen Leaf Fairless Hills adds another convenient outlet for Philadelphia area patients, and solidifies Verano’s footprint in the state as one of the Company’s 18 affiliated Pennsylvania dispensaries. Verano’s Pennsylvania operations also include a state-of-the-art 62,000 square foot cultivation and processing facility in Chester, where the Company produces its signature Verano Reserve flower and Troches, concentrates and vapes; (the) Essence and Savvy flower and extracts; and Avexia RSO cannabis oil and topicals. For additional convenience and accessibility, patients can choose to order ahead at ZenLeafDispensaries.com for express in-store pickup.
About Verano
Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), one of the U.S. cannabis industry’s leading companies based on historical revenue, geographic scope and brand performance, is a vertically integrated, multi-state operator embracing a mission of saying Yes to plant progress and the bold exploration of cannabis. Verano provides a superior cannabis shopping experience in medical and adult use markets under the Zen Leaf™ and MÜV™ dispensary banners, including Cabbage Club™, an innovative annual membership program offering exclusive benefits for cannabis consumers. Verano produces a comprehensive suite of high-quality, regulated cannabis products sold under its diverse portfolio of trusted consumer brands including Verano™, (the) Essence™, MÜV™, Savvy™, BITS™, Encore™, and Avexia™. Verano’s active operations span 13 U.S. states, comprised of 13 production facilities with over 1,000,000 square feet of cultivation capacity. Learn more at Verano.com.
Contacts:
Media
Verano
Steve Mazeika
VP, Communications
Steve.Mazeika@verano.com
Investors
Verano
Julianna Paterra, CFA
VP, Investor Relations
Julianna.Paterra@verano.com
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans, strategies, or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “future”, “scheduled”, “estimates”, “forecasts”, “projects,” “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein, including, without limitation, the risk factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2023, its quarterly report on Form 10-Q for the quarter ended March 31, 2024 and any subsequent quarterly reports on Form 10-Q, in each case, filed with the U.S. Securities and Exchange Commission at www.sec.gov. The Company makes no assurances and cannot predict the outcome of all or any part of the on-going litigation with Goodness Growth referenced in this press release, including whether the Company will prevail on its Notice of Application and its counterclaim, or whether Goodness Growth will prevail on its claim for damages against the Company. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information or forward-looking statements that are contained or referenced herein, except as may be required in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice regarding forward-looking information and statements.
###
1 Pennsylvania Department of Transportation
2 United States Census Bureau
Cannabis
Unlocking New Horizons in Health: TNR, The Niche Research Reveals the Transformative Power of Minor Cannabinoids
![](https://grassnews.net/wp-content/uploads/2024/07/unlocking-new-horizons-in-health-tnr-the-niche-research-reveals-the-transformative-power-of-minor-cannabinoids.gif)
Wilmington, Delaware, July 25, 2024 (GLOBE NEWSWIRE) — Minor cannabinoids refer to the lesser-known compounds found in the cannabis plant, distinct from the well-known THC (tetrahydrocannabinol) and CBD (cannabidiol). While THC and CBD dominate the market, minor cannabinoids such as CBG (cannabigerol), CBC (cannabichromene), and CBN (cannabinol) are gaining attention for their potential therapeutic benefits. These compounds are extracted from both marijuana and hemp plants, with varying legal restrictions depending on their THC content. The minor cannabinoids market is poised for significant growth, driven by increasing consumer awareness and demand for alternative health and wellness products. As regulatory environments around cannabis products evolve, companies are exploring the potential of minor cannabinoids in various applications, including pharmaceuticals, nutraceuticals, cosmetics, and food and beverages.
Minor cannabinoids are being researched for their potential therapeutic effects, including anti-inflammatory, analgesic, and neuroprotective properties. This versatility facilitates product diversification in various industries. Companies are investing in research and development to create novel formulations and delivery methods for minor cannabinoids. This includes nano-emulsions, encapsulation technologies, and controlled-release systems to enhance bioavailability and efficacy. For example, in January 2022, CBDA + CBGA Tincture a new product was launched by Hometown Hero CBD. This 30ml tincture contains 600mg each of CBGA, CBDA, CBG, and CBD. Derived from hemp, the cannabinoids in this tincture comply with legal requirements across all 50 states in the USA. There is an increasing consumer preference for natural as well as plant-based remedies, which in turn is driving the demand for cannabinoid-infused products. This trend is particularly strong among younger demographics seeking alternatives to traditional pharmaceuticals. Evolving regulatory frameworks, particularly in regions like North America and Europe, are creating opportunities for legal market expansion. Regulatory clarity is crucial for market participants to navigate compliance and market entry.
Global Minor Cannabinoids Market: Key Datapoints
Market Value in 2023 |
US$ 17.8 Bn |
Market Value Forecast by 2034 |
US$ 42.3 Bn |
Growth Rate
|
8.2% |
Historical Data
|
2016 – 2022 |
Base Year
|
2023 |
Forecast Data
|
2024 – 2034 |
Increasing consumer interest in health and wellness products, coupled with the perceived therapeutic benefits of cannabinoids, is a major driver of market growth. Progressive cannabis legalization in various parts of the world, including the United States and parts of Europe, is expanding the addressable market for minor cannabinoids. Significant investments in research and development by pharmaceutical and biotechnology companies are accelerating product innovation and clinical trials. The market remains fragmented with opportunities for new entrants and niche players to introduce specialized products catering to specific consumer needs.
The COVID-19 pandemic initially disrupted supply chains and retail channels for minor cannabinoids products. However, the crisis also underscored the importance of health and wellness, leading to increased interest in natural remedies, including cannabinoids. As economies recover, the market is expected to rebound stronger.
The geopolitical tensions, such as the Russia-Ukraine conflict, have also affected global markets, including the minor cannabinoids sector. Fluctuating currency values, supply chain disruptions, and geopolitical uncertainty have impacted production and distribution channels. However, the long-term impact will depend on geopolitical developments and their influence on global trade and regulatory environments.
The minor cannabinoids market presents significant opportunities for growth and innovation, driven by evolving consumer preferences, regulatory advancements, and expanding research initiatives. Companies that can navigate regulatory complexities, invest in research and development, and respond to shifting consumer trends are well-positioned to capitalize on this emerging market. As the market matures, collaboration across sectors and regions will be crucial in unlocking the full potential of minor cannabinoids in various industries worldwide.
Global Minor Cannabinoids Market: Key Takeaways of the Report
- Cannabigerol (CBG) segment by product type is expected to grow at a CAGR of 6.7% in the minor cannabinoids market due to increasing research highlighting its potential therapeutic benefits, including anti-inflammatory, antimicrobial, and neuroprotective properties. As consumer awareness grows and regulatory environments become more favorable, there is heightened interest in CBG-based products for their diverse health applications, ranging from skincare to pharmaceutical formulations, driving sustained market demand and expansion.
- Pharmaceutical segment by application, leads the minor cannabinoids market with a significant revenue share of 35.8% owing to growing recognition of cannabinoids’ potential in therapeutic applications. Cannabinoids like CBD, CBG, and others show promise in treating conditions such as epilepsy, chronic pain, and anxiety disorders, backed by increasing clinical research and favorable regulatory developments. Pharmaceutical companies are investing heavily in cannabinoid-based drug development, driving market growth as they seek to capitalize on these compounds’ efficacy and market potential in addressing unmet medical needs.
- In 2023, Latin America is anticipated as fastest growing region in the global minor cannabinoids market due to evolving regulatory landscapes favoring cannabis legalization and cultivation. This shift is fostering a burgeoning industry infrastructure for cannabis extraction and product development. Additionally, increasing consumer acceptance of cannabinoid-based products for medicinal and wellness purposes is driving market expansion. With a vast potential consumer base and supportive regulatory frameworks, Latin America presents significant growth opportunities for companies seeking to enter or expand within the minor cannabinoids market.
Key Development:
- In December 2023, Rare Cannabinoid Company introduced Uplift Gummies infused with THC and THCV. These gummies combine the relaxing properties of Delta-9-THC with the energizing and appetite-controlling effects of CBD and THCV.
- In October 2022, High Tide Inc., a cannabis retailer, announced that its Colorado-based subsidiary, NuLeaf Naturals, had launched plant-based softgels and full-spectrum multicannabinoid oil in Manitoba. The products feature CBC, CBD, CBG, Delta-9 tetrahydrocannabinol (Delta 9), and CBN.
Browse Related Category Reports
Global Minor Cannabinoids Market:
- Aurora Europe GmbH
- BulKanna
- CBD. INC.
- Fresh Bros Hemp Company
- GCM Holdings, LLC (Global Cannabinoids)
- GenCanna.
- High Purity Natural Products.
- Laurelcrest
- Mile High Labs
- PBG Global
- Rhizo Sciences
- ZERO POINT EXTRACTION, LLC
- Other Industry Participants
Global Minor Cannabinoids Market
By Product Type
- Cannabigerol (CBG)
- Cannabichromene (CBC)
- Cannabinol (CBN)
- Cannabidivarin (CBDV)
- Tetrahydrocannabutol (THCB)
- Tetrahydrocannabivarin (THCV)
- Tetrahydrocannabiphorol (THCP)
- Others
By Application
- Pharmaceutical
- Pain Management
- Mental Health
- Sleep Disorders
- Anti-inflammatory
- Others
- Nutraceuticals
- Cosmetics and Personal Care
- Food and Beverages
- Others
By Region
- North America (U.S., Canada, Mexico, Rest of North America)
- Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
- Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
- Latin America (Brazil, Argentina, Rest of Latin America)
Consult with Our Expert:
Jay Reynolds
The Niche Research
Japan (Toll-Free): +81 663-386-8111
South Korea (Toll-Free): +82-808- 703-126
Saudi Arabia (Toll-Free): +966 800-850-1643
United Kingdom: +44 753-710-5080
United States: +1 302-232-5106
Email: askanexpert@thenicheresearch.com
Website: www.thenicheresearch.com
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