Jefferies analyst John DiFucci said Splunk reported "very strong" Q2 results and gave Q3 guidance that was above consensus, but the company's cash flow guidance cut "may keep a lid on the stock...for now." The $550M net negative swing in operating cash flow guidance is due to a faster than expected transition to a purely renewable mix as perpetual licenses will be only about 1% of Software bookings by year-end and a much lower expected percentage of upfront cash collections for term and cloud deals, explained DiFucci, who believes a new pricing framework will drive greater use and sales for Splunk over time. He maintains a Buy rating and $157 price target on Splunk shares.