Goldman Sachs analyst Kevin Kumar called it "a busy" second fiscal quarter for Splunk, noting the company's revenue outperformance, $550M reduction in cash flow guidance and deal to acquire SignalFx. Despite the major headwind to FY20 cashflow it will cause, he was encouraged to see that Splunk has accelerated its transition from perpetual to license, said Kumar. The analyst, who said he is willing to look past the timing related headwinds to cash flow from the license shift, also said he believes the proposed acquisition of SignalFx should fill key gaps in Splunk's current portfolio. He raised his FY20/21 revenue estimates and increased his price target on Splunk shares $131 from $119 following last night's news, but keeps a Neutral rating on the stock.