Continued Innovation and New Partnerships to Drive Qlik’s Q2’16 Revenues
Qlik (NYSE:QLIK), one of the leaders in the Business Intelligence and Analytics market, is expected to release its Q2 2016 earnings report at the end of this month. The company has seen a double digit year-to-year growth in its top-line over the past few years and the trend continued in Q1 2016 as well. For the March quarter, the company reported a 15% increase in revenue compared to Q1 2015. Qlik’s growth can be largely attributed to its expanding customer base, which has more than doubled over the last five years. The recent innovations in QlikSense, Cloud, Data Discovery and Visualization, have enabled Qlik to crack deals and partnerships with Wipro, Arc’teryx, DocuSign and Keyrus, which we believe will help Qlik further increase its customer base going forward.
Qlik has guided to strong double-digit top line growth in Q2 2015, though adverse currency headwinds, especially from its operations in Europe and Asia Pacific, might offset some of this growth. Qlik has been reducing its headcount intake to control costs, and the moderate hiring profile is expected to improve margins. The company has estimated that there would be a 200 to 250 basis points increase in its operating margin in Q2 2016.
Qlik is in process of being acquired by the Private Equity firm Thoma Bravo for $3 Billion, or $30.50 per share, in an all cash transaction. The deal came in the wake of a sizable investment in the company in early March by Elliott Management, which then advocated the sale of the company. The deal is expected to close by the end of third quarter. According to many analysts, this is a low buyout value deal which is not very exciting for the Business Intelligence sector (Reuters).
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See our complete analysis for Qlik
Innovation and New Partnerships to Increase Qlik’s Customer Base
- Qlik Sense, launched in September 2014, has seen an overwhelming response from users due to its ease of use and low data management requirement. Much of the increase in Qlik’s customer base last year, from 34,000 in 2014 to 38,000 in 2015, can be attributed to the launch of Qlik Sense.
- To give a push to its presence in cloud, Qlik acquired Industrial Code Box in April earlier this year. Qlik Sense cloud is already gaining great popularity among users, crossing 50,000 registered users in more than 100 countries in the first year of operation.
- The rising adoption of Qlik Sense should continue to expand the customer base going forward as well.
- Additionally, Qlik View’s advance data discovery features should also continue to support its customer base growth this year.
- In Q2 2016, Qlik landed deals with big players like Arc’teryx, Docusign and Wipro to include tools like Qlik Sense and Qlik View in their BI platforms.
- Qlik and its partner Keyrus have agreed to expand their global strategic partnership. This can be a further boon for Qlik’s worldwide presence and customer base.
- Last month, the company launched Qlik Sense 3.0, which is the seventh upgrade to this software since its launch in 2014.
