Qlik Sense Drives Qlik’s Strong Q2’16 Results
Qlik Technologies (NYSE:QLIK) posted its Q2’16 results on July 28th. The company reported strong Q2’16 earnings, exceeding its own guidance by a considerable margin. A key driver was Qlik Sense, as sales of this product were boosted by the launch of Qlik Sense 3.0 in the quarter. With its user friendly approach, Qlik Sense has managed to grab the attention of users around the world. Paired with Qlik View, it has helped Qlik land deals with big players like Wipro, Arcteryx and Keyrus. Given its continuing innovation in areas like cloud, data Visualization and advance data discovery features, we believe that Qlik will continue to report higher revenue growth in second half of 2016.
See our complete analysis for Qlik
Quick Review of Q2’16 Earnings
- What’s In The Box For Qlik As Thoma Bravo Completes Qlik Acquisition?
- Continued Innovation and New Partnerships to Drive Qlik’s Q2’16 Revenues
- Here’s Why We Are Revising Our Price Estimate of Qlik From $36 to $28
- Qlik Sense’s Success and Domestic Market Drove Qlik’s Revenue Expansion in Q4
- Here’s Why The Recent Drop in Qlik’s Share Price is Unwarranted
- Qlik’s Growth Slowed in Q3, But Near Term Outlook Remains Strong
Qlik’s adjusted operating profit has increased significantly indicating the increased efficiency of its operations and successful cost cutting through lesser headcount intake. All the three divisions continued to perform better than the previous year. Licensing revenue division turned out to be a leader with the most drastic growth, which shows an increasing interest in Qlik’s products throughout the world. The most encouraging factor is that Qlik’s 50% revenues came from Europe, and despite the strengthening US Dollar against Euro, it managed to see around 20% increase in revenue from the region. The company said it also benefited from ‘Qonnections’, its first combined customer and partner conference [1] In addition, it saw better than expected results from Asia Pacific. This can be attributed to the fact that emerging markets in Asia Pacific are not yet saturated and growing number of businesses are turning to business analytics and big data to improve their efficiency.
Increasing Number of Deals Signalling Growth
Qlik has managed to increase the number of its million dollar deals by around 50% y-o-y. Similarly, deals over $100 thousand and $250 thousand have also seen a remarkable rise. This reaffirms our belief that company’s product line is strong enough to support both its top-line and bottom-line.
Qlik to be Acquired by Thoma Bravo
- In June, a private equity firm Thoma Bravo agreed to acquire Qlik in an all cash deal for $3 billion at a price of $30.50 per share. The deal is expected to close by third quarter of 2016.
- This deal came after a $27 billion hedge fund, Elliott Management Corp bought a 10.8% share in Qlik earlier this year, and then advocated the sale of the company.
- Though many analysts are saying that this is a low buyout deal as they were expecting the company to be valued higher (Reuters), but according to the company’s management, this deal will allow them the flexibility to execute their plans better. [2]
- Given that Qlik has seen a massive growth in second quarter, the better resources provided from this deal can help Qlik to turn its net losses into profits as the company can expand its customer base faster across more geographies. Also, the company will get the leverage to spend more on R&D and innovations, which indirectly can affect the sales and bottom-line of the company positively.
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