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Summit Views Qlik's Results, Guidance As 'Solid'; Reiterates Buy

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Shares of Qlik Technologies Inc (NASDAQ: QLIK) climbed more than 3 percent following its strong quarterly results, which Summit Research termed as "solid" while reiterating its Buy rating on the enterprise software maker.

The company's adjusted loss per share of $0.09 topped Street view of negative $0.12 and revenue grew 15 percent to $138 million, handsomely beating consensus estimate of $134.4 million.

Qlik completed 98 deals with license and first year maintenance over $100,000 in the first quarter of 2016, including 30 deals over $250,000 and five deals over $1 million. In the same period last year, the company completed 88 deals over $100,000, including 17 deals over $250,000 and 3 deals over $1 million in the prior year period.

Qlik said it generated 74 percent of license and first year maintenance billings from existing customers in the first quarter of 2016, compared to 66 percent in the prior year period.

"We always believed Qlik's strategy around building a platform (not just a visualization tool) is the winning strategy, and we are seeing glimmers of its success," analyst Srini Nandury wrote.

The company sees second quarter non-GAAP EPS of 0.01 to $0.03 on revenue of $164.0 million to $168.0 million. Qlik also raised its 2016 non-GAAP EPS and revenue outlook to $0.42 to $0.45 and $704.0 million to $714.0 million. The previous guidance was for EPS of $0.41 to $0.44 on revenue of $695 million to $705 million.

The analyst also raised his 2016 EPS estimate by $0.04 to $0.45 and revenue forecast by $10 million to $710 million.

Related Link: Macquarie Sees Qlik Technologies As The Top Mid Cap Pick In Enterprise Software Group

Qlik, which is exploring strategic options, is said to have received preliminary offers from private equity firms Thoma Bravo, Bain Capital and Permira, according to a report on Bloomberg.

The company's key product is Qlik Sense and Nandury expects Qlik Sense to drive over 50 percent of the growth by the year end. Currently, the growth is around 25 percent.

"We have heard of anecdotal evidence that Qlik Sense is being increasingly evaluated as a broad platform given its governance, self-service visualization and the ability to do complex analysis. Choppy execution is still worrisome, but we still believe Qlik is the next generation BI technology to own," Nandury noted.

Nandury raised the price target by $5 to $40 on Qlik shares.

Latest Ratings for QLIK

DateFirmActionFromTo
Sep 2016Roth CapitalAssumesBuy
Aug 2016Brean CapitalTerminatesHold
Aug 2016BarclaysTerminatesOverweight

View More Analyst Ratings for QLIK
View the Latest Analyst Ratings

Posted-In: Srini Nandury SummittAnalyst Color Price Target Reiteration Analyst Ratings

 

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