Is Qlik Technologies a Good Investment?

Statistical deductions not being an exact science, a caveat must be introduced to the magnitude of impact that digitalization has levered on society. Nevertheless, chances are that at some point in your daily or weekly routine, you have interfaced with the mechanizations of next-generation technologies, be that communication protocols, cloud computing or augmented reality platforms.

But the underlying ecosystem that imbues potentially exponentially greater utility to these mechanisms is artificial intelligence (AI). Through the distribution of smart applications, future technologies don’t have to operate in individually exclusive silos. Rather, they can connect with each other and develop appropriate guidance for human operators, thus promoting broader positive outcomes.

Though the field of utilitarian AI is rapidly expanding, Zachary Lipton, an assistant professor at Carnegie Mellon University, laments regarding the industry’s evolution that it’s “getting harder and harder to distinguish what’s a real advance and what is snake oil.”

In other words, “the technology still has significant limitations. Many deep-learning models only work well when fed vast amounts of data, and they often struggle to adapt to fast-changing real-world conditions,” according to MIT Technology Review.

However, this conundrum is an area that Qlik Technologies Inc. seeks to address, at least in the realm of business analytics software. With a rumored new listing coming soon, prospective investors can prepare their assessment regarding its viability.

What Does Qlik Technologies Do?

Referenced as a software provider in the business analytics industry, Qlik Technologies recognizes the myriad gaps that develop between a litany of data points and the ultimate decision-making processes. Like the field of statistics, the output can only be as good as the input. In other words, the meme “garbage in, garbage out” carries substantial insight beyond a cheap laugh.

To effectively transition mere verbiage to wisdom, the software specialist deploys what’s known as the Qlik Active Intelligence Platform. Rather than rifling through a library of legacy data that may or may not impart relevance to current dynamics, Qlik’s active AI parses data collected in real time, catalyzing sound tactical information that can facilitate empowered and effective decisions.

Commanding relevance across any industry that utilizes digital technologies, Qlik generates revenue through the key functions below:

• Finance analytics: Per its website, Qlik “synthesizes disparate financial and accounting data into powerful financial analytics that help you reduce costs and manage risks, improve profitability and transparency and guide more informed decisions.”
• IT analytics: Qlik boosts the value of business data by closing “the gaps between data, insights and action for users across your organization with the only end-to-end solution for data integration and analytics.”
• HR and people analytics: The software provider ensures greater organizational success through modernizing and automating talent acquisition, as well as “confidently” predicting the impact of structural changes.
• Marketing analytics: Through mass data collection and intelligent pattern recognition, the company provides actionable insights that improve the return on investment of various marketing initiatives.
• Sales analytics: Going beyond the capabilities of legacy customer relationship management (CRM) services, the Qlik platform enables sales teams to quickly assess both current and historical data to promote relevant action items.
• Supply chain analytics: Because of the complexities of global supply chain processes, Qlik’s intelligence-driven solution enables demand and production planning, minimizing both overhead and opportunity costs.

As you might imagine, multiple industries use the Qlik platform, from retail to healthcare to the energy and utilities sectors. In addition, Qlik partners with leading tech firms Amazon.com Inc. (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOG, NASDAQ: GOOGL), Microsoft Corp. (NASDAQ: MSFT), Snowflake Inc. (NYSE: SNOW) and SAP (NYSE: SAP).

When is the Qlik Technologies IPO Date?

One of the more highly anticipated market debuts as rumors started to circulate last year, Qlik Technologies has not yet revealed detailed plans regarding its initial public offering (IPO), or the first time a private firm releases its equity shares to retail investors. Therefore, those looking for a specific date on the IPO calendar — or even mundane details like exchange listing or ticker symbol — will have to wait a bit longer.

Still, what investors do know is that in January of this year, Qlik announced that it confidentially filed an IPO prospectus with the U.S. Securities and Exchange Commission (SEC). While the private nature of the placeholding prevents analysts from pouring over the granularity of the offering — companies often file confidentially to prevent sensitive information from public dissemination until they are ready to reveal it — it does signal serious intent.

Interestingly, the filing is not Qlik’s first rodeo in the public arena. Originally, the cloud-based analytics firm launched a successful IPO in 2010 and traded on the Nasdaq exchange until August 2016, when private-equity firm Thoma Bravo — which specializes in tech-driven acquisitions — bought out the company in a transaction worth nearly $3 billion.

An enticing IPO because of its relevance, prospective investors must still conduct thorough due diligence to decide whether Qlik belongs in their portfolio. On the positive side, Qlik’s services should only grow in pertinence. Since modern societies have already crossed the Rubicon in their digitalization endeavors, more than likely, business intelligence mechanisms will only rise in complexity.

Therefore, data analytics and CRM platforms will not only need to keep pace with the raw velocity of innovation, they must increasingly connect the dots between disparate components of the broader tech machinery lest they operate inefficiently in seclusion. Put another way, cohesiveness is becoming the name of the game, which happens to be Qlik’s core attribute.

On the other side of the equation, current geopolitical tensions appear to only be on the path toward greater escalation, which has sent shockwaves to benchmark equity indices after a period of relative resilience. Now, breaking news indicates that President Joe Biden banned Russian energy imports, a move that will likely anger an already furious and embattled Moscow.

Unsurprisingly, the IPO calendar — which represented a record-breaking hub of activity in 2020 and 2021 — is now quiet as everyone digests the wider implications of this global paradigm shift.

What Analysts are Saying About Qlik Technologies IPO

Since Qlik filed its Form S-1 confidentially, not much hard data is available to dissect; hence, analysts are keeping their cards close to their chest. However, it’s not impossible to theorize what they might say following the S-1’s public disclosure.

On the bullish angle, analysts will zero in on the massive footprint that the company accrued since Thoma Bravo took ownership of the business. Today, Qlik commands an enviable Rolodex that extends out to 38,000 names, including powerhouse brands like PayPal Holdings Inc. (NASDAQ: PYPL) and BP (NYSE: BP). With the software provider essentially backstopping so many critical enterprises, it’s very possible that its IPO could attract early hype.

Further, according to information by ResearchAndMarkets.com, the global big data and business analytics market could reach $448 billion by 2027, representing a compound annual growth rate (CAGR) of 13% using 2021 as the anchor point.

On the other hand, bearish analysts will be leery about the valuation of Qlik Technologies. Suffice to say, the hype surrounding the company suggests that its equity shares will not be offered at an attractive discount.

Also, investors must read the room regarding economic viability. Soaring consumer inflation, which was already a problem before the geopolitical flashpoint in Ukraine, will almost surely worsen, particularly with President Biden’s recent announcement. Thus, risk-on assets do not look attractive at this juncture.

Qlik Technologies Financial History

According to The Philadelphia Inquirer, during the initial period when Qlik shares traded publicly on the Nasdaq — 2010 to 2016 — the company’s annual revenue topped out at $500 million. Since then, Qlik has revealed that sales have continued rising and that the business is profitable. However, because the software specialist hasn’t posted financial data since going private, it’s difficult to properly assess the numbers.

Still, best estimates indicate that Qlik is on pace to generate $750 million in revenue for 2022 on the backs of 50,000 enterprise-level clients. If so, in combination with the company’s alleged profitability, the upcoming IPO could be of interest for tech-focused investors. However, a final decision should be saved until management discloses its S-1.

Qlik Technologies Potential

To be fair, Qlik Technologies is a balancing act. Because of rising interconnectivity between industries and digitalization, advanced intelligent solutions will be necessary to make sense of the madness. However, business analytics is a competitive arena, so prospective buyers must ensure that whatever premium Qlik stock commands makes sense according to their risk-reward profile.

Where to Buy Qlik Technologies IPO Stock

Those interested in acquiring Qlik have a few options. First, you can wait until the company distributes shares in the open market, necessitating knowing how to buy stocks. Second, you can take a shot at applying for pre-IPO shares or buying securities at their initial offering price.

Either way, you must have a brokerage account to participate in capital offerings. Below is a list of best brokers for your consideration.

Qlik Technologies Restrictions for Retail Investors

Review the Financial Industry Regulatory Authority (FINRA) rules on restricted persons before participating in an IPO. Don’t engage if you have privileged information.

Qlik Technologies Pre-IPO

If you want to acquire shares at the pre-IPO price, you can contact EquityZen for more information. Please note that not all public offerings are guaranteed to enjoy an “IPO pop,” or the phenomenon where new shares jump higher on opening day due to market hype.