RADNOR, Pa.–(BUSINESS WIRE)–
Qlik Technologies Inc. (“QlikTech”) (QLIK), a leader in Business
Discovery — user-driven Business Intelligence (BI), today announced
financial results for the second quarter ended June 30, 2012.
Lars Björk, Chief Executive Officer of QlikTech, stated, “Our second
quarter results were impacted by the challenging macroeconomic
environment and as a result, we fell short of our expectations. Despite
that, we were still able to post solid growth on a constant currency
basis across all our sales territories, even in Europe.” Björk added,
“Given the broader business environment, we are adapting our sales
execution in order to achieve continued growth, and we remain confident
in our market opportunity, competitive position, and the proven ROI
QlikView delivers to our customers.”
Financial Highlights for the Second Quarter Ended June 30, 2012
Total revenue for the second quarter of 2012 was $85.8 million, an
increase of 16% year-over-year and 24% year-over-year on a constant
currency basis. License revenue was $50.0 million, an increase of 10%
year-over-year and 18% year-over-year on a constant currency basis.
Maintenance revenue was $28.6 million, an increase of 31% year-over-year
and 41% year-over-year on a constant currency basis. Professional
services revenue was $7.2 million, an increase of 4% year-over-year and
11% year-over-year on a constant currency basis.
GAAP loss from operations for the second quarter of 2012 was ($2.4)
million, compared to GAAP loss from operations of ($3.6) million for the
second quarter of 2011. GAAP net loss was ($2.0) million, or ($0.02) per
basic and diluted common share, compared to a GAAP net loss of ($2.7)
million or ($0.03) per basic and diluted common share, in the second
quarter of 2011.
Non-GAAP income from operations, which excludes stock-based
compensation, employer payroll taxes on stock transactions and lease
termination costs, was $2.4 million for the second quarter of 2012,
compared to non-GAAP income from operations of $1.4 million for the
second quarter of 2011. Non-GAAP net income, which also assumes a 32%
estimated long-term effective tax rate, was $1.7 million for the second
quarter of 2012, compared to non-GAAP net income of $1.2 million for the
second quarter of 2011. Non-GAAP net income per diluted common share for
the second quarter of 2012 was $0.02, compared to non-GAAP net income
per diluted common share of $0.01 for the second quarter of 2011.
GAAP and non-GAAP net income (loss) for the second quarter of 2012
include a $0.1 million foreign exchange gain, compared to a foreign
exchange gain of $0.4 million in the prior year period.
The tables at the end of this press release include a reconciliation of
GAAP to non-GAAP income (loss) from operations and net income (loss) for
the three and six months ended June 30, 2012 and 2011. An explanation of
these and other measures, including constant currency comparisons, is
also included below under the heading “Non-GAAP Financial Measures.”
Cash and cash equivalents grew to $195.1 million on June 30, 2012, an
increase of $17.7 million compared to $177.4 million on December 31,
2011. For the six months ended June 30, 2012, net cash provided by
operating activities was $29.3 million, compared to $12.2 million for
the six months ended June 30, 2011.
Other Second Quarter and Recent Business Highlights:
-
Revenue in the Americas was $28.9 million, up 27% over the prior year
period and representing 34% of total revenue. European countries
generated $48.7 million in revenue, up 9% over the prior year period
and representing 57% of total revenue. Rest of World revenue was $8.2
million, up 25% over the prior year period and representing 9% of
total revenue. -
On a constant currency basis, revenue in the Americas increased 30%
over the prior year period, European revenue increased 20% over the
prior year period, and revenue from Rest of World increased 32% over
the prior year period. -
Ended the second quarter of 2012 with an active customer count of
approximately 26,000. -
Added new customers during the second quarter including Bell
Helicopter, Columbia University, For Eyes Optical, Moen Incorporated,
Nationwide Mutual Insurance, and New York City Department of Design
and Construction. -
Expanded numerous customer engagements globally through our land and
expand strategy including Allina Health System, Inc., Belgacom, Biogen
Idec, BNP Paribas, Canon Europa NV, City of Melbourne, Lenovo
(Deutschland) GmbH, Edwards Life Sciences Corporation, Mentor
Graphics, Monsanto Company, Pandora A/S, RWE IT GmbH, Sunovion
Pharmaceuticals Inc., Vodafone D2 GmbH and Xerox India. -
Acquired Expressor Software’s data management solution to help
facilitate the expansion of QlikView deployments so that more people
in an organization can have the data they need to make better
decisions and IT can have confidence in the data they use. -
Joined the Google Cloud Platform Partner Program as a Technology
Partner. QlikTech enables customers and partners to build Business
Discovery solutions that take advantage of the computing power and
scalability of Google’s Cloud Platform. -
Announced that all of the top twenty financial services institutions
based in North America and Europe use the QlikView Business Discovery
Platform.
Business Outlook
Based on information available as of July 26, 2012, QlikTech is issuing
guidance for the third quarter and full year 2012 as follows:
Third Quarter 2012: The company expects total revenue for the
third quarter to be in the range of $87.0 million to $90.0 million,
non-GAAP income from operations to be in the range of $3.0 million to
$5.0 million and non-GAAP net income per diluted common share to be in
the range of $0.02 to $0.04. QlikTech’s expectations of non-GAAP income
from operations and non-GAAP net income per diluted common share for the
third quarter exclude stock-based compensation expense, employer payroll
taxes on stock transactions, and amortization of intangible assets and
assume an estimated long-term effective tax rate of 32% and weighted
average shares outstanding of approximately 88 million.
Full Year 2012: The company expects 2012 total revenue to be in
the range of $376.0 million to $386.0 million, non-GAAP income from
operations to be in the range of $42.0 million to $47.0 million and
non-GAAP net income per diluted common share to be in the range of $0.31
to $0.35. QlikTech’s expectations of non-GAAP income from operations and
non-GAAP net income per diluted common share for the full year exclude
stock-based compensation expense, employer payroll taxes on stock
transactions, and amortization of intangible assets and assume an
estimated long-term effective tax rate of 32% and weighted average
shares outstanding of approximately 88 million.
QlikTech’s expectations of total revenue, non-GAAP income from
operations and non-GAAP income per diluted common share for the third
quarter and full year 2012 assume that foreign currency exchange rates
for the third quarter and full year 2012 will approximate current
exchange rates.
Conference Call and Webcast Information
QlikTech will host a conference call on July 26, 2012, at 5:00 p.m.
Eastern Time (ET) to discuss the company’s second quarter 2012 financial
results and its business outlook. To access this call, dial 877-312-5507
(domestic) or 253-237-1134 (international). A replay of this conference
call will be available until August 2, 2012 at 855-859-2056 (domestic)
or 404-537-3406 (international). The replay pass code is 99555729. A
live web cast of this conference call will also be available under the
“Events Presentations” section on the company’s investor relations
website at http://investor.qlikview.com,
and a replay will be archived on the website as well.
Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in
accordance with generally accepted accounting principles, or GAAP,
QlikTech uses measures of non-GAAP income (loss) from operations,
non-GAAP net income (loss), non-GAAP net income (loss) per basic and
diluted common share and constant currency. A reconciliation of these
non-GAAP financial measures to the closest GAAP financial measure, is
presented in the financial tables below under the headings
“Reconciliation of Non-GAAP Measures to GAAP” and “Reconciliation of
Non-GAAP Revenue to GAAP Revenue.” QlikTech believes that the non-GAAP
financial information provided in this release can assist investors in
understanding and assessing QlikTech’s on-going core operations and
prospects for the future and provides an additional tool for investors
to use in comparing QlikTech’s financial results with other companies in
QlikTech’s industry, many of which present similar non-GAAP financial
measures to investors. In addition, QlikTech believes that these
non-GAAP financial measures are useful to investors because they allow
for greater transparency into the indicators used by management as a
basis for its internal budgeting and operational decision making.
For the three and six months ended June 30, 2012 and 2011, non-GAAP
income (loss) from operations is determined by taking loss from
operations and adding back non-cash stock-based compensation expense,
employer payroll taxes on stock transactions, and lease termination
costs. Non-GAAP net income (loss) is determined by taking loss before
benefit for income taxes and adding back non-cash stock-based
compensation expense, employer payroll taxes on stock transactions, and
lease termination costs and the result is tax affected at an estimated
long-term effective tax rate of 32%.
QlikTech believes these adjustments provide useful information to both
management and investors due to the following factors:
-
Stock-based compensation. Although stock-based
compensation is an important aspect of the compensation of QlikTech’s
employees and executives, determining the fair value of the
stock-based instruments involves a high degree of judgment and
estimation and the expense recorded may bear little resemblance to the
actual value realized upon the future exercise or termination of the
related stock-based awards. Furthermore, unlike cash compensation, the
value of stock-based compensation is determined using a complex
formula that incorporates factors, such as market volatility, that are
beyond QlikTech’s control. Management believes it is useful to exclude
stock-based compensation in order to better understand the long-term
performance of QlikTech’s core business and to facilitate comparison
of its results to those of peer companies. -
Employer payroll taxes on stock transactions. The amount
of employer payroll taxes on stock transactions is dependent on
QlikTech’s stock price and other factors that are beyond QlikTech’s
control and do not correlate to the operation of its business. -
Lease termination costs. Lease termination costs include
termination costs to settle lease obligations related to facilities
which are no longer occupied as well as the write-off of leasehold
improvements related to those facilities that are no longer in use.
Management believes that these costs are generally non-recurring and
do not correlate to the ongoing operation of its business.
To determine the revenue growth rates on a constant currency basis for
the three and six months ended June 30, 2012, revenue from entities
reporting in foreign currencies was translated into U.S. dollars using
the comparable prior year period’s foreign currency exchange rates.
This press release includes forward-looking non-GAAP financial measures
under the heading “Business Outlook”. These non-GAAP financial measures
were determined by excluding stock-based compensation expense and
employer payroll taxes on stock transactions and assuming an estimated
long-term tax rate of 32%. We are unable to reconcile this non-GAAP
guidance to GAAP because it is difficult to predict the future impact of
these adjustments. In addition, these forward-looking non-GAAP financial
measures assume that foreign currency exchange rates for the third
quarter and full year 2012 will approximate current foreign currency
exchange rates.
The presentation of these non-GAAP financial measures is not intended to
be considered in isolation or as a substitute for results prepared in
accordance with GAAP. The principal limitation of these non-GAAP
financial measures is that they exclude significant elements that are
required by GAAP to be recorded in QlikTech’s financial statements. In
addition, they are subject to inherent limitations as they reflect the
exercise of judgments by management in determining these non-GAAP
financial measures. In order to compensate for these limitations,
management of QlikTech presents its non-GAAP financial measures in
connection with its GAAP results. Investors are encouraged to review the
reconciliation of our non-GAAP financial measures to their most directly
comparable GAAP financial measure. As previously mentioned, a
reconciliation of our historic non-GAAP financial measures to their most
directly comparable GAAP measures has been provided below.
About QlikTech
QlikTech (QLIK) is a leader in Business Discovery — user-driven
Business Intelligence (BI). QlikTech’s powerful, accessible Business
Discovery solution bridges the gap between traditional business
intelligence solutions and standalone office productivity applications.
Its QlikView Business Discovery platform enables intuitive user-driven
analysis that can be implemented in days or weeks rather than months,
years, or not at all. The in-memory associative search technology it
pioneered allows users to explore information freely rather than being
confined to a predefined path of questions. QlikView Business Discovery
works with existing BI applications and adds new capabilities: insight
for everyone, zero-wait analysis, mobility, an app—like model,
remixability and reassembly, and a social and collaborative experience.
Headquartered in Radnor, Pennsylvania, QlikTech has offices around the
world serving approximately 26,000 customers in over 100 countries.
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements, including, but
not limited to, statements regarding the value and effectiveness of
QlikTech’s products, the introduction of product enhancements or
additional products and QlikTech’s growth, expansion and market
leadership, that involve risks, uncertainties, assumptions and other
factors which, if they do not materialize or prove correct, could cause
QlikTech’s results to differ materially from those expressed or implied
by such forward-looking statements. All statements, other than
statements of historical fact, are statements that could be deemed
forward-looking statements, including statements containing the words
“predicts,” “plan,” “expects,” “anticipates,” “believes,” “goal,”
“target,” “estimate,” “potential,” “may”, “will,” “might,” “momentum,”
“could,” “seek,” and similar words. QlikTech intends all such
forward-looking statements to be covered by the safe harbor provisions
for forward-looking statements contained in Section 21E of the Exchange
Act and the Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from those projected in such statements
due to various factors, including but not limited to: risks and
uncertainties inherent in our business; our ability to attract new
customers and retain existing customers; our ability to effectively
sell, service and support our products; our ability to manage our
international operations; our ability to compete effectively; our
ability to develop and introduce new products and add-ons or
enhancements to existing products; our ability to continue to promote
and maintain our brand in a cost-effective manner; our ability to manage
growth; our ability to attract and retain key personnel; currency
fluctuations that affect our revenues and costs; the scope and validity
of intellectual property rights applicable to our products; adverse
economic conditions in general and adverse economic conditions
specifically affecting the markets in which we operate; and other risks
more fully described in QlikTech’s publicly available filings with the
Securities and Exchange Commission. Past performance is not necessarily
indicative of future results. The forward-looking statements included in
this press release represent QlikTech’s views as of the date of this
press release. QlikTech anticipates that subsequent events and
developments will cause its views to change. QlikTech undertakes no
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. These forward-looking statements should not be relied upon as
representing QlikTech’s views as of any date subsequent to the date of
this press release.
QlikTech and QlikView are trademarks or registered trademarks of
QlikTech or its subsidiaries in the U.S. and other countries. Other
company names, product names and company logos mentioned herein are the
trademarks, or registered trademarks of their respective owners.
Qlik Technologies Inc.
Unaudited Consolidated Statements of Operations
(in thousands, except for share and per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2012
2011
2012
2011
Revenue:
License revenue
$
50,048
$
45,329
$
96,367
$
83,214
Maintenance revenue
28,560
21,780
55,002
41,157
Professional services revenue
7,193
6,933
13,587
12,690
Total revenue
85,801
74,042
164,956
137,061
Cost of revenue1:
License revenue
778
777
1,354
1,692
Maintenance revenue
1,969
1,697
4,080
3,436
Professional services revenue
6,866
6,126
13,474
11,696
Total cost of revenue
9,613
8,600
18,908
16,824
Gross profit
76,188
65,442
146,048
120,237
Operating expenses1:
Sales and marketing
50,933
46,072
100,270
86,554
Research and development
7,960
6,531
15,645
12,336
General and administrative
19,649
16,440
40,265
29,957
Total operating expenses
78,542
69,043
156,180
128,847
Loss from operations
(2,354
)
(3,601
)
(10,132
)
(8,610
)
Other income (expense):
Interest income (expense), net
65
27
99
60
Foreign exchange gain (loss) and other income (expense), net
50
361
(1,378
)
(1,113
)
Total other income (expense), net
115
388
(1,279
)
(1,053
)
Loss before benefit for income taxes
(2,239
)
(3,213
)
(11,411
)
(9,663
)
Benefit for income taxes
198
506
1,834
1,878
Net loss
$
(2,041
)
$
(2,707
)
$
(9,577
)
$
(7,785
)
Net loss per common share
Basic and diluted
$
(0.02
)
$
(0.03
)
$
(0.11
)
$
(0.10
)
Weighted average number of common shares outstanding
Basic and diluted
85,416,641
81,724,971
85,024,843
80,486,401
1Certain prior period amounts have been reclassified in
the unaudited Consolidated Statements of Operations in order to
conform to the current period presentation.
Three Months Ended June 30,
Six Months Ended June 30,
2012
2011
2012
2011
(unaudited)
(unaudited)
Cost of revenue
$
329
$
156
$
668
$
252
Sales and marketing
2,530
1,079
4,839
1,928
Research and development
435
91
865
133
General and administrative
1,131
674
2,076
1,187
$
4,425
$
2,000
$
8,448
$
3,500
Reconciliation of non-GAAP Measures to GAAP
(in thousands, except share and per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2012
2011
2012
2011
(unaudited)
(unaudited)
Reconciliation of non-GAAP income (loss) from operations:
GAAP loss from operations
$
(2,354
)
$
(3,601
)
$
(10,132
)
$
(8,610
)
Stock-based compensation expense
4,425
2,000
8,448
3,500
Employer payroll taxes on stock transactions
280
810
1,730
1,800
Lease termination costs
-
2,236
-
2,236
Non-GAAP income (loss) from operations
$
2,351
$
1,445
$
46
$
(1,074
)
Non-GAAP income (loss) from operations as a percentage of total
revenue
2.7
%
2.0
%
0.0
%
-0.8
%
GAAP loss from operations as a percentage of total revenue
-2.7
%
-4.9
%
-6.1
%
-6.3
%
Reconciliation of non-GAAP net income (loss):
GAAP net loss
$
(2,041
)
$
(2,707
)
$
(9,577
)
$
(7,785
)
Stock-based compensation expense
4,425
2,000
8,448
3,500
Employer payroll taxes on stock transactions
280
810
1,730
1,800
Lease termination costs
-
2,236
-
2,236
Income tax adjustment*
(987
)
(1,093
)
(1,439
)
(1,197
)
Non-GAAP net income (loss)
$
1,677
$
1,246
$
(838
)
$
(1,446
)
Non-GAAP net income (loss) per common share – basic
$
0.02
$
0.02
$
(0.01
)
$
(0.02
)
Non-GAAP net income (loss) per common share – diluted
0.02
0.01
(0.01
)
(0.02
)
GAAP net loss per common share – basic and diluted
$
(0.02
)
$
(0.03
)
$
(0.11
)
$
(0.10
)
Non-GAAP weighted average number of common shares outstanding – basic
85,416,641
81,724,971
85,024,843
80,486,401
Non-GAAP weighted average number of common shares outstanding –
diluted
88,167,281
86,807,408
85,024,843
80,486,401
GAAP weighted average number of common shares outstanding – basic
and diluted
85,416,641
81,724,971
85,024,843
80,486,401
* Income tax adjustment is used to adjust the GAAP benefit for
income taxes to a non-GAAP benefit or provision for income taxes
utilizing an estimated long-term effective tax rate of 32%.
Qlik Technologies Inc.
Reconciliation of non-GAAP Revenue to GAAP Revenue
(in thousands)
Three months ended June 30,
Six months ended June 30,
2012
2011
% change
2012
2011
% change
(unaudited)
(unaudited)
Constant currency reconciliation:
Total revenue, as reported
$
85,801
$
74,042
16
%
$
164,956
$
137,061
20
%
Estimated impact of foreign currency fluctuations
8
%
6
%
Total revenue constant currency growth rate
24
%
26
%
Three months ended June 30,
Six months ended June 30,
2012
2011
% change
2012
2011
% change
(unaudited)
(unaudited)
Constant currency reconciliation:
License revenue, as reported
$
50,048
$
45,329
10
%
$
96,367
$
83,214
16
%
Estimated impact of foreign currency fluctuations
8
%
5
%
License revenue constant currency growth rate
18
%
21
%
Three months ended June 30,
Six months ended June 30,
2012
2011
% change
2012
2011
% change
(unaudited)
(unaudited)
Constant currency reconciliation:
Maintenance revenue, as reported
$
28,560
$
21,780
31
%
$
55,002
$
41,157
34
%
Estimated impact of foreign currency fluctuations
10
%
6
%
Maintenance revenue constant currency growth rate
41
%
40
%
Three months ended June 30,
Six months ended June 30,
2012
2011
% change
2012
2011
% change
(unaudited)
(unaudited)
Constant currency reconciliation:
Professional Services revenue, as reported
$
7,193
$
6,933
4
%
$
13,587
$
12,690
7
%
Estimated impact of foreign currency fluctuations
7
%
5
%
Professional services revenue constant currency growth rate
11
%
12
%
Three months ended June 30,
Six months ended June 30,
2012
2011
% change
2012
2011
% change
(unaudited)
(unaudited)
Constant currency reconciliation:
Americas revenue, as reported
$
28,931
$
22,736
27
%
$
54,894
$
43,372
27
%
Estimated impact of foreign currency fluctuations
3
%
2
%
Americas revenue constant currency growth rate
30
%
29
%
Three months ended June 30,
Six months ended June 30,
2012
2011
% change
2012
2011
% change
(unaudited)
(unaudited)
Constant currency reconciliation:
Europe revenue, as reported
$
48,634
$
44,738
9
%
$
94,654
$
82,005
15
%
Estimated impact of foreign currency fluctuations
11
%
9
%
Europe revenue constant currency growth rate
20
%
24
%
Three months ended June 30,
Six months ended June 30,
2012
2011
% change
2012
2011
% change
(unaudited)
(unaudited)
Constant currency reconciliation:
Rest of World revenue, as reported
$
8,236
$
6,568
25
%
$
15,408
$
11,684
32
%
Estimated impact of foreign currency fluctuations
7
%
4
%
Rest of World revenue constant currency growth rate
32
%
36
%
Qlik Technologies Inc.
Consolidated Balance Sheets
(in thousands)
June 30,
December 31,
2012
2011
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
195,121
$
177,413
Accounts receivable, net
74,243
111,710
Prepaid expenses and other current assets
16,566
10,194
Deferred income taxes
760
753
Total current assets
286,690
300,070
Property and equipment, net
14,032
10,766
Intangible assets, net
121
198
Goodwill
13,734
2,800
Deferred income taxes
2,092
2,303
Deposits and other noncurrent assets
2,035
1,571
Total assets
$
318,704
$
317,708
Liabilities and stockholders’ equity
Current liabilities:
Line of credit, net
$
-
$
326
Accounts payable
5,419
4,847
Deferred revenue
65,492
63,914
Accrued payroll and other related costs
25,667
30,572
Accrued expenses
18,969
18,391
Total current liabilities
115,547
118,050
Long-term liabilities:
Deferred revenue
1,992
3,202
Other long-term liabilities
5,898
6,921
Total liabilities
123,437
128,173
Commitments and contingencies
Stockholders’ equity:
Common stock
9
8
Additional paid-in-capital
196,267
180,058
Retained earnings (accumulated deficit)
(400
)
9,177
Accumulated other comprehensive income (loss)
(609
)
292
Total stockholders’ equity
195,267
189,535
Total liabilities and stockholders’ equity
$
318,704
$
317,708
Qlik Technologies Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
Six Months Ended June 30,
2012
2011
Cash flows from operating activities
Net loss
$
(9,577
)
$
(7,785
)
Adjustments to reconcile net loss to net cash provided by operating
activities:
Depreciation and amortization
2,316
1,196
Stock-based compensation expense
8,448
3,500
Excess tax benefit from stock-based compensation
(4,185
)
-
Other non cash items
2,526
544
Changes in assets and liabilities:
Accounts receivable
35,678
18,515
Prepaid expenses and other assets
(6,895
)
(6,263
)
Deferred revenues
1,372
2,284
Accounts payable and other liabilities
(418
)
166
Net cash provided by operating activities
29,265
12,157
Cash flows from investing activities
Acquisitions, net of cash acquired
(10,792
)
-
Purchase of property and equipment
(5,375
)
(5,139
)
Net cash used in investing activities
(16,167
)
(5,139
)
Cash flows from financing activities
Proceeds from exercise of common stock options
3,577
6,127
Excess tax benefit from stock-based compensation
4,185
-
Payments on contingent consideration
(202
)
(179
)
Payments on line of credit
(356
)
-
Net cash provided by financing activities
7,204
5,948
Effect of exchange rate on cash
(2,594
)
2,825
Net increase in cash and cash equivalents
17,708
15,791
Cash and cash equivalents, beginning of period
177,413
158,712
Cash and cash equivalents, end of period
$
195,121
$
174,503
Supplemental cash flow information:
Cash paid during the period for income taxes
$
3,743
$
11,865
Non-cash investing activities:
Tenant improvement allowance received under operating lease
$
-
$
1,764
Article source: http://finance.yahoo.com/news/qliktech-announces-second-quarter-2012-200500279.html
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