Qlik Technologies (QLIK): Another Strong Q; Something’s Changed (for the Positive)

These guys sell stuff around big data and are an alternative to IBM, Oracle, etc., so as the legacy guys results go down, these guys grow. Aivars Lode avantce

Qlik Technologies  (QLIK):  Another Strong Q; Something’s Changed (for the Positive)
Rating  BUY Price Target $42.00 (from  $40.00) Price $33.65
Key Takeaway QLIK easily exceeded expectations for the 4th consecutive Q and maintained cc guidance. We believe 3Q14 was an inflection point in the business that will persist. We’re raising our Price Target to $42 from $40 based on the strong cash flow in the Q, and modest increases in our forecasts, which affects our DCF. Details. Non-GAAP EPS of ($0.09) on total revenue of $120.3M and license of $54.8M exceeded consensus estimates of ($0.14), $113.9M, and $51.2M, respectively. License grew 16% on a cc basis. Deferred revenue grew 2% sequentially (8% cc) to $135.3M versus the $123.4M consensus estimate, and strong operating cash flow increased 90% from a year ago to $36.0M. Something’s Changed (for the Positive). We believe we’ve seen an inflection point in QLIK’s business starting in 3Q14 that will persist, driven partially by the willingness of customers to engage with QLIK at a more strategic level (i.e., read large deals) and partially by QLIK's ability to better accommodate the desires of its customers, either through sales process or products. We provide evidence herein. With Opportunity for More. In addition, we believe there remains ample room for incremental improvement through several venues: new digital marketing efforts, product cross-selling, and improved operating efficiency. We continue to rate QLIK Buy and are raising our Price Target to $42 from $40 based on our DCF. Valuation/Risks We are maintaining our Buy rating on QLIK and increasing our Price Target to $42 from $40 based on our DCF, which reflects a strong cash flow trend over the last two quarters. Risks include continued market adoption of newly introduced Qlik Sense and 2H ramp in FY15 business implied in its guidance.