QlikTech Announces Fourth Quarter and Full Year 2011 Financial Results

Total revenue of $108.1 million increases 33% compared to fourth quarter of 2010.
License revenue of $75.7 million increases 34% compared to fourth quarter of 2010.
Full Year 2011 total revenue of $320.6 million increases 42% compared to 2010.
Full Year 2011 license revenue of $204.4 million increases 41% compared to 2010.

Radnor, PA - 17 February 2012

(BUSINESS WIRE) — Qlik Technologies Inc. ("QlikTech") (Nasdaq: QLIK), a leader in Business Discovery™—user-driven Business Intelligence (BI), today announced financial results for the fourth quarter and full year ended December 31, 2011.

Lars Björk, Chief Executive Officer of QlikTech, stated, "Our results for the fourth quarter were very strong capping off a year in which revenue grew more than 40%. This is tremendous growth and further demonstrates that the investments we have made in our product, people and go-to-market strategy are working." Björk added, "As we look to 2012, we will continue to invest in the business in order to drive growth by expanding our employee base and further extending our Business Discovery leadership position. At the same time, we expect to realize leverage in the business and expand operating margins."

Financial Highlights for the Fourth Quarter Ended December 31, 2011


Total revenue for the fourth quarter of 2011 was $108.1 million, an increase of 33% from $81.4 million in the fourth quarter of 2010. Foreign currency exchange rate fluctuations from the prior period had an impact of less than 1% on reported revenue for the quarter. License revenue was $75.7 million, an increase of 34% from $56.3 million in the fourth quarter of 2010. Maintenance revenue was $25.0 million, an increase of 37% from $18.3 million in the fourth quarter of 2010. Professional services revenue was $7.4 million, an increase of 10% from $6.8 million in the fourth quarter of 2010.

GAAP operating income for the fourth quarter of 2011 was $26.2 million, an increase compared to GAAP operating income of $16.6 million for the fourth quarter of 2010. GAAP net income was $15.6 million, or $0.18 per diluted common share, an increase compared to a GAAP net income of $10.6 million or $0.12 per diluted common share, in the fourth quarter of 2010. GAAP net income for the fourth quarter of 2011 reflects a $2.3 million non-cash income tax charge related to the need for a valuation allowance against certain deferred tax assets.

Non-GAAP operating income, which excludes stock-based compensation, employer payroll taxes related to stock transactions and a contingent consideration adjustment related to a January 2010 acquisition of a Japanese reseller, was $30.6 million for the fourth quarter of 2011, an increase compared to non-GAAP operating income of $18.2 million for the fourth quarter of 2010. Non-GAAP net income, which also assumes a 32% long-term effective tax rate, was $20.4 million for the fourth quarter of 2011, an increase compared to non-GAAP net income of $12.1 million for the fourth quarter of 2010. Non-GAAP net income per diluted common share for the fourth quarter of 2011 was $0.23, an increase compared to non-GAAP net income per diluted common share of $0.14 for the fourth quarter of 2010.

GAAP and non-GAAP net income for the fourth quarter of 2011 include a $0.7 million foreign exchange loss, compared to a foreign exchange loss of $0.4 million in the prior year period.

Financial Highlights for the Full Year Ended December 31, 2011


Total revenue for the full year 2011 was $320.6 million, an increase of 42% from $226.5 million in the full year 2010. Excluding the estimated impact from foreign currency exchange rate fluctuations from the prior year period, total revenue grew approximately 36% over the prior year period. License revenue was $204.4 million, an increase of 41% from $145.2 million in the full year 2010. Maintenance revenue was $89.1 million, an increase of 49% from $59.8 million in the full year 2010. Professional services revenue was $27.1 million, an increase of 26% from $21.5 million in the full year 2010.

GAAP operating income for the full year 2011 was $19.7 million, compared to GAAP operating income of $27.6 million for the full year 2010. GAAP net income was $9.0 million, or $0.11 per diluted common share, compared to GAAP net income of $13.5 million, or $0.21 per diluted common share, for the full year 2010. GAAP net income for the full year 2011 reflects a $4.4 million non-cash income tax charge related to the need for a valuation allowance against certain deferred tax assets.

Non-GAAP operating income, which excludes stock-based compensation, employer payroll taxes related to stock transactions, a contingent consideration adjustment related to a January 2010 acquisition of a Japanese reseller and lease termination costs, was $34.7 million for the full year 2011, an increase compared to non-GAAP operating income of $31.1 million for the full year 2010. Non-GAAP net income, which also assumes a 32% long-term effective tax rate, was $23.1 million, or $0.27 per diluted common share for full year 2011, an increase compared to non-GAAP net income of $16.5 million, or $0.20 per diluted common share, for the full year 2010.

GAAP and non-GAAP net income for the full year of 2011 includes $1.1 million of foreign exchange losses, compared to foreign exchange losses of $4.4 million for the full year 2010.

The tables at the end of this press release include a reconciliation of GAAP to non-GAAP income from operations and net income for the three and twelve months ended December 31, 2011 and 2010. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Cash and cash equivalents were $177.4 million on December 31, 2011, compared to $158.7 million on December 31, 2010. For the year ended December 31, 2011, net cash provided by operating activities was $16.7 million, compared to $25.9 million for the year ended December 31, 2010. The decrease in cash provided by operating activities from 2011 to 2010 reflects cash paid for income taxes in 2011 of $13.8 million compared to $1.5 million in 2010. Cash paid for income taxes in 2011 reflects income tax payments for the 2009 and 2010 tax years, as well as estimated income tax payments for the 2011 tax year.

Other Fourth Quarter and Recent Business Highlights:

  • Revenue in the Americas was $35.1 million, up 31% over the prior year period and representing 33% of total revenue, driven by strength in the United States, our largest individual sales territory. European countries generated $64.0 million in revenue, up 32% over the prior year period and representing 59% of total revenue. Rest of World revenue was $9.0 million, up 47% over the prior year period and representing 8% of total revenue.
  • Ended the fourth quarter of 2011 with an active customer count of approximately 24,000, up from approximately 22,000 active customers at the end of the third quarter of 2011.
  • Added new customers during the fourth quarter including Axpo, Implenia AG, Rentokil, Sulzer Pumps, SunTrust, and Turk Ekonomi Bankasi.
  • Expanded numerous customer engagements globally through our land and expand strategy including BNP Paribas, the Department of Veterans Affairs, El Cortes Ingles, The Economist, Lockton Insurance, Orbitz Worldwide, Qualcomm, and Skandinaviska Enskilda Banken AB.
  • Positioned in the Leaders Quadrant in the Gartner Group 2012 Business Intelligence Platform Magic Quadrant report based on completeness of vision and ability to execute. Gartner Group also notes that data discovery momentum continues to accelerate and QlikTech remains the only dedicated data discovery vendor in the leaders quadrant.
  • Qlik Community of registered users increased from 43,000 as of December 31, 2010 to 71,000 as of December 31, 2011. This growth is representative of QlikView's overall expanded user base as well as the value of the product support and development derived from this collaborative environment.
  • Announced that Frost & Sullivan recognized the QlikView Business Discovery platform with the 2011 North American Technology Innovation Award in Health Data Analytics. Selection is based on several criteria such as innovative element of the product, value-added features and benefits, and increased customer return on investment (ROI).

Business Outlook


Based on information available as of February 16, 2012, QlikTech is issuing guidance for the first quarter and full year 2012 as follows:

First Quarter 2012: The company expects total revenue for the first quarter to be in the range of $76.0 million to $78.0 million, non-GAAP operating loss to be in the range of ($7.0) million to ($9.0) million and non-GAAP net loss per common share to be in the range of ($0.06) to ($0.08). QlikTech's expectations of non-GAAP net loss per diluted common share for the first quarter exclude stock-based compensation expense and employer payroll taxes related to stock transactions and assume a tax rate of 32% and weighted average shares outstanding of approximately 85 million. QlikTech's first quarter guidance reflects seasonal revenue patterns as well as costs related to the Company's annual employee summit which was held in January 2012, along with higher overall personnel expenses and related costs as a result of continued hiring.

Full Year 2012: The company expects 2012 total revenue to be in the range of $405.0 million to $415.0 million, non-GAAP operating income to be in the range of $53.0 million to $58.0 million and non-GAAP net income per diluted common share to be in the range of $0.40 to $0.44. QlikTech's expectations of non-GAAP net income per diluted common share for the full year exclude stock-based compensation expense and employer payroll taxes related to stock transactions and assume a tax rate of 32% and weighted average shares outstanding of approximately 89 million.

QlikTech's expectations of total revenue, non-GAAP operating income or loss and non-GAAP income or loss per diluted common share for the first quarter and full year 2012 assume that foreign currency exchange rates for the first quarter and full year 2012 will approximate current exchange rates.

Conference Call and Webcast Information


QlikTech will host a conference call on February 16, 2012, at 5:00 p.m. Eastern Time (ET) to discuss the company's fourth quarter and full year 2011 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 February 23, 2012 at 855-859-2056 (domestic) or 404-537-3406 (international). The replay pass code is 41032423. 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 operating income (loss), non-GAAP net income (loss), non-GAAP income (loss) per 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 heading "Reconciliation of Non-GAAP Measures to GAAP." 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.

For the three and twelve months ended December 31, 2011 and 2010, non-GAAP operating income is determined by taking income from operations and adding back non-cash stock-based compensation expense, secondary offering expenses, employer payroll taxes related to stock transactions, contingent consideration adjustments and lease termination costs. Non-GAAP net income is determined by taking pretax income and adding back non-cash stock-based compensation expense, secondary offering expenses, employer payroll taxes on stock transactions, contingent consideration adjustments 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 that 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.
  • Contingent consideration adjustment. In January 2010, QlikTech acquired Syllogic Corporation, a reseller of QlikView software in Japan. The purchase price included contingent cash consideration of up to $0.8 million. At each reporting date, management remeasures the contingent consideration at fair value until the contingency is resolved. During the three months ended December 31, 2011, a charge of $0.3 million was recorded related to changes in fair value of contingent consideration liabilities and is included in QlikTech's consolidated statement of income. Management believes that these costs are generally non-recurring and do not correlate to the ongoing operation of its business.

Non-GAAP income per share is determined by taking non-GAAP net income and, for the year ended December 31, 2010, adjusting the weighted average outstanding common share calculations for the automatic conversion of the convertible preferred stock and issuance of common stock in connection with the company's initial public offering as if the offering had occurred at the beginning of the period.

To determine the impact from foreign currency exchange rate fluctuations from prior year periods on current period revenue for the three months and year ended December 31, 2011, 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 related to 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 first 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.

finance-final-q4-2011-pr

Investor Contact:
ICR
Staci Mortenson,
+1 484-685-0578
IR@qliktech.com
or
Media Contact:
Qlik Technologies
Maria Scurry,
+1 508-409-7939
Maria.Scurry@qliktech.com

About QlikTech

QlikTech (NASDAQ: 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 more approximately 24,000 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.