Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



TIBCO Tackles IBM and Oracle Sales Tactics, Comes Out on Top

Shares of TIBCO Software (UNKNOWN: TIBX.DL  ) jumped as much as 9.5% overnight, driven by a great earnings report. The stock trades at prices not seen since last November, and opportunistic buyers are looking at greater than 40% returns on shares bought in April.

The company has been battling weak sales execution in the North American division since last fall. CEO Vivek Ranadive seemed to stop worrying about it in the second quarter's report and discussion, and this week's third-quarter report bears out that theory.

Source: S&P Capital IQ

Total sales jumped 6.2% year over year, led by surging demand for TIBCO's software licenses. Importantly, American sales grew 11% -- in line with the surging European market's 12% growth and, finally, a point of pride and strength again.

The key to TIBCO's strong American performance is an unblinking focus on proving the software's worth to customers. In the second quarter, Ranadive admitted losing sales to Oracle (NYSE: ORCL  ) and IBM (NYSE: IBM  ) because their products were cheaper -- and the larger companies managed to convince prospective clients that their solutions were "good enough." This quarter, Ranadive saw absolutely no such lost sales as his retrained sales force stepped in to prove that TIBCO's tools are better.

"We won every single deal" against the big IT shops, Ranadive said.

TIBCO's high-growth trajectory was derailed for a while last year, but the company is now back on track. The shares I bought last December, when the sales execution troubles first reared their ugly head, have now soared 27% higher. It's not too late to jump aboard this bandwagon either, because the need for hyper-efficient data analysis tools will only grow from here. TIBCO was, is, and will remain a leader in that crucial space, and I see a very long growth runway ahead.

Big data = Big business
TIBCO is tapping into a massive growth market. The amount of data we store every year is growing by a mind-boggling 60% annually! Early leaders in this gigantic market should he hugely profitable for decades to come. To make sense of this trend and pick out a winner, The Motley Fool has compiled a new report called, "The Only Stock You Need to Profit From the NEW Technology Revolution." The report highlights a company that has gained 300% since first recommended by Fool analysts, but still has plenty of room left to run. To get instant access to the name of this company transforming the IT industry, click here -- it's free.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2647787, ~/Articles/ArticleHandler.aspx, 9/27/2016 10:08:15 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 52 minutes ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:01 PM
IBM $156.77 Up +2.79 +1.81%
IBM CAPS Rating: ****
ORCL $39.30 Up +0.27 +0.69%
Oracle CAPS Rating: ****
TIBX.DL $0.00 Down +0.00 +0.00%
Tibco Software CAPS Rating: *****