Should You Bet On the QlikView.Next Platform to End Tableau Software’s Reign?

Qlik Technologies is prepared to battle Tableau Software as the market favorite, but should investors be optimistic?

Jul 23, 2014 at 12:30PM

Qlik Technologies (NASDAQ:QLIK) is prepared to take on Tableau Software (NYSE:DATA) in an attempt to benefit from the company's successful model of simplicity and data utilization. Tableau Software's business model has taken the big data market by storm, causing headwinds for leader Tibco Software (NASDAQ:TIBX), so do Qlik's new initiatives change the investment outlook for these three companies?

What's QlikView.Next?
On Monday, Barclays upgraded shares of Qlik Technologies to overweight, ahead of a second-quarter report that might as well be irrelevant. The reason: Investors are more concerned with new products from Qlik, specifically QlikView.Next and its impact on the future.

Sometime in the next few months, Qlik will launch a business intelligence software platform called QlikView.Next at multiple price points, aimed at giving clients a wide selection of services and applications.

The company is hoping that by presenting this technology on a platform with applications that serve specific purposes, and by focusing on simplicity with navigational features like The Hub, it can accelerate revenue growth beyond the 16% that is expected over the next two years.

What's Tableau's biggest edge?
In addition, QlikView.Next has all the makings of a platform to compete against Tableau, whose focus on simplicity has not only made it attractive to consumers and small businesses, but also large enterprise clients. For years, Tibco reigned in the enterprise space, being the only company to offer "fast data," which is instantaneous versus "slow data," or a compilation of data during a specific time frame.

Tibco has more than $1 billion of 12-month revenue as the largest pure big data company, but has seen its growth fall from a cliff in recent quarters. Specifically, Tibco has found new license sales difficult to achieve, which then carry into maintenance and subscriptions. During its last quarter, Tibco's license revenue fell 7% year over year, while Tableau saw growth of 83% year over year in the same category. Qlik Technologies also saw weakness in license revenue, which grew just 2% year over year during its first quarter.

Tibco CEO Vivek Ranadive insists that pricing is the key difference in why Tableau has achieved such success, but that finding a price point to please lower-end clients, while not sacrificing higher-end clients, remains a challenge. Furthermore, this process includes finding price points for specific services so that Tibco and Qlik can become competitive against a company that has seemingly found the answer to this problem.

For example, R.W. Baird believes the tool most replaced by Tableau is Excel, which has a total of 325 million corporate users, indicating great fundamental upside. Therefore, not only knowing this fact, but also creating a superior product with a better pricing point, will be key for Qlik's new platform to drive growth.

A step in the right direction
With that said, Qlik will try to achieve this feat with an application-focused system. While Barclays is obviously encouraged, other firms like BMO have expressed concerns that various pricing and product models may not be very effective for Qlik, supporting Ranadive's comments that finding the perfect balance is a challenge.

Nonetheless, QlikView.Next is a step in the right direction, while Tibco has yet to find a solution for its licensing problem. Qlik Technologies will report earnings on Thursday, but given the anticipation for QlikView.Next, it's possible that investors will give poor licensing revenue a mulligan if it occurs.

As for Tableau, it remains the most disruptive company in the industry, one that's pricey at 15.2 times sales, but whose enormous market opportunity makes it worth the valuation. The company has just 17,000 total customer accounts, adding 1,800 in the first quarter, with 120 being valued at more than $100,000. This shows that Tableau is making a big dent in the enterprise space.

Foolish thoughts
Tableau Software has an appealing service for a wide array of clients in the business intelligence space, an industry valued at $12 billion. Hence, the company's outlook remains intact as competitors focus their energies on playing catch-up.

At this point, it's impossible to know whether Qlik or Tibco will be successful, once the latter launches a new platform. This fact alone gives a big edge to Tableau, as it continues to gain momentum and grow quickly in a large industry that's transforming daily.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Brian Nichols has no position in any stocks mentioned. The Motley Fool recommends Qlik Technologies and Tibco Software. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information

Compare Brokers