Qlik Technologies (QLIK) Q2 2012 Earnings Call July 26, 2012 5:00 pm ET Executives Staci Mortenson - Senior Vice President Lars Björk - Chief Executive Officer, President and Director William G. Sorenson - Chief Financial Officer, Treasurer and Secretary Analysts John S. DiFucci - JP Morgan Chase & Co, Research Division Keith Weiss - Morgan Stanley, Research Division Chris Koh - Stifel, Nicolaus & Co., Inc., Research Division Steven M. Ashley - Robert W. Baird & Co. Incorporated, Research Division Nicole Hayashi - UBS Investment Bank, Research Division Ross MacMillan - Jefferies & Company, Inc., Research Division Shawn Yuan - Roth Capital Partners, LLC, Research Division Jesse Hulsing - Pacific Crest Securities, Inc., Research Division Robert Chen - Citigroup Inc, Research Division Greg McDowell - JMP Securities LLC, Research Division Edward Maguire - Credit Agricole Securities (USA) Inc., Research Division Presentation Operator
For a discussion of the material risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC's EDGAR system and our website. We encourage all investors to read our SEC filings.Qlik Technologies expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements made herein, except as required by law. Additionally, non-GAAP financial measures will be discussed on this conference call. A reconciliation to the most directly comparable GAAP financial measures can be found in our press release, which is available at our website, www.qliktech.com, under the Investor Relations tab. Also, please note that our webcast of today's call will be available on our website in the Investor Relations section. With that, I'd like to turn the call over to our Chief Executive Officer, Lars Björk. Lars? Lars Björk Thanks, Staci. And I'd like to start by thanking all of you for joining us today. For the second quarter 2012, we reported total revenue of $85.8 million, representing an increase of 16% over the prior year period. On a constant currency basis, total revenue grew 24% over the prior year period. Even with a challenging macroeconomic environment, we were still able to show a substantial year-over-year growth. This further reinforces that QlikView delivers rapid value, and this is even more important in today's tough business condition. Businesses of all sizes are dealing with a deluge data and need QlikView to transform this data into knowledge by making it understandable and actionable. Our non-GAAP operating income for the quarter was $2.4 million, and non-GAAP net income was $0.02 per diluted common share. As we discussed with you on our preannouncement call a few weeks ago, the macroeconomic environment posed some challenges for QlikTech, particularly in Europe. We saw prolonged sales cycles causing delays, some strengthening of deal sizes to help get through procurement and customers need for additional signatures for further ROI justification.
We believe that the deal that flipped largely remain in play and are very hopeful that we will be able to close the meaningful portion before year end.We did not see any adverse changes in the competitive landscape or pricing pressure and continue to believe that we are gaining market share. Our focus now is on adapting to the new sales environment. This requires more legwork to identifying qualified deals, as well as more rigor to move deals through the pipeline from commit to close. We are improving our processes to ensure we have the proper resources to support pipeline development and deal closure and are better aware of all the requirements. We're also broadly evaluating our sales methodologies to help ensure we are applying best practices across our direct and indirect teams, as well as partners. We continue to believe that the market opportunity remains large and there's a real demand for our solutions. We believe the steps we are taking will better position us to navigate through current business conditions. With that said, let's spend a moment with some of additional business highlights from the quarter. We are excited about the acquisition of Expressor Software. Their metadata management software fulfills our customers' growing need to describe data consistently and then reuse it to speed up deployment of additional application. We believe this metadata-intelligent solution will be an expanded use of our Business Discovery platform and will help IT departments know what data is being used and how it's being used, while ensuring consistency and appropriate reuse of common data definitions. This is a capability that has become increasingly important especially for enterprise deployment. The initial response has been positive, and we are seeing interest within our installed base. In addition, Expressor fits squarely in our acquisition strategy of adding complementary tuck-in technology that enhances the value we provide to our customers, and we are very pleased to have this team on board. Read the rest of this transcript for free on seekingalpha.com