The rules of the game have changed forever; the era of antiquated, hard-to-use software solutions with long, expensive deployments is coming to an end
Radnor, PA (PRWEB) February 17, 2009
QlikTech, the world's fastest-growing Business Intelligence (BI) software vendor, today announced dramatic growth in 2008. Annual revenues increased 50% over 2007 to $120 million, while the company's customer base grew by 45% to 10,585 customers in 92 countries. The number of users of QlikTech's flagship product, QlikView, also grew by 45%, to approximately 500,000. In contrast to the software industry trend toward downsizing, QlikTech added 160 new employees in 2008, a 50% increase over 2007.
"The rules of the game have changed forever; the era of antiquated, hard-to-use software solutions with long, expensive deployments is coming to an end," said Lars Björk, CEO of QlikTech. "Today's macroeconomic challenges are driving customers to demand a solution where value is recognized in weeks - not months or years. Organizations need immediate answers to their pressing business questions, like how can I selectively cut costs, maximize my cash position, or more efficiently allocate working capital. They can no longer afford to wait for costly IT driven solutions that are slow or unable to respond to rapidly changing business conditions.
Our exceptionally strong results, especially when other software vendors are laying off people as their business declines, is a testament to our unique value proposition. QlikTech is advantageously positioned to continue growing at the expense of our competitors."
"Volume and Velocity" Strategy Fuels Broad-based Growth across Small, Midsize, and Large Global Organizations
QlikTech's "volume and velocity" sales strategy has made it possible for the company to dramatically grow its customer base through very short sales cycles. Throughout the downturn in 2008, QlikTech added an average of more than 270 new customers every month. While the company continued to derive the majority of its revenues from the mid-market segment (firms with 100 to 1,000 employees) where it is the established BI leader, sales to larger enterprises grew significantly as well. Enterprise customers in 2008 included many worldwide brands, such as Volvo, Deutsche Telekom, Novartis, Fujitsu, Campbell Soup, Shell, 3M, and ADP.
Unlike many B2B enterprise software firms, no single transaction accounted for more than 1% of total revenues in 2008. In a year when many large IT projects were scrubbed or deferred, QlikTech gained market share by delivering projects with exceptionally rapid payback - typically measured in days or weeks.
In-Memory Associative Technology Drives Unprecedented Customer Success
QlikTech's ground-breaking in-memory associative technology has enabled customers to realize unprecedented results and satisfaction with their QlikView deployments. QlikView has been adopted as the BI standard in many organizations globally, and is also deployed in conjunction with incumbent BI tools to enable analysis that is not otherwise possible.
"Some of our competitors have announced products with in-memory capabilities," said Anthony Deighton, senior vice president of products and strategy at QlikTech. "It's great they recognize the value we bring to the market, but they have fundamentally missed the mark because their offerings fail to meet basic usability requirements. They lack QlikView's unique associative capabilities that allow business users to interactively explore and analyze their data without the pre-defined limits of traditional BI. On the other hand, we deliver value to customers today, and we are so confident of our product that we provide our customers a 30-day money-back guarantee, an offer our competitors will have difficulty matching."
License Revenue Indicates Strength of Business
Software license revenues, which are a strong indicator of the health of a software company, constituted the majority of QlikTech's total revenues in 2008, accounting for 63% of the total. This is in stark contrast to the traditional vendors in the BI market, which derive the majority of their revenues from services. For example, software licenses comprised only 31% of SAP's total revenues according to its latest earnings report.
"The incumbents' heavy reliance on services - rather than license revenue - indicates their declining position in the industry," said William Sorenson, chief financial officer at QlikTech. "Our high growth, high velocity model is focused on selling software licenses to new and existing customers, to continue to gain share and disrupt the BI market."
Channel-focused Business Model Leverages Growing Partner Network
In 2008, QlikTech continued to increase the percentage of sales derived through its rapidly growing network of more than 700 channel partners. QlikTech is aggressively growing its partner network, and will hold its annual partner conference, Qonnections, in Barcelona, Spain, on April 5-8, 2009.
Sustained Growth, Profitability, and Geographic Expansion Expected in 2009
While others have downgraded projections, QlikTech maintains a highly positive outlook for 2009. The company expects to sustain a high growth rate, along with healthy levels of cash flow and profitability. Areas of emphasis include geographic expansion (including China and Japan), continued product innovation, ongoing penetration of the mid-market, and further traction in the enterprise market.
QlikTech is the business answers company. Its flagship product, QlikView, enables organizations of all sizes to unlock the value of their data to make better decisions that improve business results. Unlike traditional BI solutions, QlikView delivers immediate value with payback measured in days or weeks rather than months, years, or not at all. Through QlikView's disruptive, in-memory associative approach, business users have experienced unprecedented success and satisfaction. QlikTech is the only company in this market that offers a 30-day money-back guarantee. QlikTech grew by 50% in 2008 and has more than 10,500 customers in 92 countries and over 700 partners worldwide. For more information, please visit http://www.qlikview.com.
QlikTech and QlikView are trademarks or registered trademarks of QlikTech International AB. Other company names, product names and company logos mentioned herein are the trademarks, or registered trademarks of their respective owners.