On a day when the earnings news is dominated by Oracle and RIM's financial results, TIBCO crashed through analyst Q2 estimates to post revenue of $173.3 million compared to expected figures of $161.4 million. This was up 21% year over year.
Despite the fact SOA is no longer the fashionable topic it once was, 62% of TIBCOs revenue comes from this source. In prepared remarks, Vivek Ranadivé, TIBCO CEO said: “Our core SOA business grew 34% over last year, our BPM business delivered a major new product release, and our Business Optimization technologies continue to drive deals for us. Customers from all industries are embracing our event-driven and in-memory products to help achieve their Two-Second AdvantageTM and the company sees a strong pipeline for the third quarter."
- License revenue increased 23% year over year to $62.1 million
- Non-GAAP operating margin was 22.4%
- Cash flow from operations was $41.0 million
- Repurchased 3.4 million shares
- Closed 85 deals over $100k and had 12 deals over $1 million
- Regional growth: Americas +19%, Europe +14%, AsiaPac +17%
- Revenue by larger vertical: financial services 30%, telecoms 14%, government 9%, energy 8%, life sciences 6%, transportation and logistics 5%
- Messaging still remains strong
During the analyst call, Vivek Ranadivé said: "Our competitive position has never been stronger...IBM is doing us a favor with its Smarter Planet ad campaign...it is building awareness of the potency of technology in which we are best in class...The retail market is going through tremendous change with the use of social networks [where TIBCO provides analytics infrastructure.] We have the most pricing power we've ever had."
The company believes the pipeline for Q3 means it can continue to hire in the sales organization. During the call, the company said it was relaxed about macro economic conditions but is remaining conservative in its estimates.