Shares of TIBCO Software 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 and 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.
The article TIBCO Tackles IBM and Oracle Sales Tactics, Comes Out on Top originally appeared on Fool.com.
Fool contributor Anders Bylund owns shares of TIBCO Software, but he holds no other position in any company mentioned. Check out Anders' bio and holdings or follow him on Twitter and Google+. The Motley Fool owns shares of Oracle. Motley Fool newsletter services have recommended buying shares of TIBCO Software. Motley Fool newsletter services have recommended creating a synthetic long position in IBM. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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