Tibco, Nimbus and a Strong Fourth Quarter

On December 21st, Tibco had thier 4th quarter earnings call with investors. The headline from this call is that Tibco had a strong 4th quarter and fiscal 2011.

These results stand in stark contrast to Oracle which surprised the market by missing its quarterly numbers and sending Oracle stock down by 14% the day before. Pre-Christmas, Tibco managed to make up the downdraft Oracle put on the entire Enterprise Sopftware sector to trade up slightly.

Although the Nimbus acquisition wasn’t mentioned in the main presentation of results, some interesting tidbits fell out during the Q&A session:


Our next question comes from the line of Mark Murphy with Piper Jaffray.

Mark R. Murphy – Piper Jaffray Companies, Research Division

Sydney, I was wondering if you could ballpark the revenue contribution from Nimbus in the quarter. I guess presumably that was a pretty small number.

Sydney L. Carey [Tibco Chief Financial Officer and Executive Vice President]

It was. It was a very small contributor in the period but again seeing good, good traction as we look forward with that across the broader product portfolio.

Vivek Y. Ranadiv?? [Tibco Chairman, Chief Executive Officer and President]

Yes. And also one of things, and we’ll sketch this out further as the year progresses, we’re very excited around what Nimbus means for tibbr. And those 2 will play very well together. And it will also obviously play well with our BPM offerings. And we think it could — actually, it might not drive license revenue, but it’ll actually drive a lot of services revenue for us. And then also, it will help with getting tibbr on even more desktops.

via Tibco Q4 Earning Call

My take away from this section of the call is three-fold:

  1. As expected, the Nimbus acquisition is inmaterial to the financial results of the business. The acquistion was product (or intellectual property) driven. The customer base and its financial implications are secondary.

  2. Nimbus is seen as a complement to Tibbr and, then, secondarily ActiveMatrix BPM. The relationship between Tibbr and Nimbus Control is almost the complete reverse to IBM’s strategy with BlueworksLive. Tibco seems to using Control as a source of rich content for Tibbr’s social collaboration elements. IBM has social collaboration and chat elements built into Blueworks Live.

  3. Nimbus is expected to drive more service revenue than license revenue. Again, this makes sense from the standpoint of the capacity of the Nimbus Control to enable the engagement of business users in process discovery.

It is interesting that the main financial benefit of the acquisition seems to be a consulting or services revenue stream.

I wonder if that was always the plan.

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