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Current FY 2014 forecast ($ in millions)

 

FYE November 30    Low            High     Midpoint  

Non-GAAP Revenue

         

FY 2014 guidance1

   $ 1,057         $ 1,072      $ 1,065   
  

 

 

      

 

 

   

 

 

 

Current FY 2014 forecast

   $ 1,065         $ 1,089      $ 1,077   
  

 

 

      

 

 

   

 

 

 

% change

     0.8        1.6     1.2

Memo: FY 2013 non-GAAP revenue

     $ 1,070        

EBITDA

         

Current FY 2014 forecast

   $ 205         $ 220      $ 213   

Total Subscription Bookings (ACV)

         

Q4 FY 2014 New Subscription Bookings (ACV) forecast

   $ 10         $ 14      $ 12   

 

  

•    Current forecast reflects expectations based on Q4 deal pipeline

  

•    $10–14 million of subscription bookings in Q4 (the majority of which are expected to occur in November), yielding a minimal amount of recognized revenue in FY14 (full contract revenue will be recognized in FY15 and onwards)

Commentary

  

•    We are forecasting Spotfire to contribute ~$6.5 million ACV (annual contract value) subscription bookings by the end of the fiscal year; our initial observation is that we expect subscription revenue to be equivalent to license in ~3 to 3.5 years2

  

•    Despite causing short-term lags in software revenue growth, subscription contracts create long-term value for the company in the form of highly recurring, very high margin revenue streams with high retention rates (87%+ historically)

  

•    Based on current subscription forecast, TIBCO should enter FY15 with $65 million+ of run-rate subscription revenue

 

1  Disclosed as part of the Q3 earnings call on 9/18/2014
2  The equivalent license revenue would have been ~$19.5 million, of which ~90% would have resulted in incremental EBITDA

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