What’s Intralinks Holdings Inc. (NYSE: IL) Pursuing?


Intralinks Holdings Inc (NYSE: IL)’s 2Q2016 turned out to better than the year-ago quarter and the management also provided an attractive outlook for the current quarter and the rest of 2016. But there is a conversation going on inside IL that investors should be aware of because of its transformational Intralinks.

At the release of 1Q2016 earnings, Intralinks’ CEO Ron Hovsepian went into detail to explain what they are pursuing why he believes the dream is attainable. But first, here are the numbers that Intralinks reported for the latest quarter:

EPS loss of $0.14 in 2Q2016 improved slightly from EPS loss of $0.15 in 2Q2015. The bottom-line improvement was supported by higher revenue in the latest quarter. Intralinks Holdings Inc (NYSE:IL) generated sales of $73 million, which was not only up from $69 million a year ago, but also came at the high-end of its internal guidance of $72 to $73 million. Revenue for 2Q2016 also exceeded $70.7 million reported in 1Q2016.

What’s the outlook?

For the current quarter (3Q2016), Intralinks Holdings Inc. (NYSE: IL) is looking for revenue in the band of $75 to $76 million. EPS for the quarter is expected to come in the range of $0.05 to $0.06.

As for full-year 2016, revenue is expected in the range of $300 to $306 million, while EPS is expected in the band of $0.20 to $0.21.

What’s Intralinks Holdings Inc (NYSE: IL) pursuing?

Intralinks Holdings Inc. (NYSE: IL)’s CEO Hovsepian talked about the opportunity they are seeing ahead in secure content collaboration market. He valued the opportunity at $3.5 billion and said that about $1.5 billion of that opportunity is the enterprise vertical use cases and about $2 billion is in horizontal use cases.

After painting a picture of the opportunity they are pursuing, Hovsepian went ahead to say that his team believes that they have what it takes to capture the opportunity. The main reason Hovsepian said gives them an advantage to grab the opportunity is that they have continued to see the market evolve just the way they expected.

In other words, Intralinks Holdings Inc. (NYSE: IL) sees businesses facing crises ranging from meeting stringent data regulations to providing secure information sharing to protecting confidential information. But Intralinks says it has the solutions to these challenges that businesses are bound to face as the world of data sharing and collaboration evolves.


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