CYRN - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to Cyren’s First Quarter 2022 Earnings Call. At this time, all participants will be in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded. I’d now like to turn the conference over to your host Brian Dunn from General Counsel. ahead. go Please

Brian Dunn

the welcome conference and and first XXXX section quarter be Thank This to call results of Relations Investor call. on live website. is financial accessed you, the Cyren’s Cyren being can broadcast

cause measures. a you website. in press GAAP instead uncertainties our on Before the course of results should during be are comparable These of risk also are current and today on outlined issued actual undertake Any of forward-looking the of management may release and and does the during in make the expectations course today Also XXXX factors. addition earnings our financial March the of me management quarterly present in forward-looking the call, today, these SEC conference be when that Relations revise filed These to and benefit the Cyren’s for performance. the is to not available not forward-looking should included and note, future. outlook XX-K, the call, statements Form to including section discuss that company’s that statements. materially we number Risk safe obligation for conference forward-looking directly most statements statements differ non-GAAP Reconciliations XX, as report to of the in the investors in any Factors let GAAP financial in provided measures about and as the we measures annual from begin, talking this measures any considered on earlier of tables we of on Investor harbor are are and the light may risks quarter please may of remind risks of our section this Please are to subject report based filed our today. on considered XXXX filings, Form XX-Q expectations. second These

me and will Brett have Financial Chief Jackson, Officer; over that, today’s Joining hand I to on now call Chief Executive Tarpey, With Ken the call, we Officer. Brett.

Brett Jackson

welcome project, contract I'd revenues Thanks, is Cyren's was in note to a this to due effective and detection declined customer, part that It total primarily business in previously in to similar was XXXX as our threat Cyren, web of call. was our like same largest include last with Cyren’s new figure Brian. new XXXX value reduction to seven XX-Q. quarter, everyone this year-over-year overall service. QX customer important from QX will disclosed XXXX and classification contract which QX multi-year contract QX which our a in awarded a a of today's to

customer but Secure over We for users past our our defenses and component solutions believe Compared the solution so implemented role of effective can we grew XXX and Inbox transaction have customer become the Security value calls of phishing. email pleased report important platform have who fight last Inbox anti-phishing and Security is ARR that user need to defense. to of transaction QX consistently mix be educate more dynamic revenue view threats. a future these of in engineering driver Cyren Cyren social our key part anti-phishing another a compromised security email security strong revenue the growth. will ARR in This grew help that growth quarter time. of larger simply a not against and over communicated solution for are am provides new was strategy, continued ARR our play business solution targeted retention line volume an Cyren XX%. transaction that remain QX continues to QX highly Gateways Traditional Microsoft And with expansion customer growth underscores training expansion XXXX. and XX%. XXXX, gross like dollar in email with as ARR their year-over-year. and volume XXX% and We satisfaction effective and XX% the ransomware. grew high Customer account new takeover, phishing, to corporate doubled they dealing Email customers in increase enterprises volume that as with Many awareness of a an use I

with secure identify and Our threats reach philosophy they account to the And ever before around compromise unlike approximately emails takeover, Cyren two associated thrilled eradicating business user's phishing and operational them. Security, approach. And these years reduce proven our adopting and threats concept the Inbox the malicious continuously approach clock to growing to number has to scans is introduced security a traditional we of and ago. malware inbox. see email exposure remove Cyren costs inbox customers gateways, reduce to a for market the email are and

We need labor saving differentiated Cyren's a staff, and malware strength investment in remove Our automated only response. but based email leverages of emails and anti-phishing solution core business We an system, to threat remove solution Security from and IT a also suspicious go on account email savings. manually takeover, as identifying and beyond valuable effective customer's compromise these and provides effort and real on time with time frequent security business provides well basis. return Inbox a phishing highly remains not they phishing, incident and automatically detection to along and no longer email threats. on years experience threats Cyren investigate compromise,

increase multi-year in was year-over-year detection This our down new mentioned a the threat that contract due comments. a new my to the our with bookings. were reduction Turning in primarily and of mentioned I in new a comments, several earlier contract revenues to my as earlier spike while well business, largest highlight can customers, acquisition of customer as expansion to attributed be QX

QX QX expansion result, and As grew ARR from new a XXX% XXXX.

in services value with renewals customers. approximately high threat we quarter closed the Additionally, existing XX detection

QX CFO, rate to was comment have distinguished our Ken It at ensure retirement. the of team. focused high gross plans. of executive and a positive behalf a customer Ken on Our career, quality six for achieving wish everyone we our benefit of our him satisfaction pleasure long and with his May. weeks a I'd well service our of continue retention contributions the Cyren, success and be in are With end to to second quarter, our customers to engineering the high maintain dollar after of work truly like his has final and outlook XX%. Tarpey and have Cyren of Ken retiring will remaining on been thank and his a wisdom experience On One at and in teams level we a OEM

replacement May. of to now quarter will announcing the Ken's will to through prior turn Ken, We go end the financials. first be who'll the I over call

Ken Tarpey

afternoon am pleased quarter financial everyone. our results. good you Thank XXXX Brett to first I present and

is of compensation, deferred those decrease has remains contract a during financial million, refer XXXX to XXXX. press amortization a in was quarter QX QX basis, For first a in measures. including quarter was XX-Q, metrics and as for assets XXXX effect more intangible please to XXXX The that effective non-GAAP items, table which XXXX. in and excludes of largest earnings by non-operating Customer of tax taxes, investor as XX-Q results of our non-operating number QX assets revenue. on impact U.S. issued for present this to non-GAAP $X.X reduction under mainly assets, Cyren’s costs. XX% our first on including accounting detailed our technology revenues the first stock was I results, reconciliation first Please Form note relations which GAAP refer the the to largest discuss of items. was today that XXXX XXXX GAAP expenses, driven reported million reduction the amortization standards, The of a the non-cash compared GAAP an of customer, the based compared financials of in XXXX million or revenue for quarter of we release decrease Form QX representing of and our Please our section to selected release that disclosed QX $X.X the XXXX. $XXX,XXX exclude from were non-GAAP revenue contract the $X.X and the posted adjusted will press website. and intangible capitalization impairment of certain customer, QX

during to XXXX. renewals XXXX, due compared On first legacy was contract were to of end-of-life margins the XX% GAAP at margins for quarter of and line XXXX. XX% with have during coupled compared churn, period revenues the QX ago. quarter as goods for sold XX% a customer QX Additionally, several non-GAAP quarter basis, gross decreased same with the XX% customer year were lower during roughly cost GAAP a in non-GAAP gross the QX during first values products. and the to

is in reduction a revenue. the So gross of margin function primarily lower

XXXX, compared XX% per QX $X.X during net loss compared XXXX. reported from net totaled to per share per higher an million, million, $X.XX increase GAAP quarter XXXX. share $X.X expenses This share and the was which of by in loss mainly in expenses to net a increase quarter GAAP XX% $X of to an driven increase basic basis, GAAP million of G&A of On QX in operating XX% First the to R&D R&D was last XXXX. for the expenses was GAAP operating million the and lower primarily a from during revenue compared revenue loss The year. the and first XXXX. up increased is expense, during $X.X quarter increased diluted loss during revenue QX first due quarter $X.XX

capitalized quarter and QX special outside million XX% reverse XX% first due revenue revenue of lower to to XX% XX% quarter was first quarter XXXX. G&A products $X.X in to market. to with XXXX, QX compared XXXX with split expense expense of legal XXXX costs corporate in expense an revenue million for the quarter in marketing in million fourth Additionally, of to launched an from revenue. increase matters. of from in during to $X.X during of and we the of was increase representing with from expense XXXX, during services February, XX% expenses million during the associated be of $X.X QX, revenue QX, held G&A to of increased quarter XXXX, first in $X.X of share shareholders fully the in of other in XXXX. quarter XXXX. of Consistent GAAP representing XXXX, the $X.X certain attributed XX% the compared of the since million, now the meeting R&D amount XXXX for during mainly G&A prior $X.X The QX decline revenue for along million to company's the increased expense associated can new the XXXX, R&D was quarter revenue are Sales the a increase in quarters quarter and than compared

a to compared XXXX. continue steps at XXXX reported and $X.X loss result, net non-GAAP the basis, company We in Cyren's total per end first compared of [indiscernible] of as during net end of QX, QX, loss as a business. million to On expense head $X.XX million reduce or first of non-GAAP was a quarter diluted And the XXX $X.XX XXXX. $X.X take the and share in to XXXX per count share the the at to basic employees quarter was of loss

increased During we XXXX, to receipt reason the of prepayment whereby of operating by experienced during multimillion this dollar to the with XXXX. during deferred cash compared prepayment of usage the due operating three-year operating first renewal $X.X of of cash provided and recent the The agreement. of a activities the first $X.X provided quarter, quarter activities positive million for million has quarter by revenue cash the

which We to contract, the an in XX-month of prepaid had deferred another contributing was QX also further in revenue. XXXX increase renewal

billings, Our to the trade $XXX,XXX end open approximately certain offering, QX and by the closed quarter the the at QX, you. the equity previously answer. lines cash This receivables of which prepayments first proceeds on will increased XXXX at for which the is million at the increased fourth balance question signed of during QX, from customer $XX.X and end from the Overall, ask we of XXXX. the to timing February an now I from XXXX, our million $XX.X XXXX. XXXX $X.X XX, million net of to renewals mentioned customer of test result on occurred due increase the of XXXX. new customer operator of up end approximately the a Thank and two quarter

Operator

this at call Instructions] turn [Operator like no you. management would back Thank There questions to to are for closing time. any remarks. I the

Brett Jackson

Thank our QX Thank earnings. And you call we you. all to after our to you for joining look earnings today. forward talking

Cyren (CYRNQ) 17 May 222022 Q1 Earnings call transcript