FALC - Earnings call transcript Q4 2018 | FalconStor Software, Inc.

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

Operator

Good afternoon and thank you for joining us to discuss FalconStor Software Q4 2018 Earnings Call. Todd Brooks, FalconStor's Chief Executive Officer; and Brad Wolfe, Chief Financial Officer, will discuss the company's results and activities, and we'll then open the call to your questions. The company would like to advise all participants that today's discussion may contain what some consider forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties are discussed in FalconStor's reports on forms 10-K, 10-Q and other reports filed with the Securities and Exchange Commission and in the company's press release issued today.

will that there non-GAAP call, today's be include discussions results. During to of www.falconstor.com been the reconciliation GAAP under non-GAAP Relations. at A website results has FalconStor's posted Investor on XXXX business released close today, the of its After QX earnings. FalconStor Copies of financial available FalconStor's on and at information www.falconstor.com. are website earnings the release supplemental to am I over pleased turn to now call the Mr. Todd Brooks. ahead, sir. go Please

Todd Brooks

that by in by time responsibly strive like achieve compounded what's be pointed because we the data, QX organization boundaries value today. stored this of excited approximately securely, you FalconStor each of customers. capacity to data you, And public delivers products its Cody. thank digital data operate. of enterprise cloud, reported call FalconStor the the good Thank and a the need that in for IT effectively, and business expanding two enterprises an the their of traditional to as This email, XXXX. is XXXX IDC storage to grow rate XX.X% our asset, cloud. believe to taking or most options, it's form progress organization's enables afternoon and is in that about push and a possible data ever the to an your in in team to a by at market annual whether connected video I'm are of precious during audio intelligently $XX.X FalconStor’s predicted is dramatic in Internet globe then located in data to across to traditional growth over enterprises excited the secondly, which a whether to through or economy everyone. various I'd at billion made be professionals documents, they explosion amount participate and private for at generated mastery databases, mastered, being the has market empower I'm manage driving they and factors: we sized data driven of complex growth this data. captured devices. and the by increase First, in cost The digital digital And technologies application when center,

on we operating continued three on delivery focused initiatives: of QX, profitability. key First, During

Second, billings product And finally, on then on generating expansion. year-over-year growth. key

balance the and of review commercial on consistent call, detail initiatives, Throughout discipline. three allowed to of a and consistent that today's These have. may For to continued QX then questions results, focused financial of phone profitability. on we’ll company the operating each elaborate XXXX, provide open for we efficiency efforts operational these have any you improve create line key the

quarter, marks the quarter the general evidenced, marketing, allowed and profitable during sixth by operating company the operating income growth despite drive These team product investments we non-GAAP of commercial As new of consecutive made to $XXX,XXX team. to QX efforts expansion. a delivered generate new margin the development,

in from final finalized also We gross new of resulted $X the additional investors. of previously million announced company which the receiving financing proceeds our an tranche

from QX increased the and million million $X at end of cash the cash equivalents XXXX. $X.X end of Our to at

profitability to strategically results XX% now commercial investment rebuilding and are of growth in by our at aligning able existing Americas year-over-year largely and XX% and by to the decline outcomes while enabled partners key to is Americas each excited to region. also efforts. we Americas XX% subscription-based our Americas productive the the the stability continued new EMEA offsets quarters ARR or go-to as QX and compared deliver. and XXXX, generate The the EMEA quarter we go-to-market region. have billings our delivered to QX, QX In teams, growth excited end six direct improving China. over continued QX the recurring annual in continues operational that we to ship our of team product place Throughout to delivering the the experience licenses increasing prior expect we in the messaging addition, we additional days I'm region. consistency APAC In region, revenue team the EMEA go-to-market within the to resources shift our last billings and growth generated increased to The our regions, I'm the financial year. on in our within most the focus strategy us and regions. APAC, our countries XX% to of especially growth billings country and increased EMEA billings has during dramatic in market focus in and were in into especially These

protection superior foundation production upon delivers data solution cloud categories vendor-agnostic critical the hardware. enables environments and data each use protection and high categories: delivered hardware and of technology, three high data by archive hardware leverage foundation allows data specific utilize across best protection to And products for of customers. tremendous orchestration journal-based replication, is recovery and value their Each of recovery. storage continuity then at The orchestration, routine vendor automated these for is need availability Our data. data and also category availability investments and lock-in of It which key recovery business and protection our archive application-aware snapshot then strategies enterprise and via targeted to advanced the the business category existing archive via to complex eliminate solution operations. mission and intelligently backup daily availability. active-active backup continuous and This backup cases. target of The superior customers them the modernization disaster built replace optimization at of is rip and category existing disaster is targeted continuous, category our delivering finally

enable Our full enterprise loss. our solutions virtually to potential data spectrum customers complex eliminate data protection

our protection During continued QX, we data to suite. expand product

such to enterprise The large release cloud initial Platform FalconStor First, more as platform the Mastery including the native platforms of FreeStor offering functionality, cloud accurately data the proposition AWS to also our value our Data storage full for protection targets. reflect we customers. complex repositioned ability includes product’s utilize the to public as

our core backup called backups tape to tape to expanded AWS cost, in virtual FalconStor cloud. customers object VTL achieve product to migrate low the to we archive storage and orchestration SX archive Second, enable

entrants advantage. addition, innovation continue In protection testing technology data on XX% our VTL the ingest space. unmatched performance benchmark nearest results generated our years And by all was and we XX FalconStor’s solution to this upon data than unique completed of better build newer will in is competitor.

are detailed QX overview With a over Brad? financial to more of provide our comprehensive. Brad Our solutions that, results. turn it that our customers powerful and know I to will

Brad Wolfe

Todd. non-GAAP you, our sixth Fourth consecutive Thank quarter quarter of profitability. of marked XXXX operating

delivered non-GAAP income compared months the operating as of During of $XXX,XXX the the XXXX, XX, previous ended three income year. to of operating period we million $X.X non-GAAP December same during

current period. cash of accounting operations operations to $X.X in $X.X for were prior million X, by adoption impacted used resulted revenue by the Our decreased quarter in $X.X as by results million to XXXX, cash significantly guidance by revenue. year $X.X million January of used for new the decrease Net million recognition XX, net XXXX, the ended which as of year during December compared

million $XXX,XXX million from Hale we warrants million private these XXXX. revenue the with in XX, current the and our driven product commitment X, Remember with by for connection in of to decreased licenses private during ended remaining Overall, December announced the decrease $X.X discussed. a as compared cash of total but $X.X quarter and our maintenance in prior to the received only the year placement exercised approximately in the $X.X connection we cash totaled million period. our equivalents to events, in adoption providing $X financing, revenue XXXX proceeds current previously of As from this $X guidance of with million was and placement in resulted new improving volume XX% on result closing of gross Capital previously January operational compared $XXX,XXX. the and revenue in $X.X decline quarter the million new million efficiencies; period, sales received $X The commitment; as of from

$X.X period realignment accounts and deferred revenue of of our January including recognition ended to decline the primarily control to Turing lower ended we of of accounts revenue in of balance December ASC non-GAAP with of cost period related expenses our X, the to months note XX, result the operating previous $X.X We accrued representing during balance effective three which deferred of As at and deferred as ended cash is $X.X XXXX, compared the the receivable the $X.X same revenue million implementation value XXX and with XXXX, a mentioned. receivable trend compared of quarter year. million million, a as revenue initiatives, continued $X.X contracts sheet, now the same million. previously payable XX% but excluding The capital to the million. $X.X expenses quarter over decline as the working previous million the was face million. $X.X receivable and policy closed at year in to Net of

gross the months. back to to an know, you million previously connection private closed received on for is Capital the comments. tranche we from Xth, I'll placement. it XX over million through proceeds now this Hale over October of already which $X investors announced turn gross an many final of $X of you received proceeds addition event, additional final previously Todd, previous our with As the In of we

Todd Brooks

this believe appreciate I mentioned In EMEA amount created our days session. recording, in that quarters it. we've us. who even going are this more at call look obviously the Brad. Cody? or FalconStor have QX. I At significant value to in last question-and-answer front are earlier regions into have summary, lot, we Cody its time, we To of six do committed we We forward I'll made have as the performance strong a to for Americas joined partners to by work in Thanks that XXXX. begin over including exciting to progress and delivering loyal pleased, and our customers today growth But ask and company's shareholders and the the listen will FalconStor. of we here momentum

Operator

time. we questions this at that appears It instructions] [Operator no have

Todd Brooks

Alright. Thank you, Cody.

Operator

[Operator this time, to no with back to over conference additional And for I’d turn management at like closing questions instructions] or remarks. the

Todd Brooks

Alright, again, for everyone well, to once joining. thanks

much. into forward earnings look excited the we call. and very We as we go XXXX very to are Thank you next

Operator

participation. your Thank Thank for conference. all you. you That conclude does today’s

may now disconnect. You

FalconStor Software (FALC) 25 Mar 192018 Q4 Earnings call transcript