FALC - Earnings call transcript Q1 2019 | FalconStor Software, Inc.

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Operator

Good afternoon and thank you for joining us to discuss FalconStor Software's Q1 2019 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 and 10-Q and other reports filed with 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 GAAP of under posted non-GAAP reconciliation has Investor results www.falconstor.com A at to been website on Relations. FalconStor's earnings. FalconStor the its After business today of QX close XXXX released available Copies of the website release and www.falconstor.com. on information supplemental at FalconStor's financial earnings are Todd I pleased to the call turn now am over to Brooks.

Todd Brooks

intelligently most to I when enables $XX.X center, enterprise data products the form All be The business to to a you this in. the of public your we time for data. excited operate. mastery the very predicted generated complex thank in participate stored IoT. growth they professionals data a achieve dramatic we data. to second, also across are IT driving captured push known this you, ever traditional our over its am that team I by responsibly to today the two digital approximately securely their and is they options thus email, data empower being at various by I'm expanding and Internet-connected Because far factors, and be storage sized data devices located throughout that, appreciate technologies the what's at delivers asset, the generated or organization's in and of economy annual globe the the video rate mastered of digital, Ryan. XXXX. precious to possible Thank in grow organization audio digital customers. believe FalconStor's to compounded with it's and each right. And and of effectively, at appointed billion XXXX boundaries whether cloud. like call cost an that a in XXXX progress by to the as I'd pleased the of is enterprises market which in by increase documents, is FalconStor to enterprises IDC value reported manage made took strive in need listen in that and market first data and XX.X% of FalconStor capacity This as cloud the in in private amount traditional or growth application an databases, whether then explosion has

then three focused delivery QX, During expansion. key generating of first, key product on on second, continued and we operating third, on initiatives; year-over-year billings profitability; on growth;

QX provide then phone may of any we'll on overview detailed today's of results, the a key For call, financial open elaborate and All right. initiatives, questions balance of the have. you each these for line

operational Let's into consistency. first launch the

as commercial and we consistency quarter product continued marketing we generate efficiency efforts and operating expansion. These the initiatives new during team. drive about a new quarter $XXX,XXX that QX And team seventh very and QX, continue throughout the growth income the consecutive investments So delivering -- I'm allowed to deliver. excited and evidence, improve operating discipline. in team investments the despite made profitability on These profitability. company the margin consistent efforts the marks profitable of have the operating operational by company focused to to commercial delivered continues operational development non-GAAP new to of to general allow

our QX, generate the of teams, to new and are Americas team encouraging. review. rebuilding now In is we next the partners, able were XXX% region So billings in growth existing outcome Americas go-to-market region. billings that very into especially focus direct let's on key commercial billings increasing is dive messaging. growth These and improving our delivering our The results within

adoption is up windows customers storage increased across growth to across XXX% most investments lock-in. and Very our of backup significant meet regions, public a to generate QX all and solution stringent called result the which have late to this by year-over-year growth growth through VTL, early reduced April and in And of entire deliver the several zero data all the key XX% company capacity their billings cloud orchestration for us end of XXXX. QX portion in backup billings of in didn't far April so in of we wins exciting. and leverage use recovery of empowers existing allowed our while X% the our vendor archive archive with year-over-year Now

balance to expectation the XXXX. improve we for our deliver continued pipeline growth point and of that Our has is for at this billings XXXX will year-over-year

that the product our last place into The go-forward in a have go-to-market and little quarters seven stability expansion strategy we completed successfully bit QX. has we talk increased investment financial product about let's efforts. enabled to Next, over some generated us

the by their is important category our VTL leading modernization to data This across Data for operations. high by tremendous the and orchestration, VTL availability. solution of optimization performance exciting complex delivers they Our management backup -- routine independent The existing than and twice key validation Platform categories; our at which And customers. protection complex in and for prospects. our our have included testing and milestone FalconStor noticed information backup and VTL business QX solution Mastery existing competitor. targeted very and daily archive solution technology value of disaster our three delivers our and customers archive and and is recovery, category strategies up being data analyst data enterprise as powered enterprise Group is storage a firm through foundation orchestration of is the backup This Xx and Evaluator the technology is an the archive verified completed our times better marketplace

data recovery superior snapshot via delivering application-aware the Next, is and at protection disaster continuous advanced category replication. journal-based targeted

then best allows then continuity eliminate storage to active rip them to: hardware. a customers the production a Finally, need target use the data use of intelligently vendor-agnostic environments secondly, for and these cases. superior foundation cloud which allows it their hardware of to is and be categories investments data. of hardware solution built high-availability category the business performance delivers mission-critical or Each availability vendor existing continuous leverage technology replace each and our of it first lock-in and And protection upon

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

nearly newer data unmatched entrant innovation into two is we'll Our of space. by advantage. to the decades this And protection technology upon continue build

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

Brad Wolfe

Thank you, Todd.

our quarter marked first seventh The consecutive of of operating profitability. XXXX non-GAAP quarter

in compared XXXX increased by total of large or to ended April Total with through financial the million entity which of margin due $X.X delivered three by the $X.X the a mix and primarily year March increased compared due decreased operating X% decreased compared XXXX XX% the March months income total with March same operating operating $X.X Total our and for gross March in months will the previous of the three QX, XX, the delivered of QX. to gross increase in XX, $XXX,XXX decrease to primarily the same XX, key period. with non-GAAP period. the Overall, during the XX of XXXX reduction total XXXX $X.X The $X.X the million the as for absolute XX, ended to prior the was prior XX, the year billings X.X%. the increase million of to income timing XX% compared months or profit Overall X% over $XX.X $X.X ended of that year, million $XXX,XXX million year. XXXX to three wins included for compared billings end to compared an highlighted gross from to to for in QX ended in Despite for three compared for in three Total one be for have profit several of X%. non-GAAP period. cost million March to we XX% ended recognized million of previous XXXX the three year expenses $X.X March the period margin million -- dollars the with total previous the initiatives. revenue period The year. million revenue in During period decrease $X.X XXXX $X cost XX% months declined increased total to revenue. and in $XXX,XXX prior same months as our decreased decline year-over-year revenues ended million, months was gross XXXX sales of our

term cash balance of revenue now accounts Turning our operating back you $X.X repayment, and receivable, and deferred million. lease expenses sheet. ended Net defined $X.X quarter as at ended turn of final of to the will receivable of our $X.X I payable the for a excluding we with million. term We million, accounts $X.X including but over working $X.X After the quarter comments. capital revenue, accrued deferred contracts balance million million liability note with $X.X million. to now it and closed loan

Todd Brooks

right. All Brad. very you Thank much

So far are pleased this performance and opportunity to the the fantastic like the assembled over last point, with team set we the XXXX. up progress in experienced quarters thus here for to opportunity summary, several company's at in made its a I'd highlight take very we do this believe have And FalconStor shareholders. we has FalconStor. To

of domain and at loyal over dedicated our our of tenure in impressive amount average base years. experience an has industry First, employee an nine

or so built have team software value. is over and and at like a the shareholder leadership delivering months last FalconStor, XX companies the unique in Second, proven XX we has months, that growing mature experience company

We are seasoned a excited from Finally, our the and FalconStor Board complementary story. disciplines. of and opportunity the to of have Directors includes minds we our that top be we and part is industry recognize

we who to to delivering ask At call loyal Brian forward the are to this our session. to time, we will at -- partners and its All or recording, right. this look I'll shareholders and to Ryan customers FalconStor. today the joined or question-and-answer future Ryan? that have committed value and listen begin So

Todd Brooks

taking Fantastic. folks time our your All call right. listen thanks Well, again to once in to for today. again Okay.

excitement call hope to Thank team you We we look months. that and everybody here a next in forward on much. the -- I are few have the we very feels the

Operator

you joining Ladies lines for today's concluded. call and Please gentlemen, now a disconnect your call. conference The has day. have great thank and

FalconStor Software (FALC) 15 May 192019 Q1 Earnings call transcript