- Good. Crushed revenue in the Quarter. Street was looking for $114m and CLDR did better than $118m.
- Good. Net Expansion rate of 127%, down from 128%, but that’s after a two quarter fall from 136%, and given it is a trailing 4 quarter average, it implies quarterly net expansion in Oct-Q jumped nicely
- Mixed. Unfortunately that also means revenue from new customers y/y also decelerated for the 3rd quarter in a row – however, we point out these numbers are y to y contribution rather than sequential in the Q, and the company has explained that if their turnaround works it will show up in better numbers in F20 as they grandfather some of the trouble spots they hit in late F18
- Good. The company absolutely crushed non-GAAP OP expectations as well as OCF expectations in Q. And guidance for the full year is also a bit ahead in light of the ~$12m of cash merger expenses
- Bad. Deferred revenue missed. Tough to win in software when that is still happening.
- Mixed. Bookings just inline.
- Bad. Guidance implies big decel for subscription revenue from 28% y/y in F3Q to 21% in F4Q, showing that stabilization of revenue growth is still a task.
More after the call.
Please call or e-mail with any questions.
Ami Joseph
Managing Director
Yosef Vaitsblit
Analyst