Thank you, Stephanie. As we reported earlier this month, after 31 consecutive quarters of consistent results, we fell well short of our own expectations in Q2. This afternoon, I will outline the key reasons for the disappointing Q2 results and the aggressive steps we are taking. I will then comment on the key measures to effectively scale the organization to the next level and discuss reasons for our continued conviction in the long-term opportunity.
In EMEA, we clearly did not fully anticipate the increasing impact of the macroeconomic uncertainty on the first synch cycles of our customers. Partly due to the leadership transition in EMEA, we did not exhibit the level of rigorous multi-quarter pipeline management discipline required to adapt rapidly to the changing environment.
As a consequence to the sales, pipeline conversion rate was lower than expected in Q2. With stricter purchasing controls, deals took longer than expected as evidence that our customer value proposition remains compelling. Even though deals are taking longer, deals are getting done.In Q2, we closed a large deal with a major European government agency after a long quarter sales cycle. Informatica products will play a critical role for this agency's imperative to provide better citizen services while reducing fraud. By centralizing information for its systems, the agency will be able to offer a more efficient payment system for work incentives.In the U.S., our results reflected the collateral impact of the European macroeconomic uncertainty, as well as changes in our sales organization. We saw several customers begin scrutinizing their purchasing cycles, with additional steps for approvals and diligence, as well as downsizing for their recurring purchases. And we now recognize that the Q1 changes in our sales organization to increase distribution capacity for growth and customer success, including changing sales territory assignments took longer than expected and affected the quality of our business pipeline.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV