TIBCO Software (TIBX)

Q1 2012 Earnings Call

March 29, 2012 4:30 pm ET


Vivek Y. Ranadivé - Chairman, Chief Executive Officer and President

Murray Rode - Chief Operating Officer and Executive Vice President

Sydney L. Carey - Chief Financial Officer and Executive Vice President


John S. DiFucci - JP Morgan Chase & Co, Research Division

Brad A. Zelnick - Macquarie Research

James Derrick Wood - Susquehanna Financial Group, LLLP, Research Division

Kash G. Rangan - BofA Merrill Lynch, Research Division

Brent Thill - UBS Investment Bank, Research Division

Raimo Lenschow - Barclays Capital, Research Division

Pinjalim Bora - Piper Jaffray Companies, Research Division

Steven R. Koenig - Longbow Research LLC

Karl Keirstead - BMO Capital Markets U.S.

Yun S. Kim - ThinkEquity LLC, Research Division

Jesse Hulsing - Pacific Crest Securities, Inc., Research Division



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Good afternoon, ladies and gentlemen. I'm Montserrat. Welcome to TIBCO's First Quarter 2012 Conference Call. [Operator Instructions] You can also listen to this call via the Internet at www.tibco.com. Today's call is being recorded, and will be available for playback from TIBCO Software's website at www.tibco.com. In addition, replay will be available through InterCall for one month following today's call by dialing 1 (800) 585-8367 or (404) 537-3406 internationally. The confirmation code is 59620366.

The following conference call includes forward-looking statements which represent TIBCO Software's outlook and guidance only as of today and which are subject to risks and uncertainties. These forward-looking statements include, but are not limited to, forecasts of revenues, operating margins, operating expenses, outstanding shares and earnings per share for future periods.

Our actual results could differ materially from those projected in such forward-looking statements. Additional information regarding the factors that could cause actual results to differ materially are discussed in the Risk Factors section of TIBCO's most recent reports on forms 10-K and 10-Q filed with the Securities and Exchange Commission. TIBCO assumes no obligation to update the forward-looking statements included in this call whether as a result of new developments or otherwise.

This conference call also includes certain financial information that has not been prepared in accordance with generally accepted accounting principles, as we believe that such information is useful for understanding our financial condition and results of operations. For a presentation of the most directly comparable financial measures calculated in accordance with the GAAP and a reconciliation of the differences between the non-GAAP and GAAP financial information, please see our website at www.tibco.com.

The presenters on this call are Vivek Ranadivé, TIBCO's Chairman and CEO; Murray Rode, the Chief Operating Officer; and Sydney Carey, Chief Financial Officer.

I'd now like it to the call over to Vivek.

Vivek Y. Ranadivé

Hello, Mo, and thank you for joining us today. It's nice to be speaking to you again and discussing this first quarter of our new fiscal year. I'll begin the call with summary remarks on our Q1 performance and discuss the broader environment we're seeing before turning it over to Murray and Sydney to discuss details.

We started the year right where we left off and continued our record of strong execution. The first quarter, total revenue came in at $226 million and grew by 22%. License revenue came in at $82 million and grew by over 17%. Non-GAAP operating profit grew by 17% and non-GAAP EPS came in $0.20, growing 25% over the same period a year ago.

For the third year in a row, we delivered accelerating revenue growth in Q1. This was the ninth consecutive quarter of growing EPS by more than 25%, and this was the 15th consecutive quarter of beating consensus EPS estimates.

I have spoken before as to how our event-driven software platform positions us at the convergence of the most significant technology forces of our time, big data, cloud, mobility, social networking and the shift to realtime. For more than a decade of innovation leadership and experience born in the world's most demanding environments, we have methodically assembled a powerful set of products that is truly a string of pearls. Most of these pearls of course were born of our own sweat investment from inside these walls.

For example, our Enterprise Messaging, which moves more messages every minute than Twitter moves in an entire day; our realtime rules engine, which detects relevant patterns amidst the stream of events; our integration and automation chassis, the marketplace standard for 21st century flexible applications; our distributed peer-to-peer in-memory data grid, which enables heterogeneous applications to share, exchange and process data in realtime; and tibbr, the universal desktop that marries all of your people, systems and machines, and instead of you searching for the information, lets the information come find you. These are just a few.

To this list, we have selectively added some additional pearls and carefully woven them into our core. For example, Spotfire, our powerful and easy-to-use and deploy visualization offering for big data, which continues to explode in demand and is fast becoming the spreadsheet of the 21st century; Netrics, our in-memory pattern-matching product, so key in multi-domain master data management; Nimbus, our discovery tool for modeling, managing and operating all of your business processes; our S+, with which we bring the expanded power of statistical modeling to our analytical offerings. We own the very language of statistical modeling with it.

But even more impressive than any of these individual pearls is the various powerful ways in which you can string them together into what I call value packs. The first such value pack is around what we refer to as trigger-based marketing or an event-driven approach to up-selling and cross selling your existing customer base.

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