Tibco Software (TIBX) Q1 2011 Earnings Call March 29, 2011 4:30 pm ET Executives Sydney Carey - Chief Financial Officer and Executive Vice President Murray Rode - Chief Operating Officer and Executive Vice President Vivek Ranadivé - Chairman, Chief Executive Officer and President Analysts Derek Bingham - Goldman Sachs Group Inc. Yun Kim - Gleacher & Company, Inc. John DiFucci - JP Morgan Chase & Co James Wood - Susquehanna Financial Group, LLLP Brad Zelnick - Macquarie Research Tim Klasell - Stifel, Nicolaus & Co., Inc. Mark Murphy - Piper Jaffray Companies Nabil Elsheshai - Pacific Crest Securities, Inc. Steven Koenig - Longbow Research LLC Kash Rangan - BofA Merrill Lynch Presentation Operator
The 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 conditions and results of operations. For a presentation of the most directly comparable financial measures calculated in accordance with 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 the call are Vivek Ranadivé, TIBCO's Chairman and CEO; Murray Rode, Chief Operating Officer; and Sydney Carey, Chief Financial Officer.I'd now like to turn the call over to Vivek. Vivek Ranadivé Hello. Thanks, Casey, and thank you all for joining us today. I will begin the call with a summary and remarks on our first quarter performance. I will next provide an update on the broader market environment we're seeing and pursuing, then I will turn it over to Murray and Sydney to discuss further details. We started 2011 in our strongest position ever, as our Q1 results will attest. Total revenue grew by 20% over the first quarter of 2010 for a Q1 record of $185.3 million. License revenue grew by 29%, its fastest pace in a decade for a Q1, to $70.1 million. Non-GAAP operating margins came in at 21.9%, a 230 basis point expansion over the same period a year ago, and non-GAAP EPS at $0.16 grew by 33% over the first quarter of last year. Once again, we exceeded our guidance ranges for revenue and profitability. Last year, I spoke of the tipping point in our business and a new era in Enterprise computing as companies shift from transactional or database-centric architectures to event-driven architectures built around the service parts. This new era has arrived, and the 21st century has begun. Whereas content was king in the 20th century, context will be king in the 21st century.
Context is the ability to bridge fast occurrences with current behavior and understand what is happening at a moment in time. And every one of our prospects and customers today are looking for context as they seek to acquire new customers, deepen their relationships with existing ones and grow and manage their business. For example, we have retailers who want to offer the right promotion to a customer before they leave the shopping aisle. We have utilities that wish to detect a power outage before it actually occurs, and we have banks that want to prevent fraud before it happens.To acquire this important context, however, businesses must fully leverage the Internet, exploit mobility, operate in real time and harness the resulting explosion in data volumes. TIBCO's middleware platform is uniquely qualified to scale to the needs of business today, provide context from streams of events and provide the connections such that the right information can get to the right person or place at the right time. Customers, old and new, are increasingly appreciating the power of our platform and building a whole range of 21st century context-aware applications. This first quarter, we had another Central U.S. oil and gas company adopt our platform as the digital spinal cord to accelerate their smart grid initiative which will drive customer interaction and communication for over 800,000 customers system-wide. A new gaming customer came to TIBCO with bidirectional data flow and to capture and correlate real-time consumer behavior, with static information captured over a customer's life, in a channel deal where our software will be embedded as part of a larger solution. A bank, whose mission was to define 21st century customer service and initially chose to work with IBM, called us back two months later to explain that the project was getting too complicated, too complex and too costly. We signed a seven-figure deal one month later. Read the rest of this transcript for free on seekingalpha.com