TIBCO Software, (TIBX) Q3 2011 Earnings Call, Sep 22, 2011 September 22, 2011 4:30 pm ET Executives Sydney L. Carey - Chief Financial Officer and Executive Vice President Vivek Y. Ranadivé - Chairman, Chief Executive Officer and President Murray Rode - Chief Operating Officer and Executive Vice President Analysts James Derrick Wood - Susquehanna Financial Group, LLLP, Research Division Nabil Elsheshai - Pacific Crest Securities, Inc., Research Division Mark R. Murphy - Piper Jaffray Companies, Research Division Tim Klasell - Stifel, Nicolaus & Co., Inc., Research Division Kash G. Rangan - BofA Merrill Lynch, Research Division John S. DiFucci - JP Morgan Chase & Co, Research Division Steven R. Koenig - Longbow Research LLC Brad A. Zelnick - Macquarie Research Presentation Operator
Once again, we delivered a strong performance in Q3, with healthy growth in both revenue and profits. For the third quarter, total revenue came in at $229 million, up 24%. License revenue came in at $91 million, up 29%. Non-GAAP operating profit grew by 28%. Operating margins expanded 80 basis points to 25.2%, and non-GAAP fundings per share came in at $0.23, growing, once again, by more than 30% over the same quarter last year.I've spoken to you before about the tipping point our business has hit, and the evidence continues to mount. This past quarter marked the seventh consecutive quarter we've grown license revenue by more than 20%, the seventh consecutive quarter we've grown earnings per share by more than 30% and the 13th consecutive quarter where we've beaten consensus EPS estimates. Once more, our vision of the Two-Second Advantage is really hitting home. The idea simply is that it's far more valuable to have a little bit of the right information just a little bit beforehand than all the information in the world after the fact. Certainly, it's true that these are uncertain times we live in and lots of questions abound. Government struggle to do more with less. Banks continue to grapple with managing risk, and businesses of all types complete ferociously to build loyalty from a savvy retail consumer. Markets will rise. Markets will fall. But some changes are unstoppable. The shift from desktop to lapstops [laptops], the shift from landlines to cell phones, the shift from transactions to events. A transaction is an agreement between parties, whereas an event is simply when something happens. The threats and opportunities of hard time require a software platform that is engineered from the ground up to operate in realtime and to handle the volume and velocity of events. Such a platform must do 5 things. One, it must detect relevant patterns and correlations amidst a wave of big data and events. Two, it must provide powerful analytic capabilities, so that anyone can interpret what is happening when it counts. Three, it must have the automation ability to initiate corrective action and support flexible composite application. Four, it must scale elastically on-premise and off. And five, it must provide a natural means for collaboration between humans and machines. Only TIBCO has a complete and integrated platform to detect, harness and make sense of the threats and opportunities that lie in events.
So as it turns out, if you're actually selling something that people want today, you are in pretty good shape. This is a time and this is a market of separation, haves from have-nots, 21st versus the 20th century, winners versus losers. While the old companies will fight to hold on to their dying businesses, there's no denying the underlying shifts that compel this world and our opportunity forward. Namely, the explosion in data volumes, rise of the cloud, and push not merely for Software as a Service, but software as a self-service.Read the rest of this transcript for free on seekingalpha.com