Hortonworks, Inc. (NASDAQ:HDP) Q2 2018 Earnings Conference Call - Final Transcript
Aug 07, 2018 • 04:30 pm ET
Good day, ladies and gentlemen, and welcome to the Q2 2018 Hortonworks Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. (Operator Instructions) As a reminder, today's conference is being recorded. I would now like to turn the call over to Reuben Gallegos, VP, IR. Sir, you may begin.
Thank you, Mark. Good afternoon, and welcome to Hortonworks Q2 2018 earnings call. Today, we will discuss the results announced in our press release and prepared remarks issued after market close. With me are Rob Bearden, Chairman, President and CEO; Scott Davidson, our COO and CFO; and Scott Gnau, our CTO.
(Forward-Looking Cautionary Statements) We will also present both GAAP and non-GAAP financial measures. Non-GAAP measures should not be considered in isolation from, as a substitute for, or superior to our GAAP results. We encourage you to consider all measures when analyzing Hortonworks' performance. A reconciliation of GAAP to non-GAAP measures is included in today's press release. So with that said, I will turn the call over to Rob for some opening comments.
Thanks, Reuben. Good afternoon and thanks for joining our earnings call. As always, I want to start off by thanking our customers, the open source community, our partners and shareholders for their continued support. So for today's call, I will review our business highlights and customer successes for the second quarter of the year and close with a discussion of what we see in the competitive landscape. And then, Scott will discuss our financials for the second quarter and our outlook for the third quarter and full-year 2018.
Let's start with the business highlights. We had another great result, and with total GAAP revenue in the second quarter 2018 growing 40% year-over-year to $86.3 million. This was driven by continued expansion within our existing customer base, strong growth internationally and a 70% year-over-year increase in the number of large deals with a total contract value greater than $1 million.
Our margins have also continued to improve as we drive leverage across our business. We believe that our R&D investments and strategic partnerships position us well to capitalize on the significant opportunities within our markets, including the Internet of Things, hybrid-cloud computing and big data. Our consistent strategy to manage the entire lifecycle of data from point of origin to point of rest across hybrid and multi-cloud architectures was instrumental in delivering our growth for the second quarter.
The depth and breadth of our offerings also continues to be a strategic significance and differentiates us from the competition. This is demonstrated by the Hortonworks DataFlow or HDF platform being included in approximately 30% of our subscription contract deals in the second quarter. So the collection and processing of data at the edge is a core requirement for many of our customers where real-time insight is critical to their use cases. We're also seeing increased requirements for hybrid and multi-cloud architectures emerge across many of our customers, and they are all in various stages of evaluating