Zix Corporation (NASDAQ:ZIXI) Q3 2018 Earnings Conference Call - Final Transcript

Oct 23, 2018 • 05:00 pm ET


Zix Corporation (NASDAQ:ZIXI) Q3 2018 Earnings Conference Call - Final Transcript


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David Wagner

I've talked about our progress as it relates to our three growth areas, I'll spend a little bit of time talking about where we are with the integration of Erado and our progress with ZixEncrypt EMS before we open the call for questions. As many of you know, we acquired Erado in April of this year, strengthening our leadership position beyond email protection to protecting all forms of digital communications. We've been hard at work integrating acquired technology, and I can already say that the collaborative work has been remarkable.

We are really pleased with our Seattle team and the agility with which they have integrated into the larger Zix team and the pace at which they are delivering on their roadmap. The final steps of the integration are expected to culminate with the complete launch of our expanded archiving capability in Q1 2019. We are on track to hit that target launch date and there's a lot of energy among our sales team to get their hands on this enhanced functionality.

Our unified archiving capability further increases our total adjustable market and more importantly, gives us a highly differentiated capability to help our customers deal with their transition to the cloud and the challenges they are facing with the explosion of communication channels that their employees and end customers are demanding. Although not a bundling opportunity at this time, we are equally excited about the launch of ZixEncrypt EMS that the team delivered in August.

This release delivers on our commitment to provide meaningfully enhanced functionality to the customers we acquired, along with the EMS technology acquisition from Entrust Datacard in September 2017. This release is meaningful for existing EMS customers because it delivers superior end user experience, especially on mobile devices, to their existing deployments. For existing ZixEncrypt customers, it provides the opportunity to extend to a broader set of message delivery options.

For new prospects, this release provides an on-premise portal delivery option, which remains critical to some larger customers especially in international markets. In summary, ZixEncrypt EMS further cements our leadership position in the encrypted email market. In closing, I will go back to where I started this call, by highlighting the meaningful growth that we are experiencing in new orders. Increasing new order growth to 20% for the year-to-date is a meaningful milestone for the Company, and I would like to thank all 253 of my colleagues for the work and commitment that was required to achieve this milestone.

In 2016 and 2017, we began investing heavily in our migration to the cloud and the extension of our solution to a more complete email security bundle to better meet our customers' requirements as they transition their businesses to the cloud. We then further extended our solution to help our customers as their end users increasingly demand the ability to use a broader range of business communication channels. These were big technical challenges and our technology, service and implementation teams delivered.

In 2018, we began to