Carbon Black, Inc. (NASDAQ:CBLK) Q3 2018 Earnings Conference Call - Final Transcript
Oct 25, 2018 • 05:00 pm ET
Good day, ladies and gentlemen, and welcome to the Carbon Black Third Quarter 2018 Earnings Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to introduce your host for today's conference, Mr. Mark Sullivan, CFO. Sir, you may begin.
Okay. Thank you. Good afternoon, everyone, and thank you for joining us today to review Carbon Black's third quarter 2018 financial results, which we announced in our press release issued after the close of market today. Joining me on the call today is Patrick Morley, Carbon Black's CEO.
(Forward-Looking Cautionary Statements)
A replay of this call will also be available there for a limited time. Additionally, non-GAAP financial measures will be discussed on this conference call. Please refer to the tables in our earnings release and the Investor Relations portion of our website for a reconciliation of these measures to their most directly comparable GAAP financial measure.
With that, I'd like to turn the call over to Patrick.
parThanks, Mark, and thanks to all of you for joining us today on our third quarter earnings call. Our revenue and earnings, both exceeded expectations, driven by strong growth in our cloud business. Looking quickly at our results for the quarter, we generated total revenue of $53.4 million, representing 29% year-over-year growth, recurring revenue of $49.3 million, representing 34% year-over-year growth.
Cloud revenue of $16.1 million, representing a 126% year-over-year growth and we ended the quarter with 4,625 customers and 2,450 cloud customers, which represented 39% and 109% growth respectively. We made significant progress in the third quarter and throughout 2018 in rapidly transitioning Carbon Black into a cloud platform security company.
A year ago, our product portfolio consisted of one product, Cb Defense, that was available on the Predictive Security Cloud or the PSC, our multi tenant cloud platform; and two on premise products, Cb Protection and Cb Response, with the latter also being available in the single tenant cloud configuration.
Today, I'm pleased to say we now have five products on the PSC, all available through a single agent and a single console on a common cloud platform, leveraging our unfiltered endpoint data and our streaming analytics. The five products now available on the Predictive Security Cloud are the following: Cb Defense, which delivers world class, next generation antivirus and endpoint detection and response, enabling organizations to detect and prevent cyber attacks of all types.
Cb ThreatSight, a managed alert triage service that enables customers to understand and prioritize security issues across their endpoints. Cb Defense for VMware, which provides next generation prevention, detection and response for applications running in virtualized data centers. Cb LiveOps, which provides real time endpoint query and remediation capabilities. And finally, Cb ThreatHunter, which brings the advanced capabilities of Cb Response or industry leading threat hunting and incident response solution to the Predictive Security Cloud.