Attunity, Ltd. (NASDAQ:ATTU) Q3 2018 Earnings Conference Call Transcript
Nov 01, 2018 • 08:30 am ET
Welcome to the Attunity Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Allison Soss, Investor Relations. Thank you. You may begin.
(Forward-Looking Cautionary Statements)
At this time, it is now my pleasure to turn the call over to Shimon Alon, Chairman and Chief Executive Officer of Attunity. Shimon, the floor is yours.
With me is Dror Harel-Elkayam, our Chief Financial Officer; and Itamar Ankorion, Chief Marketing Officer. We are very pleased to report another great quarter for Attunity. We achieved strong license revenue growth of 50% year-over-year and total revenue growth of 35% year-over-year, as well as record profit and strong cash flow. We see revenue growth from a healthy mix of new and existing customer. New customers are building solutions for modern analytics using cloud and data lake, and existing customers are expanding the use of Attunity platform.
We also see continued growth across all territories, growth is sales of our expanded product suite and growth in pipeline contribution from our partner. With this momentum and three strong quarters reported already in 2018, we are again increasing our full year outlook, which we will discuss in a greater detail later this call. We continue to see strong adoption of our term-based license model, with a 40% sequential growth -- increase in number of these deals. About two-third of Replicate deals were term based, as well seven out of the 10 largest deals this quarter. We expect this term-based model to generate substantial recurring revenue, contributing to our continued growth.
We keep investing to innovate and enhance our unique product offering, strengthen our management team, grow the organization and expand our partnerships. During the quarter, we held our Annual Analyst and Investor Day to update our shareholders on our progress and confidence in the large opportunity ahead. During the event, we outlined the key growth drivers that fuel our continued momentum and I want to share with you few of those drivers.
First, I will highlight the market dynamics, where we continue to see accelerating adoption of the cloud as a platform for analytics, data lake and AI. In addition, we are seeing a growing demand to support a multi-cloud strategy, where customers plan to work with more than one cloud vendors. This is a trend that we are very well aligned given our product offering and our partnership with Microsoft, Amazon and Google.
Second, I will highlight the dynamics in the data lake market, where we are seeing two trends, expansion and transition to the cloud. We continue to see the data lake market moving into a next stage maturity, expansion and scalability. Customers are building their initial deployment, adding advanced capabilities and require real time data in a large capacity in a large scale deployment.
As an example, in this past quarter, we closed