Zuora Inc (NYSE:ZUO) Q3 2018 Earnings Conference Call Transcript
Nov 29, 2018 • 05:00 pm ET
Good afternoon. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the Zuora Fiscal Q3 2019 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator instructions)
I will now turn the call over to Joon Huh, VP of IR. You may begin your conference.
Thanks, Mike. Good afternoon and welcome to Zuora's third quarter fiscal 2019 earnings conference call. Joining me today are Tien Tzuo, Zuora's CEO; and Tyler Sloat, Zuora's CFO. The purpose of today's call is for us to provide some color on our third quarter results, as well as provide our financial outlook for the fourth quarter and the remainder of the year.
(Forward-Looking Cautionary Statements)
Finally, we'll be referring to several non-GAAP financial measures today, and reconciliations to the related GAAP measures are included in our earnings release. For a copy of our earnings release, links to our SEC filings, a replay of today's call, or to learn more about Zuora, please visit our IR website at investor.zuora.com.
And with that, let me turn it over to Tien and Tyler.
Thank you, Joon. This is Tien. Welcome to our third earnings call as a public company.
And good afternoon, everyone. This is Tyler. Thank you for joining us today.
I am very excited today to talk about our third quarter. Let me start by saying that it was a great quarter. In Q3, we continued to deliver very strong financial results. We came in ahead of expectations across all our metrics, subscription revenue, total revenue, operating income, and EPS. Growth continues to be strong.
In Q3, we continued to see expansion in our total addressable market. Our market is predicated on, not just more and more companies launching subscription services, but entire industry is shifting. Over the last few months, we signed on Toyota, as well as Kia Motors, along with our existing customers, GM, Ford, Peugeot, and Renault. We are now behind the connected car initiatives of six of the world's top 10 auto manufacturers. This is an entire new vertical for us that didn't even exist five years ago, and it's a great, great example of how our strategy of landing and expanding within entire industries can lead to long-term durable growth.
In this quarter, we continue to see strong demand for our products, Billing and RevPro, both recognized as the leading solutions in their space. Regarding RevPro, now with the deadline for ASC 606 compliance has passed for many companies, you might think that demand for this product has significantly slowed. That is not what we're seeing, and we'll give some examples from the quarter demonstrating that revenue automation continues to be a big, big growth opportunity.
Finally, in this quarter, we continue to see growing momentum with our system integration partners, especially Deloitte and PwC, and I'll touch a bit on that as well.