ServiceSource International, Inc. (NASDAQ:SREV) Q1 2019 Earnings Conference Call Transcript

May 08, 2019 • 04:30 pm ET

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ServiceSource International, Inc. (NASDAQ:SREV) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the ServiceSource First Quarter 2019 Earnings Conference Call. At this time all participants are in a listen-only mode. Later there will be a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to turn the conference over to Chad Lyne, SVP, Strategy and Investor Relations. Sir, you may begin.

Executive
Chad W. Lyne

Thank you, Shannon, and good day, everyone. Thank you for joining us and welcome to ServiceSource's First Quarter Earnings Call to discuss our results for the quarter ended March 31, 2019.

As a reminder, a copy of our earnings release has been posted on the Investor Relations section of our website at www.ir.servicesource.com. On the call today is ServiceSource's Chairman and Chief Executive Officer, Gary Moore; and our Executive Vice President and Chief Financial Officer, Rich Walker.

Before we begin, I would like to remind you that during the call, we will make projections or forward-looking statements that involve risks related to future events.

All statements made during the call reflect our views as of today, and are based upon the information currently available to us. All projections and forward-looking statements should be considered in conjunction with the cautionary statements in the earnings press release and the risk factors included in our SEC filings, including, but not limited to our reports on Form 10-K and 10-Q. These documents contain and identify important factors that could cause actual results to materially differ from those contained in our projections and forward-looking statements, and we undertake no duty to revise or update any forward-looking statements.

In addition, during the call, we will also be discussing certain non-GAAP financial measures and projections which we believe provide additional information to enhance the understanding of how management assesses the operating performance of the business. You can find the reconciliation of the GAAP and non-GAAP measures in today's earnings release posted on the IR portion of our website.

And with that, I'll turn the call over to Gary Moore, ServiceSource's Chairman and CEO.

Executive
Gary B. Moore

Thank you, Chad, and welcome, everyone, to our first quarter 2019 earnings conference call. We started the year with solid progress on multiple fronts, and I am encouraged by the initial cadence and early execution on our digital transformation strategy.

Our teams drove strong performance across our installed base, we had a healthy level of sales activity with good sequential improvement and new business wins and our new global account management organization delivered well in engagements that were up for renewal in the quarter.

While revenue of $55.5 million was down $3.1 million year-over-year, we successfully balanced the acceleration of net new digital investments and meaningful funding for our transformation initiatives against proactive saving and targeted noncore expense reductions throughout the company. The net result was a positive adjusted EBITDA of $1 million.

On our fourth quarter 2018 earnings call in February, I outlined our VSEM framework for Vision, Strategy, Execution and Metrics,