Aerohive Networks, Inc. (NYSE:HIVE) Q1 2019 Earnings Conference Call Transcript

May 08, 2019 • 05:00 pm ET

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Aerohive Networks, Inc. (NYSE:HIVE) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Aerohive First Quarter 2019 Earnings Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Melanie Solomon. Please go ahead.

Executive
Melanie Solomon

Thanks, Todd. Welcome to Aerohive Network's first quarter 2019 financial results conference call. Today's call is being hosted by David Flynn, President and Chief Executive Officer, and John Ritchie, Chief Financial Officer and Chief Operating Officer.

We just distributed a press release and filed an 8-K detailing Aerohive Networks first quarter 2019 financial results. Copies of these documents, which include our GAAP to non-GAAP reconciliations are available on the Investor Relations section of our website at ir.aerohive.com. This call is also being webcast live on our website and will be available for 30 days.

I'd like to remind you that during today's call, our discussion may include forward-looking statements about Aerohive Networks and its future business and financial and operating results, products, customers and markets. These statements involves risks and uncertainties that may cause actual results to differ materially from th ose anticipated by these statements. The risks and uncertainties include those described in the risk factors outline under the captions risk factors and management's discussion and analysis of financial condition and results of operations in our reports filed with the SEC including our most recent Form 10-Q and Form 10-K, both available on the Investor Relations page of our website and on the SEC's website at www.sec.gov.

All forward-looking statements in this presentation and the referenced press release are based on information available to us as of the date hereof, and we disclaim any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date in which they were made except as required by law.

Today, we'll be discussing both GAAP and non-GAAP financial measures. The non-GAAP financial measures have been adjusted to exclude certain charges. For a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures and a discussion of why we present non-GAAP financial measures, please see today's press release available on our website.

And now I'll turn the call over to David Flynn, President and CEO of Aerohive.

Executive
David Flynn

Thank you, Melanie, and thank you all for joining us today. While we delivered first quarter results in line with our pre-announcement last month, I want to spend some time discussing the revenue shortfall before getting into some of the highlights from the quarter and our go-forward view on the business. Revenue came in below our original forecast primarily because of two factors. One was a sales execution issue in the United States and the second factor was a two-pronged mix shift.

First, on sales execution, the sales team delivered results at or above forecast in EMEA, in APAC and in much of the Americas, but this was not enough to compensate for very disappointing results in a few territories in the US. To be frank, a much more active 2019 E-Rate cycle with