Carbon Black, Inc. (NASDAQ:CBLK) Q2 2019 Earnings Conference Call Transcript

Aug 01, 2019 • 05:00 pm ET

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Carbon Black, Inc. (NASDAQ:CBLK) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to the Carbon Black Second Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to your host, Mr. Steve Webber, Chief Financial Officer. Please go ahead.

Executive
Stephen J. Webber

Thank you, Kristine. Good afternoon, and thank you for joining us today to review Carbon Black's second quarter 2019 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. During this call, we may make statements related to our business that are forward-looking under federal securities laws and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements related to our financial results, statements regarding management's expectations of future financial and operational performance, operational expenditures, expected growth and business outlook including guidance for the third fiscal quarter and full year 2019; industry and market trends and projections; our go-to-market and growth strategies; our market opportunity and ability to expand our leadership position and extend into adjacent security markets with our platform; the competition that we face in our market; our ability to maintain and upsell existing customers; our ability to acquire new customers and the anticipated benefits of our platform.

These statements reflect our views only as of today and should not be reflected upon as representing our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For discussion of the material risks and other important factors that could affect our actual results, please refer to those listed in our Form 10-Q for the second quarter of 2019, which we filed with the SEC this afternoon. These documents are available in the Investor Relations section of our website at www.carbonblack.com. 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.

Executive
Patrick Morley

Thanks, Steve, and thanks to all of you for joining us today to review our second quarter performance. Let's quickly review our financial results, which exceeded our guidance ranges on both the top and bottom line. This reflects Carbon Black's successful transition into a cloud-first company, which we believe positions us to accelerate future growth. Cloud revenue was up $22.9 million, representing 68% year-over-year growth. Total revenue was $60.9 million, representing 19% year-over-year growth. Cloud ARR was $101.4 million, up 66% year-over-year and total ARR was $237.6 million, up 22% year-over-year. And finally, we ended the quarter with 5,680 total customers and 3,496 cloud customers, which represented 32% and 62%