ServiceSource International, Inc. (NASDAQ:SREV) Q3 2019 Earnings Conference Call - Final Transcript
Oct 30, 2019 • 09:30 am ET
Ladies and gentlemen, thank you for standing by and welcome to the ServiceSource Third Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would now like to hand the conference over to your speaker today, Chad Lyne, Head of Investor Relations. Please go ahead, sir.
Thank you, Michelle, and good day, everyone. Thank you for joining us, and welcome to ServiceSource's third quarter earnings call to discuss our results for the quarter ended September 30, 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 our reports on Form 10-K and 10-Q. These documents contain and identify important factors that could cause 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 the 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.
Gary B. Moore
Thank you, Chad, and welcome, everyone, to our third quarter 2019 earnings conference call. As you saw in the release and the 10-Q we filed yesterday after market close, we had a solid quarter. Our teams performed with a high level of focus, rigor and discipline, which translated into stronger sequential results throughout the business. Relative to the second quarter of this year, we grew revenue 2% and expanded non-GAAP gross profit 240 basis points, while prudent operating expense management in all areas of the Company allowed us to drive positive adjusted EBITDA of $1.1 million. We still have more work to do, but we are pleased with the commitment of our teams and the important progress that is being made.
Over the past three quarters, we've enacted a series of strategic changes and tactical realignments in the organization to improve our execution and strengthen our brand promise to our clients. Our end-to-end engagement model and global account management investment are bearing fruit as we delivered positive outcomes for our clients this quarter and generated year-over-year growth at the majority of our largest relationship. From a