Majesco Ltd (NASDAQ:MJCO) Q2 2020 Earnings Conference Call Transcript
Nov 05, 2019 • 05:00 pm ET
Thank you for standing by. This is the conference operator. Welcome to the Majesco Fiscal 2020 Second Quarter Conference Call. As a remainder, all participants are in listen-only mode and the conference is being recorded. [Operator Instructions]
I would now like to turn the conference over to Andrew Berger, Investor Relations. Please go ahead, sir.
Thank you and good afternoon to everybody. A complete disclosure of our results can be found on our press release that was issued today after the market closed. As a reminder, the replay of today's call will be available on our website shortly after its conclusion. During today's call, we will make statements related to our business that may be considered forward-looking under federal securities laws. These statements reflect our views only as of today and should not be reflected upon as representing our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.
At times, in our prepared comments or responses to your questions, we may offer incremental metrics to provide greater insight into the dynamics of our business or quarterly results. Please be advised that this additional detail may be onetime in nature, and we may or may not provide an update in the future. Also during the course of this call, we will refer to certain non-GAAP financial measures. A reconciliation schedule showing GAAP versus non-GAAP results has been provided in our press release that was issued today. Hosting the call are Adam Elster, Majesco's CEO; and Wayne Locke, CFO.
At this time, I'll turn the call over to Adam. Adam, please go ahead.
Thanks, Andy, and good afternoon to everyone on today's call. In Q2, we continue to see accelerating momentum and an increase in our overall cloud business as cloud subscription revenue grew 20% year-over-year. This is in direct relation to our cloud wins in the last year as well as our dramatically reduced project implementation timelines.
Our subscription business model allows us to generate rapid cloud services revenue during the implementation phase and product revenue begins as soon as the project is live. The cloud subscription revenue then continues to increase over time in line with continued adoption and direct written premium volume. We did see a decline in our UK business which is affected by the macroeconomic pressures that our customers are facing relating to the overall business environment in Brexit.
Many organizations have been forced to hold any business decision, pending final resolution, they are doing parallel work to consider new business strategy models. In addition, we have seen many executive level changes and a series of associated existing investment and program re-evaluations. This quarter, we were very pleased that our single largest customer completed the initial of the project implementation and have moved into production with their new system. Unfortunately, the one-time financial impact in the quarter limited cloud