Cincinnati Bell Inc. (NYSE:CBB) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 09:00 am ET
Good day, everyone. And welcome to CBB's Third Quarter 2019 Earnings Call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Josh Duckworth. Please go ahead.
Joshua T. Duckworth
Good morning, and welcome to Cincinnati Bell's Third Quarter 2019 Earnings Call. On the call today are President and Chief Executive Officer, Leigh Fox; and Chief Financial Officer, Andy Kaiser, who will recap this quarter's highlights and provide detail on our third quarter financial performance. Following the prepared remarks, Tom Simpson, our Chief Operating Officer, will join Leigh and Andy for the question-and-answer session.
Remarks made on today's call that are not historical facts are considered forward-looking statements and are made pursuant to the safe harbor provision presented on Slide 2. Please see today's press release and the company's recent SEC filings available on our website for a description of the potential risks and uncertainties that may cause actual results or outcomes to differ materially from those indicated or suggested by any such forward-looking statements.
The presentation also contains certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are also available on our website.
With that, I am pleased to introduce Cincinnati Bell's President and Chief Executive Officer, Leigh Fox.
Leigh R. Fox
Thank you, Josh, and good morning, everyone. As today's release indicates, our business delivered another strong quarter of financial performance with strategic revenue growing 8% year-over-year. Third quarter results were in line with Wall Street expectations, and as mentioned on last quarter's call, we are confident that we will deliver on our full-year guidance.
Now turning to our IT Services business unit performance. I'm impressed by the team's ability to continue to advance from a non-recurring harbor reselling model to a trusted cloud services provider focused on longer-term recurring service contracts. As evidence of our growing expertise in this area, we were recognized as the first service provider to achieve master level certification in all five Cisco cloud managed services, demonstrating our broad expertise across enterprise networks, collaboration, data centers and IP next-generation networks.
Our innovative approach has resonated within our communications practice. During the quarter, we added an impressive 15,700 UCaaS profiles, primarily driven by a recent deal with a fast-growing restaurant that has more than 700 locations spread throughout the United States. In total, we now manage 270,000 profiles for more than 2,000 business partners across North America. Additionally, we signed new service agreements that will add $200,000 in new monthly recurring revenue once fully implemented.
Turning to our cloud practice. Demand continues to be robust. Cloud revenue increased 15% year-over-year after excluding GE's in-sourcing initiatives, which completed during the second quarter of 2019. As mentioned last quarter, the cloud practice has 50-plus highly skilled software engineers with certifications across each of the public cloud platforms. As clients migrate from Legacy solutions, they look to us as a trusted advisor. Through this process, we're able to demonstrate our expertise and move our relationship with customers beyond transactional interaction