QAD Inc. (NASDAQ:QADB) Q3 2019 Earnings Conference Call - Final Transcript
Nov 26, 2019 • 05:00 pm ET
Pamela M. Lopker
this quarter, we received an order for the first of potentially many more sites from this company. Last quarter, I mentioned Europe had a large competitive win against SAP at a large automotive supplier. I'm happy to say that this customer is already live and referenceable. From contract to live in less than three months, really exciting and a very pleased customer.
Again, this quarter, we had several small life science wins. I love looking at the technology coming out of these start-ups, and I'd like to point out a few of the amazing capabilities. So if you look at these customer bases here this quarter, we will have solutions where kids will soon be able to get their ear tubes in doctors' offices without surgery. For people of all ages, there will be a way to repair and actually regrow diseased, injured or defective tissues and organs. For patients on dialysis, soon they'll be able to have dialysis treatment in the comfort of their own home. For chronically ill patients, the next generation of medical devices will have smart sensors and artificial intelligence applied to clinical data to improve diagnostics, strategic interventions, entry prevention and better overall patient care, really exciting capability in those areas.
We won these accounts from a longer list of competitors, but mainly NetSuite, SAP and Infor. Our customers told us they selected QAD due to our life science experience, support for regulatory compliance in the cloud and easy-to-use solutions. Our ability to deliver adaptive ERP cloud solutions for our global manufacturing customers, enabling agile business processes at an unprecedented level of speed, is providing exciting capabilities to both existing and new customers. Thanks, Anton, back to you.
Thank you, Pam. So looking forward, our investments in sales and marketing continue to drive lead flow volumes, which remain ahead of our internal targets. And our cloud pipeline continues to grow and currently is up over 25% from the same period last year. As reinforced by feedback from our customer conferences in EMEA this month, manufacturers' need for rapid response to change continues to increase. QAD adaptive applications give our customers and prospects cloud solutions, providing them the ability to adapt in real time.
Our total addressable market for cloud solutions continues to grow, and our market position is improving. Short-term risks do still remain a factor, including uncertainty facing manufacturers around tariff negotiations and global geopolitics. PMIs globally have continued a slow decline and may play a part in future deal cycles. As stated in prior calls, so far we haven't seen a material effect on our pipeline, and we don't expect it to affect our longer-term goals. In summary, we continue to win business from competitors, and we're aggressively driving our cloud business with substantial market opportunity in front of us. We remain exceptionally well positioned to meet our long-term objectives. Operator, we're ready to take questions from analysts.