Juniper Networks, Inc. (NYSE:JNPR) Q4 2019 Earnings Conference Call - Final Transcript

Jan 27, 2020 • 05:00 pm ET

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Juniper Networks, Inc. (NYSE:JNPR) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Juniper Networks Fourth Quarter 2019 Earning Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Jess Lubert, Vice President, Investor Relations. Thank you, please begin.

Executive
Jess Lubert

Thank you, operator. Good afternoon and welcome to our fourth quarter 2019 conference call. Joining me today are Rami Rahim, Chief Executive Officer and Ken Miller, Chief Financial Officer. Today's call contains certain forward-looking statements based on our current expectations. These statements are subject to risks and uncertainties and actual results might differ materially. These risks are discussed in our most recent 10-Q, the press release, and CFO commentary furnished with our 8-K filed today and in our other SEC filings. Our forward-looking statements speak only as of today, and Juniper undertakes no obligation to update any forward-looking statements.

Our discussion today will include non-GAAP financial results. Reconciliation information can be found on the investor relations section of our website under financial reports. Commentary on why we consider non-GAAP information a useful view of the company's financial results is included in today's press release. Following our prepared remarks, we will take questions. Please limit yourself to one question and one follow-up. With that, I will now hand the call over to Rami.

Executive
Rami Rahim

Thank you. Good afternoon everyone. We reported solid results during the December quarter. Total revenue of $1.208 billion was above the midpoint of our guidance and we returned to growth on a year-over-year basis. Strength for the quarter was driven by our cloud and enterprise verticals, which more than offset expected weakness within our service provider business. Non-GAAP earnings per share of $0.58, came in $0.01 above the midpoint of our forecast as top line strength flowed through to the bottom line. For the year, 2019 played out largely as we anticipated and we were encouraged to finish the year on a high note. Some of the highlights from the year included a third consecutive year of enterprise growth including a record quarterly performance during the December quarter, a return to year-over-year growth in the cloud vertical following a difficult product transition, which we believe will position us for additional growth in the years to come.

The successful acquisition of Mist, which is already exceeding our initial expectations, and has the potential to have a material positive impact on our P&L on a go-forward basis. Strong software growth that we expect is likely to continue due to the value of our off-box platforms like Contrail and efforts to better monetize the value of our existing solutions and significant progress enhancing our go-to- market organization, which we believe will help us capitalize on the various technology innovations we are bringing to market and gain share as many of our markets transition over the next few years. We expect to build on many of these accomplishments in 2020. We believe we