QAD Inc. (NASDAQ:QADA) Q3 2021 Earnings Conference Call - Final Transcript
Nov 24, 2020 • 05:00 pm ET
Good day, and welcome to the QAD Financial Results for Third Quarter Fiscal Year 2021. [Operator Instructions] After today's presentation there will be an opportunity to ask question. [Operator Instructions].
I'd now like to turn the conference over to Kara Bellamy. Please go ahead, ma'am.
Hello, everyone, and welcome to today's call. Before we begin, I would like to ensure that everybody understands that our discussion may contain forward-looking statements that are based on certain expectations and analyses. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. QAD undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this call. For a complete description of these risks and uncertainties, please refer to QAD's 10-K and 10-Q filings with the Securities and Exchange Commission.
Please also note that during this call, we will be discussing non-GAAP pre-tax income, which is a non-GAAP financial measure as defined by SEC Regulation G. A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure is included in today's press release, which is posted on the company's website.
Now, I will turn the call over to our CEO, Anton Chilton.
Thank you, Kara. And good afternoon, everyone and thank you for joining today's call to discuss QAD's fiscal '21 third quarter results. Joining me on the call are Pam Lopker, our President and Daniel Lender, Chief Financial Officer.
As we continue to march on our cloud transformation journey, I'm delighted to report a third quarter with good results across all of our strategic focus areas. This is especially pleasing in the context of the current business climate and the ongoing uncertainty related to the pandemic. Beating guidance across our current revenue lines, with 24% growth in subscription over the same quarter last year were particular highlights. And when combined with a marked improvement in earnings underpinned a solid performance across the board.
Our strong competitive position helped our sales team deliver another good bookings result, with sales up over 50% by deal value when compared to the prior year quarter. The investments made in sales and marketing continue to bear fruit, as does the focus on improving margins in both the professional services and cloud businesses. These initiatives, together with prudent expense management policies in this continued climate of uncertainty helped build on a solid bottom line performance we have seen so far through this year.
While the effects of the COVID-19 pandemic carry on driving uncertainty over the short to medium term future, our strategies have kept the business in good shape and we continue to make good progress towards our long-term strategic goals.
I will now turn it over to Daniel to discuss the details of the financial results.
Well, thank you, Anton. We were very pleased with our strong third quarter results, especially in light of the pandemic. Subscription and maintenance revenue came in ahead of our expectations, even without