Friday, July 11, 2014

Sandvine's Q2 - Existing Customers Generated 90% of Revenues; $Bs in Sponsored Data

Some quotes from Sandvine's earning call for Q2 2014 (revenues of $29.7M - here):
  • Our 10% plus customers in the quarter contributed less than 30% of revenue, which is lower than any recent period
  • I am pretty pleased with our ability in Q2, to sell more to our existing customers. Generally, that ratio is .. 80% existing, 20% new. I'd say that number was closer to 90/10 in Q2, and without any really big deals moving the needle for us in Q2, I was really glad to see our execution in supporting our installed base and selling more to our install base

  • I think I would just say generically that, our book-to-bill ratio being below one, I wouldn't -- obviously, one is not a trend, and from a focus perspective, we still have the -- we still and do have the availability to book and bill within a quarter. So I don't necessarily look at our book to bill as being predictive for our next quarter. Obviously, we would always love it to be above one, but the fact that its below one once every seven or eight quarters is not overly alarming to us
  • Our product is now fully NFVable, network functions virtualization, where it means each of the component parts of our solution, our policy traffic switch, our service delivery engine, and some other parts of our middleware and our analytics are deliverable, as a network functions virtualized mode, which means they run in a virtual machine, on commercial servers that are available out there. And what we are seeing, particularly in the mobile space right now, is people really wanting to move to that architecture
  • I am pretty excited about sponsored data over time here for sure; because just like the 1800 created billions of dollars in new revenue for the telcos, I think sponsored data will create billions of dollars of revenue for service providers.
See "Sandvine's (SNVNF) Dave Caputo on Q2 2014 Results - Earnings Call Transcript", by SeekingAlpha, here.

No comments:

Post a Comment