iPass, Inc. (IPAS)
Q3 2010 Earnings Call Transcript
November 4, 2010 5:00 pm ET
Steven Gatoff – CFO and SVP
Evan Kaplan – President and CEO
Previous Statements by IPAS
» iPass Inc. Q2 2010 Earnings Call Transcript
» iPass Inc. Q1 2010 Earnings Call Transcript
» iPass Inc. Q4 2009 Earnings Call Transcript
I would like to now hand the call over to Mr. Steve Gatoff, Chief Financial Officer. Please proceed.
Thank you, operator. Good afternoon, everyone. Thank you for joining us to discuss our financial and operating results for the third quarter of 2010. I'm here today with Evan Kaplan, President and CEO.
Before I turn the call over to Evan, I'd like to bring the following to your attention. The date of this call is November 4, 2010. Our presentation today contains forward-looking statements about events and circumstances that have not yet occurred. Statements regarding our projected financial results for the fourth quarter of 2010, statements regarding achieving growth and profitability, statements containing words such as, "will, expect, believe, plan, intend and should," and other statements in the future tense are forward-looking statements. Actual outcomes and results may differ materially from these expectations contained in the statements, due to a number of risk and uncertainties. The risks and uncertainties that could cause these statements not to come true are set forth in today's press release, as well as in our most recent quarterly report on Form 10-Q and annual report on Form 10-K under the section, risk factors that are filed with the Securities and Exchange Commission. These reports are available on our website and at www.sec.gov. Please note that iPass takes no responsibility to update the information in this conference call under any circumstances.
On this call we will also provide and talk about our results using non-GAAP financial measures. The press release and our website include text in tables that explain how we define and calculate non-GAAP metrics and the reconciliation of non-GAAP results to GAAP results.
The press release and Form 8-K announcing our financial results are available on our website, at www.iPass.com. This earnings call is being recorded for replay. It is being webcast and will also be available on our website for one quarter till the next quarter's earnings call. Please note that this webcast is the property of iPass and any copy or rebroadcast of this broadcast without the express prior written consent of iPass is prohibited.
With that, let's turn the call over to…
Thanks, Steven. Hello, everybody. Before I get started, I wanted to begin the call today by simply saying that we continue to be bullish about the opportunity at iPass and we are developing increasing conviction that our long-term value creation efforts will be successful and the results will become evident to those who are following the iPass transformation.
Contributing to my bullishness are the gemo [ph] vibrancy of the mobility market and some early indicators that our work to transform the company into a technology-driven enterprise mobility provider are beginning to bear fruit.
With that as a preamble, let me jump into the highlights of the quarter. There are three takeaways I'd like you to leave the call with. First, we're very encouraged with the solid progress that we're making with our Open Mobile platform, both with our enterprise customers and our carrier partners.
Second, we're glad to see our financial results and performance come in slightly ahead of where we anticipated for Q3. But we're certainly not taking any kind of victory lap and will continue to manage and balance the unpredictability of the network business with our transformation objectives.
And third, as we look ahead to 2011, we continue to build solid technology value in transforming the company into an infrastructure software service provider or SaaS on the strength of our Open Mobile offering. And we expect this will grow our platform revenue and reinvigorate our network business and drive meaningful value creation for our shareholders.
Overall, I'm pleased with where we are and I'm proud of what we've been able to accomplish in this past quarter. I believe its good news for the company and good news for our stockholders.
As you know from our calls and dialogues over the past few quarters, we certainly have had some challenges that we've been addressing but it feels like we're making progress and starting to see the light at the end of the tunnel.
Specifically, I'd make the following observations. First and importantly above and beyond what we think and the anecdotes we've been sharing from our customer interactions, we're starting to see some meaningful agreements get signed by customers to adopt Open Mobile. I believe this is what we ought to be seeing now and I believe that this confirms we're on the right track.
We met our internal targets for signing customers onto the platform and added modestly to the number of monthly monetized users on the new Open Mobile platform.
Second, as you can see in our financial results for the first time in Q2, we also met our internal targets for growing our carrier platform business. Most notably in signing a multimillion dollar, multi-year Open Mobile platform agreement with Telstra, the largest telecom and information services provider in Australia.