CA Technologies reported its highest quarterly revenue in four years and its highest growth rate in six years in its fiscal year Q3 2018 earnings call with investors. The network monitoring company reported $1.09 billion in third quarter revenue, a 9 percent increase year-over-year.
It reported non-GAAP net income of $314 million, a 19 percent increase year-over-year, resulting in an earnings per share of $0.75.
The company released a number of products in the third quarter. And it integrated two acquisitions, Automic and Veracode. Automic does IT automation, and Veracode delivers application security. Acquisitions contributed approximately 6.5 points to CA Technologies’ total revenue growth in the quarter.
CA Technologies CEO Mike Gregoire paid specific attention to the Veracode acquisition in the call. “The third quarter marked Veracode’s largest bookings quarter in its history,” said Gregoire, according to a Seeking Alpha transcript. “In the quarter, Veracode experienced robust growth internationally, where it had little distribution prior to the acquisition.”
The first new product noted in the earnings call was the CA Continuous Delivery Director, a software-as-a-service (SaaS) offering that integrates a company’s DevOps workflow for end-to-end visibility and management of applications. The second was its BlazeMeter API Test, another SaaS service that enables the auto-generation and execution of multiple API tests at once.
The company also launched its Trusted Access Manager for Z, a mainframe access management, which works with mainframe security practices to give users and customers control of critical data.
CA Technologies’ enterprise solutions revenue was up 19 percent. Its mainframe solutions revenue was up 1 percents, and its services revenue was up 11 percent. The company did, however, see a decrease in total bookings due to a decline in renewal bookings.
CA Technologies also noted that moving forward it will increasingly adopt artificial intelligence and machine learning into its solutions in order to drive “sustained, long-term renewal yields and healthy new sales in our Mainframe business,” said Gregoire. The larger goal is to make CA Technologies a “modern software factory,” building on automation, data, analytics, and security.
“This effort in building the modern software factory is the combination of developing innovative organic products, acquiring strategic assets, and remaining focused on the customer journey and customer success,” said Gregoire.
The company expects its total revenue to increase by 5 percent in the full year, with revenue of $4.22 billion to $4.25 billion and non-GAAP earnings per share between $2.54 and $2.60.