Talend third-quarter earnings top estimates due to strong cloud growth. Talend CEO Christal Bemont joins Yahoo Finance to weigh in on the company's latest earnings report and discuss the future of data intergreation.
- Let's turn our attention to what's happening in the cloud space, specifically with one company that our viewers may not be all that familiar with. And that is Talend. They're a company that came out with their report yesterday for revenues up 16% over last year. And Christal Bemont is the company's CEO. She joins us now to discuss the company's latest quarter and where you guys go from here.
Christal, thanks for joining the program. So I guess talk us through what you've seen during the pandemic, which has come at an interesting time for the cloud data integration space, because not only was it a hot sector in 2017 and 2018, but so many of these names have turned into pandemic winners as well. Your stock is up almost 100% off of its lows from back in March.
CHRISTAL BEMONT: Yeah. Well, thank you for having me again. We've seen tremendous acceleration in the market around digital transformation. And that's probably not a surprise to you. You've probably heard that in a lot of different areas. I would equate it to-- when I talk to our customers and just people in the industry in general, I really think we have 10 years of advancement that's happened in 10 months.
And what I mean by that is [INAUDIBLE] function, quite frankly, to move to not only the cloud, but really digitize. And these are things that have needed to happen for many years, and people are now accelerating that faster than we've ever seen. And so I don't [INAUDIBLE] here, either. I think that this goes well beyond COVID. I think this is a catalyst, quite frankly.
- Christal, I think that SAP report from a couple weeks ago really is now hanging over the heads of a lot of cloud companies, a lot of information technology companies. Are you seeing anything that they're seeing in their business? I'm trying to understand, is cloud growth slowing down? It may still be growing, but is the acceleration slowing down, versus the first part of the year?
CHRISTAL BEMONT: Yeah, we don't see that. We actually see it steady and increasing. It's definitely-- the accelerant that we talked about, that is not going away. So I would say that it's not the experience that we've had, and it's not what we're seeing.
You know, really, what we've seen this year and what we continue to see is we have customers and people in our industry that have been primarily looking at moving pieces of data or lines of business of data in the past. And now they're looking at, how do I move an entire enterprise's worth of data to the cloud and really digitize it? So if anything, it's just growing and it's accelerating across an entire customer base, but also within a customer. So I actually see the opposite.
- So Christal, you talked about how that we have seen this compression of innovation and of adoption over the past 10 months, and that that's going to continue. What's the next wave of that going to look like? For your business, for example, what's the next innovation that's going to further expand adoption and further expand your business?
CHRISTAL BEMONT: Well, it's such a good question. And what I think is happening-- and I think we can all equate to this in our own personal lives, I'll give you an example-- is we're creating in what I would call a digital landfill of data. So this surge of moving everything to the cloud and digitizing businesses is a really important step, but without the care and the baseline and the way to actually ensure that you have healthy data that can be used to drive business outcomes, I'm concerned about just moving a bunch of stuff to the cloud and creating a-- what would be equated to email.
Having something moved from paper to email hasn't made my life easier. It means that I have now 4,000 emails to go read, and I probably have opportunities and risks buried in there that, quite frankly, there isn't any sort of measurement of or ability to have confidence in oversight. And so Talend looks at this as, yes, we have a big responsibility to help people move to the cloud and make sure we can digitize. We are focusing on the other side of that equation to say there is a huge responsibility to create some standards and to quantify and qualify confidence in that data so that it can actually be used meaningfully.
- And I guess in thinking about that 10 months-- or decade of change happening in 10 months-- looking at the business over the last year, the fourth quarter of 2019 saw a big increase in the number of customers you brought online, a nice step up in the subscription revenue part of the business as well. Do you see that those dynamics changing on a quarter-to-quarter basis because of the pandemic? Do you see that changing longer term as more companies look to bringing your type of solution more regularly, or is there still going to be some seasonality to it?
CHRISTAL BEMONT: I think we'll continue to see an acceleration. I mean, when I see this right now, I think this is the tip of the spear. I don't see this as something that's a flash in the pan or a moment in time. I think we have just begun.
And you can see that in the ecosystem and in our industry, and how important that is from a data warehouse perspective. So this acceleration I talked about as 10 years' worth of advancement in 10 months, I think is, again, just the starting point. I don't think that we're anywhere close to seeing that as something that's, say, a mid or final point.
- All right. Christal Bemont is the CEO at Talend. Christal, great to talk with you, and we'll be in touch as we go forward here.
CHRISTAL BEMONT: Thank you for having me.