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Vendor : RSA
Exam Code : 050-SEPRODLP-01
Exam Name : RSA Certified SE Professional in Data Loss Protection
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050-SEPRODLP-01 Questions and Answers

Pass4sure 050-SEPRODLP-01 Dumps with Real Questions & Practice Test

D. One per egress point of the network

Answer: D


What is the preferred connection type for an RSA DLP Network Sensor?

  1. TAP

  2. Serial

  3. SPAN Port

  4. Wireless 802.11c

Answer: A


What would be a reason to deploy an RSA DLP Network Sensor outside of a firewall?

  1. The DLP Sensor will be more scalable outside the firewall

  2. The DLP Sensor will be more secure outside of the firewall

  3. The firewall does not lead to the public internet but to another internal network

  4. Placing the DLP Sensor outside firewall will make it less susceptible to DoS attacks

Answer: C


Which RSA DLP Network appliance requires the use of a third party proxy server?

  1. Sensor

  2. Controller

  3. Interceptor

  4. ICAP server

Answer: D


What step can you take to ensure that when scanning an Oracle database any committed transaction containing sensitive content are still monitored by RSA DLP?

  1. Do not issue a checkpoint, which will ensure that committed transactions in memory are written to disk before the RSA DLP agent scans the tables

  2. Have the database issue a checkpoint to ensure that committed transactions in memory are written to disk before the RSA DLP agent scans the tables

  3. Have the database issue a checkpoint to ensure that committed transactions in memory are written to disk after the RSA DLP agent scans the tables

  4. Have the database issue a checkpoint to ensure that committed transactions in memory are not written to disk before the RSA DLP agent scans the tables

Answer: B


Where should an RSA DLP Network Interceptor be deployed within the network?

  1. Between each DMZ

  2. Outside of the firewall

  3. At each network egress point

  4. The next hop after a corporate mail server

Answer: D


Which type of rule set within a content blade describes content that must be present for a violation match to occur?

  1. May Occur

  2. Must Occur

  3. Should Occur

  4. Should Not Occur

Answer: B


Which of the following is correct concerning RSA DLP Endpoint agents?

  1. RSA DLP Endpoint agents are only installed on Site Coordinators

  2. RSA DLP Endpoint agents can only audit violations; they cannot perform other remediation actions

  3. RSA DLP Endpoint agents require a continuous connection to the corporate network to monitor and enforce policies

  4. RSA DLP Endpoint agents do not require a continuous connection to the corporate network to monitor and enforce policies

Answer: D


Where would you look for device status and software version information in the RSA DLP Enterprise Manager?

  1. Dashboard

  2. Admin > Status Overview

  3. Admin > Settings > Details

  4. Admin > Support > Details

Answer: B

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RSA Certified SE Professional in Data Loss Protection exam The missing act for user and entity behavior analytics | 050-SEPRODLP-01 Real Questions and VCE Practice Test In March 2018, Symantec unveiled its annual information superhighway safety danger file (ISTR). Two of the leading takeaways are that the forms of threats are broadening, and already time-honored attacks are seeing huge raises in execution. The report notes an eight,500 p.c boost in detections of coinminers on endpoint computer systems in 2017, and a 600 percent boost in standard IoT assaults. while the regular ransom dropped in value, the variety of new ransomware editions improved with the aid of 46 percent. The final analysis is that as more information flows through our networks, machines and instruments, more malicious actors wish to get their palms on it. and a lot of are a success. Who’s the real winner? i'm sure you have got study all kinds of hypotheses as to why the unhealthy guys are winning. despite the fact, before we add a further hypothesis to the pile, it’s important to define what we believe “winning.” When going for walks across the RSA convention this yr, i noticed a consensus. Most providers and cyber protection authorities agree that companies had been breached or are breached and don’t know it. whereas some may also start to the conclusion that that capability the dangerous guys are successful, that’s no longer always authentic. just as a result of criminals broke in, doesn't mean they stole advantageous statistics. sure, that’s their goal. despite the fact, if safety teams can stop the crook before sensitive data walks out the door, then the safety group wins. An interview with Symantec’s SVP of tips protection Nico Popp So, what may still security leaders be doing in another way to be sure sensitive records doesn’t go away the organization? I sat down with Symantec’s SVP of guidance insurance policy, Nico Popp, to focus on the idea of tips centric cyber defense. Ryan: Thanks for taking the time to speak, Nico. Why are protection teams challenged with stopping unhealthy actors once they are inside? Nico: Ryan, i admire to suppose of it as a bank. i'm a thief, or in cyber terms, an advanced persistent hazard, targeting a financial institution. I stroll into the bank and stumble upon a safety shelter named Endpoint protection (EP). EP looks at my face, my clothes, trying to examine if i'm a thief. He sees I actually have glasses and am donning a wig. however, he still doesn't understand for certain i am a thief, unless I are attempting to steal the money. The funds is the information. The primary symptoms of compromise (IoC) are the information (the money) and user (thief), yet many groups are so focused on the actual IoCs – registries, IP addresses, DNS, domain names, opening techniques, and many others. – they ignore each. The French author François Mauriac observed, “inform me what you study and i'll tell you who you are is correct sufficient, however i'd comprehend you stronger if you advised me what you reread.” the first a part of that commentary couldn't be more true when it involves detecting a compromise. follow the information and you will be aware of you’re beneath attack. Ryan: are you able to supply us an example of how a company can find an attack in progress via following the information? Nico: certain. Let’s say the use of consumer and entity conduct analytics (UEBA), a company spots an worker in marketing logging into an utility containing confidential economic information that that grownup, his friends nor normal enterprise unit would usually no longer access. This habits could point out the worker plans to steal sensitive counsel. although, probably the employee turned into given permission by his supervisor to access the file for business functions? Monitoring the consumer and the file would provide a transparent indication. If the person makes an attempt to email the file to an unknown external third birthday celebration, that’s a fine indication he’s doing whatever thing malicious. look at the WannaCry ransomware. a lot of antivirus options neglected it as a result of they didn’t have the file signature. The normal IoCs had been now not advantageous. If companies adopted the facts, they might have caught WannaCry as it encrypted data, and minimized the damage. by way of following the facts, you may pass over how the attackers got here in, but you won’t omit the attack. Ryan: You mentioned how UEBA detects a possible compromise in growth. What different cyber safety technologies may also be used to allow this information centric cyber protection strategy? Nico: Integrating information loss prevention (DLP) with UEBA is effective since the two combined seem on the behavior of the consumer however with recognize to the records. UEBA compares a user’s endeavor to himself, friends and average enterprise unit to determine if the conduct is average or abnormal. DLP detects and stops delicate facts from running out the door, so both combined builds a complete photograph of who is trying to steal what before it’s too late. Endpoint insurance policy is an additional know-how that allows a data-concentrated protection. listed below are two use circumstances for an information centric cyber protection method: Zero-day insurance policy: You get hold of an electronic mail with a resume connected. You open the resume. suddenly, a powershell seems. Endpoint insurance policy determines the script that the powershell is executing is suspicious. DLP displays the powershell as it makes an attempt to access a desirable-secret file. DLP signals endpoint insurance plan which then blocks entry. The indisputable fact that an unknown system is having access to private information is certainly revealing! records jailing: “Jane” is promoted to move of HR. You let Jane entry inner most facts of employees, besides the fact that children Jane takes competencies of her new access rights, and repeatedly tries to send the records to an unknown external party, backyard the “prison” per se. UEBA detects the behavior, performs behavioral comparisons, and sends the experience to investigators. meanwhile, DLP blocks the exfiltration. Ryan: To conclude, what can businesses do nowadays to shift to an advice centric cyber protection method? Nico: They should birth tracking information pastime like they're doing for person endeavor. facts pastime is as essential as consumer activity. start with the analytics. upon getting established a superb analytics software that tracks person conduct, then use these analytics to track records behavior. when you are already using UEBA with laptop discovering capabilities, then you definately are on the appropriate course. this article is posted as a part of the IDG Contributor community. want to join? Google Cloud Certification Addresses high Stakes Of GCP protection | 050-SEPRODLP-01 Real Questions and VCE Practice Test Google Cloud is addressing the high-stakes difficulty of cloud protection—and the excessive demand for cloud protection specialists—with its new expert Cloud protection Engineer certification that can be obtainable next month and its separate security in Google Cloud Platform Specialization. companies are involved about the scarcity of expert talent to control cloud know-how, make sure that security controls are in area, and manipulate cloud-primarily based entry to make sure computing workloads and information are covered, in line with Tanay Buddhdev, a safety and compliance specialist for Google Cloud customer engineering. “As facts and apps stream to the cloud, cloud security is more and more vital for organizational success,” Buddhdev said in a weblog put up the previous day. “The cost and stakes of a protection breach are too high, and agencies are realizing they want a talented team in a position to address the ever-expanding workload.” Google Cloud Wednesday said it’s achieved the beta version of its skilled Cloud safety Engineer Certification program announced in January. Scheduling for the exam-based mostly certification may be commonly accessible on April 1, and the first attainable look at various date might be April 8 at Google Cloud’s subsequent ’19 summit in San Francisco. The application exams members' talents to design, increase and control a comfortable infrastructure on Google Cloud Platform using Google protection applied sciences. It requires proficiencies in managing identity and entry administration, defining organizational constitution and guidelines, using Google technologies to supply statistics insurance plan, configuring network security defenses, gathering and analyzing Google Cloud Platform logs, managing incident responses and knowing regulatory concerns. In today’s world of ever-evolving security threats, solution providers are beneath expanding force to place themselves competitively in assisting consumers combine and align necessities for privateness and safety alongside these for functionality and performance, according to Robert Hawk, operations security lead at xMatters, a San Ramon, Calif.-primarily based digital provider availability platform for incident management and a Google Cloud expertise partner. “Google’s new security certification for GCP is not simplest a brilliant added cost to its infrastructure and platform-hosting operations, however the ultimate framework for companions to deepen their potential of finest-practice protection controls and thoughts on GCP,” Hawk stated. “In time, I are expecting this classification of certification will develop into a benchmark for the channel and perhaps grow to become a requirement for each internal and exterior auditing.” The need for practicing extra knowledgeable and formally licensed cloud protection engineers is clearly evident, in accordance with Tammy Cyphert, chief company officer at Dito, an commercial enterprise assistance know-how and cloud carrier company based mostly in Reston, Va. “In modern day reality of hybrid cloud environments and agencies migrating more functions and records to public clouds, Google has raised the bar and brought its optimum practices to the forefront of the conversation through this certification,” Cyphert noted. “As anything that might be generally purchasable to both Google Premier companions and our valued clientele, we are in a position to better facilitate a conversation around protection and in the reduction of conversational friction with a single source of fact for working securely on Google's platform.” Google Cloud’s new safety in GCP Specialization includes online and on-demand practicing concentrated on comfy Google Cloud Platform deployments and mitigating risks together with allotted denial-of-carrier attacks, phishing and records exfiltration threats. practicing areas coated consist of security keys, cloud identification and entry administration, GCP aid manager, Google virtual private cloud firewalls, Google Cloud load balancing, Google Cloud content material start network, cloud storage access control applied sciences, Stackdriver, consumer-provided encryption keys, the Google information Loss Prevention software programming interface and Google Cloud Armor. security practicing may still be a compulsory a part of cloud partner courses, based on Ethan Simmons, managing associate of Pinnacle expertise companions (PTP), a Norwood, Mass.-based mostly consulting and managed service provider that specialize in cloud migration. “customers nevertheless don't wholly keep in mind the shared security accountability model when working with the cloud suppliers, so protection accountability is regularly confusing,” Simmons observed. “At PTP, we spend an outstanding deal of time helping our shoppers with cloud governance and safety. here is exactly what these forms of safety certifications can support improve.” An enrollment length begun Wednesday for the working towards. “It can also be taken for any intent, however is also a recommended part of preparing to examine for the expert Cloud security Engineer Certification,” a Google Cloud spokesperson noted. “here's regarded an intermediate-stage path and augments the extra basic lessons already available.” Google Cloud is hosting a webinar on the training and certification Friday. From Job Loss to jail Sentences, facts insurance policy and privateness is no shaggy dog story | 050-SEPRODLP-01 Real Questions and VCE Practice Test individuals are more and more uninterested with their very own tips being leaked. look on the recent case with the Equifax breach within the u.s.. Some 143 million americans might also have had their most sensitive information leaked, including names, Social protection numbers, start dates, addresses, and, in some cases, driver’s license and bank card numbers. That’s a big deal. It continues to be to be seen if any individual in Equifax will face reformatory time, but it’s already resulted in the CEO, CIO, and CISO being pressured to go away the enterprise. American agencies might be trained a great deal about statistics insurance policy and privateness from our chums in Europe. For Europeans, the appropriate to statistics insurance policy and privateness is a basic correct similar to our correct to free speech. This correct has been further strengthened with the newest commonplace overhaul of the records insurance policy and privacy legislation, the european well-known information insurance policy rules (GDPR), so that they can observe in may also 2018. advantage fines for no longer following the GDPR are no longer a slap on the wrist, but in its place may severely endanger a company’s livelihood. along with improved fines, there's additionally speak of feasible penitentiary sentences for senior managers in circumstances of intentional violations. Realistically, the regular worker will no longer probably face penitentiary time for not following correct records protection and privacy guidelines, however information insurance policy and privateness is every person’s responsibility in a corporation. So, what are you able to do to protect yourself and your organization’s recognition? You may additionally need to appoint a competent records coverage officer (DPO). The DPO is responsible to advise and display screen records protection compliance in the firm. normal tasks of a DPO include: Inform, propose and issue recommendations to the company involving compliance with statistics insurance policy laws aid with the implementation, administration and monitoring of facts coverage method and the creation and roll-out of policies, instructions and information insurance plan consciousness training computer screen compliance towards the important statistics insurance plan and privateness regulations establish and manage dangers regarding information insurance policy, and expand facts insurance plan risks and issues to executives, as necessary Cooperate with the specific supervisory and different statistics insurance policy authorities, and talk to, where acceptable, on issues regarding facts processing deliver counsel the place requested as regards the information insurance policy have an effect on Assessments (DPIAs) and video display their performance therefore under the GDPR, it'll turn into obligatory for certain companies to designate a knowledge coverage Officer. This should be the case for all public authorities and our bodies that technique very own statistics, and for other groups that – as a core recreation – display screen individuals systematically and on a huge scale, or that manner special classes of non-public records on a big scale. The Article 29 Working party has provided additional tips (paper 243 – PDF download) on the subject matter. Getting again to the Equifax illustration. If Equifax become discipline to the upcoming GDPR legislation, they could have confronted a excellent of round $sixty two.9 million (based on its 2016 operating profits of $three.one hundred forty five billion) for no longer reporting the information breach past – and senior management might also have faced criminal prices. a fine DPO would have advised the enterprise to come clear instantly. unfortunately for them, they didn't do this and Equifax is now a family unit identify within the US – for all of the wrong explanations. be taught more about how SAP SuccessFactors can assist you prepare for the frequent records coverage regulation here. Kim Lessley is director of answer administration for Cloud security at SAP SuccessFactors. While it is hard errand to pick solid certification questions/answers assets regarding review, reputation and validity since individuals get sham because of picking incorrectly benefit. 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(CBLK) Q1 2019 Earnings Call Transcript | killexams.com 050-SEPRODLP-01 Real Questions and VCE Practice Test Logo of jester cap with thought bubble. Image source: The Motley Fool. Carbon Black, Inc. (NASDAQ:CBLK)Q1 2019 Earnings CallMay. 02, 2019, 5:00 p.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good afternoon ladies and gentlemen and welcome to the Carbon Black 2019 Earnings Quarter Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the call over to your host Mr. Steve Webber, Chief Financial Officer. You may begin. Steve Webber -- Chief Financial Officer Thank you, Natasha. Good afternoon and thank for joining us today to review Carbon Black's First Quarter 2019 Financial Results, which we announced in our press release issued after the close of market today. Joining me on the call today is Patrick Morley, Carbon Black's CEO. During this call, we may make statements related to our business that are forward-looking under federal securities laws and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Including statements related to our financial results, statements regarding management's expectations of future financial and operational performance, operational expenditures, expected growth and business outlook, including guidance for the second fiscal quarter and full year 2019, industry and market trends and projections, our go-to-market and growth strategies, our market opportunity and ability to expand our leadership position and expand into adjacent security markets with our platform, the competition that we face in our market, our ability to maintain and upsell existing customers, our ability to acquire new customers and the anticipated benefits of our platform. The words anticipate, continue, estimate, expect, intend, will, and similar expressions, are intended to identify forward-looking statements or similar indications of future expectations. These statements reflect our views only as of today and should not be reflected upon as representing our views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For discussion of the material risks and other important factors that could affect our actual results, please refer to those listed in our Form 10-Q for the first quarter of 2019, which we filed with the SEC this afternoon. These documents are available in the Investor Relations section of our website at www.carbonblack.com. A replay of this call will also be available for a limited time. Additionally, non-GAAP financial measures will be discussed on this conference call. Please refer to the tables in our earnings release and the Investor Relations portion of our website for a reconciliation of these measures to their most directly comparable GAAP financial measure. With that, I'd like to turn the call over to Patrick. Patrick Morley -- President and Chief Executive Officer Thanks Steve, and thanks to all of you for joining us today on our first quarter 2019 earnings call. Before I begin, I would like to welcome Steve to his first earnings call, as Carbon Black CFO. I'm excited to have him join our team. Before I review our performance in more detail, let's quickly look at our financial results for the quarter. We generated total revenue of $58.6 million, representing 21% year-over-year growth. Cloud revenue of $21 million, representing 80% year-over-year growth. ARR of $226 million, up 24% year-over-year and cloud ARR of $88.8 million, which grew 71% year-over-year. And we ended the quarter with 5,339 total customers and 3,169 cloud customers, which represented 33% and 69% growth respectively. During the first quarter, we made significant progress on the strategic initiatives we discussed on our last earnings call that are focused on optimizing our go-to-market efforts, as a cloud endpoint protection platform, or cloud EPP. We have more work to do, but I'm pleased with the positive progress we are making. We entered 2019 as a cloud-first company with five products available on our cloud platform, the Predictive Security Cloud, or PSC. And we now have a wide-ranging and powerful suite of products available in the cloud for the first time. The PSC leverages a single data set with one console and one agent and addresses many of the most difficult security challenges facing companies today. We believe this puts Carbon Black in a great position to continue driving strong platform growth and to consolidate the fragmented endpoint protection platform market. This was the first full quarter in market for our two newest PSC products; CB LiveOps and CB ThreatHunter. As a reminder, CB LiveOps is our real-time endpoint query intermediation product. It addresses a critical functionality gap for many companies, which is the lack of effective solutions for security and IT operations teams to reliably assess the current state of their endpoints in realtime. With CB LiveOps security and IT professionals can remotely perform full investigations and remediations from the same cloud-based platform from which they manage security prevention, protection, response and threat hunting. The growing complexity of cyberattacks and an expanding attack surface require a precise details in order to make quick confident decisions about how to reduce risk and eliminate unnecessary costs. CB LiveOps provides real-time security information that results in more effective and consolidated security. CB ThreatHunter is the next-generation of our pioneering CB Response product with a number of new innovations only possible through a cloud-native technology. We believe CB ThreatHunter is the industry's leading threat hunting and incident response product, providing an unparalleled level of visibility and detection via its continuous and centralized recording of endpoint data. CB ThreatHunter gives security professionals access to the complete activity record of every endpoint. This dramatically decreases the amount of time it takes to understand, what happened at every stage of an attack, while making it far easier to uncover advanced threats and minimize the amount of time an attacker has to carry out their operation. The introductions of CB ThreatHunter and CB LiveOps are significant component of our growth strategy with five products now on the PSC ,our cloud endpoint protection platform, Carbon Black will be able to land more new deals, given we have three distinct land products on the PSC; CB Defense CB ThreatHunter and CB LiveOps. We will be able to sell larger land deals as well by selling multiple PSC products during a customer's initial purchase and we will be able to expand customers spend with Carbon Black by selling new PSC products back into the nearly 3200 cloud customers that we have. We were encouraged by the customer reception and market traction for both CB ThreatHunter and CB LiveOps, which had a strong debut in the first quarter. Both products landed new customer wins during the quarter, individually and as part of multi-product wins. We are particularly encouraged by the ability of these products to attract new customers so quickly, which we believe reflects the high level of security and customer value that they provide. We also saw great interest from our installed base of customers. We have nearly 3200 existing cloud customers, who are all good candidates to deploy these products, as part of a comprehensive cloud EPP. We believe the early success for CB ThreatHunter and CB LiveOps is driven by their unique differentiators. Simply put, we believe there is no other EPP vendor, who can match these products capabilities. We see growing overall momentum for CB ThreatHunter and CB LiveOps. As expected our initial wins are coming from small and mid-sized customers. We expect we will see an increase in enterprise wins in the second half of the year, given typical sales cycle for those customers. We also had a strong quarter in the federal vertical with our on-premise products with sizable wins with federal customers, which is a strong endorsement of the power of our products and the opportunity for us in that strategy vertical. Besides the strength instead, we also signed a number of meaningful on-premise customers in other verticals. We believe this demonstrates the continued opportunity for CB Response and CB Protection even as we lead with our cloud EPP platform. Some of the key customer wins during the first quarter included a 25,000 endpoint win for CB Defense with a large Japanese global manufacturing company. This company was struggling to deal with constant APT attacks. Their legacy AD solution was not effectively detecting these attacks due to a lack of endpoint visibility, particularly among remote users resulting in lanky (ph) and costly incident detection and response cycles. Carbon Black was chosen due to our protection efficacy and our endpoint detection and response capabilities, all built on a single cloud platform. We expanded our engagement with a global provider of shared office space, who more than doubled their CB Defense and CB ThreatSight deployment and added CB LiveOps for 16,000 endpoints. This customer has a forward-leaning security team and after a successful pilot of CB LiveOps, quickly saw how well it improve the company's operational capabilities and reduced costs. One of the world's largest network marketing companies chose CB Defense and CB ThreatHunter for more than 11,000 endpoints, which they will expand to 15,000 endpoints in the coming weeks. This customer's legacy AV solutions was providing limited endpoint visibility and was not designed to support a security operation center or SOC team. With a PSC platform and its ability to provide multiple capabilities from a single sensor, this customer was able to unify the effort of its SOC team with its endpoint protection teams. This is critical given the company's global footprint, which includes operations in Asia Pacific, Latin America Europe and United States. A global diversified technology company bought CB Defense for 50,000 end points in order to automate prevention. They were looking for a cloud EPP solution that would tightly integrate with their existing security stack and be easy for the SOC team to use. And finally a large U.S. Federal Government agency chose CB Protection and CB Response to provide a multipronged security solution for 47,000 endpoints. This followed a pilot last year that quickly demonstrated to the customers, the superior security efficacy provided by Carbon Black. These wins are indicative of Carbon Black's opportunity in the cloud EPP market. They underscore the differentiated capabilities of the PSC and they reinforce the continued opportunity we have with customers looking for on-premise products. Now I would like to review the progress we have made on the specific focus areas that I highlighted last quarter for the company in 2019. At a high level, our priority is ensuring our entire go-to-market organization and our selling motion is optimized for our multiproduct cloud strategy. As mentioned earlier, our goals are to land more deals now that we have three distinct land offerings on the PSC. Sell larger deals by selling multiple PSC offerings during a customer's initial purchase and expand customer spend with Carbon Black by selling new PSC offerings back to existing cloud customers. On the sales enablement front, we devoted more than 3,000 hours in significant resources to training our sales team on the PSC in Q1, including new sales messaging, sales tools and playbooks that every member of the go-to-market team has been certified on. We also have focused 7-week training program for our inside sales team on the PSC. One of the early indicators that we are most encouraged by, is that over 70% of North American inside sales teams' bookings in the quarter were for PSC products. Another key leading indicator is that we signed more than 100 multiproduct PSC deals in Q1, more than triple the number we did in the first quarter of 2018. This reflects the strong initial uptake from SMB customers, which is where we expect to see market traction first. We also made progress aligning our channel enablement with the PSC. As a reminder, we are adjusting our channel strategy to focus on partners that are able to effectively articulate and position the value proposition of the PSC. We launched our very first Virtual Partner Summit in February, which was attended by over 700 partner attendees. During the event, partners are trained on the power of the PSC and had a access to refresh the PSC sales and technical tools. We also had a strong quarter from a demand generation perspective. We are seeing growing momentum in PSC pipeline generation, which now represents two-thirds of our total pipeline, up from 50% in the middle of 2018. We are also expanding our efforts globally including the launch of our first Asian instance of the PSC, which is in Japan. We now have in-region instances of the PSC in the U.S., EMEA and APJ. Later this quarter, we will be showcasing the unique capabilities of the PSC platform to customers, prospects and partners at our Annual User Conference CB Connect, which is being held in San Diego. We will leverage this opportunity to highlight the innovation we brought to the market in the past year and to share our vision for the future of the PSC. To summarize, Carbon Black delivered solid first quarter results and made significant progress on our strategic priorities. We're seeing early success with our expanded PSC platform and believe, we are well positioned to drive improved performance in the second half of the year. And with that, let me turn the call back over to Steve. Steve Webber -- Chief Financial Officer Thanks Patrick. I'm excited to be part of Carbon Black. I believe the strength of our products and our terrific team give us a tremendous opportunity to become one of the primary winners in the cloud EPP market. I look forward to meeting many of you in the coming months and working together going forward. Now let's turn to our first quarter results. Total revenue in the quarter was $58.6 million, up 21% year-over-year. Subscriptions license and support revenue was $56.3 million, up 24% year-over-year. And services revenue was $2.3 million down 26% year-over-year. The decline in services revenue is directly attributable to the growing mix of cloud products in our business. Recurring revenue, which excludes our service and perpetual revenue was $54.8 million, up 25% year-over-year. Recurring revenue comprised 94% of the total revenue in the quarter, as compared to 90% in the same quarter last year. Cloud-based subscription revenue was $21 million, which was up 80% year-over-year. Revenue from our on-premise products was $35.3 million, up 5% year-over-year. We expect the mix shift to cloud to continue with the PSC being the primary focus of our sales efforts. We also focused on annual recurring revenue or ARR in short-term billings, as indicators of our business momentum. ARR at the end of the first quarter was $226 million, up 24% year-over-year. As of March 31st, our cloud ARR was $88.8 million, up 71% year-over-year and 39% of our total ARR. Our on-premise ARR was $137.2 million. Short-term billings were $52.9 million in Q1, up 26% year-over-year. Short-term billings on a trailing 12-month basis were $243 million, up 19% year-over-year. We believe the trailing 12-month short-term billings is helpful for investors, as it factors out the impact of invoice timing and seasonality in a given quarter. A key area focus for the company is growing our customer base. During the first quarter, we added 314 customers bringing our total customer count to 5,339. This is up from 4,006 in the year-ago period, a 33% increase and 5,025 at the end of last quarter. The number of customers, who have deployed at least one cloud product was 3,169 at the end of the first quarter, compared to 1,870 in the year-ago period, a 69% increase and up from 2,851 at the end of last quarter. Please note that existing on-premise customers, who subsequently purchased a cloud product are included in the cloud customer count and the cloud customers may have on-premise products as well. In the first quarter, our gross retention rate, which we calculate by comparing the annual recurring subscription and support revenue from our customers in the current quarter with the annual subscription and support revenue from those same customers at the end of the first quarter of 2018 was 87%. Our gross retention line -- rate was in line with our expectations and reflects a modest increase in churn from on-premise customers. We anticipate gross retention to remain at a similar level for the balance of 2019. Please note that the gross retention rate calculation does not take into count the impact of any upsell activity. With the recent introduction of CB ThreatHunter and CB LiveOps, we expect our net retention rates to trend higher, as we now have more products on the PSC. We are starting to see this in the initial cohort analysis of existing PSC customers. Moving down the P&L. Please note that I will be discussing our quarterly results on a non-GAAP basis, unless otherwise noted. Gross profit in the quarter was $46 million, representing a gross margin of 79%. We were pleased with the gross margin performance in the quarter particularly in light of our rapidly growing mix of cloud revenue, which was more than 36% of total revenue in the first quarter, up from 24% in the first quarter of 2018. We remain focused on the unit and scale economics of our cloud platform is a high priority. We continue to expect the modest decrease in gross margin percent over time, as our percentage of cloud business continues to grow, due to the associated hosting and infrastructure cost of delivering cloud products. Sales and marketing expense was $37.6 million, which represented 64% of revenue. As we discussed on our last call, we took steps during the quarter to better align our sales and marketing investments with our current growth expectations. We realized nominal savings from these actions during the first quarter. We expect to see a reduction in sales and marketing expense from Q1 levels in Q2. As a reminder, we did not make any reductions to our quota carrying sales rep capacity, which grew significantly in 2017 and 2018. Our focus in 2019 is to successfully enable and ramp the productivity of our sales force. R&D expense was $17.3 million, which represented 30% of revenue. Investing in the R&D organization is an ongoing focus area for us, as we continue to build out the PSC platform. G&A expense was $7 million, or 12% of revenue. We are pleased with our ability to scale G&A and provide additional resources to invest in other areas of the business. Our operating loss was $15.8 million, or a negative 27% operating margin compared to a negative 23% in the year ago. Net loss in the first quarter was $15.2 million, or $0.22 per share based on a 70.5 million weighted average shares outstanding. Please note that our Q1 2019 results include the cost of the RSA Conference, which occurred in the second quarter last year and approximately $1.3 million of one-time severance costs. On a GAAP basis, gross margin -- gross profit $45.5 million, operating loss was $20.3 million and net loss was $19.7 million. Turning to the balance sheet and cash flow. We ended the quarter with $153.3 million in cash and short-term investments and no debt. Operating cash flow in the first quarter was negative $13.9 million after taking into considerations $737,000 in capital expenditures and capitalized software development costs. Free cash flow was negative $14.7 million in the quarter. I will now discuss our outlook for the second quarter and full year 2019. For the full year 2019, we expect revenue to be in the range of $241 million to $244 million, which equates to 16% growth at the midpoint. We expect professional services revenue to be approximately $8.3 million, non-GAAP loss from operations is expected to be in the range of $45 million to $43 million and non-GAAP net loss per share in the range of $0.63 to $0.60 per share based on 71.4 million weighted average shares outstanding. Now turning to the second quarter. We expect revenue to be in the range of $59 million to $60 million, including $2 million of professional services revenue. Non-GAAP loss from operations is expected to be in the range of $12.6 million to $11.6 million and non-GAAP net loss per share in the range of $0.18 to $0.16 based on 71.4 million weighted average shares. Overall we are off to a solid start in 2019. Our expanded product portfolio is providing additional growth opportunities and positions us well to be a primary beneficiary of the transition to next-generation EPP platforms. Operator, we are now ready to take questions. Questions and Answers: Operator (Operator Instructions) Your first question comes from Jonathan Ho with William Blair. Jonathan Ho -- William Blair -- Analyst Hi. Congratulations on the strong results this quarter. Can you guys hear me OK? Patrick Morley -- President and Chief Executive Officer Yes, OK. Steve Webber -- Chief Financial Officer Hi, Jonathan. Jonathan Ho -- William Blair -- Analyst Fantastic. So, just wanted to get some additional color in terms of what maybe customers are seeing about threat response. And how you guys think about messaging that in a crowded field with a lot of EDR products that are out there? Patrick Morley -- President and Chief Executive Officer Yes, thank you. And so ThreatHunter, first full quarter end market with it. We released that in December of last year. It's the next generation of CB Response and there's a number of innovations over on top of what CB Response had. ThreatHunter is differentiated in the market. It continues to be the only EDR platform that continuously records the data and centralizes all that data. So, from a positioning statement and from a discussion with customers the power of that is that, we're never turning that camera off, we have consistent visibility on exactly what's happening on every customers endpoint. It continues to be well differentiated. It continues to be very powerful. We're still early. We like the initial traction we saw with ThreatHunter and we expect to see more as the year progresses. Jonathan Ho -- William Blair -- Analyst Got it. And last quarter you guys talked about maybe some deals either elongating or flipping out because of the launch of the new products. Can you talk a little bit about maybe where some of those deals have ended up? And whether you've seen the sales processes normalized at this point? Patrick Morley -- President and Chief Executive Officer Yes, so we saw some of those deals closed in Q1, but did not have a material impact on the quarter. And as we talked about in the last call at an enterprise level, so for the enterprise deals, again we talked about customers taking a step and pausing because of the introduction of LiveOps and ThreatHunter. We're continuing to work those deals and we expect to see those enterprise deals close later in the year, but we're still actively working. Jonathan Ho -- William Blair -- Analyst Great. Thank you. Operator Your next question comes from Melissa Franchi with Morgan Stanley. Melissa Franchi -- Morgan Stanley -- Analyst Thank you for taking my question, and good afternoon. Patrick you've talked about making a significant progress on your strategic initiatives this quarter. And it sounds like you've invested a lot more in additional sales enablement. So, I'm just wondering what that's yielding in terms of sales productivity? And do you feel like there's a lot more work that needs to be done? Patrick Morley -- President and Chief Executive Officer Melissa thanks for the question. Certainly a big area of focus for us is on sales enablement and channel enablement around the PSC. And as I said, as we discussed in the last quarter, it's not a one quarter and done process. This will be a multiple quarter process. There's both the enablement element of it and then it's also giving the go-to-market team, the ability to have a number of it. That's where they're having experience telling the full PSC story and positioning each of the products that sit on our cloud EPP platform the PSC. And so we expect to continue to see progress. I like what we saw in Q1 and I gave a couple of proof points around that. The fact that we saw the number of multiproduct deals on the PSC platform was really good over a 100. And what we saw with our inside sales team, which I think is an early indicator the percentage of their business that was PSC-driven was another positive indicator that the enablement work we're doing right now is having the impact we expect. Melissa Franchi -- Morgan Stanley -- Analyst Okay. Great to hear. And then you mentioned that both LiveOps and ThreatHunter are helping to land new deals, new customers. I think last quarter you talked about some of the early customers were more mid-market oriented and you expect the enterprise customers to come kind of later on. Is that still the dynamic that you've seen in Q1? Or, are you starting to see some enterprise interest? Patrick Morley -- President and Chief Executive Officer No that continues to be our expectation. LiveOps and ThreatHunter both landed net new customers individually and then they also were part of multiproduct deals and we saw that where we expected, which was with SMB and what we call corporate customers. And we expect that in the second half of 2019, we'll see the impact of those products with enterprise deals, just given the nature of the way that enterprise organizations tend to evaluate and then tend to buy products, which is it just longer than what you see in those other markets. Melissa Franchi -- Morgan Stanley -- Analyst Makes sound great. Well, thank you very much. Patrick Morley -- President and Chief Executive Officer Thanks Melissa. Steve Webber -- Chief Financial Officer Thank you. Operator (Operator Instructions) Your next question comes from Michael Turits with Raymond James. Michael Turits -- Raymond James -- Analyst Hey guys. Good evening. Good to see few things turning out this quarter. Two I guess high-level questions. Well, I want to drill-down (ph) last quarter. First, there were deals you said they were on-premise deals in process and as you launched, customers took a step back and said, well should we be doing, this should be doing on-premise, should we be doing cloud. What happened with those processes to customers closed on-prem, did they move to cloud? And then I have a second question. Patrick Morley -- President and Chief Executive Officer Yeah. Hey Michael, it's Patrick. Yes, we certainly talked a bit about that and that answers similar to what the answer, I just gave to Melissa, are actually -- excuse me to Jonathan on the -- on some of those deals that paused. What we saw with some of the smaller deals or deals more for in the SMB and the corporate environment, we did see indeed some of those customers make the decision to say, I'm going to go all in on the PSC. And so again that was part of that 100-plus multiproduct deals that we saw that we were encouraged by. For enterprise deals, again what we tend to see with those types of customer purchases is that walking into the new year, many of them take a pause, they're getting their budgets and they kind of take a reset on the evaluation process. We continue to work with a number of those customers and again as I said earlier, we would expect to see the impact of that in the second half. Michael Turits -- Raymond James -- Analyst And then -- you know, this is again, I sorry if I ever (inaudible) but then I think this is one of the few knocks that you could have had on Carbon Black with your multiplatform -- multiproduct company that it was a cleaner solution, as some of them they were in the market that were single-agent, segment cloud. What's the general response? Do you find the dynamic -- competitive dynamic is changing where now you're on that same playing field, where your single agent, single cloud, are customers reacting differently to you? Patrick Morley -- President and Chief Executive Officer The story -- so first off having on-premise capabilities, I think continues to be, it is an advantage in the market because there are customers out there that says I want on-prem. But certainly we see the market moving to cloud EPP. And having a single sensor with single back-end, with one data set that we collect, telling that story out to the market in helping position the products, certainly enables us, I think, to continue to compete very effectively. And probably most significant for Carbon Black is that CB ThreatHunter is now on that cloud EPP platform that we're offering because ThreatHunter is the next-generation of CB Response, and as you know customers out there, companies out there broadly know us as the company that brought CB Response to market and CB Response has been a very differentiated product. Having ThreatHunter now in the platform has been huge. Michael Turits -- Raymond James -- Analyst Okay, great. Thanks Patrick. I really glad to see the bounce back. Patrick Morley -- President and Chief Executive Officer Yeah, thanks, Michael. Operator Your next question comes from Sterling Auty with JPMorgan. Sahil Sharma -- JP Morgan -- Analyst This is Sahil on for Sterling. I just wanted to ask (Multiple Speakers) yeah, I'm doing fine. Thank you. So, just wanted to ask did you see an improvement in the close rates in the quarter compared to the last quarter? Patrick Morley -- President and Chief Executive Officer No, I don't think we saw a change in close rates. Again if you think about what we -- what we gave for the early indicators on the PSC in Q1. I think what we saw with the PSC was our ability -- our increasing improving ability to actually be able to sell multiproduct deals and to sell the PSC overall. From a close rate standpoint, no we did not. About the same what we saw last quarter. Sahil Sharma -- JP Morgan -- Analyst All right. Thank you. Operator I'm showing there are no further questions at this time. I would now like to turn the conference back to Mr. Patrick Morley. Patrick Morley -- President and Chief Executive Officer Thank you very much. To summarize again, Carbon Black delivered solid first quarter results and made significant progress on our strategic priorities. We're seeing early success with our expanded PSC platform. We believe we are well positioned to drive improved performance in the second half of 2019 and we have a tremendous opportunity ahead of us to become one of the primary winners in the cloud EPP market. And with that, I want to thank all of you -- we want to thank all of you for joining today's call. Operator Ladies and gentlemen, this concludes today's conference call. Thank you for your participation and have a wonderful day. You may all disconnect. Duration: 35 minutes Call participants: Steve Webber -- Chief Financial Officer Patrick Morley -- President and Chief Executive Officer Jonathan Ho -- William Blair -- Analyst Melissa Franchi -- Morgan Stanley -- Analyst Michael Turits -- Raymond James -- Analyst Sahil Sharma -- JP Morgan -- Analyst More CBLK analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. 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You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email. Contacting JD Supra If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com. Carbon Black's (CBLK) CEO Patrick Morley on Q1 2019 Results - Earnings Call Transcript | killexams.com 050-SEPRODLP-01 Real Questions and VCE Practice Test No result found, try new keyword!The PSC leverages a single data ... professionals can remotely perform full investigations and remediations from the same cloud-based platform from which they manage security prevention ... 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