Company

MobileIron Announces Third Quarter 2017 Results

October 31, 2017

MOUNTAIN VIEW, Calif., October 31, 2017 -- MobileIron (NASDAQ:MOBL), the security backbone for the multi-cloud enterprise, today announced results for its third quarter ended September 30, 2017.

Third Quarter 2017 Financial Highlights

  • Revenue was $42.7 million, up 2.8% year-over-year.
  • Recurring revenue was $32.4 million, up 12.0% year-over-year.
  • Gross billings were $50.4 million, up 6.6% year-over-year.
  • Recurring billings were $37.5 million, up 7.5% year-over-year.  
  • GAAP net loss per share was $0.18; non-GAAP net loss per share was $0.07.
  • Cash and cash equivalents plus short-term investments ended the quarter at $82.2 million.
  • Cash used in operating activities was $4.2 million.

“As I take the reins as CEO, it is clear to me that we have a great team and the best product in a fast-growing and underpenetrated market,” said Simon Biddiscombe, CEO, MobileIron. “In this new role I am squarely focused on helping the team at MobileIron capitalize on the opportunity in front of us to drive profitable growth and unlock shareholder value. I believe that with disciplined go-to-market focus, thoughtful investments, and strong execution, we will accelerate growth and profitability and deliver value to our customers, partners, and shareholders.”

Third Quarter 2017 Business Highlights

Platform

  • Announced new MobileIron Access capabilities to manage the lifecycle of cloud services including extending MobileIron Access security controls to Macs and PCs, risk discovery tools to identify security risks across authorized and unauthorized cloud services, and authentication analytics and reporting.
  • Formed partnership with Zimperium to integrate machine learning-based threat detection with MobileIron's security and compliance engine and sell the combined solution.
  • Delivered day zero compatibility support for iOS 11 and Android O.
  • Announced the extension of MobileIron's modern security and access model to Macs.
  • Delivered support for Android Zero-touch, Google’s Android enrollment service for onboarding new devices.
  • Announced partnership with Metronome Software for a project funded by the Department of Homeland Security (DHS) Science and Technology Directorate (S&T) to develop a technology solution that will enhance the security of mobile device-based sensor systems used by first responders.
  • Announced integration with Intercede to deliver a new derived credentials solution to secure and protect U.S. federal government employees and their data.

Channels

  • MobileIron’s cloud platform was chosen as the EMM provider for Deutsche Telekom’s (DT) pan-European network initiative Pan-Net. Pan-Net enables DT and its national operators to provide a cloud-based EMM service that adheres to Germany's data protection regulations and satisfies the privacy requirements of enterprise customers and public sector institutions.

Milestones and Recognition

  • MobileIron Access awarded CyberSecurity Breakthrough Award for Application Security Solution of the Year.
  • Named a Leader by IDC in the IDC MarketScape: Worldwide Enterprise Mobility Management Software 2017 Vendor Assessment.
  • Named a Market Leader by Ovum in the Ovum Decision Matrix: Selecting an Enterprise Mobility Management Solution, 2017–18.
  • Earned Service Capability & Performance (SCP) Standards certification for world-class customer service.
  • Awarded six additional US patents for mobile security, bringing the total to 59.

Financial Outlook

The company is providing the following outlook for its fourth quarter 2017 (ending December 31, 2017):

  • Revenue is expected to be between $46 million and $48 million, which represents growth of 1% to 5% year-over- year.
  • Gross billings are expected to be between $55 million and $58 million, which is flat to up 5% over last year.
  • Non-GAAP gross margin is expected to be between 85% and 87%.
  • Non-GAAP operating expenses are expected to be between $42 million and $44 million.
  • Non-GAAP operating margin is expected to be between -4% to -6%.

The company is providing the following outlook for 2017 (ending December 31, 2017):

  • Cash flow from operations is expected to be approximately break-even for the full year 2017.

All forward-looking non-GAAP financial measures contained in this section exclude estimates for stock-based compensation expenses and amortization of intangible assets. While a reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis, the company has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables included in this press release for its third quarter of 2016 and 2017.

Conference Call and Webcast

MobileIron will report final results for the third quarter of fiscal year 2017 on Tuesday, October 31, 2017 after the close of the market and host a conference call and live webcast at 1:30 p.m. Pacific Daylight Time (4:30 p.m. EDT) to discuss the company's financial results and business highlights. Interested parties may access the call by dialing 1-855-327-6837 in the U.S. or 1-631-891-4304 from international locations. The live webcast will be available on the MobileIron Investor Relations website at http://investors.mobileiron.com. A replay will be available through the same link.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements regarding MobileIron's revenue, operating expenses, cost structure, GAAP and non-GAAP financial metrics, projected financial results and trends in MobileIron's business. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including, but not limited to, our limited operating history, quarterly fluctuations in our operating results, seasonality, our need to develop new solutions and enhancements to compete in rapidly evolving markets, product defects, customer adoption, competitive pressures, billings type mix shift, our ability to scale, our ability to recruit and retain key personnel, and the quality of our support services.

Additional information on potential factors that could affect MobileIron's financial results is included in our SEC filings, including our reports on Forms 10-K, 10-Q and 8-K and other filings that we make with the SEC from time to time and as available on our website, as applicable. MobileIron does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.   

 

About MobileIron
MobileIron provides the secure foundation for companies around the world to transform into Mobile First organizations. For more information, please visit www.mobileiron.com.

"MobileIron" and the MobileIron Planet M logo are registered trademarks of MobileIron, Inc. in the United States and other countries. Trade names, trademarks, and service marks of other companies that are used in this press release belong to their respective owners.  

Financial Results

 

 

 

 

 

 

 

MOBILEIRON, INC.

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2016 AND SEPTEMBER 30, 2017

(Amounts in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

 

September 30, 2017

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

  Cash and cash equivalents (1)

 

$

 54,043

 

$

 79,605

  Short-term investments  (1)

 

 

 36,184

 

 

 2,600

  Accounts receivable - net

 

 

 43,755

 

 

 47,732

  Prepaid expenses and other current assets

 

 

 6,131

 

 

 5,440

           Total current assets

 

 

 140,113

 

 

 135,377

Property and equipment - net

 

 

 5,503

 

 

 8,781

Intangible assets - net

 

 

 645

 

 

 200

Goodwill

 

 

 5,475

 

 

 5,475

Other assets

 

 

 1,370

 

 

 1,809

Total assets

 

$

 153,106

 

$

 151,642

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

  Accounts payable

 

$

 701

 

$

 2,609

  Accrued expenses

 

 

 21,674

 

 

 22,452

  Deferred revenue - current

 

 

 68,153

 

 

 75,950

           Total current liabilities

 

 

 90,528

 

 

 101,011

Deferred revenue - noncurrent

 

 

 19,923

 

 

 25,063

Other long-term liabilities

 

 

 1,838

 

 

 1,928

           Total liabilities

 

 

 112,289

 

 

 128,002

Stockholders’ equity:

 

 

 

 

 

 

  Common stock

 

 

 9

 

 

 10

  Additional paid-in capital

 

 

 383,193

 

 

 414,457

  Accumulated deficit

 

 

 (342,385)

 

 

 (390,827)

           Total stockholders’ equity

 

 

 40,817

 

 

 23,640

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

 153,106

 

$

 151,642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Total cash and cash equivalents and short-term investments

 

$

 90,227

 

$

 82,205

 

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 AND 2017

(Amounts in thousands, except for per share data)

(Unaudited)

 

 

Three Months Ended

 

 

September 30, 2016

 

September 30, 2017

Revenue:

 

 

 

 

 

 

Perpetual license

 

$

 11,311

 

$

 8,986

Subscription

 

 

 15,570

 

 

 17,277

Software support and services

 

 

 14,685

 

 

 16,457

Total revenue

 

 

 41,566

 

 

 42,720

Cost of revenue:

 

 

 

 

 

 

Perpetual license (2)

 

 

 652

 

 

 606

Subscription (1)

 

 

 2,202

 

 

 2,266

Software support and services (1)

 

 

 4,774

 

 

 4,835

Restructuring charge

 

 

 181

 

 

 311

Total cost of revenue

 

 

 7,809

 

 

 8,018

Gross profit

 

 

 33,757

 

 

 34,702

Operating expenses:

 

 

 

 

 

 

  Research and development (1)

 

 

 16,238

 

 

 19,581

  Sales and marketing (1)

 

 

 24,001

 

 

 24,317

  General and administrative (1)

 

 

 6,961

 

 

 7,210

  Restructuring charge

 

 

 871

 

 

 489

           Total operating expenses

 

 

 48,071

 

 

 51,597

Operating loss

 

 

 (14,314)

 

 

 (16,895)

Other income (expense) - net

 

 

 19

 

 

 188

Loss before income taxes

 

 

 (14,295)

 

 

 (16,707)

Income tax expense

 

 

 298

 

 

 358

Net loss

 

$

 (14,593)

 

$

 (17,065)

Net loss per share, basic and diluted

 

$

 (0.17)

 

$

 (0.18)

Weighted-average shares used to compute net loss per share, basic and diluted

 

 

 86,713

 

 

 95,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  Includes stock-based compensation expense as follows:

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

Subscription

 

$

 176

 

$

 200

Software support and services

 

 

 571

 

 

 732

Research and development

 

 

 2,709

 

 

 3,914

Sales and marketing

 

 

 2,307

 

 

 2,258

General and administrative

 

 

 2,109

 

 

 1,974

 

 

$

 7,872

 

$

 9,078

 

 

 

 

 

 

 

(2)  Includes amortization of intangible assets as follows:

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

Perpetual license

 

$

 154

 

$

 137

 

 

$

 154

 

$

 137

 

 

 

 

 

 

 

 

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2017

(Amounts in thousands, except for per share data)

(Unaudited)

 

 

Nine Months Ended

 

 

September 30, 2016

 

September 30, 2017

Revenue:

 

 

 

 

 

 

Perpetual license

 

$

 31,462

 

$

 28,572

Subscription

 

 

 44,996

 

 

 51,432

Software support and services

 

 

 41,996

 

 

 47,656

Total revenue

 

 

 118,454

 

 

 127,660

Cost of revenue:

 

 

 

 

 

 

Perpetual license (2)

 

 

 2,140

 

 

 1,458

Subscription (1)

 

 

 6,184

 

 

 6,341

Software support and services (1)

 

 

 14,691

 

 

 15,209

Restructuring charge

 

 

 181

 

 

 311

Total cost of revenue

 

 

 23,196

 

 

 23,319

Gross profit

 

 

 95,258

 

 

 104,341

Operating expenses:

 

 

 

 

 

 

  Research and development (1)

 

 

 51,185

 

 

 56,440

  Sales and marketing (1)

 

 

 76,914

 

 

 73,293

  General and administrative (1)

 

 

 22,774

 

 

 21,238

  Litigation settlement charge

 

 

 -

 

 

 1,143

  Restructuring charge

 

 

 871

 

 

 489

           Total operating expenses

 

 

 151,744

 

 

 152,603

Operating loss

 

 

 (56,486)

 

 

 (48,262)

Other income (expense) - net

 

 

 184

 

 

 701

Loss before income taxes

 

 

 (56,302)

 

 

 (47,561)

Income tax expense

 

 

 672

 

 

 881

Net loss

 

$

 (56,974)

 

$

 (48,442)

Net loss per share, basic and diluted

 

$

 (0.67)

 

$

 (0.52)

Weighted-average shares used to compute net loss per share, basic and diluted

 

 

 85,008

 

 

 92,825

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  Includes stock-based compensation expense as follows:

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

Subscription

 

 

 499

 

 

 500

Software support and services

 

 

 1,693

 

 

 2,359

Research and development

 

 

 9,122

 

 

 11,046

Sales and marketing

 

 

 8,418

 

 

 6,612

General and administrative

 

 

 6,934

 

 

 5,732

 

 

$

 26,666

 

$

 26,249

 

 

 

 

 

 

 

(2)  Includes amortization of intangible assets as follows:

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

Perpetual license

 

$

 462

 

$

 445

 

 

$

 462

 

$

 445

 

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2017

(Amounts in thousands)

(Unaudited)

 

 

Nine Months Ended

 

 

September 30, 2016

 

September 30, 2017

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

 (56,974)

 

$

 (48,442)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Stock-based compensation expense

 

 

 26,666

 

 

 26,249

Depreciation

 

 

 2,540

 

 

 2,430

Amortization of intangible assets

 

 

 462

 

 

 445

Provision for doubtful accounts

 

 

 24

 

 

 97

Amortization (accretion) of premium on investment securities

 

 

 44

 

 

 (36)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

 970

 

 

 (4,075)

Other current and noncurrent assets

 

 

 (1,401)

 

 

 (573)

Accounts payable

 

 

 (944)

 

 

 1,241

Accrued expenses and other long-term liabilities

 

 

 119

 

 

 2,362

Deferred revenue

 

 

 8,297

 

 

 12,937

Net cash used in operating activities

 

 

 (20,197)

 

 

 (7,365)

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

 (2,349)

 

 

 (5,046)

Maturities of investment securities

 

 

 70,717

 

 

 35,415

Purchases of investment securities

 

 

 (61,383)

 

 

 (1,794)

Net cash provided by investing activities

 

 

 6,985

 

 

 28,575

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from employee stock purchase plan

 

 

 3,247

 

 

 3,590

Taxes paid for net settlement of stock-settled bonus

 

 

 -

 

 

 (3,149)

Proceeds from exercise of stock options

 

 

 814

 

 

 3,911

Net cash provided by financing activities

 

 

 4,061

 

 

 4,352

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

 (9,151)

 

 

 25,562

Cash and cash equivalents at beginning of period

 

 

 47,234

 

 

 54,043

Cash and cash equivalents at end of period

 

$

 38,083

 

$

 79,605

 

Non-GAAP financial measures and reconciliations

To supplement our financial results presented on a U.S. GAAP basis, we provide investors with certain non-GAAP financial measures, including gross billings, recurring billings, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss and non-GAAP net loss per share. These non-GAAP financial measures exclude stock-based compensation, amortization of intangible assets and the litigation settlement charge.

Stock-based compensation expenses: In our non-GAAP financial measures, we have excluded the effect of stock-based compensation expenses. We exclude stock-based compensation expense because it is non-cash in nature and excluding this expense provides meaningful supplemental information regarding our operational performance. In particular, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, we believe that providing non-GAAP financial measures that exclude this expense allows investors the ability to make more meaningful comparisons between MobileIron operating results and those of other companies. Stock-based compensation expenses will recur in future periods.

Amortization of intangible assets: In our non-GAAP financial measures, we have excluded the effect of the amortization of intangible assets. Amortization of intangible assets is significantly affected by the timing and size of our acquisitions. Amortization of intangible assets will recur in future periods.

Litigation settlement charges: In our non-GAAP financial measures, we have excluded the charge for the estimated cost of the expected settlement of our shareholder litigation. While it is possible that we will have material litigation-related charges in the future, we do not expect it to be a consistently recurring expense.b

Restructuring charges: In our non-GAAP financial measures, we have excluded the effect of the severance and other expenses related to our reduction in workforce. Restructuring charges may recur in the future; however, the timing and amounts are difficult to predict.

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, and non-GAAP net loss per share: We believe that the exclusion of stock-based compensation expense, the amortization of intangible assets, the litigation settlement charge, and restructuring charges from various non-GAAP financial metrics such as gross profit, gross margin, operating loss, operating margin, net loss, and net loss per share provides useful measures for management and investors. Stock-based compensation and the amortization of intangible assets have been and can continue to be inconsistent in amount from period to period. We have not historically had a material litigation-related settlement charge. While it is possible that we will have material litigation settlement charges in the future, we do not expect it to be a consistently recurring expense. We believe the inclusion of these items makes it difficult to compare periods and understand the growth and performance of our business. In addition, we evaluate our business performance and compensate management based in part on these non-GAAP measures. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by our competitors and exclude expenses that may have a material impact on our reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in our business and an important part of the compensation provided to our employees. Similarly, amortization of intangible assets has been and will continue to be a recurring expense.

Gross and recurring billings, recurring revenue and free cash flow: Our non-GAAP financial measures also include: gross billings, which we define as total revenue plus the change in deferred revenue in a period; recurring billings, which we define as total revenue less perpetual license, hardware, and professional services revenue plus the change in deferred revenue for subscription and software support arrangements in a period, adjusted for nonrecurring perpetual license billings; recurring revenue, which we define as total revenue less perpetual license, hardware, professional services and perpetual amounts recorded as subscription or software support revenue in multiple elements arrangements; and free cash flow, which we define as cash used in operating activities less the amount of property and equipment purchased. We consider gross billings to be a useful metric for management and investors because subscription billings, excluding MRC, and software support and services billings drive deferred revenue, which is an important indicator of future revenue. Similarly, we consider recurring billings and recurring revenue to be useful metrics because they are important indicators of the portion of our business that we would expect to recur each year. There are a number of limitations related to the use of gross, recurring billings and recurring revenue. First, gross and recurring billings include amounts that have not yet been recognized as revenue. Second, our calculation of gross and recurring billings may be different from other companies that report similar financial measures. Third, recurring revenue excludes perpetual license amounts recognized from multiple elements arrangements that we record as subscription or software support revenue in our GAAP statements of operations, and these perpetual license amounts are based on invoice value, not fair value, although we believe invoice value approximates the fair value of the element. Fourth, in the MRC model, revenue and billings are based on active devices or users of the service provider’s customer and are billed to us by the service provider on a monthly basis over time and one month in arrears. Thus, under the MRC model, we receive no billings or revenue for MRC at the time the deal is booked, but instead the MRC is billed and revenue is recognized each month based on active usage. Unlike term subscriptions, MRC is not reflected in deferred revenue. This important difference between MRC billings and perpetual and term subscription billings can lead to significant variability of billings in a given quarter depending on the type of billing model that the customer chooses and the overall mix of billing types for all customers within a quarter. We compensate for these limitations by providing specific information regarding revenue and evaluating gross and recurring billings and recurring revenue together with revenue calculated in accordance with GAAP. Management believes that information regarding free cash flow provides investors with an important perspective on the cash available to invest in our business and fund ongoing operations. However, our calculation of free cash flow may not be comparable to similar measures used by other companies.

We believe these non-GAAP financial measures are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business using certain of these non-GAAP measures.

 

MOBILEIRON, INC.

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

(Amounts in thousands, except for per share data and percentages)

 

(Unaudited)

 

 

 

Three Months Ended

 

 

 

September 30, 2016

 

September 30, 2017

 

 

 

 

 

 

 

 

 

Non-GAAP gross profit reconciliation:

 

 

 

 

 

 

 

GAAP gross profit

 

$

 33,757

 

$

 34,702

 

Stock-based compensation expenses

 

 

 747

 

 

 932

 

Amortization of intangible assets

 

 

 154

 

 

 137

 

Restructuring charge

 

 

 181

 

 

 311

 

Non-GAAP gross profit

 

$

 34,839

 

$

 36,082

 

 

 

 

 

 

 

 

 

Non-GAAP gross margin reconciliation:

 

 

 

 

 

 

 

GAAP gross margin: GAAP gross profit over GAAP total revenue

 

 

 81.2

%

 

 81.2

%

GAAP to non-GAAP gross margin adjustments

 

 

 2.6

%

 

 3.3

%

Non-GAAP gross margin: non-GAAP gross profit over non-GAAP total revenue

 

 

 83.8

%

 

 84.5

%

 

 

 

 

 

 

 

 

Non-GAAP operating loss reconciliation:

 

 

 

 

 

 

 

GAAP operating loss

 

$

 (14,314)

 

$

 (16,895)

 

Stock-based compensation expenses

 

 

 7,872

 

 

 9,078

 

Amortization of intangible assets

 

 

 154

 

 

 137

 

Restructuring charge

 

 

 1,052

 

 

 800

 

Non-GAAP operating loss

 

$

 (5,236)

 

$

 (6,880)

 

 

 

 

 

 

 

 

 

Non-GAAP operating margin reconciliation:

 

 

 

 

 

 

 

GAAP operating margin: GAAP operating loss over GAAP total revenue

 

 

 (34.4)

%

 

 (39.5)

%

GAAP to non-GAAP operating margin adjustments

 

 

 21.8

%

 

 23.4

%

Non-GAAP operating margin: non-GAAP operating loss over non-GAAP total revenue

 

 

 (12.6)

%

 

 (16.1)

%

 

 

 

 

 

 

 

 

Non-GAAP net loss reconciliation:

 

 

 

 

 

 

 

GAAP net loss

 

$

 (14,593)

 

$

 (17,065)

 

Stock-based compensation expenses

 

 

 7,872

 

 

 9,078

 

Amortization of intangible assets

 

 

 154

 

 

 137

 

Restructuring charge

 

 

 1,052

 

 

 800

 

Non-GAAP net loss

 

$

 (5,515)

 

$

 (7,050)

 

 

 

 

 

 

 

 

 

 

MOBILEIRON, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except for per share data and percentages)

(Unaudited)

 

 

 

Three Months Ended

 

 

 

September 30, 2016

 

 

September 30, 2017

Non-GAAP net loss per share reconciliation:

 

 

 

 

 

 

GAAP net loss per share

 

$

 (0.17)

 

$

 (0.18)

Stock-based compensation expenses per share

 

 

 0.09

 

 

 0.10

Amortization of intangible assets

 

 

 -

 

 

 -

Restructuring charge

 

 

 0.02

 

 

 0.01

Non-GAAP net loss per share

 

$

 (0.06)

 

$

 (0.07)

 

 

 

 

 

 

 

Gross billings reconciliation:

 

 

 

 

 

 

Total revenue

 

$

 41,566

 

$

 42,720

Total deferred revenue, end of period

 

 

 78,172

 

 

 101,013

Less: Total deferred revenue, beginning of period

 

 

 (72,487)

 

 

 (93,376)

Total change in deferred revenue

 

 

 5,685

 

 

 7,637

Gross billings

 

$

 47,251

 

$

 50,357

 

 

 

 

 

 

 

Recurring billings reconciliation:

 

 

 

 

 

 

Total revenue

 

$

 41,566

 

$

 42,720

Less: Perpetual license revenue

 

 

 (11,311)

 

 

 (8,986)

Less: Professional services revenue

 

 

 (780)

 

 

 (776)

Subscription and software support deferred revenue, end of period

 

 

 75,956

 

 

 98,230

Less: Subscription and software support deferred revenue, beginning of period

 

 

 (70,286)

 

 

 (90,647)

Total change in subscription and software support deferred revenue

 

 

 5,670

 

 

 7,583

Less: Adjustments

 

 

 (230)

 

 

 (3,009)

Recurring billings

 

$

 34,915

 

$

 37,532

 

 

 

 

 

 

 

Recurring revenue reconciliation

 

 

 

 

 

 

Total revenue

 

$

 41,566

 

$

 42,720

Less: Perpetual license revenue

 

 

 (11,311)

 

 

 (8,986)

Less: Professional services revenue

 

 

 (780)

 

 

 (776)

Less: Perpetual license amount recorded over the term of subscription or software support (1)

 

 

 (518)

 

 

 (518)

Recurring revenue

 

$

 28,957

 

$

 32,440

 

 

 

 

 

 

 

Free cash flow reconciliation:

 

 

 

 

 

 

Cash used in operating activities

 

$

 (6,525)

 

$

 (4,249)

Purchase of property and equipment

 

 

 (297)

 

 

 (4,124)

Free cash flow

 

$

 (6,822)

 

$

 (8,373)

 

 

 

 

 

 

 

(1) Perpetual amounts recorded as subscription or software support revenue in multiple elements arrangements, where undelivered elements do not have VSOE

 

 

 

 

 

 

 

MOBILEIRON, INC.

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

(Amounts in thousands, except for per share data and percentages)

 

(Unaudited)

 

 

 

Nine Months Ended

 

 

 

September 30, 2016

 

September 30, 2017

 

 

 

 

 

 

 

 

 

Non-GAAP gross profit reconciliation:

 

 

 

 

 

 

 

GAAP gross profit

 

$

 95,258

 

$

 104,341

 

Stock-based compensation expenses

 

 

 2,192

 

 

 2,859

 

Amortization of intangible assets

 

 

 462

 

 

 445

 

Restructuring charge

 

 

 181

 

 

 311

 

Non-GAAP gross profit

 

$

 98,093

 

$

 107,956

 

 

 

 

 

 

 

 

 

Non-GAAP gross margin reconciliation:

 

 

 

 

 

 

 

GAAP gross margin: GAAP gross profit over GAAP total revenue

 

 

 80.4

%

 

 81.7

%

GAAP to non-GAAP gross margin adjustments

 

 

 2.4

%

 

 2.9

%

Non-GAAP gross margin: Non-GAAP gross profit over non-GAAP total revenue

 

 

 82.8

%

 

 84.6

%

 

 

 

 

 

 

 

 

Non-GAAP operating loss reconciliation:

 

 

 

 

 

 

 

GAAP operating loss

 

$

 (56,486)

 

$

 (48,262)

 

Stock-based compensation expenses

 

 

 26,666

 

 

 26,249

 

Amortization of intangible assets

 

 

 462

 

 

 445

 

Litigation settlement charge

 

 

 -

 

 

 1,143

 

Restructuring charge

 

 

 1,052

 

 

 800

 

Non-GAAP operating loss

 

$

 (28,306)

 

$

 (19,625)

 

 

 

 

 

 

 

 

 

Non-GAAP operating margin reconciliation:

 

 

 

 

 

 

 

GAAP operating margin: GAAP operating loss over GAAP total revenue

 

 

 (47.7)

%

 

 (37.8)

%

GAAP to non-GAAP operating margin adjustments

 

 

 23.8

%

 

 22.4

%

Non-GAAP operating margin: Non-GAAP operating loss over non-GAAP total revenue

 

 

 (23.9)

%

 

 (15.4)

%

 

 

 

 

 

 

 

 

Non-GAAP net loss reconciliation:

 

 

 

 

 

 

 

GAAP net loss

 

$

 (56,974)

 

$

 (48,442)

 

Amortization of intangible assets

 

 

 462

 

 

 445

 

Stock-based compensation expenses

 

 

 26,666

 

 

 26,249

 

Litigation settlement charge

 

 

 -

 

 

 1,143

 

Restructuring charge

 

 

 1,052

 

 

 800

 

Non-GAAP net loss

 

$

 (28,794)

 

$

 (19,805)

 

 

MOBILEIRON, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except for per share data and percentages)

(Unaudited)

 

 

 

Nine Months Ended

 

 

 

September 30, 2016

 

 

September 30, 2017

Non-GAAP net loss per share reconciliation:

 

 

 

 

 

 

GAAP net loss per share

 

$

 (0.67)

 

$

 (0.52)

Stock-based compensation expenses per share

 

 

 0.31

 

 

 0.28

Amortization of intangible assets

 

 

 0.01

 

 

 0.01

Litigation settlement charge

 

 

 -

 

 

 0.01

Restructuring charge

 

 

 0.01

 

 

 0.01

Non-GAAP net loss per share

 

$

 (0.34)

 

$

 (0.21)

 

 

 

 

 

 

 

Gross billings reconciliation:

 

 

 

 

 

 

Total revenue

 

$

 118,454

 

$

 127,660

Total deferred revenue, end of period

 

 

 78,172

 

 

 101,013

Less: Total deferred revenue, beginning of period

 

 

 (69,875)

 

 

 (88,076)

Total change in deferred revenue

 

 

 8,297

 

 

 12,937

Gross billings

 

$

 126,751

 

$

 140,597

 

 

 

 

 

 

 

Recurring billings reconciliation:

 

 

 

 

 

 

Total revenue

 

$

 118,454

 

$

 127,660

Less: Perpetual license revenue

 

 

 (31,462)

 

 

 (28,572)

Less: Professional services revenue

 

 

 (2,373)

 

 

 (2,081)

Subscription and software support deferred revenue, end of period

 

 

 75,956

 

 

 98,230

Less: Subscription and software support deferred revenue, beginning of period

 

 

 (67,267)

 

 

 (85,612)

Total change in subscription and software support deferred revenue

 

 

 8,689

 

 

 12,618

Less: Adjustments

 

 

 (1,185)

 

 

 (4,391)

Recurring billings

 

$

 92,123

 

$

 105,234

 

 

 

 

 

 

 

Recurring revenue reconciliation

 

 

 

 

 

 

Total revenue

 

$

 118,454

 

$

 127,660

Less: Perpetual license revenue

 

 

 (31,462)

 

 

 (28,572)

Less: Professional services revenue

 

 

 (2,373)

 

 

 (2,081)

Less: Perpetual license amount recorded over the term of subscription or software support (1)

 

 

 (1,415)

 

 

 (1,490)

Recurring revenue

 

$

 83,204

 

$

 95,517

 

 

 

 

 

 

 

Free cash flow reconciliation:

 

 

 

 

 

 

Cash used in operating activities

 

$

 (20,197)

 

$

 (7,365)

Purchase of property and equipment

 

 

 (2,349)

 

 

 (5,046)

Free cash flow

 

$

 (22,546)

 

$

 (12,411)

 

 

 

 

 

 

 

(1) Perpetual amounts recorded as subscription or software support revenue in multiple elements arrangements, where undelivered elements do not have VSOE

 

 

 

 

 

 

 

 

MOBILEIRON, INC.

 

SUPPLEMENTAL INFORMATION

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Sep-16

 

31-Dec-16

 

31-Mar-17

 

30-Jun-17

 

30-Sep-17

GAAP revenue

 

 

 

 

 

 

 

 

 

 

United States

$

 20,292

$

 19,452

$

 20,091

$

 19,764

$

 18,396

International

 

 21,274

 

 26,020

 

 22,197

 

 22,888

 

 24,324

Total

$

 41,566

$

 45,472

$

 42,288

$

 42,652

$

 42,720

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross billings

$

 47,251

$

 55,376

$

 45,374

$

 44,866

$

 50,357

Recurring billings

 

 34,915

 

 39,652

 

 33,984

 

 33,717

 

 37,532

Recurring revenue

 

 28,957

 

 30,210

 

 31,224

 

 31,852

 

 32,440

Non-GAAP gross profit

 

 34,839

 

 39,125

 

 35,873

 

 36,001

 

 36,082

Non-GAAP operating loss

 

 (5,236)

 

 (1,980)

 

 (4,964)

 

 (7,781)

 

 (6,880)

Free cash flow

 

 (6,822)

 

 7,887

 

 331

 

 (4,369)

 

 (8,373)

 

 

 

 

 

 

 

 

 

 

 

Components of deferred revenue

 

 

 

 

 

 

 

 

 

 

Software support

$

 43,635

$

 50,117

$

 50,840

$

 50,635

$

 51,874

Subscription

 

 32,321

 

 35,495

 

 37,777

 

 40,012

 

 46,356

Other deferred revenue

 

 2,216

 

 2,464

 

 2,545

 

 2,729

 

 2,783

Total

$

 78,172

$

 88,076

$

 91,162

$

 93,376

$

 101,013

 

 

 

 

 

 

 

 

 

 

 

Investor Contact:
Erik Bylin
MobileIron
ir@mobileiron.com
650-776-8104

Media Contact:
Clarissa Horowitz
MobileIron
clarissa@mobileiron.com
415-608-6825