MobileIron Announces Fiscal Second Quarter 2016 Results

MOUNTAIN VIEW, Calif., July 28, 2016 /PRNewswire/ -- MobileIron (NASDAQ:MOBL), the stand-alone EMM leader, today announced results for its second fiscal quarter ended June 30, 2016.

Second Quarter 2016 Financial Highlights

  • GAAP revenue was $38.9 million, up 12% year-over-year
  • Recurring revenue was $27.6 million, up 28% year-over-year
  • Gross billings were $41.2 million, up 6% year-over-year
  • Recurring billings, which represented 74% of gross billings, were $30.4 million, up 21% year-over-year
  • GAAP net loss per share was $0.27; non-GAAP net loss per share was $0.14
  • Cash and equivalents, plus short and long term investments stood at $85.9 million

"In our second fiscal quarter, we bounced back from the challenges witnessed in the first quarter with upside in both billings and revenue. We remain on track to be cash flow positive from operations in the fourth quarter," said Barry Mainz, CEO, MobileIron. "We have two strong secular tailwinds working in our favor: compliance requirements are growing as is the mobile threat landscape. As a result, more customers see mobile security as a must have and they are not satisfied with a solution that is just good enough. We continue to be chosen by companies with the highest security requirements and most complex environments."

Second Quarter 2016 Business Highlights

Platform

  • Launched general availability of 9.0 version of the company's award-winning mobile security software for mobile apps, content, and devices.
  • Introduced MobileIron Access, with integrations to many of the most widely used enterprise cloud apps including ones like Box, Google Apps for Work, Office 365, and Salesforce.
  • Released the Rooms App for iOS enterprise customers, a lightweight conference room­ scheduling app that displays room availability based on the user's current or future location.
  • As of end of 2Q 2016, MobileIron ecosystem had 512 active technology partners, which have released over 230 technology integrations.

Channels

  • Increased our presence in Europe by expanding our relationships with Infinigate and the largest mobile operator in Greece, COSMOTE S.A., a subsidiary company of Deutsche Telekom group.
  • Our largest reseller, AT&T, represented approximately 15% of revenue for the quarter.

Milestones and Recognition

  • Named Greig Patton SVP of Worldwide Sales and Dilip Patel as SVP of Customer Success.
  • MobileIron first to receive Common Criteria certification for Mobile Device Management Protection Profile V2, a critical requirement for selling to Federal government agencies.
  • Granted three additional US patents bringing the total to 33.
  • Named by Gartner as a Leader for sixth consecutive year in Magic Quadrant for Enterprise Mobility Management Suites.*
  • Named Top Mobile Security Vendor by the Network World Asia Information Management Awards 2016 for the second consecutive year.

Financial Outlook

The company is providing the following outlook for its fiscal third quarter 2016 (ending September 30, 2016):

  • GAAP revenue is expected to be between $39 million and $41 million, growth between 3% and 8% year-over-year.
  • Gross billings are expected to be between $43 million and $45 million, growth between 5% and 10% over last year.
  • Non-GAAP gross margin is expected to be between 81% and 83%, and non-GAAP operating expenses are expected to be between $41 million and $43 million.

The company is providing the following outlook for its fiscal 2016 (ending December 31, 2016):

  • Non-GAAP operating margin is expected to be between -8% and -12% for the fourth quarter 2016.
  • Cash from operations is expected to be positive for the fiscal fourth quarter 2016.

All forward-looking non-GAAP financial measures contained in this section "Financial Outlook" 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 fiscal second quarter of 2015 and 2016 and the six months ended June 30, 2015 and 2016.

Conference Call and Webcast

MobileIron will 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 (855) 327­6837 in the U.S. or (631) 891­4304 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 or by dialing (877) 870­5176 and referencing conference ID#117241 through August 28, 2016.

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, 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 10­K, 10­Q and 8-K and other filings that we make with the SEC from time to time. 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.    

* Gartner "Magic Quadrant for Enterprise Mobility Management Suites" by Rob Smith, Bryan Taylor, Chris Silva, Manjunath Bhat, Terrence Cosgrove, John Girard, June 8, 2016.                  

Disclaimer

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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, 2015 AND JUNE 30, 2016

(Amounts in thousands)

(Unaudited)

             
   

December 31, 2015

 

June 30, 2016

Assets

           

Current Assets:

           

  Cash and cash equivalents (1)

 

$

47,234

 

$

41,535

  Short-term investments  (1)

   

49,576

   

43,622

  Accounts receivable - net

   

42,674

   

35,233

  Prepaid expenses and other current assets

   

4,809

   

7,016

           Total current assets

   

144,293

   

127,406

Long-term investments  (1)

   

2,094

   

755

Property and equipment - net

   

6,572

   

6,390

Intangible assets - net

   

1,261

   

953

Goodwill

   

5,475

   

5,475

Other assets

   

1,419

   

1,400

Total Assets

 

$

161,114

 

$

142,379

             

Liabilities and Stockholders' Equity

           

Current Liabilities:

           

  Accounts payable

 

$

2,551

 

$

2,452

  Accrued expenses

   

19,196

   

16,866

  Deferred revenue - current

   

55,978

   

56,893

           Total current liabilities

   

77,725

   

76,211

Deferred revenue - noncurrent

   

13,897

   

15,594

Other long-term liabilities

   

1,353

   

1,902

           Total liabilities

   

92,975

   

93,707

Stockholders' Equity:

           

  Common stock

   

8

   

9

  Additional paid-in capital

   

343,336

   

366,249

  Accumulated deficit

   

(275,205)

   

(317,586)

           Total stockholders' equity

   

68,139

   

48,672

             

Total Liabilities and Stockholders' Equity

 

$

161,114

 

$

142,379

             
             

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

 

$

98,904

 

$

85,912

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2015 AND 2016

(Amounts in thousands, except for per share data)

(Unaudited)

   

Three Months Ended

   

June 30, 2015

 

June 30, 2016

Revenue:

           

Perpetual license

 

$

12,347

 

$

9,783

Subscription

   

11,217

   

14,803

Software support and services

   

11,193

   

14,295

Total revenue

   

34,757

   

38,881

Cost of revenue:

           

Perpetual license (2)

   

627

   

629

Subscription (1)

   

1,688

   

2,199

Software support and services (1)

   

4,254

   

5,289

Total cost of revenue

   

6,569

   

8,117

Gross profit

   

28,188

   

30,764

Operating expenses:

           

  Research and development (1)

   

14,899

   

18,019

  Sales and marketing (1)

   

29,037

   

27,246

  General and administrative (1)

   

9,105

   

8,265

           Total operating expenses

   

53,041

   

53,530

Operating loss

   

(24,853)

   

(22,766)

Other (income) expense - net

   

16

   

(30)

Loss before income taxes

   

(24,869)

   

(22,736)

Income tax expense

   

144

   

198

Net loss

 

$

(25,013)

 

$

(22,934)

Net loss per share, basic and diluted

 

$

(0.32)

 

$

(0.27)

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

   

78,198

   

85,317

             
             

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

           

Cost of revenue

           

Subscription

   

80

   

233

Software support and services

   

363

   

822

Research and development

   

2,149

   

3,812

Sales and marketing

   

2,193

   

2,992

General and administrative

   

1,167

   

2,686

   

$

5,952

 

$

10,545

             

(2)  Includes amortization of intangible assets as follows:

           

Cost of revenue

           

Perpetual license

 

$

223

 

$

154

   

$

223

 

$

154

 

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2015 AND 2016

(Amounts in thousands, except for per share data)

(Unaudited)

   

Six Months Ended

   

June 30, 2015

 

June 30, 2016

Revenue:

           

Perpetual license

 

$

24,406

 

$

20,151

Subscription

   

21,414

   

29,426

Software support and services

   

22,431

   

27,311

Total revenue

   

68,251

   

76,888

Cost of revenue:

           

Perpetual license (2)

   

1,226

   

1,488

Subscription (1)

   

3,427

   

3,982

Software support and services (1)

   

8,411

   

9,917

Total cost of revenue

   

13,064

   

15,387

Gross profit

   

55,187

   

61,501

Operating expenses:

           

  Research and development (1)

   

28,400

   

34,946

  Sales and marketing (1)

   

54,842

   

52,914

  General and administrative (1)

   

17,503

   

15,813

           Total operating expenses

   

100,745

   

103,673

Operating loss

   

(45,558)

   

(42,172)

Other (income) expense - net

   

138

   

(165)

Loss before income taxes

   

(45,696)

   

(42,007)

Income tax expense

   

277

   

374

Net loss

 

$

(45,973)

 

$

(42,381)

Net loss per share, basic and diluted

 

$

(0.59)

 

$

(0.50)

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

   

77,599

   

84,151

             
             

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

           

Cost of revenue

           

Subscription

   

171

   

323

Software support and services

   

702

   

1,122

Research and development

   

3,877

   

6,413

Sales and marketing

   

4,028

   

6,111

General and administrative

   

2,310

   

4,825

   

$

11,088

 

$

 

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