MobileIron Announces Second Quarter 2017 Results

MOUNTAIN VIEW, Calif., July 27, 2017 /PRNewswire/ -- MobileIron (NASDAQ:MOBL), the security backbone for the multi-cloud enterprise, today announced results for its second quarter ended June 30, 2017.

MobileIron's Logo. (PRNewsFoto/MobileIron)

Second Quarter 2017 Financial Highlights

  • Revenue was $42.7 million, up 10% year-over-year.
  • Recurring revenue was $31.9 million, up 15% year-over-year.
  • Gross billings were $44.9 million, up 9% year-over-year.
  • Recurring billings, which represented 75% of gross billings, were $33.7 million, up 11% year-over-year.
  • GAAP net loss per share was $0.20; non-GAAP net loss per share was $0.08.
  • Cash flow used from operations was $3.8 million.
  • Cash and cash equivalents plus short term investments ended the quarter at $89.2 million.
  • Surpassed 15,000 cumulative customers.

"In the second quarter, we hit a major milestone, surpassing 15,000 cumulative customers, and we saw positive cloud growth with over 75% of our new customers in this quarter choosing our cloud platform," said Barry Mainz, President and CEO, MobileIron. "We had some large deals that didn't close as planned. Looking ahead, we expect to improve sales execution in the second half of the year while we maintain our focus on fiscal discipline. We remain committed to our guidance of being cash from operations positive for the year and to achieving a non-GAAP operating margin of between -2% and +2% for the fourth quarter."

Second Quarter 2017 Business Highlights

Platform

  • Added MobileIron Access integrations with Dropbox Business and with identity providers OneLogin, Okta, Ping, and Microsoft.
  • Announced new professional service offering General Data Protection Regulation (GDPR) Mobile Readiness Service.
  • Announced integration with US Department of Defense derived credentials architecture.
  • Released new versions of MobileIron Cloud, Core, Access, AppConnect, Apps@Work, Email+, Monitor, PIV-D Derived Credentials, Sentry, Tunnel, and Web@Work.

Channels

  • Liona Enterprises extended its partnership with MobileIron to offer a comprehensive list of GSA-approved MobileIron products for the US Government.
  • Our largest reseller, AT&T, represented approximately 14% of revenue for the quarter.

Milestones and Recognition

  • Named by Gartner as a Leader for seventh consecutive year in the Magic Quadrant for Enterprise Mobility Management Suites.*
  • Awarded seven additional US patents for mobile security, bringing the total to 53.
  • Named to the 2017 San Jose Mercury News' list of Silicon Valley's top 150 public companies.

Financial Outlook
The company is providing the following outlook for its third quarter 2017 (ending September 30, 2017):

  • Revenue is expected to be between $44 million and $46 million, which represents growth of 6% to 11% year-over-year.
  • Gross billings are expected to be between $48 million and $52 million, growth between 2% and 10% over last year.
  • Non-GAAP gross margin is expected to be between 82% and 84%.
  • Non-GAAP operating expenses are expected to be between $41 million and $43 million.

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

  • Revenue is expected to be between $175 million and $185 million, growth between 7% and 13% year-over-year (reducing the high end of the range by $5 million).
  • Gross billings are expected to be between $195 million and $205 million, growth between 7% and 13% over last year (reducing the high end of the range by $5 million).
  • Exit the year with a fourth quarter non-GAAP operating margin between -2% to 2%.
  • Generate positive cash flow from operations for the full year 2017.

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 second quarter of 2016 and 2017.

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 results. Interested parties may access the call by dialing (855) 327-6837 in the U.S. or (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 or by dialing (844) 512-2921 and referencing conference ID#10003121 through August 27, 2017.

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.    

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.

* Gartner "Magic Quadrant for Enterprise Mobility Management Suites" by Rob Smith, Bryan Taylor, Manjunath Bhat, Chris Silva, Terrence Cosgrove, June 6, 2017.  

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 JUNE 30, 2017

(Amounts in thousands)

(Unaudited)

             
     

December 31, 2016

   

June 30, 2017

Assets

           

Current assets:

           

  Cash and cash equivalents (1)

 

$

54,043

 

$

85,871

  Short-term investments  (1)

   

36,184

   

3,302

  Accounts receivable - net

   

43,755

   

41,342

  Prepaid expenses and other current assets

   

6,131

   

11,377

           Total current assets

   

140,113

   

141,892

Property and equipment - net

   

5,503

   

7,486

Intangible assets - net

   

645

   

336

Goodwill

   

5,475

   

5,475

Other assets

   

1,370

   

1,784

Total Assets

 

$

153,106

 

$

156,973

             

Liabilities and stockholders' equity

           

Current liabilities:

           

  Accounts payable

 

$

701

 

$

4,553

  Accrued expenses

   

21,674

   

26,210

  Deferred revenue - current

   

68,153

   

72,525

           Total current liabilities

   

90,528

   

103,288

Deferred revenue - noncurrent

   

19,923

   

20,851

Other long-term liabilities

   

1,838

   

1,896

           Total liabilities

   

112,289

   

126,035

Stockholders' equity:

           

  Common stock

   

9

   

9

  Additional paid-in capital

   

383,193

   

404,691

  Accumulated deficit

   

(342,385)

   

(373,762)

           Total stockholders' equity

   

40,817

   

30,938

             

Total liabilities and stockholders' equity

 

$

153,106

 

$

156,973

             
             

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

 

$

90,227

 

$

89,173

 

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2016 AND 2017

(Amounts in thousands, except for per share data)

(Unaudited)

   

Three Months Ended

   

June 30, 2016

 

June 30, 2017

Revenue:

           

Perpetual license

 

$

9,783

 

$

9,704

Subscription

   

14,803

   

17,248

Software support and services

   

14,295

   

15,700

Total revenue

   

38,881

   

42,652

Cost of revenue:

           

Perpetual license (2)

   

629

   

453

Subscription (1)

   

2,199

   

2,182

Software support and services (1)

   

5,289

   

5,396

Total cost of revenue

   

8,117

   

8,031

Gross profit

   

30,764

   

34,621

Operating expenses:

           

  Research and development (1)

   

18,019

   

19,666

  Sales and marketing (1)

   

27,246

   

25,674

  General and administrative (1)

   

8,265

   

7,840

           Total operating expenses

   

53,530

   

53,180

Operating loss

   

(22,766)

   

(18,559)

Other income (expense) - net

   

30

   

339

Loss before income taxes

   

(22,736)

   

(18,220)

Income tax expense

   

198

   

324

Net loss

 

$

(22,934)

 

$

(18,544)

Net loss per share, basic and diluted

 

$

(0.27)

 

$

(0.20)

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

   

85,317

   

92,963

             
             

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

           

Cost of revenue

           

Subscription

 

$

233

 

$

235

Software support and services

   

822

   

991

Research and development

   

3,812

   

4,366

Sales and marketing

   

2,992

   

2,582

General and administrative

   

2,686

   

2,450

   

$

10,545

 

$

10,624

             

(2)  Includes amortization of intangible assets as follows:

           

Cost of revenue

           

Perpetual license

 

$

154

 

$

154

   

$

154

 

$

154

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2016 AND 2017

(Amounts in thousands, except for per share data)

(Unaudited)

   

Six Months Ended

   

June 30, 2016

 

June 30, 2017

Revenue:

           

Perpetual license

 

$

20,151

 

$

19,586

Subscription

   

29,426

   

34,155

Software support and services

   

27,311

   

31,199

Total revenue

   

76,888

   

84,940

Cost of revenue:

           

Perpetual license (2)

   

1,488

   

852

Subscription (1)

   

3,982

   

4,075

Software support and services (1)

   

9,917

   

10,374

Total cost of revenue

   

15,387

   

15,301

Gross profit

   

61,501

   

69,639

Operating expenses:

           

  Research and development (1)

   

34,946

   

36,859

  Sales and marketing (1)

   

52,914

   

48,976

  General and administrative (1)

   

15,813

   

14,028

  Litigation settlement charge

   

-

   

1,143

           Total operating expenses

   

103,673

   

101,006

Operating loss

   

(42,172)

   

(31,367)

Other income (expense) - net

   

165

   

513

Loss before income taxes

   

(42,007)

   

(30,854)

Income tax expense

   

374

   

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