MobileIron Announces Second Quarter 2019 Results

Total ARR Growth of 19% with Subscription ARR up 31%

Double-digit revenue growth for third quarter in a row

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- MobileIron (NASDAQ: MOBL), the industry’s first mobile-centric, zero trust security platform, today announced results for its second quarter ended June 30, 2019.

Second Quarter 2019 Financial Highlights

  • Revenue was $50.9 million, up 10% year-over-year.
  • ARR was $172.0 million, up 19% year-over-year.
  • Cumulative customer count surpassed 19,000.

“Our focus on delivering a robust, mobile-centric security architecture again showed in our results. We produced another quarter of double-digit revenue growth including 19% growth in ARR, spurred by a 31% increase in Subscription ARR,” said Simon Biddiscombe, CEO, MobileIron. “Armed with our UEM, Threat Defense and Access products, MobileIron entered 2019 with an unparalleled solution to address the threat landscape in a zero trust world. In Q2, we extended this technology advantage with the introduction of our Zero Sign-On solution to become the only security provider with the ability to eliminate passwords from the enterprise using a secured and trusted mobile device as their identity. While lowering the burden placed on employees and IT alike, our Zero Sign-On solution completely removes the #1 source of corporate breaches, passwords – the culprit in more than 80% of hacks.”

 

 

 

 

 

 

 

 

ARR Composition

 

 

 

Three Months Ended

 

 

 

June 30,

 

(in millions, except percentages)

 

2018

 

2019

 

Total ARR

 

$

145.1

 

$

172.0

 

Year-over-year percentage increase

 

 

15%

 

 

19%

 

Subscription ARR

 

$

80.8

 

$

106.1

 

Year-over-year percentage increase

 

 

25%

 

 

31%

 

Perpetual license support ARR

 

$

64.2

 

$

65.9

 

Year-over-year percentage increase

 

 

5%

 

 

3%

 

 

Financial Outlook

The company is providing the following outlook for its third quarter 2019 (ending September 30, 2019):

  • Revenue is expected to be between $51 million and $54 million, for growth of 4% to 10% year-over-year.
  • Non-GAAP gross margin is expected to be between 81% and 82%.
  • Non-GAAP operating expenses are expected to be between $41 million and $42 million.

The company is reaffirming the following outlook for 2019 (ending December 31, 2019):

  • Revenue is expected to be between $205 million and $215 million, for growth of 6% to 11%.
  • We expect ARR to grow by approximately 20% for the full year.
  • We expect to generate non-GAAP operating profit.

Second Quarter 2019 Business Highlights

Milestones and Recognition

  • Announced Zero Sign-On platform technology to eliminate the need for passwords from the enterprise.
  • Named by Forbes as a Top Ten Cybersecurity Company to Watch in 2019.
  • Hosted the MobileIron Live! 2019 Conference customer events in Berlin and Brooklyn with nearly 1,000 registrants.
  • Launched a total brand identity overhaul and were awarded four Muse Creative awards, including Platinum, the top award granted.
  • Awarded five additional US patents for mobile security, bringing MobileIron’s total number of awarded patents to 89.

Platform

  • Launched a new partner marketplace with a newly redesigned portal.
  • Released new capabilities to enhance workforce productivity, including Mobile Application Management (MAM) for unmanaged devices and Frontline worker enablement, optimized security with mobile threat detection, and expanded OS support for macOS, Android, and Windows 10 endpoints.
  • Obtained the automotive industry’s TISAX compliance to meet the uniform standard for information security assessments within the European automotive industry.
  • Released new versions of MobileIron Cloud, Access, AppConnect, AppStation, Core, Docs@Work, Email+, FilePass, MobileIron Go, Tunnel, Sentry, and Web@Work.

All forward-looking non-GAAP financial measures contained in this section exclude estimates for stock-based compensation expense, amortization of intangible assets and restructuring expense. We do not provide a reconciliation of forward-looking non-GAAP financial measures to corresponding GAAP measures due to our inability to project certain charges and expenses. 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 three and six months ended June 30, 2018 and 2019.

Conference Call and Webcast

MobileIron will report final results for the second quarter of fiscal year 2019 on Thursday, August 1, 2019 after the close of the market and host a conference call and live webcast at 1:30 p.m. Pacific Time (4:30 p.m. ET) to discuss the company's financial results, product announcements and business highlights. Interested parties may access the call by dialing 1-866-602-7050 in the U.S. or 1-409-216-6455 from international locations (passcode 1969157). 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 within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as “may,” “will,” “might,” “expect,” “believe,” “anticipate,” “could,” “would,” “estimate,” “continue,” “pursue,” or the negative thereof or comparable terminology, and may include (without limitation) information regarding our expectations, goals or intentions regarding future performance. Forward-looking statements in this press release include, but are not limited to, statements regarding MobileIron's revenue, operating expenses, cost structure, GAAP and non-GAAP financial metrics, as well as statements that we expect to continue to see progress through 2019 on executing on our objective of growing our recurring revenue base through subscription solutions with our best in class cloud products, that we believe we are ideally poised to capitalize on the market of IT departments shifting to address the threats of a Zero Trust world, that we will continue to deliver a roadmap of innovation to strengthen our security framework while enhancing the user’s experience, that our continued focus on market-leading innovation and customer satisfaction will continue to propel us on our upward growth trajectory, and all statements under the heading “Financial Outlook.” Forward-looking statements involve certain risks and uncertainties, and 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, one-time expenses, including restructuring charges, seasonality, our need to develop new solutions and enhancements to compete in rapidly evolving markets, product defects, strength of our intellectual property portfolio, litigation, 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. All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and 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.

Disclosure Information

MobileIron uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors should monitor MobileIron’s investor relations website in addition to following MobileIron’s press releases, SEC filings, and public conference calls and webcasts.

About MobileIron

MobileIron is redefining enterprise security with the industry’s first mobile-centric, zero trust platform built on the foundation of unified endpoint management (UEM) to secure access and protect data across the perimeter-less enterprise. Zero trust assumes that bad actors are already in the network and secure access is determined by a “never trust, always verify” approach. MobileIron goes beyond identity management and gateway approaches by utilizing a more comprehensive set of attributes before granting access. A mobile-centric, zero trust approach validates the device, establishes user context, checks app authorization, verifies the network, and detects and remediates threats before granting secure access to a device or user.

The MobileIron security platform is built on the foundation of award-winning and industry-leading unified endpoint management (UEM) capabilities with additional zero trust-enabling technologies, including zero sign-on (ZSO), multi-factor authentication (MFA), and mobile threat defense (MTD). Over 19,000 customers, including the world’s largest financial institutions, intelligence agencies, and other highly regulated companies rely on MobileIron to enable a seamless and secure user experience by ensuring only authorized users, devices, apps, and services can access business resources.

"MobileIron" is a registered trademark 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, 2018 AND JUNE 30, 2019

(Amounts in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

June 30, 2019

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents (1)

 

$

104,613

 

 

$

98,877

 

Short-term investments (1)

 

 

1,000

 

 

 

1,699

 

Accounts receivable - net

 

 

60,994

 

 

 

39,312

 

Deferred commissions - current

 

 

8,265

 

 

 

9,480

 

Prepaid expenses and other current assets

 

 

8,367

 

 

 

12,333

 

Total current assets

 

 

183,239

 

 

 

161,701

 

Property and equipment - net

 

 

7,046

 

 

 

5,859

 

Operating lease right-of-use assets

 

 

-

 

 

 

14,127

 

Deferred commissions - noncurrent

 

 

9,066

 

 

 

8,247

 

Goodwill

 

 

5,475

 

 

 

5,475

 

Other assets

 

 

5,561

 

 

 

6,186

 

Total assets

 

$

210,387

 

 

$

201,595

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

2,154

 

 

$

2,937

 

Accrued expenses

 

 

27,347

 

 

 

20,590

 

Lease liabilities - current

 

 

-

 

 

 

6,276

 

Unearned revenue - current

 

 

74,177

 

 

 

76,664

 

Customer arrangements with termination rights

 

 

19,367

 

 

 

16,978

 

Total current liabilities

 

 

123,045

 

 

 

123,445

 

Lease liabilities - noncurrent

 

 

-

 

 

 

10,833

 

Unearned revenue - noncurrent

 

 

31,660

 

 

 

29,736

 

Other long-term liabilities

 

 

1,565

 

 

 

155

 

Total liabilities

 

 

156,270

 

 

 

164,169

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock

 

 

11

 

 

 

11

 

Additional paid-in capital

 

 

462,004

 

 

 

484,593

 

Treasury stock

 

 

(3,831

)

 

 

(10,422

)

Accumulated deficit

 

 

(404,067

)

 

 

(436,756

)

Total stockholders’ equity

 

 

54,117

 

 

 

37,426

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

210,387

 

 

$

201,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

105,613

 

 

$

100,576

 

 

 

 

 

 

 

 

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2018 AND 2019

(Amounts in thousands, except for per share data)

(Unaudited)

 

 

Three Months Ended

 

 

June 30, 2018

 

June 30, 2019

Revenue:

 

 

PRESS ENQUIRY