MobileIron Announces Second Quarter 2020 Results

Delivers record revenue for growth of 16% year over year
Exceeds ARR guidance
End of perpetual license completes transition to subscription business

 

MOUNTAIN VIEW, Calif.--()--MobileIron (NASDAQ: MOBL), the mobile-centric security platform for the Everywhere Enterprise, today announced results for its second quarter ended June 30, 2020.

Second Quarter 2020 Financial Highlights

  • Revenue was $58.9 million, up 16% year-over-year.
  • ARR was $187.1 million, up 9% year-over-year.
  • Operating loss was $8.1 million; non-GAAP operating income was $5.6 million or 9.4% of revenue.

“In the face of the hurdles brought on by the pandemic, our team’s focus and execution enabled us to grow second quarter revenue by 16% and report record non-GAAP operating margin of 9.4%. Beyond our financial accomplishments, we continued to demonstrate the leading innovation that makes MobileIron the most robust mobile-centric security platform by introducing the first multi-vector, mobile phishing protection to defend against these prominent cybersecurity threats,” said Simon Biddiscombe, CEO, MobileIron. “As remote work becomes an increasing part of many companies’ future plans, it is clear that the age of the Everywhere Enterprise is dawning, where customers, workers, and infrastructure will need to converge seamlessly and securely from anywhere to connect. This new normal brings with it an increasingly complex set of security demands and we are confident that our comprehensive set of offerings are uniquely positioned to meet these challenges.”

ARR Composition

 

 

 

 

 

 

 

June 30,

 

(in millions, except percentages)

 

2019

 

2020

 

Total ARR

 

$

172.0

 

$

187.1

 

Year-over-year percentage increase

 

 

19

%

 

9

%

Subscription ARR

 

$

106.1

 

$

120.1

 

Year-over-year percentage increase

 

 

31

%

 

13

%

Perpetual license support ARR

 

$

65.9

 

$

67.0

 

Year-over-year percentage increase

 

 

3

%

 

2

%

Financial Outlook

The company is providing the following outlook for its third quarter 2020 (ending September 30, 2020):

  • Revenue is expected to be between $48 million and $51 million, or down 5% year over year at the midpoint almost entirely due to the removal of perpetual licenses.
  • Non-GAAP gross margin is expected to be approximately 78%.
  • Non-GAAP operating expenses are expected to be between $43 million and $44 million.

MobileIron is providing the following outlook for fiscal year 2020 (ending December 31, 2020):

  • Revenue is expected to be between $203 million and $210 million, growth of 1% at the midpoint compared to 2019.
  • ARR is expected to grow between 9% and 11% by fiscal year end, compared to the end of fiscal 2019.
  • Non-GAAP operating margin is expected to be between negative 5% and negative 7%.

Second Quarter 2020 Business Highlights

Milestones and Recognition

  • Appointed Christof Baumgärtner to the position of Chief Revenue Officer of MobileIron. Christof joined MobileIron in 2010 and has led the European sales team since 2017.
  • Named as Overall Unified Endpoint Management Leader in the KuppingerCole 2020 “Leadership Compass: Unified Endpoint Management (UEM)” report. Out of ten vendors, MobileIron was ranked as Overall UEM Leader based on its combined strengths across all three categories of product, innovation, and market leadership.
  • Awarded three additional US patents for mobile security, bringing MobileIron’s total number of awarded patents to 98.

Platform

  • Announced multi-vector mobile phishing protection for MobileIron Threat Defense (MTD). Built on MobileIron’s unified endpoint management (UEM) platform, MTD enables immediate, on-device and cloud-based phishing detection and remediation across all mobile threat vectors, protecting organizations against one of the top cybersecurity threats.
  • Announced MobileIron Cloud completion of Zebra Technologies’ Validated Program, confirming the interoperability of MobileIron Go with select Zebra devices. MobileIron Cloud integrates with Zebra’s value-added services, including Mx, OEMConfig and LifeGuard APIs, helping companies achieve comprehensive control over business data while enabling frontline workers to increase productivity.

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 second quarter of 2019 and 2020.

Conference Call and Webcast

MobileIron will report final results for the second quarter of fiscal year 2020 on Wednesday, July 29, 2020 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 (conference ID #4080723). 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, ARR, the timing for moving to a subscription-led business and ceasing perpetual licenses, cost structure, GAAP and non-GAAP financial metrics, as well as statements that we expect to continue to see progress migrating customers to the cloud, 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, that the MobileIron team will emerge from the pandemic with an even more strategic role in securing the global workforce, 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, COVID-19 and the duration of orders around the globe requiring people to work from home, our limited operating history, the adoption by our customers of our subscription-led model, 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 security platform for the Everywhere Enterprise. In the Everywhere Enterprise, corporate data flows freely across devices and servers in the cloud, empowering workers to be productive anywhere they need to work. To secure access and protect data across this perimeter-less enterprise, MobileIron leverages a zero trust approach, which assumes bad actors are already in the network and secure access is determined by a “never trust, always verify” model.

MobileIron’s platform combines award-winning and industry-leading unified endpoint management (UEM) capabilities with passwordless multi-factor authentication (Zero Sign-on) and mobile threat defense (MTD) to validate the device, establish user context, verify the network, and detect and remediate threats to ensure that only authorized users, devices, apps, and services can access business resources in a “work from everywhere” world. Over 20,000 organizations, including the world’s largest financial institutions, intelligence agencies, and other highly regulated companies, have chosen MobileIron to enable a seamless and secure user experience in the Everywhere Enterprise.

"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, 2019 AND JUNE 30, 2020

(Amounts in thousands)

(Unaudited)

 

 

 

 

December 31, 2019

   

June 30, 2020

Assets

 

 

 

   

 

 

 

Current assets:

 

 

 

   

 

 

 

Cash and cash equivalents

 

$

94,415

   

$

87,691

 

Accounts receivable - net

 

 

58,815

   

 

50,002

 

Deferred commissions - current

 

 

9,825

   

 

8,593

 

Prepaid expenses and other current assets

 

 

11,965

   

 

14,600

 

Total current assets

 

 

175,020

   

 

160,886

 

Property and equipment - net

 

 

4,804

   

 

3,891

 

Operating lease right-of-use assets

 

 

13,683

   

 

11,456

 

Deferred commissions - noncurrent

 

 

8,077

   

 

8,143

 

Intangible assets

   

-

     

3,000

 

Goodwill

 

 

5,475

   

 

8,407

 

Other assets

 

 

5,371

   

 

4,483

 

Total assets

 

$

212,430

   

$

200,266

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

   

 

 

 

Current liabilities:

 

 

 

   

 

 

 

Accounts payable

 

$

1,310

   

$

2,164

 

Accrued expenses

 

 

24,792

   

 

24,709

 

Lease liabilities - current

 

 

5,664

   

 

4,848

 

Unearned revenue - current

 

 

85,153

   

 

83,862

 

Customer arrangements with termination rights

 

 

16,130

   

 

12,057

 

Total current liabilities

 

 

133,049

   

 

127,640

 

Lease liabilities - noncurrent

 

 

10,088

   

 

7,665

 

Unearned revenue - noncurrent

 

 

33,058

   

 

29,351

 

Other long-term liabilities

 

 

237

   

 

122

 

Total liabilities

 

 

176,432

   

 

164,778

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock

 

 

11

 

 

 

12

 

Additional paid-in capital

 

 

504,041

 

 

 

525,383

 

Treasury stock

 

 

(15,141

)

 

 

(15,825

)

Accumulated deficit

 

 

(452,913

)

 

 

(474,082

)

Total stockholders’ equity

 

 

35,998

 

 

 

35,488

 

 

 

 

 

   

 

 

 

Total liabilities and stockholders' equity

 

$

212,430

   

$

200,266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2019 AND 2020

(Amounts in thousands, except for per share data)

(Unaudited)

 

 

Three Months Ended

 

 

June 30, 2019

 

June 30, 2020

Revenue:

 

 

 

 

 

 

Cloud services

 

$

16,311

 

 

$

19,549

 

License

 

 

12,227

 

 

 

17,078

 

Software support and services

 

 

22,327

 

 

 

22,298

 

Total revenue

 

 

50,865

 

 

 

58,925

 

Cost of revenue:

 

 

 

 

 

 

Cloud services (1)

 

 

5,146

 

 

 

6,824

 

License (2)    

433

     

587

 

Software support and services (1)

 

 

4,844

 

 

 

4,993

 

Restructuring expense

 

 

224

 

 

 

-

 

Total cost of revenue

 

 

10,647

 

 

 

12,404

 

Gross profit

 

 

40,218

 

 

 

46,521

 

Operating expenses:

 

 

 

 

 

 

Research and development (1)

 

 

19,988

 

 

 

20,863

 

Sales and marketing (1, 2)

 

 

26,035

 

 

 

24,845

 

General and administrative (1)

 

 

7,626

 

 

 

8,887

 

Restructuring expense

 

 

2,219

 

 

 

-

 

Total operating expenses

 

 

55,868

 

 

 

54,595

 

Operating loss

 

 

(15,650

)

 

 

(8,074

)

Other income (expense) - net

 

 

540

 

 

 

28

 

Loss before income taxes

 

 

(15,110

)

 

 

(8,046

)

Income tax expense

 

 

479

 

 

 

462

 

Net loss

 

$

(15,589

)

 

$

(8,508

)

Net loss per share, basic and diluted

 

$

(0.14

)

 

$

(0.07

)

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

 

 

109,245

 

 

 

115,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

Cloud services

 

$

424

 

 

$

756

 

License

 

 

-

 

 

 

-

 

Software support and services

 

 

842

 

 

 

1,142

 

Research and development

 

 

3,625

 

 

 

5,284

 

Sales and marketing

 

 

2,064

 

 

 

3,389

 

General and administrative

 

 

1,902

 

 

 

2,935

 

 

 

$

8,857

 

 

$

13,506

 

 

 

 

 

 

 

 

(2) Includes amortization of intangible assets as follows:

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

License

 

$

-

 

 

$

66

 

Sales and marketing

 

 

-

 

 

 

58

 

 

 

$

-

 

 

$

124

 

 

 

 

 

 

 

 

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2019 AND 2020

(Amounts in thousands, except for per share data)

(Unaudited)

 

 

Six Months Ended

 

 

June 30, 2019

 

June 30, 2020

Revenue:

 

 

 

 

 

 

Cloud services

 

$

31,572

 

 

$

38,183

 

License

 

 

23,598

 

 

 

26,088

 

Software support and services

 

 

43,777

 

   

44,352

 

Total revenue

 

 

98,947

 

   

108,623

 

Cost of revenue:

 

 

 

 

 

 

Cloud services (1)

 

 

9,856

 

 

 

12,881

 

License (2)

 

 

987

 

 

 

1,046

 

Software support and services (1)

 

 

9,867

 

   

9,349

 

Restructuring charge

 

 

300

 

   

-

 

Total cost of revenue

 

 

21,010

 

   

23,276

 

Gross profit

 

 

77,937

 

   

85,347

 

Operating expenses:

 

 

 

 

 

 

Research and development (1)

 

 

41,817

 

 

 

39,856

 

Sales and marketing (1, 2)

 

 

50,522

 

 

 

48,978

 

General and administrative (1)

 

 

15,545

 

 

 

16,120

 

Restructuring charge

 

 

2,758

 

 

 

579

 

Total operating expenses

 

 

110,642

 

 

 

105,533

 

Operating loss

 

 

(32,705

)

 

 

(20,186

)

Other income (expense) - net

 

 

952

 

   

(80

)

Loss before income taxes

 

 

(31,753

)

   

(20,266

)

Income tax expense

 

 

936

 

   

903

 

Net loss

 

$

(32,689

)

 

$

(21,169

)

Net loss per share, basic and diluted

 

$

(0.30

)

 

$

(0.18

)

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

 

 

108,292

 

 

 

114,970

 

 

 

 

 

   

 

 

 

 

 

   

 

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

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

Cloud services

 

$

1,036

 

 

$

1,131

 

License

 

 

-

 

 

 

-

 

Software support and services

 

 

1,771

 

 

 

1,665

 

Research and development

 

 

7,736

 

 

 

8,343

 

Sales and marketing

 

 

4,338

 

 

 

5,462

 

General and administrative

 

 

4,266

 

   

4,478

 

 

 

$

19,147

 

 

$

21,079

 

 

 

 

 

 

 

 

(2) Includes amortization of intangible assets as follows:

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

License

 

$

-

 

 

$

66

 

Sales and marketing

 

 

-

 

 

 

58

 

 

 

$

-

 

 

$

124

 

 

 

 

 

 

 

 

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2019 AND 2020

(Amounts in thousands)

(Unaudited)

 

 

Six Months Ended

 

 

June 30, 2019

 

June 30, 2020

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(32,689

)

 

$

(21,169

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

Stock-based compensation expense

 

 

19,147

 

 

 

21,079

 

Depreciation

 

 

1,757

 

 

 

1,617

 

Amortization of intangible assets

 

 

-

 

 

 

124

 

Provision for doubtful accounts

 

 

-

 

 

 

94

 

Accretion of premium on investment securities

 

 

(13

)

 

 

-

 

Impairment of right-of-use assets

 

 

1,328

 

 

 

-

 

Loss on disposal of fixed assets

 

 

170

 

 

 

-

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

21,683

 

 

 

8,721

 

Deferred commissions

 

 

(397

)

 

 

1,166

 

Other current and noncurrent assets

 

 

(2,217

)

 

 

504

 

Accounts payable

 

 

772

 

 

 

785

 

Unearned revenue

 

 

562

 

 

 

(5,273

)

Customer arrangements with termination rights

 

 

(2,389

)

 

 

(4,073

)

Accrued expenses and other long-term liabilities

 

 

(4,384

)

 

 

(2,172

)

Net cash provided by operating activities

 

 

3,330

 

 

 

1,403

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(782

)

 

 

(684

)

Purchase of incapptic, net of cash acquired

 

 

-

 

 

 

(5,668

)

Proceeds from maturities of investment securities

 

 

1,550

 

 

 

-

 

Purchases of investment securities

 

 

(2,236

)

 

 

-

 

Net cash used in investing activities

 

 

(1,468

)

 

 

(6,352

)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from employee stock purchase plan

 

 

2,057

 

 

 

1,946

 

Taxes paid for net settlement of equity awards

 

 

(4,784

)

 

 

(3,542

)

Proceeds from exercise of stock options

 

 

1,720

 

 

 

505

 

Repurchase of common stock

 

 

(6,591

)

 

 

(684

)

Net cash used in financing activities

 

 

(7,598

)

 

 

(1,775

)

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

(5,736

)

 

 

(6,724

)

Cash and cash equivalents at beginning of period

 

 

104,613

 

 

 

94,415

 

Cash and cash equivalents at end of period

 

$

98,877

 

 

$

87,691

 

Non-GAAP Financial Measures and Reconciliations and Other Metrics

Non-GAAP Financial Measures

To supplement our financial results presented on a U.S. GAAP basis, we provide investors with certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share and free cash flow. These non-GAAP financial measures exclude stock-based compensation, intangible asset amortization, and restructuring expense.

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.

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

Intangible asset amortization: In our non-GAAP financial measures, we have excluded the effect of intangible asset amortization. Amortization of intangible assets can be significantly affected by the timing and size of acquisitions of companies or technology.

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), and non-GAAP net income (loss) per share: We believe that the exclusion of stock-based compensation expense, restructuring expense, and intangible asset amortization from various 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, restructuring expense and intangible asset amortization have been and can continue to be inconsistent in amount from period to period. 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.

Free cash flow: Our non-GAAP financial measures also include free cash flow, which we define as cash provided by operating activities less the amount of property and equipment purchased. 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 relative to certain of these non-GAAP measures.

Other Metrics

Annual Recurring Revenue (ARR). We monitor Total ARR, which is defined as the annualized value of all recurring revenue contracts active at the end of a reporting period. Total ARR includes the annualized value of subscriptions (“Subscription ARR”) and the annualized value of software support contracts related to perpetual licenses (“Perpetual license support ARR”) active at the end of a reporting period and does not include revenue reported as perpetual license or professional services in our consolidated statement of operations. We are monitoring these metrics because they align with how our customers are increasingly purchasing our solutions and how we are managing our business. These ARR measures should be viewed independently of revenue, unearned revenue, and customer arrangements with termination rights as ARR is an operating metric and is not intended to be combined with or replace those items. ARR is not an indicator of future revenue and can be impacted by contract start and end dates and renewal rates.

 

 

 

 

 

 

 

 

MOBILEIRON, INC.

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

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

 

(Unaudited)

 

 

 

Three Months Ended

 

 

 

June 30, 2019

 

June 30, 2020

 

 

 

 

 

 

 

 

 

Non-GAAP gross profit reconciliation:

 

 

 

 

 

 

 

GAAP gross profit

 

$

40,218

 

 

$

46,521

 

 

Stock-based compensation expenses

 

 

1,266

 

 

 

1,898

 

 

Amortization of intangible assets

 

 

-

 

 

 

66

 

 

Restructuring expense

 

 

224

 

 

 

-

 

 

Non-GAAP gross profit

 

$

41,708

 

 

$

48,485

 

 

 

 

 

 

 

 

 

 

Non-GAAP gross margin reconciliation:

 

 

 

 

 

 

 

GAAP gross margin: GAAP gross profit over total revenue

 

 

79.1

 

%

 

78.9

 

%

GAAP to non-GAAP gross margin adjustments

 

 

2.9

 

%

 

3.4

 

%

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

 

 

82.0

 

%

 

82.3

 

%

 

 

 

 

 

 

 

 

Non-GAAP operating income (loss) reconciliation:

 

 

 

 

 

 

 

GAAP operating loss

 

$

(15,650

)

 

$

(8,074

)

 

Stock-based compensation expenses

 

 

8,857

 

 

 

13,506

 

 

Amortization of intangible assets

 

 

-

 

 

 

124

 

 

Restructuring expense

 

 

2,443

 

 

 

-

 

 

Non-GAAP operating income (loss)

 

$

(4,350

)

 

$

5,556

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating margin reconciliation:

 

 

 

 

 

 

 

GAAP operating margin: GAAP operating loss over total revenue

 

 

(30.8

)

%

 

(13.7

)

%

GAAP to non-GAAP operating margin adjustments

 

 

22.2

 

%

 

23.1

 

%

Non-GAAP operating margin: Non-GAAP operating income (loss) over total revenue

 

 

(8.6

)

%

 

9.4

 

%

 

 

 

 

 

 

 

 

Non-GAAP net income (loss) reconciliation:

 

 

 

 

 

 

 

GAAP net loss

 

$

(15,589

)

 

$

(8,508

)

 

Stock-based compensation expenses

 

 

8,857

 

 

 

13,506

 

 

Amortization of intangible assets

 

 

-

 

 

 

124

 

 

Restructuring expense

 

 

2,443

 

 

 

-

 

 

Non-GAAP net income (loss)

 

$

(4,289

)

 

$

5,122

 

 

 

 

 

 

 

 

 

MOBILEIRON, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

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

(Unaudited)

 

 

 

Three Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2020

Non-GAAP net income (loss) per share reconciliation:

 

 

 

 

 

 

GAAP net loss per share

 

$

(0.14

)

 

$

(0.07

)

Stock-based compensation expenses

 

 

0.08

 

 

 

0.11

 

Amortization of intangible assets

 

 

-

 

 

 

-

 

Restructuring expense

 

 

0.02

 

 

 

-

 

Non-GAAP net income (loss) per share

 

$

(0.04

)

 

$

0.04

 

 

 

 

 

 

 

 

Free cash flow reconciliation:

 

 

 

 

 

 

Cash used in operating activities

 

$

(4,486

)

 

$

(5,764

)

Purchase of property and equipment

 

 

(605

)

 

 

(591

)

Free cash flow

 

$

(5,091

)

 

$

(6,355

)

 

 

 

 

 

 

 

 

MOBILEIRON, INC.

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

 

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

 

(Unaudited)

 

 

 

Six Months Ended

 

 

 

June 30, 2019

 

June 30, 2020

 

 

 

 

 

 

 

 

 

Non-GAAP gross profit reconciliation:

 

 

 

 

 

 

 

GAAP gross profit

 

$

77,937

 

 

$

85,347

 

 

Stock-based compensation expenses

 

 

2,807

 

 

 

2,796

 

 

Amortization of intangible assets

 

 

-

 

 

 

66

 

 

Restructuring expense

 

 

300

 

 

 

-

 

 

Non-GAAP gross profit

 

$

81,044

 

 

$

88,209

 

 

 

 

 

 

 

 

 

 

Non-GAAP gross margin reconciliation:

 

 

 

 

 

 

 

GAAP gross margin: GAAP gross profit over GAAP total revenue

 

 

78.8

 

%

 

78.6

 

%

GAAP to non-GAAP gross margin adjustments

 

 

3.1

 

%

 

2.6

 

%

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

 

 

81.9

 

%

 

81.2

 

%

 

 

 

 

 

 

 

 

Non-GAAP operating income (loss) reconciliation:

 

 

 

 

 

 

 

GAAP operating loss

 

$

(32,705

)

 

$

(20,186

)

 

Stock-based compensation expenses

 

 

19,147

 

 

 

21,079

 

 

Amortization of intangible assets

 

 

-

 

 

 

124

 

 

Restructuring expense

 

 

3,058

 

 

 

579

 

 

Non-GAAP operating income (loss)

 

$

(10,500

)

 

$

1,596

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating margin reconciliation:

 

 

 

 

 

 

 

GAAP operating margin: GAAP operating loss over GAAP total revenue

 

 

(33.1

)

%

 

(18.6

)

%

GAAP to non-GAAP operating margin adjustments

 

 

22.5

 

%

 

20.1

 

%

Non-GAAP operating margin: Non-GAAP operating income (loss) over non-GAAP total revenue

 

 

(10.6

)

%

 

1.5

 

%

 

 

 

 

 

 

 

 

Non-GAAP net income (loss) reconciliation:

 

 

 

 

 

 

 

GAAP net loss

 

$

(32,689

)

 

$

(21,169

)

 

Amortization of intangible assets

 

 

-

 

 

 

124

 

 

Stock-based compensation expenses

 

 

19,147

 

 

 

21,079

 

 

Restructuring expense

 

 

3,058

 

 

 

579

 

 

Non-GAAP net income (loss)

 

$

(10,484

)

 

$

613

 

 

 

 

 

 

 

 

 

MOBILEIRON, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

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

(Unaudited)

 

 

 

Six Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2020

Non-GAAP net income (loss) per share reconciliation:

 

 

 

 

 

 

GAAP net loss per share

 

$

(0.30

)

 

$

(0.18

)

Stock-based compensation expenses per share

 

 

0.17

 

 

 

0.18

 

Amortization of intangible assets

 

 

-

 

 

 

-

 

Restructuring expense

 

 

0.03

 

 

 

0.01

 

Non-GAAP net income (loss) per share

 

$

(0.10

)

 

$

0.01

 

 

 

 

 

 

 

 

Free cash flow reconciliation:

 

 

 

 

 

 

Cash provided by operating activities

 

$

3,330

 

 

$

1,403

 

Purchase of property and equipment

 

 

(782

)

 

 

(684

)

Free cash flow

 

$

2,548

 

 

$

719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MOBILEIRON, INC.

 

 

SUPPLEMENTAL INFORMATION

 

 

(Amounts in thousands)

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-Jun-19

 

 

30-Sep-19

 

 

31-Dec-19

 

 

31-Mar-20

 

 

30-Jun-20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annual Recurring Revenue:

       

 

   

 

   

 

   

 

 

Subscription ARR

 

$

106,115

 

 

$

108,559

 

 

$

113,895

 

 

$

115,326

 

 

$

120,100

 

Perpetual license support ARR

 

 

65,850

 

 

 

65,737

 

 

 

65,645

 

 

 

65,495

 

 

 

66,996

 

Total ARR

 

$

171,965

 

 

$

174,296

 

 

$

179,540

 

 

$

180,821

 

 

$

187,096

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

Revenue:

       

 

   

 

   

 

   

 

 

United States

 

$

21,861

 

 

$

23,376

 

 

$

21,866

 

 

$

21,133

 

 

$

24,165

 

International

 

 

29,004

 

 

 

28,825

 

 

 

32,222

 

 

 

28,565

 

 

 

34,760

 

Total revenue

 

$

50,865

 

 

$

52,201

 

 

$

54,088

 

 

$

49,698

 

 

$

58,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disaggregation of Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cloud services

 

$

16,311

 

 

$

17,591

 

 

$

17,871

 

 

$

18,634

 

 

$

19,549

 

Upfront on-premise subscription

 

 

7,478

 

 

 

5,964

 

 

 

4,628

 

 

 

3,378

 

 

 

5,723

 

Ratable on-premise subscription

 

 

4,512

 

 

 

4,902

 

 

 

5,037

 

 

 

4,922

 

 

 

5,043

 

Software support on perpetual licenses

 

 

16,196

 

 

 

16,363

 

 

 

16,314

 

 

 

15,986

 

 

 

16,187

 

Recurring revenue

 

 

44,497

 

 

 

44,820

 

 

 

43,850

 

 

 

42,920

 

 

 

46,502

 

Perpetual license

 

 

4,749

 

 

 

6,252

 

 

 

9,027

 

 

 

5,633

 

 

 

11,355

 

Professional services

 

 

1,619

 

 

 

1,129

 

 

 

1,211

 

 

 

1,145

 

 

 

1,068

 

Non-recurring revenue

 

 

6,368

 

 

 

7,381

 

 

 

10,238

 

 

 

6,778

 

 

 

12,423

 

Total revenue

 

$

50,865

 

 

$

52,201

 

 

$

54,088

 

 

$

49,698

 

 

$

58,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Metrics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP gross profit

 

$

41,708

 

 

$

42,794

 

 

$

44,404

 

 

$

39,724

 

 

$

48,485

 

Non-GAAP operating income (loss)

 

$

(4,350

)

 

$

173

 

 

$

1,638

 

 

$

(3,960

)

 

$

5,556

 

Free cash flow

 

$

(5,091

)

 

$

(6,197

)

 

$

(275

)

 

$

7,074

 

 

$

(6,355

)

 

Contacts

Erik Bylin
MobileIron
ir@mobileiron.com
650-282-7555

PRESS ENQUIRY