MobileIron Announces Solid First Quarter 2017 Results

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MOUNTAIN VIEW, Calif., April 27, 2017 /PRNewswire/ -- MobileIron (NASDAQ:MOBL), the security backbone for the digital enterprise, today announced results for its first quarter ended March 31, 2017.

First Quarter 2017 Financial Highlights

  • Revenue was $42.3 million, up 11% year-over-year.
  • Recurring revenue was $31.2 million, up 17% year-over-year.
  • Gross billings were $45.4 million, up 19% year-over-year.
  • Recurring billings, which represented 75% of gross billings, were $34.0 million, up 27% year-over-year.
  • GAAP net loss per share was $0.14; non-GAAP net loss per share was $0.06.
  • Cash flow generated from operations was $0.7 million.
  • Cash and cash equivalents plus short term investments ended the quarter at $90.5 million.
  • Surpassed 14,500 cumulative customers.

"I am very proud of our performance in the first quarter with year-over-year gross billings growth of 19%. We achieved results within our guidance range, continued to gain momentum in the market, and we delivered results consistent with prior guidance," said Barry Mainz, President and CEO, MobileIron. "MobileIron is leading the transition from enterprise mobility management (EMM) to Mobile Cloud Security. We're starting the year off strongly and I believe that products like MobileIron Access will continue to accelerate our business through 2017."

First Quarter 2017 Business Highlights

Platform

  • Delivered day zero compatibility support for devices that upgrade to iOS 10.3.
  • Added integrations with cloud apps Concur, Tableau, Workday, and Facebook Workplace to MobileIron Access.
  • Launched new Internet of Things division led by IoT expert Santhosh Nair.

Channels

  • Formed global partnership with Lenovo to deliver security and management for modern operating systems such as Windows 10.
  • Our largest reseller, AT&T, represented approximately 16% of revenue for the quarter.

Milestones and Recognition

  • MobileIron Access named a Global Mobile Awards Finalist for Best Mobile Cloud Service.
  • MobileIron Access named a National Technology Awards Finalist for Security Product of the Year.
  • MobileIron Access shortlisted for Best Mobile Security Solution by SC Awards Europe.
  • Awarded six additional US patents for mobile security, bringing the total to 46.

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

  • Revenue is expected to be between $42.5 million and $44.5 million, which represents growth of 9% to 14% year-over-year.
  • Gross billings are expected to be between $47 million and $49 million, growth between 15% and 20% over last year.
  • Non-GAAP gross margin is expected to be between 82% and 84%.
  • Non-GAAP operating expenses are expected to be between $43 million and $45 million driven by some seasonal factors.

The company is making no changes to its previously provided outlook for 2017 (ending December 31, 2017):

  • Revenue is expected to be between $175 million and $190 million, growth between 7% and 16% year-over-year.
  • Gross billings are expected to be between $195 million and $210 million, growth between 7% and 15% over last year.
  • 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 first 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#10002821 through May 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.    

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 MARCH 31, 2017

(Amounts in thousands)

(Unaudited)

             
     

December 31, 2016

   

March 31, 2017

Assets

           

Current Assets:

           

  Cash and cash equivalents (1)

 

$

54,043

 

$

79,262

  Short-term investments  (1)

   

36,184

   

11,249

  Accounts receivable - net

   

43,755

   

38,073

  Prepaid expenses and other current assets

   

6,131

   

13,016

           Total current assets

   

140,113

   

141,600

Property and equipment - net

   

5,503

   

5,189

Intangible assets - net

   

645

   

490

Goodwill

   

5,475

   

5,475

Other assets

   

1,370

   

1,604

Total Assets

 

$

153,106

 

$

154,358

             

Liabilities and Stockholders' Equity

           

Current Liabilities:

           

  Accounts payable

 

$

701

 

$

2,556

  Accrued expenses

   

21,674

   

17,707

  Deferred revenue - current

   

68,153

   

69,942

           Total current liabilities

   

90,528

   

90,205

Deferred revenue - noncurrent

   

19,923

   

21,220

Other long-term liabilities

   

1,838

   

1,822

           Total liabilities

   

112,289

   

113,247

Stockholders' Equity:

           

  Common stock

   

9

   

9

  Additional paid-in capital

   

383,193

   

396,320

  Accumulated deficit

   

(342,385)

   

(355,218)

           Total stockholders' equity

   

40,817

   

41,111

             

Total Liabilities and Stockholders' Equity

 

$

153,106

 

$

154,358

             
             

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

 

$

90,227

 

$

90,511

 

             

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2016 AND 2017

(Amounts in thousands, except for per share data)

(Unaudited)

   

Three Months Ended

   

March 31, 2016

 

March 31, 2017

Revenue:

           

Perpetual license

 

$

10,368

 

$

9,882

Subscription

   

14,623

   

16,907

Software support and services

   

13,016

   

15,499

Total revenue

   

38,007

   

42,288

Cost of revenue:

           

Perpetual license (2)

   

859

   

399

Subscription (1)

   

1,783

   

1,893

Software support and services (1)

   

4,628

   

4,978

Total cost of revenue

   

7,270

   

7,270

Gross profit

   

30,737

   

35,018

Operating expenses:

           

  Research and development (1)

   

16,927

   

17,193

  Sales and marketing (1)

   

25,668

   

23,302

  General and administrative (1)

   

7,548

   

6,188

  Litigation settlement charge

   

-

   

1,143

           Total operating expenses

   

50,143

   

47,826

Operating loss

   

(19,406)

   

(12,808)

Other income (expense) - net

   

135

   

174

Loss before income taxes

   

(19,271)

   

(12,634)

Income tax expense

   

176

   

199

Net loss

 

$

(19,447)

 

$

(12,833)

Net loss per share, basic and diluted

 

$

(0.23)

 

$

(0.14)

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

   

82,977

   

90,439

             
             

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

           

Cost of revenue

           

Subscription

   

90

   

65

Software support and services

   

300

   

636

Research and development

   

2,601

   

2,766

Sales and marketing

   

3,119

   

1,772

General and administrative

   

2,139

   

1,308

   

$

8,249

 

$

6,547

             

(2)  Includes amortization of intangible assets as follows:

           

Cost of revenue

           

Perpetual license

 

$

154

 

$

154

   

$

154

 

$

154

 

             

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2016 AND 2017

(Amounts in thousands)

(Unaudited)

   

Three Months Ended

   

March 31, 2016

 

March 31, 2017

             

Cash flows from operating activities:

           

Net loss

 

$

(19,447)

 

$

(12,833)

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

           

Stock-based compensation expense

   

8,249

   

6,547

Depreciation

   

868

   

788

Amortization of intangible assets

   

154

   

154

Amortization of premium (accretion) of investment securities

   

52

   

(30)

Changes in operating assets and liabilities:

           

Accounts receivable

   

11,020

   

5,682

Other current and noncurrent assets

   

(3,220)

   

(7,923)

Accounts payable

   

(424)

   

1,855

Accrued expenses and other long-term liabilities

   

(1,080)

   

3,398

Deferred revenue

 

PRESS ENQUIRY