MobileIron Announces Strong Fiscal Third Quarter 2016 Results

MOUNTAIN VIEW, Calif., Oct. 27, 2016 /PRNewswire/ -- MobileIron (NASDAQ: MOBL), the stand-alone enterprise mobility management (EMM) leader, today announced results for its third fiscal quarter ended September 30, 2016.

Third Quarter 2016 Financial Highlights

  • GAAP revenue was $41.6 million, up 9% year-over-year
  • Recurring revenue was $29.0 million, up 24% year-over-year
  • Gross billings were $47.3 million, up 15% year-over-year
  • Recurring billings, which represented 74% of gross billings, were $34.9 million, up 28% year-over-year
  • GAAP net loss per share was $0.17; non-GAAP net loss per share was $0.07
  • Cash and equivalents, plus short and long term investments stood at $80.4 million
  • Surpassed 12,500 cumulative customers

"Our performance was above expectations for the quarter, driven by strong execution across the company," said Barry Mainz, CEO, MobileIron. "CIOs are selecting MobileIron as the security backbone for their business transformation. Our best-of-breed solution wins when mobility becomes strategic. In mobile security 'just good enough' is never good enough. We continue to be chosen by companies with very high security requirements and the most complex environments."

Third Quarter 2016 Business Highlights

Platform

  • Introduced MobileIron Bridge, the first solution to unify mobile and desktop operations for Windows 10 using a single console and communications channel. With MobileIron Bridge, companies can start using EMM to modernize their Windows operations now, without sacrificing the sophisticated security policies and actions of traditional client management tools.
  • Released a TCO Toolkit showing the total cost of ownership of Windows 10 using EMM is up to 80% less than using traditional software like Microsoft's System Center Configuration Manager, LANDESK, and Symantec IT Management Suite.
  • At the end of 3Q 2016, the MobileIron ecosystem had 598 active technology partners, who have released over 255 technology integrations.*

Channels

  • United Overseas Bank in Singapore launched BizSmart – a turnkey "retail-in-a-box" integrated offering of iOS apps, security by MobileIron, Apple iPads, and banking services.
  • Increased our global presence by expanding our relationships with Orange Slovensko and Rainmaker Labs in Singapore.
  • Our largest reseller, AT&T, represented approximately 17% of revenue for the quarter.

Milestones and Recognition

  • MobileIron received Security Technical Implementation Guide approval from the Defense Information Systems Agency. This approval allows U.S. Department of Defense agencies to deploy MobileIron on both Android and iOS devices within certain DoD networks.
  • Granted four additional US patents bringing the total to 38.

Financial Outlook

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

  • GAAP revenue is expected to be between $44 million and $46 million, growth between 2% and 7% year-over-year.
  • Gross billings are expected to be between $52 million and $54 million, growth between 7% and 9% over last year.
  • Non-GAAP gross margin is expected to be between 83% and 85%.
  • Non-GAAP operating expenses are expected to be between $41 million and $43 million and Non-GAAP operating margin is expected to be between -8% and -10% for the fourth quarter 2016.
  • Cash from operations is expected to be positive.

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 third quarter of 2015 and 2016 and the nine months ended September 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) 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 (877) 870-­5176 and referencing conference ID#117242 through November 27, 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.    

* MobileIron will stop reporting ecosystem metrics after the fourth quarter 2016.  

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 SEPTEMBER 30, 2016

(Amounts in thousands)

(Unaudited)

             
   

 

December 31, 2015

 

 

September 30, 2016

Assets

           

Current Assets:

           

  Cash and cash equivalents (1)

 

$

47,234

 

$

38,083

  Short-term investments  (1)

   

49,576

   

41,612

  Accounts receivable - net

   

42,674

   

41,660

  Prepaid expenses and other current assets

   

4,809

   

6,254

           Total current assets

   

144,293

   

127,609

Long-term investments  (1)

   

2,094

   

700

Property and equipment - net

   

6,572

   

5,829

Intangible assets - net

   

1,261

   

799

Goodwill

   

5,475

   

5,475

Other assets

   

1,419

   

1,382

Total Assets

 

$

161,114

 

$

141,794

             

Liabilities and Stockholders' Equity

           

Current Liabilities:

           

  Accounts payable

 

$

2,551

 

$

1,054

  Accrued expenses

   

19,196

   

17,428

  Deferred revenue - current

   

55,978

   

59,327

           Total current liabilities

   

77,725

   

77,809

Deferred revenue - noncurrent

   

13,897

   

18,845

Other long-term liabilities

   

1,353

   

1,959

           Total liabilities

   

92,975

   

98,613

Stockholders' Equity:

           

  Common stock

   

8

   

9

  Additional paid-in capital

   

343,336

   

375,351

  Accumulated deficit

   

(275,205)

   

(332,179)

           Total stockholders' equity

   

68,139

   

43,181

             

Total Liabilities and Stockholders' Equity

 

$

161,114

 

$

141,794

             
             

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

 

$

98,904

 

$

80,395

             

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015 AND 2016

(Amounts in thousands, except for per share data)

(Unaudited)

   

Three Months Ended

   

September 30, 2015

 

September 30, 2016

Revenue:

           

Perpetual license

 

$

13,644

 

$

11,311

Subscription

   

12,253

   

15,570

Software support and services

   

12,104

   

14,685

Total revenue

   

38,001

   

41,566

Cost of revenue:

           

Perpetual license (2)

   

745

   

652

Subscription (1)

   

1,939

   

2,202

Software support and services (1)

   

4,889

   

4,774

  Restructuring charge

   

   

181

Total cost of revenue

   

7,573

   

7,809

Gross profit

   

30,428

   

33,757

Operating expenses:

           

  Research and development (1)

   

16,968

   

16,238

  Sales and marketing (1)

   

25,856

   

24,001

  General and administrative (1)

   

10,469

   

6,961

  Restructuring charge

   

1,049

   

871

           Total operating expenses

   

54,342

   

48,071

Operating loss

   

(23,914)

   

(14,314)

Other (income) expense - net

   

(2)

   

(19)

Loss before income taxes

   

(23,912)

   

(14,295)

Income tax expense

   

183

   

298

Net loss

 

$

(24,095)

 

$

(14,593)

Net loss per share, basic and diluted

 

$

(0.30)

 

$

(0.17)

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

   

79,373

   

86,713

             
             

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

           

Cost of revenue

           

Subscription

   

190

   

176

Software support and services

   

865

   

571

Research and development

   

3,832

   

2,709

Sales and marketing

   

2,586

   

2,307

General and administrative

   

1,812

   

2,109

   

$

9,285

 

$

7,872

             

(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 NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2016

(Amounts in thousands, except for per share data)

(Unaudited)

   

Nine Months Ended

   

September 30, 2015

 

September 30, 2016

Revenue:

           

Perpetual license

 

$

38,050

 

$

31,462

Subscription

   

33,667

   

44,996

Software support and services

   

34,535

   

41,996

Total revenue

   

106,252

   

118,454

Cost of revenue:

           

Perpetual license (2)

   

1,971

   

2,140

Subscription (1)

   

5,366

   

6,184

Software support and services (1)

   

13,300

   

14,691

  Restructuring charge

   

   

181

Total cost of revenue

   

20,637

   

23,196

Gross profit

   

85,615

   

95,258

Operating expenses:

           

  Research and development (1)

   

45,368

   

51,185

  Sales and marketing (1)

   

80,698

   

76,914

  General and administrative (1)

   

27,972

   

22,774

  Restructuring charge

   

1,049

   

871

           Total operating expenses

   

155,087

   

151,744

Operating loss

   

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