MobileIron Announces Strong Fourth Quarter 2016 Results

MOUNTAIN VIEW, Calif., Feb. 7, 2017 /PRNewswire/ -- MobileIron (NASDAQ:MOBL), the security backbone for modern computing, today announced results for its fourth quarter ended December 31, 2016.

Fourth Quarter 2016 Financial Highlights

  • GAAP revenue was $45.5 million, up 6% year-over-year
  • Recurring revenue was $30.2 million, up 16% year-over-year
  • Gross billings were $55.4 million, up 14% year-over-year
  • Recurring billings, which represented 72% of gross billings, were $39.7 million, up 26% year-over-year
  • GAAP net loss per share was $0.12; non-GAAP net loss per share was $0.03
  • Cash flow generated from operations was $8.5 million
  • Cash and equivalents, plus short and long term investments, end the quarter at $90.2 million
  • Surpassed 13,500 cumulative customers

Full Year 2016 Financial Highlights

  • GAAP revenue was $163.9 million, up 10% year-over-year
  • Recurring revenue was $113.4 million, up 25% year-over-year
  • Gross billings were $182.1 million, up 10% year-over-year
  • Recurring billings, which represented 72% of gross billings, were $131.8 million, up 23% year-over-year
  • GAAP net loss per share was $0.78; non-GAAP net loss per share was $0.36

"I am very proud of our performance in the fourth quarter and for the full year. We had our strongest quarter ever and surpassed our goal of cash flow breakeven," said Barry Mainz, President and CEO, MobileIron. "Customers buy our products because we solve both technical and regulatory challenges. For example, MobileIron Access is the only product that solves the security challenges that happen when mobile apps connect to cloud services, and that's why we recognized our first billings from it in Q4. A regulatory example is the recently implemented 'Right to Disconnect' law in France. With MobileIron, our French customers can use our policy engine to time-fence access to corporate resources. We have the right products and the right roadmap and I believe that our innovation and business strategy will continue to accelerate our business in 2017."

Fourth 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.
  • Added Single Sign-On (SSO) capability for native mobile apps to MobileIron Access so that employees no longer need to enter a username or password to log into their business apps.
  • At the end of 4Q 2016, MobileIron ecosystem had over 550 active technology partners, who have released over 280 technology integrations.*

Channels

  • Named 2016 Premier Partner of the Year by global IT provider Zones.
  • Our largest reseller, AT&T, represented approximately 16% of revenue for the quarter.

Milestones and Recognition

  • Our MobileIron Government Cloud platform received FedRAMP Authority to Operate from the United States Postal Service and is available for purchase by all federal government agencies.
  • Granted EU-US Privacy Shield Certification from the US Department of Commerce.
  • Awarded two additional US patents bringing the total to 40.

Financial Outlook

The company is providing the following outlook for its first quarter 2017 (ending March 31, 2017):

  • GAAP revenue is expected to be between $41 million and $43 million, which represents growth of 8% to 13% year-over-year.
  • Gross billings are expected to be between $44 million and $46 million, growth between 16% and 21% over last year.
  • Non-GAAP gross margin is expected to be between 81% and 83%.
  • 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)

  • GAAP 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 (fourth quarter) with a non-GAAP operating margin between -2% to 2%.
  • Generate positive cash 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 fourth quarter of 2015 and 2016 and for year 2015 and 2016.

Conference Call and Webcast
MobileIron will host a conference call and live webcast at 1:30 p.m. Pacific Standard Time (4:30 p.m. EST) 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#10002224 through March 7, 2017.

Analyst Event
MobileIron will host an analyst event in New York City on Wednesday, February 22 from 10am to 1pm at the NASDAQ Marketsite in Times Square. Barry Mainz, President and CEO, Simon Biddiscombe, CFO, and other MobileIron executives will review MobileIron's performance in 2016 and discuss the company's strategy for 2017. The company will also discuss a major product innovation. To attend the event, please contact ir@mobileiron.com.

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 10­-K, 10-­Q 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 2016

(Amounts in thousands)

(Unaudited)

             
     

December 31, 2015

   

December 31, 2016

Assets

           

Current Assets:

           

  Cash and cash equivalents (1)

 

$

47,234

 

$

54,043

  Short-term investments  (1)

   

49,576

   

36,184

  Accounts receivable - net

   

42,674

   

43,755

  Prepaid expenses and other current assets

   

4,809

   

6,131

           Total current assets

   

144,293

   

140,113

Long-term investments  (1)

   

2,094

   

Property and equipment - net

   

6,572

   

5,503

Intangible assets - net

   

1,261

   

645

Goodwill

   

5,475

   

5,475

Other assets

   

1,419

   

1,370

Total Assets

 

$

161,114

 

$

153,106

             

Liabilities and Stockholders' Equity

           

Current Liabilities:

           

  Accounts payable

 

$

2,551

 

$

701

  Accrued expenses

   

19,196

   

21,674

  Deferred revenue - current

   

55,978

   

68,153

           Total current liabilities

   

77,725

   

90,528

Deferred revenue - noncurrent

   

13,897

   

19,923

Other long-term liabilities

   

1,353

   

1,838

           Total liabilities

   

92,975

   

112,289

Stockholders' Equity:

           

  Common stock

   

8

   

9

  Additional paid-in capital

   

343,336

   

383,193

  Accumulated deficit

   

(275,205)

   

(342,385)

           Total stockholders' equity

   

68,139

   

40,817

             

Total Liabilities and Stockholders' Equity

 

$

161,114

 

$

153,106

             
             

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

 

$

98,904

 

$

90,227

             

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED DECEMBER 31, 2015 AND 2016

(Amounts in thousands, except for per share data)

(Unaudited)

   

Three Months Ended

   

December 31, 2015

 

December 31, 2016

Revenue:

           

Perpetual license

 

$

15,462

 

$

14,313

Subscription

   

14,413

   

16,361

Software support and services

   

13,171

   

14,798

Total revenue

   

43,046

   

45,472

Cost of revenue:

           

Perpetual license (2)

   

910

   

518

Subscription (1)

   

1,815

   

2,113

Software support and services (1)

   

4,815

   

4,721

Total cost of revenue

   

7,540

   

7,352

Gross profit

   

35,506

   

38,120

Operating expenses:

           

  Research and development (1)

   

16,503

   

16,213

  Sales and marketing (1)

   

24,822

   

24,843

  General and administrative (1)

   

8,065

   

6,921

           Total operating expenses

   

49,390

   

47,977

Operating loss

   

(13,884)

   

(9,857)

Other expense - net

   

138

   

39

Loss before income taxes

   

(14,022)

   

(9,896)

Income tax expense

   

392

   

310

Net loss

 

$

(14,414)

 

$

(10,206)

Net loss per share, basic and diluted

 

$

(0.18)

 

$

(0.12)

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

   

80,748

   

88,335

             
             

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

           

Cost of revenue

           

Subscription

   

158

   

191

Software support and services

   

688

   

660

Research and development

   

2,898

   

2,606

Sales and marketing

   

2,894

   

2,056

General and administrative

   

1,780

   

2,210

   

$

8,418

 

$

7,723

             

(2)  Includes amortization of intangible assets as follows:

           

Cost of revenue

           

Perpetual license

 

$

200

 

$

154

   

$

200

 

$

154

 

             

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2015 AND 2016

(Amounts in thousands, except for per share data)

(Unaudited)

   

Twelve Months Ended

   

December 31, 2015

 

December 31, 2016

Revenue:

           

Perpetual license

 

$

53,512

 

$

45,775

Subscription

   

48,080

   

61,357

Software support and services

   

47,706

   

56,794

Total revenue

   

149,298

   

163,926

Cost of revenue:

           

Perpetual license (2)

   

2,881

   

2,658

Subscription (1)

   

7,181

   

8,297

Software support and services (1)

   

18,115

   

19,412

  Restructuring charge

   

   

181

Total cost of revenue

   

28,177

   

30,548

Gross profit

   

121,121

   

133,378

Operating expenses:

           

  Research and development (1)

   

61,871

   

67,398

  Sales and marketing (1)

   

105,520

   

101,757

  General and administrative (1)

   

36,037

   

29,695

  Restructuring charge

   

1,049

   

871

           Total operating expe

PRESS ENQUIRY