MobileIron Announces Strong Fourth Quarter 2016 Results

Feb 07, 2017

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 expenses

   

204,477

   

199,721

Operating loss

   

(83,356)

   

(66,343)

Other (income) expense - net

   

274

   

(145)

Loss before income taxes

   

(83,630)

   

(66,198)

Income tax expense

   

852

   

982

Net loss

 

$

(84,482)

 

$

(67,180)

Net loss per share, basic and diluted

 

$

(1.07)

 

$

(0.78)

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

   

78,755

   

85,845

             
             

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

           

Cost of revenue

           

Subscription

   

519

   

690

Software support and services

   

2,255

   

2,353

Research and development

   

10,607

   

11,728

Sales and marketing

   

9,508

   

10,474

General and administrative

   

5,902

   

9,144

   

$

28,791

 

$

34,389

             

(2)  Includes amortization of intangible assets as follows:

           

Cost of revenue

           

Perpetual license

 

$

870

 

$

616

   

$

870

 

$

616

 

             

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2015 AND 2016

(Amounts in thousands)

(Unaudited)

   

Twelve Months Ended

   

December 31, 2015

 

December 31, 2016

             

Cash flows from operating activities:

           

Net loss

 

$

(84,482)

 

$

(67,180)

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

           

Stock-based compensation expense

   

28,791

   

34,389

Depreciation

   

2,757

   

3,348

Amortization of intangible assets

   

870

   

616

Amortization of premium (accretion) on investment securities

   

368

   

(14)

Provision for doubtful accounts

   

150

   

77

Loss on disposal of Equipment

   

   

99

Changes in operating assets and liabilities:

           

Accounts receivable

   

(8,148)

   

(1,158)

Other current and noncurrent assets

   

(932)

   

(447)

Accounts payable

   

1,414

   

(1,297)

Accrued expenses and other long-term liabilities

   

(5,024)

   

1,637

Deferred revenue

   

15,701

   

18,201

Net cash used in operating activities

   

(48,535)

   

(11,729)

             

Cash flows from investing activities:

           

Purchase of property and equipment

   

(3,730)

   

(2,930)

Maturities of investment securities

   

44,964

   

94,631

Purchases of investment securities

   

(60,913)

   

(79,134)

Net cash provided by (used in) investing activities

   

(19,679)

   

12,567

             

Cash flows from financing activities:

           

Proceeds from employee stock purchase plan

   

5,406

   

4,332

Proceeds from exercise of stock options

   

5,755

   

1,639

Net cash provided by financing activities

   

11,161

   

5,971

             

Net change in cash and cash equivalents

   

(57,053)

   

6,809

Cash and cash equivalents at beginning of period

   

104,287

   

47,234

Cash and cash equivalents at end of period

 

$

47,234

 

$

54,043

Non-GAAP financial measures and reconciliations

To supplement our financial results presented on a U.S. GAAP basis, we provide investors with certain non-GAAP financial measures, including gross billings, recurring billings, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss and non-GAAP net loss per share. These non-GAAP financial measures exclude stock-based compensation, restructuring charges, and the amortization of intangible assets.

Beginning the first quarter of 2016, we stopped reporting non-GAAP revenue as reconciling items between GAAP and non-GAAP revenue became immaterial.

Stock-based compensation expenses: In our non-GAAP financial measures, we have excluded the effect of stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.

Amortization of intangible assets: In our non-GAAP financial measures, we have excluded the effect of the amortization of intangible assets. Amortization of intangible assets is significantly affected by the timing and size of our acquisitions. Amortization of intangible assets will recur in future periods.

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

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, and non-GAAP net loss per share: We believe that the exclusion of stock-based compensation expense, amortization of intangible assets, and restructuring charges from revenue, non-GAAP 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, amortization of intangible assets, and restructuring charges 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. Similarly, amortization of intangible assets has been and will continue to be a recurring expense.

Gross and recurring billings, recurring revenue and free cash flow: Our non-GAAP financial measures also include: gross billings, which we define as total revenue plus the change in deferred revenue in a period; recurring billings, which we define as total revenue less perpetual license, hardware, and professional services revenue plus the change in deferred revenue for subscription and software support arrangements in a period, adjusted for nonrecurring perpetual license billings; recurring revenue, which we define as total revenue less perpetual license, hardware, professional services and perpetual amounts recorded as subscription or software support revenue in multiple elements arrangements; and free cash flow, which we define as cash used in operating activities less the amount of property and equipment purchased. We consider gross billings to be a useful metric for management and investors because subscription billings, excluding MRC, and software support and services billings drive deferred revenue, which is an important indicator of future revenue. Similarly, we consider recurring billings and recurring revenue to be useful metrics because they are important indicators of the portion of our business that we would expect to recur each year. There are a number of limitations related to the use of gross, recurring billings and recurring revenue. First, gross and recurring billings include amounts that have not yet been recognized as revenue. Second, our calculation of gross and recurring billings may be different from other companies that report similar financial measures. Third, recurring revenue excludes perpetual license amounts recognized from multiple elements arrangements that we record as subscription or software support revenue in our GAAP statements of operations, and these perpetual license amounts are based on invoice value, not fair value, although we believe invoice value approximates the fair value of the element. Fourth, in the MRC model, revenue and billings are based on active devices or users of the service provider's customer and are billed to us by the service provider on a monthly basis over time and one month in arrears. Thus, under the MRC model, we receive no billings or revenue for MRC at the time the deal is booked, but instead the MRC is billed and revenue is recognized each month based on active usage. Unlike term subscriptions, MRC is not reflected in deferred revenue. This important difference between MRC billings and perpetual and term subscription billings can lead to significant variability of billings in a given quarter depending on the type of billing model that the customer chooses and the overall mix of billing types for all customers within a quarter. We compensate for these limitations by providing specific information regarding revenue and evaluating gross and recurring billings and recurring revenue together with revenue calculated in accordance with GAAP. 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 using certain of these non-GAAP measures.

 

               

MOBILEIRON, INC.

 

Reconciliation of GAAP to Non-GAAP Financial Measures

 

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

 

(Unaudited)

 
   

Three Months Ended

 
   

December 31, 2015

 

December 31, 2016

 
               

Non-GAAP gross profit reconciliation:

             

GAAP gross profit

 

$

35,506

 

$

38,120

 

Stock-based compensation expenses

   

846

   

851

 

Amortization of intangible assets

   

200

   

154

 

Non-GAAP gross profit

 

$

36,552

 

$

39,125

 
               

Non-GAAP gross margin reconciliation:

             

GAAP gross margin: GAAP gross profit over GAAP total revenue

   

82.5

%

 

83.8

%

GAAP to non-GAAP gross margin adjustments

   

2.4

%

 

2.2

%

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

   

84.9

%

 

86.0

%

               

Non-GAAP operating loss reconciliation:

             

GAAP operating loss

 

$

(13,884)

 

$

(9,857)

 

Stock-based compensation expenses

   

8,418

   

7,723

 

Amortization of intangible assets

   

200

   

154

 

Non-GAAP operating loss

 

$

(5,266)

 

$

(1,980)

 
               

Non-GAAP operating margin reconciliation:

             

GAAP operating margin: GAAP operating loss over GAAP total revenue

   

(32.3)

%

 

(21.7)

%

GAAP to non-GAAP operating margin adjustments

   

20.1

%

 

17.3

%

Non-GAAP operating margin: non-GAAP operating loss over non-GAAP total revenue

   

(12.2)

%

 

(4.4)

%

               

Non-GAAP net loss reconciliation:

             

GAAP net loss

 

$

(14,414)

 

$

(10,206)

 

Stock-based compensation expenses

   

8,418

   

7,723

 

Amortization of intangible assets

   

200

   

154

 

Non-GAAP net loss

 

$

(5,796)

 

$

(2,329)

 
             

MOBILEIRON, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

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

(Unaudited)

     

Three Months Ended

     

December 31, 2015

   

December 31, 2016

Non-GAAP net loss per share reconciliation:

           

GAAP net loss per share

 

$

(0.18)

 

$

(0.12)

Stock-based compensation expenses per share

   

0.11

   

0.09

Amortization of intangible assets

   

-

   

-

Non-GAAP net loss per share

 

$

(0.07)

 

$

(0.03)

             

Gross billings reconciliation:

           

Total revenue

 

$

43,046

 

$

45,472

Total deferred revenue, end of period

   

69,875

   

88,076

Less: Total deferred revenue, beginning of period

   

(64,332)

   

(78,172)

Total change in deferred revenue

   

5,543

   

9,904

Gross billings

 

$

48,589

 

$

55,376

             

Recurring billings reconciliation:

           

Total revenue

 

$

43,046

 

$

45,472

Less: Perpetual license revenue

   

(15,462)

   

(14,313)

Less: Professional services revenue

   

(947)

   

(438)

Subscription and software support deferred revenue, end of period

   

67,267

   

85,612

Less: Subscription and software support deferred revenue, beginning of period

   

(61,120)

   

(75,956)

Total change in subscription and software support deferred revenue

   

6,147

   

9,656

Less: Adjustments

   

(1,297)

   

(725)

Recurring billings

 

$

31,487

 

$

39,652

             

Recurring revenue reconciliation

           

Total revenue

 

$

43,046

 

$

45,472

Less: Perpetual license revenue

   

(15,462)

   

(14,313)

Less: Professional services revenue

   

(947)

   

(438)

Less: Perpetual license amount recorded over the term of subscription or software support (1)

   

(616)

   

(511)

Recurring revenue

 

$

26,021

 

$

30,210

             

Free cash flow reconciliation:

           

Cash used in operating activities

 

$

(7,749)

 

$

8,468

Purchase of property and equipment

   

(1,283)

   

(581)

Free cash flow

 

$

(9,032)

 

$

7,887

             

(1) Perpetual amounts recorded as subscription or software support revenue in multiple elements arrangements, where undelivered elements do not have VSOE

               

MOBILEIRON, INC.

 

Reconciliation of GAAP to Non-GAAP Financial Measures

 

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

 

(Unaudited)

 
   

Twelve Months Ended

 
   

December 31, 2015

 

December 31, 2016

 
               

Non-GAAP gross profit reconciliation:

             

GAAP gross profit

 

$

121,121

 

$

133,378

 

Stock-based compensation expenses

   

2,774

   

3,043

 

Amortization of intangible assets

   

870

   

616

 

Restructuring charge

   

-

   

181

 

Non-GAAP gross profit

 

$

124,765

 

$

137,218

 
               

Non-GAAP gross margin reconciliation:

             

GAAP gross margin: GAAP gross profit over GAAP total revenue

   

81.1

%

 

81.4

%

GAAP to non-GAAP gross margin adjustments

   

2.5

%

 

2.3

%

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

   

83.6

%

 

83.7

%

               

Non-GAAP operating loss reconciliation:

             

GAAP operating loss

 

$

(83,356)

 

$

(66,343)

 

Stock-based compensation expenses

   

28,791

   

34,389

 

Amortization of intangible assets

   

870

   

616

 

Restructuring charge

   

1,049

   

1,052

 

Non-GAAP operating loss

 

$

(52,646)

 

$

(30,286)

 
               

Non-GAAP operating margin reconciliation:

             

GAAP operating margin: GAAP operating loss over GAAP total revenue

   

(55.8)

%

 

(40.5)

%

GAAP to non-GAAP operating margin adjustments

   

20.5

%

 

22.0

%

Non-GAAP operating margin: non-GAAP operating loss over non-GAAP total revenue

   

(35.3)

%

 

(18.5)

%

               

Non-GAAP net loss reconciliation:

             

GAAP net loss

 

$

(84,482)

 

$

(67,180)

 

Amortization of intangible assets

   

870

   

616

 

Stock-based compensation expenses

   

28,791

   

34,389

 

Restructuring charge

   

1,049

   

1,052

 

Non-GAAP net loss

 

$

(53,772)

 

$

(31,123)

 
             

MOBILEIRON, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

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

(Unaudited)

     

Twelve Months Ended

     

December 31, 2015

   

December 31, 2016

Non-GAAP net loss per share reconciliation:

           

GAAP net loss per share

 

$

(1.07)

 

$

(0.78)

Stock-based compensation expenses per share

   

0.37

   

0.40

Amortization of intangible assets

   

0.01

   

0.01

Restructuring charge

   

0.01

   

0.01

Non-GAAP net loss per share

 

$

(0.68)

 

$

(0.36)

             

Gross billings reconciliation:

           

Total revenue

 

$

149,298

 

$

163,926

Total deferred revenue, end of period

   

69,875

   

88,076

Less: Total deferred revenue, beginning of period

   

(54,174)

   

(69,875)

Total change in deferred revenue

   

15,701

   

18,201

Gross billings

 

$

164,999

 

$

182,127

             

Recurring billings reconciliation:

           

Total revenue

 

$

149,298

 

$

163,926

Less: Perpetual license revenue

   

(53,512)

   

(45,775)

Less: Professional services revenue

   

(3,165)

   

(2,811)

Subscription and software support deferred revenue, end of period

   

67,267

   

85,612

Less: Subscription and software support deferred revenue, beginning of period

   

(49,194)

   

(67,267)

Total change in subscription and software support deferred revenue

   

18,073

   

18,345

Less: Adjustments

   

(3,209)

   

(1,912)

Recurring billings

 

$

107,485

 

$

131,773

             

Recurring revenue reconciliation

           

Total revenue

 

$

149,298

 

$

163,926

Less: Perpetual license revenue

   

(53,512)

   

(45,775)

Less: Professional services revenue

   

(3,165)

   

(2,811)

Less: Perpetual license amount recorded over the term of subscription or software support (1)

   

(2,058)

   

(1,926)

Recurring revenue

 

$

90,563

 

$

113,414

             

Free cash flow reconciliation:

           

Cash used in operating activities

 

$

(48,535)

 

$

(11,729)

Purchase of property and equipment

   

(3,730)

   

(2,930)

Free cash flow

 

$

(52,265)

 

$

(14,659)

             

(1) Perpetual amounts recorded as subscription or software support revenue in multiple elements arrangements, where undelivered elements do not have VSOE

                             
 

MOBILEIRON, INC.

 

SUPPLEMENTAL INFORMATION

 

(Amounts in thousands)

 

(Unaudited)

                             
                             
 

31-Dec-15

 

31-Mar-16

 

30-Jun-16

 

30-Sep-16

 

31-Dec-16

GAAP Revenue

                           

United States

$

20,580

 

$

18,405

 

$

18,890

 

$

20,292

 

$

19,452

International

 

22,466

   

19,602

   

19,991

   

21,274

   

26,020

Total

 

43,046

   

38,007

   

38,881

   

41,566

   

45,472

                             
                             

Gross billings

$

48,589

 

$

38,288

 

$

41,212

 

$

47,251

 

$

55,376

Recurring billings

 

31,487

   

26,770

   

30,439

   

34,915

   

39,652

Recurring revenue

 

26,021

   

26,638

   

27,609

   

28,957

   

30,210

Non-GAAP gross profit

 

36,552

   

31,281

   

31,973

   

34,839

   

39,125

Non-GAAP operating loss

 

(5,266)

   

(11,003)

   

(12,067)

   

(5,236)

   

(1,980)

Free cash flow

 

(9,032)

   

(5,135)

   

(10,589)

   

(6,822)

   

7,887

                             

Components of Deferred Revenue

                           

Software support

$

42,254

 

$

41,904

 

$

42,762

 

$

43,635

 

$

50,117

Subscription

 

25,013

   

25,675

   

27,524

   

32,321

   

35,496

Other deferred revenue

 

2,608

   

2,577

   

2,201

   

2,216

   

2,463

Total

$

69,875

 

$

70,156

 

$

72,487

 

$

78,172

 

$

88,076

 

SOURCE MobileIron

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