MobileIron Announces Strong Fourth Quarter 2017 Results

MOUNTAIN VIEW, Calif., Feb. 8, 2018 /PRNewswire/ -- MobileIron (NASDAQ:MOBL), the secure foundation for modern work, today announced results for its fourth quarter ended December 31, 2017.

MobileIron's Logo. (PRNewsFoto/MobileIron) (PRNewsfoto/MobileIron)

Fourth Quarter 2017 Financial Highlights

  • Revenue was $48.8 million, up 7% year-over-year.
  • Recurring revenue was $34.8 million, up 15% year-over-year.
  • Gross billings were $60.3 million, up 9% year-over-year.
  • Recurring billings were $45.6 million, up 15% year-over-year.
  • GAAP net loss per share was $0.08; non-GAAP net income per share was $0.00.
  • Cash generated from operating activities was $10.4 million.

Full Year 2017 Financial Highlights

  • Revenue was $176.5 million, up 8% year-over-year.
  • Recurring revenue was $130.3 million, up 15% year-over-year.
  • Gross billings were $200.9 million, up 10% year-over-year.
  • Recurring billings, which represented 75% of gross billings, were $150.8 million, up 14% year-over-year.
  • GAAP net loss per share was $0.60; non-GAAP net loss per share was $0.21.
  • Cash generated from operating activities was $3.0 million.

"We delivered a strong finish to 2017 with record revenue and billings, each well above guidance, and the first non-GAAP operating profit in the company's history," said Simon Biddiscombe, CEO, MobileIron. "We serve a market where the threats to corporate data on mobile devices are growing. There are hundreds of millions of unprotected endpoints with corporate data, and only MobileIron has the end-to-end modern security solution to protect data from the endpoint to the cloud.  We are excited to capitalize on this opportunity and accelerate revenue growth in 2018 while driving leverage in the model to increase profitability."

Fourth Quarter 2017 Business Highlights
Platform

  • Delivered new MobileIron Access certifications with SAP SuccessFactors and ServiceNow.
  • Released new versions of MobileIron Cloud, Core, Access, AppConnect, Docs@Work, Email+, Sentry, Tunnel, and Web@Work.

Milestones and Recognition

  • Named a Leader by Forrester Research in the Forrester Wave™: Enterprise Mobility Management, Q4 2017 report. MobileIron received the highest scores possible in deployment flexibility and ease, Office 365 app management, certifications, roadmap execution, commitment to innovation, partner ecosystem, customer deployments, revenue, and several other criteria evaluated by Forrester.
  • U.S. Federal Emergency Management Agency (FEMA) was awarded the Cybersecurity dig IT Award for their implementation of "Derived PIV Credentials for Mobile Devices" which was built using MobileIron.
  • Awarded six additional US patents for mobile security, bringing the total to 65.

Financial Outlook
The company is providing the following outlook for its first quarter 2018 (ending March 31, 2018):

  • Revenue is expected to be between $42 million and $45 million, roughly flat to up 6% year-over- year.
  • Gross billings are expected to be between $45 million and $48 million, roughly flat to up 6% year-over- year.
  • Non-GAAP gross margin is expected to be between 84% and 86%.
  • Non-GAAP operating expenses are expected to be between $43 million and $44 million.

The company is providing the following outlook for 2018 (ending December 31, 2018):

  • Revenue is expected to be between $190 million and $200 million, growth between 8% and 13% over 2017.
  • Gross billings are expected to be between $210 million and $220 million, growth between 5% and 10% over 2017.
  • Non-GAAP operating margin is expected to be between -5% and break-even for 2018.

Note that this outlook reflects our current accounting methodologies and, as such, does not include any potential impacts to either revenue or net income associated with the pending adoption of ASC 606.

All forward-looking non-GAAP financial measures contained in this section 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 2016 and 2017 and for fiscal year 2016 and 2017.

Conference Call and Webcast
MobileIron will report final results for the fourth quarter and fiscal year 2017 on Thursday, February 8, 2018 after the close of the market and 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 1-855-327-6837 in the U.S. or 1-631-891-4304 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.

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 2017

(Amounts in thousands)

(Unaudited)

             
     

December 31, 2016

   

December 31, 2017

Assets

           

Current assets:

           

  Cash and cash equivalents (1)

 

$

54,043

 

$

85,833

  Short-term investments  (1)

   

36,184

   

6,797

  Accounts receivable - net

   

43,755

   

48,171

  Prepaid expenses and other current assets

   

6,131

   

5,510

           Total current assets

   

140,113

   

146,311

Property and equipment - net

   

5,503

   

8,812

Intangible assets - net

   

645

   

100

Goodwill

   

5,475

   

5,475

Other assets

   

1,370

   

1,899

Total assets

 

$

153,106

 

$

162,597

             

Liabilities and stockholders' equity

           

Current liabilities:

           

  Accounts payable

 

$

701

 

$

1,369

  Accrued expenses

   

21,674

   

24,995

  Deferred revenue - current

   

68,153

   

84,467

           Total current liabilities

   

90,528

   

110,831

Deferred revenue - noncurrent

   

19,923

   

28,034

Other long-term liabilities

   

1,838

   

1,881

           Total liabilities

   

112,289

   

140,746

Stockholders' equity:

           

  Common stock

   

9

   

10

  Additional paid-in capital

   

383,193

   

420,525

  Accumulated deficit

   

(342,385)

   

(398,684)

           Total stockholders' equity

   

40,817

   

21,851

             

Total liabilities and stockholders' equity

 

$

153,106

 

$

162,597

             
             

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

 

$

90,227

 

$

92,630

             

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED DECEMBER 31, 2016 AND 2017

(Amounts in thousands, except for per share data)

(Unaudited)

   

Three Months Ended

   

December 31, 2016

 

December 31, 2017

Revenue:

           

Perpetual license

 

$

14,313

 

$

12,593

Subscription

   

16,361

   

19,038

Software support and services

   

14,798

   

17,200

Total revenue

   

45,472

   

48,831

Cost of revenue:

           

Perpetual license (2)

   

518

   

411

Subscription (1)

   

2,113

   

2,285

Software support and services (1)

   

4,721

   

4,522

Total cost of revenue

   

7,352

   

7,218

Gross profit

   

38,120

   

41,613

Operating expenses:

           

  Research and development (1)

   

16,213

   

18,910

  Sales and marketing (1)

   

24,843

   

23,184

  General and administrative (1)

   

6,921

   

6,853

  Restructuring charge

   

   

549

           Total operating expenses

   

47,977

   

49,496

Operating loss

   

(9,857)

   

(7,883)

Other income (expense) - net

   

(39)

   

287

Loss before income taxes

   

(9,896)

   

(7,596)

Income tax expense

   

310

   

261

Net loss

 

$

(10,206)

 

$

(7,857)

Net loss per share, basic and diluted

 

$

(0.12)

 

$

(0.08)

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

   

88,335

   

96,574

             
             

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

           

Cost of revenue

           

Subscription

 

$

191

 

$

170

Software support and services

   

660

   

743

Research and development

   

2,606

   

3,474

Sales and marketing

   

2,056

   

2,047

General and administrative

   

2,210

   

1,048

   

$

7,723

 

$

7,482

             

(2)  Includes amortization of intangible assets as follows:

           

Cost of revenue

           

Perpetual license

 

$

154

 

$

100

   

$

154

 

$

100

             

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE TWELVE MONTHS ENDED DECEMEBER 31, 2016 AND 2017

(Amounts in thousands, except for per share data)

(Unaudited)

   

Twelve Months Ended

   

December 31, 2016

 

December 31, 2017

Revenue:

           

Perpetual license

 

$

45,775

 

$

41,165

Subscription

   

61,357

   

70,470

Software support and services

   

56,794

   

64,856

Total revenue

   

163,926

   

176,491

Cost of revenue:

           

Perpetual license (2)

   

2,658

   

1,869

Subscription (1)

   

8,297

   

8,626

Software support and services (1)

   

19,412

   

19,731

 Restructuring charge

   

181

   

311

Total cost of revenue

   

30,548

   

30,537

Gross profit

   

133,378

   

145,954

 

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