MobileIron Announces Strong Fourth Quarter 2017 Results

Feb 08, 2018

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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

Operating expenses:

           

  Research and development (1)

   

67,398

   

75,350

  Sales and marketing (1)

   

101,757

   

96,477

  General and administrative (1)

   

29,695

   

28,091

  Litigation settlement charge

   

-

   

1,143

  Restructuring charge

   

871

   

1,038

           Total operating expenses

   

199,721

   

202,099

Operating loss

   

(66,343)

   

(56,145)

Other income (expense) - net

   

145

   

988

Loss before income taxes

   

(66,198)

   

(55,157)

Income tax expense

   

982

   

1,142

Net loss

 

$

(67,180)

 

$

(56,299)

Net loss per share, basic and diluted

 

$

(0.78)

 

$

(0.60)

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

   

85,845

   

93,770

             
             

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

           

Cost of revenue

           

Subscription

 

$

690

 

$

670

Software support and services

   

2,353

   

3,102

Research and development

   

11,728

   

14,520

Sales and marketing

   

10,474

   

8,659

General and administrative

   

9,144

   

6,780

   

$

34,389

 

$

33,731

             

(2)  Includes amortization of intangible assets as follows:

           

Cost of revenue

           

Perpetual license

 

$

616

 

$

545

   

$

616

 

$

545

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2017

(Amounts in thousands)

(Unaudited)

   

Twelve Months Ended

   

December 31, 2016

 

December 31, 2017

             

Cash flows from operating activities:

           

Net loss

 

$

(67,180)

 

$

(56,299)

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

           

Stock-based compensation expense

   

34,389

   

33,731

Depreciation

   

3,348

   

3,389

Amortization of intangible assets

   

616

   

545

Amortization of premium (accretion) on investment securities

   

(14)

   

(57)

Provision for doubtful accounts

   

77

   

149

Loss on disposal of equipment

   

99

   

(16)

Changes in operating assets and liabilities:

           

Accounts receivable

   

(1,158)

   

(4,565)

Other current and noncurrent assets

   

(447)

   

(734)

Accounts payable

   

(1,297)

   

439

Accrued expenses and other long-term liabilities

   

1,637

   

2,029

Deferred revenue

   

18,201

   

24,425

Net cash provided by (used in) operating activities

   

(11,729)

   

3,036

             

Cash flows from investing activities:

           

Purchase of property and equipment

   

(2,930)

   

(6,454)

Maturities of investment securities

   

94,631

   

38,015

Purchases of investment securities

   

(79,134)

   

(8,570)

Net cash provided by investing activities

   

12,567

   

22,991

             

Cash flows from financing activities:

           

Proceeds from employee stock purchase plan

   

4,332

   

4,798

Proceeds from exercise of stock options

   

1,639

   

4,114

Taxes paid for net settlement of stock-settled bonus

   

-

   

(3,149)

Net cash provided by financing activities

   

5,971

   

5,763

             

Net change in cash and cash equivalents

   

6,809

   

31,790

Cash and cash equivalents at beginning of period

   

47,234

   

54,043

Cash and cash equivalents at end of period

 

$

54,043

 

$

85,833

             

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 income (loss), non-GAAP operating margin, non-GAAP net income (loss) and non-GAAP net income (loss) per share. These non-GAAP financial measures exclude stock-based compensation, amortization of intangible assets and the litigation settlement charge.

Stock-based compensation expenses: In our non-GAAP financial measures, we have excluded the effect of stock-based compensation expenses. We exclude stock-based compensation expense because it is non-cash in nature and excluding this expense provides meaningful supplemental information regarding our operational performance. In particular, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, we believe that providing non-GAAP financial measures that exclude this expense allows investors the ability to make more meaningful comparisons between MobileIron operating results and those of other companies. 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.

Litigation settlement charges: In our non-GAAP financial measures, we have excluded the charge for the estimated cost of the expected settlement of our shareholder litigation. While it is possible that we will have material litigation-related charges in the future, we do not expect it to be a consistently recurring expense.

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, the amortization of intangible assets, the litigation settlement charge, and restructuring charges from various non-GAAP financial metrics such as gross profit, gross margin, operating income (loss), operating margin, net income (loss), and net income (loss) per share provides useful measures for management and investors. Stock-based compensation and the amortization of intangible assets have been and can continue to be inconsistent in amount from period to period. We have not historically had a material litigation-related settlement charge. While it is possible that we will have material litigation settlement charges in the future, we do not expect it to be a consistently recurring expense. 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, 2016

 

December 31, 2017

 
               

Non-GAAP gross profit reconciliation:

             

GAAP gross profit

 

$

38,120

 

$

41,613

 

Stock-based compensation expenses

   

851

   

913

 

Amortization of intangible assets

   

154

   

100

 

Non-GAAP gross profit

 

$

39,125

 

$

42,626

 
               

Non-GAAP gross margin reconciliation:

             

GAAP gross margin: GAAP gross profit over GAAP total revenue

   

83.8

%

 

85.2

%

GAAP to non-GAAP gross margin adjustments

   

2.2

%

 

2.1

%

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

   

86.0

%

 

87.3

%

               

Non-GAAP operating income (loss) reconciliation:

             

GAAP operating loss

 

$

(9,857)

 

$

(7,883)

 

Stock-based compensation expenses

   

7,723

   

7,482

 

Amortization of intangible assets

   

154

   

100

 

Restructuring charge

   

-

   

549

 

Non-GAAP operating income (loss)

 

$

(1,980)

 

$

248

 
               

Non-GAAP operating margin reconciliation:

             

GAAP operating margin: GAAP operating loss over GAAP total revenue

   

(21.7)

%

 

(16.1)

%

GAAP to non-GAAP operating margin adjustments

   

17.3

%

 

16.6

%

Non-GAAP operating margin: Non-GAAP operating income (loss) over non-GAAP total revenue

   

(4.4)

%

 

0.5

%

               

Non-GAAP net income (loss) reconciliation:

             

GAAP net loss

 

$

(10,206)

 

$

(7,857)

 

Stock-based compensation expenses

   

7,723

   

7,482

 

Amortization of intangible assets

   

154

   

100

 

Restructuring charge

   

-

   

549

 

Non-GAAP net income (loss)

 

$

(2,329)

 

$

274

 

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, 2016

   

December 31, 2017

Non-GAAP net income (loss) per share reconciliation:

           

GAAP net loss per share

 

$

(0.12)

 

$

(0.08)

Stock-based compensation expenses per share

   

0.09

   

0.08

Amortization of intangible assets

   

-

   

-

Non-GAAP net income (loss) per share

 

$

(0.03)

 

$

0.00

             

Gross billings reconciliation:

           

Total revenue

 

$

45,472

 

$

48,831

Total deferred revenue, end of period

   

88,076

   

112,501

Less: Total deferred revenue, beginning of period

   

(78,172)

   

(101,013)

Total change in deferred revenue

   

9,904

   

11,488

Gross billings

 

$

55,376

 

$

60,319

             

Recurring billings reconciliation:

           

Total revenue

 

$

45,472

 

$

48,831

Less: Perpetual license revenue

   

(14,313)

   

(12,593)

Less: Professional services revenue

   

(438)

   

(902)

Subscription and software support deferred revenue, end of period

   

85,612

   

109,152

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

   

(75,956)

   

(98,230)

Total change in subscription and software support deferred revenue

   

9,656

   

10,922

Less: Adjustments

   

(725)

   

(660)

Recurring billings

 

$

39,652

 

$

45,598

             

Recurring revenue reconciliation

           

Total revenue

 

$

45,472

 

$

48,831

Less: Perpetual license revenue

   

(14,313)

   

(12,593)

Less: Professional services revenue

   

(438)

   

(902)

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

   

(511)

   

(561)

Recurring revenue

 

$

30,210

 

$

34,775

             

Free cash flow reconciliation:

           

Cash provided by operating activities

 

$

8,468

 

$

10,399

Purchase of property and equipment

   

(581)

   

(1,408)

Free cash flow

 

$

7,887

 

$

8,991

             
   

(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, 2016

 

December 31, 2017

 
               

Non-GAAP gross profit reconciliation:

             

GAAP gross profit

 

$

133,378

 

$

145,954

 

Stock-based compensation expenses

   

3,043

   

3,772

 

Amortization of intangible assets

   

616

   

545

 

Restructuring charge

   

181

   

311

 

Non-GAAP gross profit

 

$

137,218

 

$

150,582

 
               

Non-GAAP gross margin reconciliation:

             

GAAP gross margin: GAAP gross profit over GAAP total revenue

   

81.4

%

 

82.7

%

GAAP to non-GAAP gross margin adjustments

   

2.3

%

 

2.6

%

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

   

83.7

%

 

85.3

%

               

Non-GAAP operating loss reconciliation:

             

GAAP operating loss

 

$

(66,343)

 

$

(56,145)

 

Stock-based compensation expenses

   

34,389

   

33,731

 

Amortization of intangible assets

   

616

   

545

 

Litigation settlement charge

   

-

   

1,143

 

Restructuring charge

   

1,052

   

1,349

 

Non-GAAP operating loss

 

$

(30,286)

 

$

(19,377)

 
               

Non-GAAP operating margin reconciliation:

             

GAAP operating margin: GAAP operating loss over GAAP total revenue

   

(40.5)

%

 

(31.8)

%

GAAP to non-GAAP operating margin adjustments

   

22.0

%

 

20.8

%

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

   

(18.5)

%

 

(11.0)

%

               

Non-GAAP net loss reconciliation:

             

GAAP net loss

 

$

(67,180)

 

$

(56,299)

 

Amortization of intangible assets

   

616

   

545

 

Stock-based compensation expenses

   

34,389

   

33,731

 

Litigation settlement charge

   

-

   

1,143

 

Restructuring charge

   

1,052

   

1,349

 

Non-GAAP net loss

 

$

(31,123)

 

$

(19,531)

 

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, 2016

   

December 31, 2017

Non-GAAP net loss per share reconciliation:

           

GAAP net loss per share

 

$

(0.78)

 

$

(0.60)

Stock-based compensation expenses per share

   

0.40

   

0.36

Amortization of intangible assets

   

0.01

   

0.01

Litigation settlement charge

   

-

   

0.01

Restructuring charge

   

0.01

   

0.01

Non-GAAP net loss per share

 

$

(0.36)

 

$

(0.21)

             

Gross billings reconciliation:

           

Total revenue

 

$

163,926

 

$

176,491

Total deferred revenue, end of period

   

88,076

   

112,501

Less: Total deferred revenue, beginning of period

   

(69,875)

   

(88,076)

Total change in deferred revenue

   

18,201

   

24,425

Gross billings

 

$

182,127

 

$

200,916

             

Recurring billings reconciliation:

           

Total revenue

 

$

163,926

 

$

176,491

Less: Perpetual license revenue

   

(45,775)

   

(41,165)

Less: Professional services revenue

   

(2,811)

   

(2,983)

Subscription and software support deferred revenue, end of period

   

85,612

   

109,152

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

   

(67,267)

   

(85,612)

Total change in subscription and software support deferred revenue

   

18,345

   

23,540

Less: Adjustments

   

(1,912)

   

(5,049)

Recurring billings

 

$

131,773

 

$

150,834

             

Recurring revenue reconciliation

           

Total revenue

 

$

163,926

 

$

176,491

Less: Perpetual license revenue

   

(45,775)

   

(41,165)

Less: Professional services revenue

   

(2,811)

   

(2,983)

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

   

(1,926)

   

(2,051)

Recurring revenue

 

$

113,414

 

$

130,292

             

Free cash flow reconciliation:

           

Cash provided by (used in) operating activities

 

$

(11,729)

 

$

3,036

Purchase of property and equipment

   

(2,930)

   

(6,454)

Free cash flow

 

$

(14,659)

 

$

(3,418)

             
   

(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-16

 

31-Mar-17

 

30-Jun-17

 

30-Sep-17

 

31-Dec-17

GAAP Revenue

                           

United States

$

19,452

 

$

20,091

 

$

19,764

 

$

18,396

 

$

23,084

International

 

26,020

   

22,197

   

22,888

   

24,324

   

25,747

Total

 

45,472

   

42,288

   

42,652

   

42,720

   

48,831

                             
                             

Gross billings

$

55,376

 

$

45,374

 

$

44,866

 

$

50,357

 

$

60,319

Recurring billings

 

39,652

   

33,984

   

33,717

   

37,532

   

45,598

Recurring revenue

 

30,210

   

31,224

   

31,852

   

32,440

   

34,775

Non-GAAP gross profit

 

39,125

   

35,873

   

36,001

   

36,082

   

42,626

Non-GAAP operating income (loss)

 

(1,980)

   

(4,964)

   

(7,781)

   

(6,880)

   

248

Free cash flow

 

7,887

   

331

   

(4,369)

   

(8,373)

   

8,991

                             

Components of Deferred Revenue

                           

Software support

$

50,117

 

$

50,840

 

$

50,635

 

$

51,874

 

$

58,376

Subscription

 

35,495

   

37,777

   

40,012

   

46,356

   

50,776

Other deferred revenue

 

2,464

   

2,545

   

2,729

   

2,783

   

3,349

Total

$

88,076

 

$

91,162

 

$

93,376

 

$

101,013

 

$

112,501

 

SOURCE MobileIron

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