Delivers Record Revenue and non-GAAP Operating Results

Recurring Revenue Growth of 21% in Q4, Highest in 9 Quarters

15% Billings Growth

 

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- MobileIron (NASDAQ:MOBL), the secure foundation for modern work, today announced results for its fourth quarter and full year ended December 31, 2018.

Fourth Quarter 2018 Financial Highlights

• Recurring revenue was $40.8 million, up 21% year-over-year.
• Revenue was $54.1 million, up 10% year-over-year.
• Billings were $69.5 million, up 15% year-over-year.
• GAAP net loss per share was $0.07; non-GAAP net income per share was $0.03.
• Cash generated in operating activities was $7.1 million.

Full Year 2018 Financial Highlights

• Recurring revenue was $151.1 million, up 18% year-over-year.
• Revenue was $193.2 million, up 7% year-over-year.
• Billings were $223.3 million, up 11% year-over-year.
• GAAP operating margin was -22.2%; non-GAAP operating margin was -2.2%
• GAAP net loss per share was $0.42; non-GAAP net loss per share was $0.04.
• Cash generated in operating activities was $14.2 million.

“In 2018 the team at MobileIron did an exceptional job driving improved performance. Our steady execution and commitment to reinvigorate growth has clearly paid off as we steadily increased our growth rate through the year and achieved record non-GAAP operating income in each of the last two quarters,” said Simon Biddiscombe, CEO, MobileIron. “The Zero Trust threat landscape requires security that starts at the endpoint and stretches seamlessly to the cloud services modern work relies on. MobileIron delivers the most comprehensive security suite to ensure valuable company data is not compromised. With a strong and cohesive team and best-in-class products, I am confident that MobileIron has resumed an upward trajectory and will continue our progress in 2019.”

Financial Outlook

The company is providing the following outlook for its first quarter 2019 (ending March 31, 2019):

• Revenue is expected to be between $46 million and $49 million, growth of 5% to 12% year-over-year.
• Non-GAAP gross margin is expected to be approximately 82%.
• Non-GAAP operating expenses are expected to be between $45 million and $46 million.

The company is providing the following outlook for 2019 (ending December 31, 2019):

• Revenue is expected to be between $205 million and $215 million, growth between 6% and 11% over 2018.
• We expect ending ARR¹ to grow by approximately 20% by year end.
• We expect to generate non-GAAP operating profit in 2019.

Fourth Quarter 2018 Business Highlights

Milestones and Recognition

• Named a Leader by Forrester Research in the Forrester Wave™: Unified Endpoint Management, Q4 2018 report. MobileIron garnered the highest possible score across 16 criteria in application security, product vision, and roadmap execution.
• Appointed Rhonda Shantz as Chief Marketing Officer. Ms. Shantz brings over 25 years of experience driving revenue growth at cybersecurity and enterprise businesses including Centrify, Symantec and Rocketfuel.
• Recognized by Google™ as a partner in its Android Enterprise Recommended program for Enterprise Mobility Management (EMM) providers.
• Awarded 5 additional US patents for mobile security, bringing MobileIron’s total number of awarded patents to 82.
• Released 42 major and 85 minor product releases for the full year 2018, across our suite of solutions.

Platform

• Released new versions of MobileIron Access, Cloud, Core, AppConnect, Email+ Docs@Work, Tunnel, and Web@Work.
• Integrated with Aruba (HPE) and Cisco Security Connector to control network access.
• Integrated with Cortado Workplace and DRACOON for file syncing and sharing.
• Integrated with Fluid Mobility and Inpixon for location-based services.

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 2017 and 2018 and for fiscal year 2017 and 2018.

¹ Annual Recurring Revenue (ARR). MobileIron will transition from reporting Annualized Recurring Revenue, which was defined as the recurring revenue recognized during a quarter multiplied by four, to reporting Annual Recurring Revenue per the definition and detail that follows. ARR is a financial measure that we define as the annualized value of all recurring revenue contracts active at the end of a reporting period. ARR includes the annualized value of subscriptions and the annualized value software support contracts related to perpetual licenses active at the end of a reporting period and does not include revenue reported as perpetual license or professional services in our consolidated statement of operations. ARR should be viewed independently of revenue, unearned revenue, and customer arrangements with termination rights as ARR is an operating metric and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue and can be impacted by contract start and end dates and renewal rates.

Conference Call and Webcast

MobileIron will report final results for the fourth quarter and fiscal year 2018 on Thursday, February 7, 2019 after the close of the market and host a conference call and live webcast at 1:30 p.m. Pacific Time (4:30 p.m. ET) to discuss the company's financial results and business highlights. Interested parties may access the call by dialing 1-866-602-7050 in the U.S. or 1-409-216-6455 from international locations (passcode 9796668). 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 and statements relating to the timing and extent of any stock repurchases. 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, one-time expenses, including restructuring charges, seasonality, our need to develop new solutions and enhancements to compete in rapidly evolving markets, product defects, strength of intellectual property portfolio, 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.

Disclosure Information

MobileIron uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors should monitor MobileIron’s investor relations website in addition to following MobileIron’s press releases, SEC filings, and public conference calls and webcasts.

About MobileIron

MobileIron provides the secure foundation for modern work. For more information, please visit www.mobileiron.com.

"MobileIron" is a registered trademark 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, 2017 AND 2018
(Amounts in thousands)
(Unaudited)
				December 31, 2017					December 31, 2018
Assets
Current assets:
Cash and cash equivalents (1)			$	85,833				$	104,613
Short-term investments (1)				6,797					1,000
Accounts receivable - net				50,629					60,994
Deferred commissions - current				9,285					8,265
Prepaid expenses and other current assets				5,510					8,367
Total current assets				158,054					183,239
Property and equipment - net				8,812					7,046
Deferred commissions - noncurrent				9,123					9,066
Goodwill				5,475					5,475
Other assets				2,976					5,561
Total assets			$	184,440				$	210,387
Liabilities and stockholders' equity
Current liabilities:
Accounts payable			$	1,369				$	2,154
Accrued expenses				25,070					27,347
Unearned revenue - current				55,105					74,177
Customer arrangements with termination rights				19,546					19,367
Total current liabilities				101,090					123,045
Unearned revenue - noncurrent				21,917					31,660
Other long-term liabilities				1,881					1,565
Total liabilities				124,888					156,270
Stockholders’ equity:
Common stock				10					11
Additional paid-in capital				420,525					462,004
Treasury stock				-					(3,831	)
Accumulated deficit				(360,983	)				(404,067	)
Total stockholders’ equity				59,552					54,117
Total liabilities and stockholders' equity			$	184,440				$	210,387
(1) Total cash and cash equivalents, short-term and long-term investments			$	92,630				$	105,613

MOBILEIRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2017 AND 2018
(Amounts in thousands, except for per share data)
(Unaudited)
			Three Months Ended
			December 31, 2017					December 31, 2018
Revenue:
License			$	18,306				$	18,011
Cloud services				10,617					14,533
Software support and services				20,140					21,579
Total revenue				49,063					54,123
Cost of revenue:
License (2)				514					1,795
Cloud services (1)				2,335					4,095
Software support and services (1)				4,369					4,673
Total cost of revenue				7,218					10,563
Gross profit				41,845					43,560
Operating expenses:
Research and development (1)				18,910					19,975
Sales and marketing (1)				23,079					23,335
General and administrative (1)				6,853					7,800
Restructuring charge				549					—
Total operating expenses				49,391					51,110
Operating loss				(7,546	)				(7,550	)
Other income (expense) - net				287					645
Loss before income taxes				(7,259	)				(6,905	)
Income tax expense				261					304
Net loss			$	(7,520	)			$	(7,209	)
Net loss per share, basic and diluted			$	(0.08	)			$	(0.07	)
Weighted-average shares used to compute net loss per share, basic and diluted				96,574					105,967
(1) Includes stock-based compensation expense as follows:
Cost of revenue
License			$	-				$	-
Cloud services				262					468
Software support and professional services				651					866
Research and development				3,474					4,201
Sales and marketing				2,047					2,123
General and administrative				1,048					2,285
			$	7,482				$	9,943
(2) Includes amortization of intangible assets as follows:
Cost of revenue
License			$	100				$	-
			$	100				$	-

MOBILEIRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMEBER 31, 2017 AND 2018
(Amounts in thousands, except for per share data)
(Unaudited)
			Twelve Months Ended
			December 31, 2017					December 31, 2018
Revenue:
License			$	64,035				$	59,338
Cloud services				38,728					50,714
Software support and services				76,995					83,140
Total revenue				179,758					193,192
Cost of revenue:
License (2)				2,203					3,270
Cloud services (1)				8,847					12,719
Software support and services (1)				19,176					18,933
Restructuring charge				311					-
Total cost of revenue				30,537					34,922
Gross profit				149,221					158,270
Operating expenses:
Research and development (1)				75,350					78,047
Sales and marketing (1)				96,807					94,204
General and administrative (1)				28,091					28,880
Litigation settlement charge				1,143					-
Restructuring charge				1,038					-
Total operating expenses				202,429					201,131
Operating loss				(53,208	)				(42,861	)
Other income (expense) - net				988					1,124
Loss before income taxes				(52,220	)				(41,737	)
Income tax expense				1,142					1,347
Net loss			$	(53,362	)			$	(43,084	)
Net loss per share, basic and diluted			$	(0.57	)			$	(0.42	)
Weighted-average shares used to compute net loss per share, basic and diluted				93,770					102,527
(1) Includes stock-based compensation expense as follows:
Cost of revenue
License			$	-				$	-
Cloud services				837					1,530
Software support and professional services				2,935					3,476
Research and development				14,520					15,981
Sales and marketing				8,659					9,464
General and administrative				6,780					7,985
			$	33,731				$	38,436
(2) Includes amortization of intangible assets as follows:
Cost of revenue
License			$	545				$	100
			$	545				$	100

MOBILEIRON, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2017 AND 2018