MobileIron Announces Strong Fourth Quarter 2018 Results

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

PRESS ENQUIRY