MobileIron Announces Third Quarter 2017 Results

MOUNTAIN VIEW, Calif., Oct. 31, 2017 /PRNewswire/ -- MobileIron (NASDAQ:MOBL), the security backbone for the multi-cloud enterprise, today announced results for its third quarter ended September 30, 2017.

MobileIron's Logo. (PRNewsfoto/MobileIron)

Third Quarter 2017 Financial Highlights

  • Revenue was $42.7 million, up 2.8% year-over-year.
  • Recurring revenue was $32.4 million, up 12.0% year-over-year.
  • Gross billings were $50.4 million, up 6.6% year-over-year.
  • Recurring billings were $37.5 million, up 7.5% year-over-year.
  • GAAP net loss per share was $0.18; non-GAAP net loss per share was $0.07.
  • Cash and cash equivalents plus short-term investments ended the quarter at $82.2 million.
  • Cash used in operating activities was $4.2 million.

"As I take the reins as CEO, it is clear to me that we have a great team and the best product in a fast-growing and underpenetrated market," said Simon Biddiscombe, CEO, MobileIron. "In this new role I am squarely focused on helping the team at MobileIron capitalize on the opportunity in front of us to drive profitable growth and unlock shareholder value. I believe that with disciplined go-to-market focus, thoughtful investments, and strong execution, we will accelerate growth and profitability and deliver value to our customers, partners, and shareholders."

Third Quarter 2017 Business Highlights
Platform

  • Announced new MobileIron Access capabilities to manage the lifecycle of cloud services including extending MobileIron Access security controls to Macs and PCs, risk discovery tools to identify security risks across authorized and unauthorized cloud services, and authentication analytics and reporting.
  • Formed partnership with Zimperium to integrate machine learning-based threat detection with MobileIron's security and compliance engine and sell the combined solution.
  • Delivered day zero compatibility support for iOS 11 and Android O.
  • Announced the extension of MobileIron's modern security and access model to Macs.
  • Delivered support for Android Zero-touch, Google's Android enrollment service for onboarding new devices.
  • Announced partnership with Metronome Software for a project funded by the Department of Homeland Security (DHS) Science and Technology Directorate (S&T) to develop a technology solution that will enhance the security of mobile device-based sensor systems used by first responders.
  • Announced integration with Intercede to deliver a new derived credentials solution to secure and protect U.S. federal government employees and their data.

Channels

  • MobileIron's cloud platform was chosen as the EMM provider for Deutsche Telekom's (DT) pan-European network initiative Pan-Net. Pan-Net enables DT and its national operators to provide a cloud-based EMM service that adheres to Germany's data protection regulations and satisfies the privacy requirements of enterprise customers and public sector institutions.

Milestones and Recognition

  • MobileIron Access awarded CyberSecurity Breakthrough Award for Application Security Solution of the Year.
  • Named a Leader by IDC in the IDC MarketScape: Worldwide Enterprise Mobility Management Software 2017 Vendor Assessment.
  • Named a Market Leader by Ovum in the Ovum Decision Matrix: Selecting an Enterprise Mobility Management Solution, 2017–18.
  • Earned Service Capability & Performance (SCP) Standards certification for world-class customer service.
  • Awarded six additional US patents for mobile security, bringing the total to 59.

Financial Outlook
The company is providing the following outlook for its fourth quarter 2017 (ending December 31, 2017):

  • Revenue is expected to be between $46 million and $48 million, which represents growth of 1% to 5% year-over-year.
  • Gross billings are expected to be between $55 million and $58 million, which is flat to up 5% over last year.
  • Non-GAAP gross margin is expected to be between 85% and 87%.
  • Non-GAAP operating expenses are expected to be between $42 million and $44 million.
  • Non-GAAP operating margin is expected to be between -4% to -6%.

The company is providing the following outlook for 2017 (ending December 31, 2017):

  • Cash flow from operations is expected to be approximately break-even for the full year 2017.

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 third quarter of 2016 and 2017.

Conference Call and Webcast
MobileIron will report final results for the third quarter of fiscal year 2017 on Tuesday, October 31, 2017 after the close of the market and host a conference call and live webcast at 1:30 p.m. Pacific Daylight Time (4:30 p.m. EDT) 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 SEPTEMBER 30, 2017

(Amounts in thousands)

(Unaudited)

             
     

December 31, 2016

   

September 30, 2017

Assets

           

Current assets:

           

  Cash and cash equivalents (1)

 

$

54,043

 

$

79,605

  Short-term investments  (1)

   

36,184

   

2,600

  Accounts receivable - net

   

43,755

   

47,732

  Prepaid expenses and other current assets

   

6,131

   

5,440

           Total current assets

   

140,113

   

135,377

Property and equipment - net

   

5,503

   

8,781

Intangible assets - net

   

645

   

200

Goodwill

   

5,475

   

5,475

Other assets

   

1,370

   

1,809

Total assets

 

$

153,106

 

$

151,642

             

Liabilities and stockholders' equity

           

Current liabilities:

           

  Accounts payable

 

$

701

 

$

2,609

  Accrued expenses

   

21,674

   

22,452

  Deferred revenue - current

   

68,153

   

75,950

           Total current liabilities

   

90,528

   

101,011

Deferred revenue - noncurrent

   

19,923

   

25,063

Other long-term liabilities

   

1,838

   

1,928

           Total liabilities

   

112,289

   

128,002

Stockholders' equity:

           

  Common stock

   

9

   

10

  Additional paid-in capital

   

383,193

   

414,457

  Accumulated deficit

   

(342,385)

   

(390,827)

           Total stockholders' equity

   

40,817

   

23,640

             

Total liabilities and stockholders' equity

 

$

153,106

 

$

151,642

             
             

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

 

$

90,227

 

$

82,205

             

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 AND 2017

(Amounts in thousands, except for per share data)

(Unaudited)

   

Three Months Ended

   

September 30, 2016

 

September 30, 2017

Revenue:

           

Perpetual license

 

$

11,311

 

$

8,986

Subscription

   

15,570

   

17,277

Software support and services

   

14,685

   

16,457

Total revenue

   

41,566

   

42,720

Cost of revenue:

           

Perpetual license (2)

   

652

   

606

Subscription (1)

   

2,202

   

2,266

Software support and services (1)

   

4,774

   

4,835

Restructuring charge

   

181

   

311

Total cost of revenue

   

7,809

   

8,018

Gross profit

   

33,757

   

34,702

Operating expenses:

           

  Research and development (1)

   

16,238

   

19,581

  Sales and marketing (1)

   

24,001

   

24,317

  General and administrative (1)

   

6,961

   

7,210

  Restructuring charge

   

871

   

489

           Total operating expenses

   

48,071

   

51,597

Operating loss

   

(14,314)

   

(16,895)

Other income (expense) - net

   

19

   

188

Loss before income taxes

   

(14,295)

   

(16,707)

Income tax expense

   

298

   

358

Net loss

 

$

(14,593)

 

$

(17,065)

Net loss per share, basic and diluted

 

$

(0.17)

 

$

(0.18)

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

   

86,713

   

95,024

             
             

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

           

Cost of revenue

           

Subscription

 

$

176

 

$

200

Software support and services

   

571

   

732

Research and development

   

2,709

   

3,914

Sales and marketing

   

2,307

   

2,258

General and administrative

   

2,109

   

1,974

   

$

7,872

 

$

9,078

             

(2)  Includes amortization of intangible assets as follows:

           

Cost of revenue

           

Perpetual license

 

$

154

 

$

137

   

$

154

 

$

137

             

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 AND 2017

(Amounts in thousands, except for per share data)

(Unaudited)

   

Nine Months Ended

   

September 30, 2016

 

September 30, 2017

Revenue:

           

Perpetual license

 

$

31,462

 

$

28,572

Subscription

   

44,996

   

51,432

Software support and services

   

41,996

   

47,656

Total revenue

   

118,454

   

127,660

Cost of revenue:

           

Perpetual license (2)

   

2,140

   

1,458

Subscription (1)

   

6,184

   

6,341

Software support and services (1)

   

14,691

   

15,209

Restructuring charge

   

181

   

311

Total cost of revenue

   

23,196

   

23,319

Gross profit

   

95,258

   

104,341

Operating expenses:

           

  Research and development (1)

   

51,185

   

56,440

  Sales and marketing (1)

   

76,914

   

73,293

  General and administrative (1)

   

22,774

   

21,238

  Litigation settlement charge

   

-

   

1,143

  Restructuring charge

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