MobileIron Announces Third Quarter 2019 Results

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- MobileIron (NASDAQ: MOBL), the company that introduced the industry’s first mobile-centric, zero trust platform for the enterprise, today announced results for its third quarter ended September 30, 2019.

Third Quarter 2019 Financial Highlights

  • Revenue was $52.2 million, up 6% year-over-year.
  • ARR was $174.3 million, up 14% year-over-year.

“While we experienced softness in Q3 primarily related to macroeconomic factors in Europe, we remain confident that MobileIron’s solutions are ideally suited to meet the evolving needs of our customers in a Zero Trust world,” said Simon Biddiscombe, CEO, MobileIron. “Our mobile-centric innovation will continue to differentiate us in the market. In the quarter we expanded our zero sign-on solution to PCs and Macs and it is now in trials with well-known customers in the financial, manufacturing, and pharmaceutical verticals. Zero sign on extends our advantage with the most comprehensive solution suite to solve for the Zero Trust security challenge.”

 

ARR Composition

 

 

 

 

 

 

 

September 30,

 

(in millions, except percentages)

 

2018

 

 

2019

 

Total ARR

 

$

153.0

 

 

$

174.3

 

Year-over-year percentage increase

 

 

16

%

 

 

14

%

Subscription ARR

 

$

88.1

 

 

$

108.6

 

Year-over-year percentage increase

 

 

29

%

 

 

23

%

Perpetual license support ARR

 

$

64.9

 

 

$

65.7

 

Year-over-year percentage increase

 

 

1

%

 

 

1

%

Financial Outlook

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

  • Revenue is expected to be between $53 million and $56 million, for a decline of 2% to growth of 3% year-over-year.
  • ARR is expected to end the year between $179 million and $182 million for growth of 10% to 12% from the end of the prior year.
  • Non-GAAP gross margin is expected to be approximately 82%.
  • Non-GAAP operating expenses are expected to be between $41 million and $42 million.

Third Quarter 2019 Business Highlights

Milestones and Recognition

  • Rated a Strong Performer in the Forrester Wave’s inaugural Zero Trust eXtended Ecosystem Platform Providers study.
  • Recognized by Gartner in its 2019 Critical Capabilities for Unified Endpoint Management Tools report, where MobileIron was ranked highly in all four of the use cases of PC Management, Nontraditional Device Management, Highly Secure and Regulated Industries, Unmanaged Devices/BYO.
  • Named by Gartner as a Leader in the Gartner Magic Quadrant for Unified Endpoint Management Tools, for the second consecutive year.
  • Appointed Anjali Joshi to our Board of Directors. Ms. Joshi was most recently a Vice President of Product Management at Google, where she led product efforts focused on emerging markets.
  • Shortlisted in Computing’s Security Excellence of the Year Awards in the category Security Innovation of the Year – Mobile.
  • Included in Cybercrime Magazine’s list of The Hot 150 Cybersecurity Companies To Watch In 2020.
  • Awarded four additional US patents for mobile security, bringing MobileIron’s total number of awarded patents to 93.

Platform

  • Announced compatibility with the upcoming release of Oculus for Business to enable organizations to onboard, configure and manage Oculus’ leading all-in-one virtual reality (VR) headsets.
  • Launched the Marketplace Premier Program, which opens MobileIron’s global sales channel to Marketplace Premier Partners, enabling resellers to instantly remarket third-party independent software vendor (ISV) products from Marketplace Premier Partners as well as expanding the breadth and depth of solutions available to MobileIron customers.

All forward-looking non-GAAP financial measures contained in this section exclude estimates for stock-based compensation expense, amortization of intangible assets and restructuring expense. We do not provide a reconciliation of forward-looking non-GAAP financial measures to corresponding GAAP measures due to our inability to project certain charges and expenses. 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 three and nine months ended September 30, 2018 and 2019.

Conference Call and Webcast

MobileIron will report final results for the third quarter of fiscal year 2019 on Thursday, October 31, 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, product announcements 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 (conference ID 6036799). 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 within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as “may,” “will,” “might,” “expect,” “believe,” “anticipate,” “could,” “would,” “estimate,” “continue,” “pursue,” or the negative thereof or comparable terminology, and may include (without limitation) information regarding our expectations, goals or intentions regarding future performance. Forward-looking statements in this press release include, but are not limited to, statements regarding MobileIron's revenue, operating expenses, cost structure, GAAP and non-GAAP financial metrics, as well as statements that we expect to continue to see progress through 2019 on executing on our objective of growing our recurring revenue base through subscription solutions with our best in class cloud products, that we believe we are ideally poised to capitalize on the market of IT departments shifting to address the threats of a Zero Trust world, that we will continue to deliver a roadmap of innovation to strengthen our security framework while enhancing the user’s experience, that our continued focus on market-leading innovation and customer satisfaction will continue to propel us on our upward growth trajectory, and all statements under the heading “Financial Outlook.” Forward-looking statements involve certain risks and uncertainties, and 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 our intellectual property portfolio, litigation, 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. All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and 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 is redefining enterprise security with the industry’s first mobile-centric, zero trust platform built on the foundation of unified endpoint management (UEM) to secure access and protect data across the perimeter-less enterprise. Zero trust assumes that bad actors are already in the network and secure access is determined by a “never trust, always verify” approach. MobileIron goes beyond identity management and gateway approaches by utilizing a more comprehensive set of attributes before granting access. A mobile-centric, zero trust approach validates the device, establishes user context, checks app authorization, verifies the network, and detects and remediates threats before granting secure access to a device or user.

The MobileIron security platform is built on the foundation of award-winning and industry-leading unified endpoint management (UEM) capabilities with additional zero trust-enabling technologies, including zero sign-on (ZSO), multi-factor authentication (MFA), and mobile threat defense (MTD). Over 19,000 customers, including the world’s largest financial institutions, intelligence agencies and other highly regulated companies, have chosen MobileIron to enable a seamless and secure user experience by ensuring only authorized users, devices, apps, and services can access business resources.

"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, 2018 AND SEPTEMBER 30, 2019

(Amounts in thousands)

(Unaudited)

 

 

 

 

December 31, 2018

 

 

September 30, 2019

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents (1)

 

$

104,613

 

 

$

94,553

 

Short-term investments (1)

 

 

1,000

 

 

 

1,897

 

Accounts receivable - net

 

 

60,994

 

 

 

44,564

 

Deferred commissions - current

 

 

8,265

 

 

 

9,038

 

Prepaid expenses and other current assets

 

 

8,367

 

 

 

13,680

 

Total current assets

 

 

183,239

 

 

 

163,732

 

Property and equipment - net

 

 

7,046

 

 

 

5,529

 

Operating lease right-of-use assets

 

 

-

 

 

 

13,169

 

Deferred commissions - noncurrent

 

 

9,066

 

 

 

8,072

 

Goodwill

 

 

5,475

 

 

 

5,475

 

Other assets

 

 

5,561

 

 

 

5,954

 

Total assets

 

$

210,387

 

 

$

201,931

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

2,154

 

 

$

2,775

 

Accrued expenses

 

 

27,347

 

 

 

20,452

 

Lease liabilities - current

 

 

-

 

 

 

5,820

 

Unearned revenue - current

 

 

74,177

 

 

 

76,913

 

Customer arrangements with termination rights

 

 

19,367

 

 

 

16,246

 

Total current liabilities

 

 

123,045

 

 

 

122,206

 

Lease liabilities - noncurrent

 

 

-

 

 

 

9,873

 

Unearned revenue - noncurrent

 

 

31,660

 

 

 

29,889

 

Other long-term liabilities

 

 

1,565

 

 

 

181

 

Total liabilities

 

 

156,270

 

 

 

162,149

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock

 

 

11

 

 

 

11

 

Additional paid-in capital

 

 

462,004

 

 

 

497,185

 

Treasury stock

 

 

(3,831

)

 

 

(12,455

)

Accumulated deficit

 

 

(404,067

)

 

 

(444,959

)

Total stockholders’ equity

 

 

54,117

 

 

 

39,782

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

210,387

 

 

$

201,931

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRESS ENQUIRY