- Total ARR of $394.7 million, up 46% year-over-year
- First quarter 2022 subscription revenue of $85.6 million, up
44% year-over-year
- First quarter 2022 total revenue of $115.4 million, up 27%
year-over-year
SailPoint Technologies Holdings, Inc. (NYSE: SAIL)
(“SailPoint,” the “Company” or “we”), the leader in identity
security, today announced financial results for the first quarter
ended March 31, 2022.
“SailPoint delivered another excellent quarter, highlighted by
46% total ARR growth and 44% subscription revenue growth. The
strong performance was driven by our sales execution and demand
from global enterprises that recognize the strategic role identity
security plays in securing their businesses,” said Mark McClain,
SailPoint CEO and Founder.
Financial Highlights for First Quarter 2022:
- ARR: Total ARR at March 31, 2022 was $394.7 million, a
46% increase year-over-year.
- Revenue: Total revenue was $115.4 million, a 27%
increase over Q1 2021. Subscription revenue was $85.6 million, a
44% increase over Q1 2021, of which SaaS revenue was $41.1 million,
an 88% increase over Q1 2021.
- Operating Income (Loss): Loss from operations was
$(30.5) million compared to loss from operations of $(15.6) million
in Q1 2021. Non-GAAP loss from operations was $(9.3) million
compared to non-GAAP income from operations of $0.7 million in Q1
2021.
- Net Income (Loss): Net loss was $(33.1) million compared
to net loss of $(15.3) million in Q1 2021. Net loss per diluted
share was $(0.35) compared to net loss per diluted share of $(0.17)
in Q1 2021. Non-GAAP net loss was $(8.1) million compared to
non-GAAP net income of $0.4 million in Q1 2021. Non-GAAP net loss
per diluted share was $(0.09) compared to non-GAAP net income per
diluted share of $0.00 in Q1 2021.
The tables included in this press release present a
reconciliation of GAAP loss from operations to non-GAAP income
(loss) from operations, GAAP net loss to non-GAAP net income (loss)
and GAAP to non-GAAP weighted average outstanding shares, each for
the three months ended March 31, 2022 and 2021. An explanation of
these measures is also included below under the heading "Non-GAAP
Financial Measures." In addition, see “Operating Metrics” for more
information regarding Total ARR.
Transaction with Thoma Bravo
As announced on April 11, 2022, SailPoint has entered into a
definitive agreement to be acquired by Thoma Bravo. In light of
this transaction, SailPoint will not be hosting an earnings
conference call or live webcast to discuss its first quarter 2022
financial results and SailPoint will not be providing guidance for
the second quarter or full fiscal year 2022.
Operating Metrics
Total annual recurring revenue (“Total ARR”) represents the
annualized value of the active portion of SaaS, term-based license,
maintenance and support contracts and other subscription services
at the end of the reporting period. We calculate Total ARR by
dividing the active contract value by the number of days in the
active portion of the overall contract term and then multiplying by
365. See Item 2. "Management’s Discussion and Analysis of Financial
Condition and Results of Operations" in the Quarterly Report on
Form 10-Q for the quarter ended March 31, 2022, which was filed
with the Securities and Exchange Commission (the “SEC”) on May 5,
2022 (our “First Quarter Quarterly Report”) for more information
regarding SailPoint’s utilization of the Total ARR metric.
Non-GAAP Financial Measures
In addition to SailPoint’s financial information presented in
accordance with generally accepted accounting principles in the
United States (“GAAP”), this press release includes certain
non-GAAP financial measures to clarify and enhance investors’
understanding of SailPoint’s past performance and future prospects.
Generally, a non-GAAP financial measure is a numerical measure of a
company’s operating performance, financial position or cash flow
that includes or excludes amounts that are included or excluded
from the most directly comparable measure calculated and presented
in accordance with GAAP. SailPoint’s management believes the
non-GAAP financial measures described below provide useful
information to investors regarding the Company’s financial
condition and results of operations because they facilitate
comparisons of SailPoint’s core operating results from period to
period. In addition, SailPoint’s management uses non-GAAP income
(loss) from operations for budgeting and planning purposes.
Our non-GAAP financial measures are adjusted for the following
factors:
Stock-based compensation expense. We exclude stock-based
compensation expense because of varying available valuation
methodologies, the use of assumptions and the variety of equity
instruments that can impact our non-cash expense. We believe that
providing non-GAAP financial measures that exclude stock-based
compensation expense allows for more meaningful comparisons between
our operating results from period to period.
Amortization of acquired intangible assets. We believe that
excluding the impact of amortization of acquired intangible assets
allows for more meaningful comparisons between operating results
from period to period as the intangible assets are valued at the
time of acquisition and are amortized over the useful life, which
can be several years after the acquisition.
Amortization of debt issuance costs. The expense for the
amortization of debt issuance costs, which relate to SailPoint’s
credit agreement (which is undrawn) and the convertible senior
notes issued in 2019, is a non-cash item, and we believe the
exclusion of this component of interest expense provides a more
useful comparison of our operational performance from period to
period.
Acquisition related costs and impairment of intangible assets.
We exclude these expenses because they are unrelated to our current
operations and are neither comparable to the prior period nor
indicative of future results. See Note 14 “Subsequent Events” in
the notes to the consolidated financial statements included in our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2022
for information about our pending transaction with Thoma Bravo and
recent acquisitions.
SailPoint’s non-GAAP financial measures may not provide
information that is directly comparable to that provided by other
companies in our industry because they may calculate non-GAAP
financial results differently. In addition, there are limitations
to using non-GAAP financial measures because they are not prepared
in accordance with GAAP and exclude expenses that may have a
material impact on our reported financial results. The presentation
of non-GAAP financial information is not meant to be considered in
isolation or as a substitute for the directly comparable financial
measures prepared in accordance with GAAP. SailPoint urges you to
review the reconciliations of our non-GAAP financial measures to
the comparable GAAP financial measures included below, and not to
rely on any single financial measure to evaluate its business.
Non-GAAP income (loss) from operations. SailPoint
believes that the use of non-GAAP income (loss) from operations is
helpful to our investors to clarify and enhance their understanding
of past performance and future prospects. Non-GAAP income (loss)
from operations is calculated as income (loss) from operations on a
GAAP basis excluding (i) stock-based compensation expense, (ii)
amortization of acquired intangibles, (iii) acquisition related
costs and (iv) impairment of intangible assets.
Non-GAAP net income (loss) and non-GAAP net income (loss) per
basic and diluted share. SailPoint believes that the use of
non-GAAP net income (loss) and non-GAAP net income (loss) per basic
and diluted share is helpful to our investors to clarify and
enhance their understanding of past performance and future
prospects. Non-GAAP net income (loss) is calculated as net income
(loss) on a GAAP basis (a) excluding (i) stock-based compensation
expense, (ii) amortization of acquired intangibles, (iii)
amortization of debt issuance costs, (iv) acquisition related costs
and (v) impairment of intangible assets, and (b) adjusted for the
effect of income taxes associated with such non-GAAP adjustments.
SailPoint defines non-GAAP net income (loss) per basic and diluted
share as non-GAAP net income (loss) divided by the non-GAAP basic
and diluted weighted average outstanding common shares.
SailPoint’s presentation of non-GAAP net income (loss) includes
the effect of income taxes associated with the non-GAAP
adjustments, which is calculated using an estimated effective
income tax rate that is commensurate with our non-GAAP pre-tax
income (loss). The non-GAAP effective income tax rate is adjusted
from the GAAP effective income tax rate to reflect the impact of
non-GAAP income (loss) adjustments. Due to the adjustments, the
non-GAAP estimated income taxes may differ from GAAP estimated
income taxes and actual tax liabilities. Estimated income taxes and
tax liabilities reflect currently available information, as well as
other factors and assumptions, including current operating
structure, existing tax positions in various jurisdictions and key
tax legislation in jurisdictions where SailPoint currently
operates. Non-GAAP estimated income taxes may change for a variety
of reasons, including global tax environment, significant changes
to geographic earnings mix, acquisitions, or other changes to
SailPoint’s strategy or business operations. SailPoint re-evaluates
its non-GAAP estimated income taxes at least annually, or more
frequently if significant events occur, which may materially impact
our non-GAAP income tax calculation.
The accompanying tables have more details on the reconciliations
of non-GAAP financial measures to their nearest comparable GAAP
measures.
Forward-Looking Statements:
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995, including regarding our strategy, future operations,
financial position, business outlook, prospects, plans and
objectives of management, growth rate and our expectations
regarding future revenue, operating income or loss or earnings or
loss per share. In some cases, you can identify forward-looking
statements because they contain words such as “may,” “will,” “will
be,” “will likely result,” “should,” “expects,” “plans,”
“anticipates,” “could,” “would,” “foresees,” “intends,” “target,”
“projects,” “contemplates,” “believes,” “estimates,” “predicts,”
“potential,” “outlook,” “look forward” or “continue” or the
negative of these words or other similar terms or expressions that
concern our expectations, strategy, plans or intentions. These
forward-looking statements are not guarantees of future
performance, but are based on management's current expectations,
assumptions and beliefs concerning future developments and their
potential effect on us, which are inherently subject to
uncertainties, risks and changes in circumstances that are
difficult to predict. The expectations expressed or implied in
these forward-looking statements may not turn out to be correct.
Our results could be materially different from our expectations
because of various risks.
Important factors, some of which are beyond our control, that
could cause actual results to differ materially from our historical
results or those expressed or implied by these forward-looking
statements include the following: the effect of the COVID-19 global
pandemic and its aftermath, as well as governmental, business and
other actions in response, on the global economy and on our
business; our ability to achieve and sustain profitability; our
ability to sustain historical growth rates; our ability to attract
and retain customers and to deepen our relationships with existing
customers; an increased focus in our business from selling licenses
to selling subscriptions; breaches in our security, cyber-attacks
or other cyber-risks; interruptions with the delivery of our SaaS
solutions or third-party cloud-based systems that we use in our
operations; our ability to compete successfully against current and
future competitors; the length and unpredictable nature of our
sales cycle; delayed effects on our operating results from ratably
recognizing some of our revenue; fluctuations in our quarterly
results; our ability to maintain successful relationships with our
channel partners; the increasing complexity of our operations; real
or perceived errors, failures or disruptions in our platform or
solutions; our ability to adapt and respond to rapidly changing
technology, industry standards, regulations or customer needs,
requirements or preferences; our ability to achieve and maintain an
effective system of disclosure controls and internal control over
financial reporting; our ability to comply with our privacy policy
or related legal or regulatory requirements; our ability to
accurately forecast our estimated annual effective tax rate for
financial accounting purposes; our ability to successfully
identify, acquire and integrate companies and assets; our ability
to maintain high-quality customer satisfaction; and our ability to
maintain and enhance our brand or reputation as an industry leader.
More information on these risks and other potential factors that
could affect our financial results is included in our filings with
the SEC, including in the “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” sections of our most recently filed Annual Report on
Form 10-K and subsequent Quarterly Reports on Form 10-Q. Moreover,
we operate in a very competitive and rapidly changing environment.
New risks and uncertainties emerge from time to time and it is not
possible for us to predict all risks and uncertainties that could
have an impact on the forward-looking statements contained in this
press release. We cannot assure you that the results, events and
circumstances reflected in the forward-looking statements will be
achieved or occur, and actual results, events or circumstances
could differ materially from those described in the forward-looking
statements.
Any forward-looking statement speaks only as of the date as of
which such statement is made, and, except as required by law, we
undertake no obligation to update or revise publicly any
forward-looking statements, whether because of new information,
future events, or otherwise.
About SailPoint
SailPoint is the leader in identity security for the modern
enterprise. Harnessing the power of AI and machine learning,
SailPoint automates the management and control of access,
delivering only the required access to the right identities and
technology resources at the right time. Our sophisticated identity
platform seamlessly integrates with existing systems and workflows,
providing the singular view into all identities and their access.
We meet customers where they are with an intelligent identity
solution that matches the scale, velocity and environmental needs
of the modern enterprise. SailPoint empowers the most complex
enterprises worldwide to build a security foundation grounded in
identity security.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share data)
(Unaudited)
Three Months Ended
March 31, 2022
March 31, 2021
Revenue
Licenses
$
15,271
$
19,235
Subscription (1)
85,591
59,242
Services and other
14,558
12,285
Total revenue
115,420
90,762
Cost of revenue
Licenses (2)
1,378
1,247
Subscription (2)(3)
19,966
11,304
Services and other (3)
13,837
11,799
Total cost of revenue
35,181
24,350
Gross profit
80,239
66,412
Operating expenses
Research and development (2)(3)
31,046
19,566
General and administrative (3)
13,987
11,267
Sales and marketing (2)(3)
65,730
51,162
Total operating expenses
110,763
81,995
Loss from operations
(30,524
)
(15,583
)
Other expense, net:
Interest income
24
200
Interest expense
(899
)
(789
)
Other expense, net
(660
)
(1
)
Total other expense, net
(1,535
)
(590
)
Loss before income taxes
(32,059
)
(16,173
)
Income tax (expense) benefit
(1,025
)
882
Net loss
$
(33,084
)
$
(15,291
)
Net loss per share
Basic
$
(0.35
)
$
(0.17
)
Diluted
$
(0.35
)
$
(0.17
)
Weighted average shares outstanding
Basic
93,939
91,684
Diluted
93,939
91,684
(1) Subscription revenue is further
disaggregated as follows:
Three Months Ended
March 31, 2022
March 31, 2021
Subscription revenue
SaaS
$
41,127
$
21,889
Maintenance and support
42,332
35,474
Other subscription services
2,132
1,879
Total subscription revenue
$
85,591
$
59,242
(2) Includes amortization of acquired
intangibles as follows:
Three Months Ended
March 31, 2022
March 31, 2021
Cost of revenue - licenses
$
829
$
1,008
Cost of revenue - subscription
1,552
857
Research and development
169
168
Sales and marketing
1,627
1,220
Total amortization expense
$
4,177
$
3,253
(3) Includes stock-based compensation
expense and the related employer payroll tax expense as
follows:
Three Months Ended
March 31, 2022
March 31, 2021
Cost of revenue - subscription
$
1,317
$
746
Cost of revenue - services and other
1,186
882
Research and development
4,643
2,454
General and administrative
2,665
2,303
Sales and marketing
6,628
4,756
Total stock-based compensation expense
$
16,439
$
11,141
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except per
share data)
As of
March 31, 2022
December 31, 2021
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$
414,640
$
435,445
Restricted cash
6,712
6,719
Accounts receivable, net of allowances of
$348 and $564
108,470
147,156
Deferred contract acquisition costs,
current
27,555
25,966
Contract assets, current
35,115
31,640
Prepayments and other current assets
22,496
17,806
Income taxes receivable
505
506
Total current assets
615,493
665,238
Deferred tax asset - non-current
4,047
4,047
Property and equipment, net
16,319
17,151
Right-of-use assets, net
24,882
23,806
Deferred contract acquisition costs,
non-current
68,868
68,725
Contract assets, non-current, net of
allowances of $2,365 and $2,386
18,877
16,991
Other non-current assets
1,369
983
Goodwill
289,430
289,430
Intangible assets, net
69,292
73,469
Total assets
$
1,108,577
$
1,159,840
Liabilities and stockholders’
equity
Current liabilities
Accounts payable
8,263
6,097
Accrued expenses and other liabilities
54,577
89,972
Income taxes payable
1,305
1,413
Convertible senior notes, net
385,599
385,172
Deferred revenue
214,686
218,937
Total current liabilities
664,430
701,591
Long-term operating lease liabilities
29,585
28,817
Deferred revenue - non-current
27,122
25,193
Total liabilities
721,137
755,601
Commitments and contingencies
Stockholders’ equity
Common stock, $0.0001 par value
9
9
Preferred stock, $0.0001 par value
—
—
Additional paid in capital
498,195
481,910
Accumulated deficit
(110,764
)
(77,680
)
Total stockholders' equity
387,440
404,239
Total liabilities and stockholders’
equity
$
1,108,577
$
1,159,840
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31, 2022
March 31, 2021
Operating activities
Net loss
$
(33,084
)
$
(15,291
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization expense
5,712
4,784
Amortization of debt issuance costs
468
633
Amortization of contract acquisition
costs
6,933
4,328
Loss on disposal of fixed assets
15
27
Provision for credit losses
(106
)
102
Stock-based compensation expense
15,801
10,073
Operating leases, net
(288
)
(205
)
Net changes in operating assets and
liabilities, net of assets acquired and liabilities assumed in
business acquisitions:
Accounts receivable
38,771
27,854
Deferred contract acquisition costs
(8,665
)
(6,587
)
Contract assets
(5,340
)
(4,445
)
Prepayments and other current assets
(4,663
)
23
Other non-current assets
(427
)
1,473
Accounts payable
2,166
(369
)
Accrued expenses and other liabilities
(35,415
)
(22,161
)
Income taxes
(107
)
(2,228
)
Deferred revenue
(2,322
)
(10,177
)
Net cash used in operating
activities
(20,551
)
(12,166
)
Investing activities
Purchase of property and equipment
(749
)
(818
)
Proceeds from sale of property and
equipment
4
2
Purchase of intangibles
—
(40
)
Business acquisitions, net of cash
acquired
—
(71,196
)
Net cash used in investing
activities
(745
)
(72,052
)
Financing activities
Payments for partial conversion of
convertible senior notes
—
(10,160
)
Taxes associated with net issuances of
shares upon vesting of restricted stock units
(846
)
(1,293
)
Exercise of stock options
1,330
1,608
Net cash provided by (used in)
financing activities
484
(9,845
)
Net decrease in cash, cash equivalents and
restricted cash
(20,812
)
(94,063
)
Cash, cash equivalents and restricted
cash, beginning of period
442,164
516,644
Cash, cash equivalents and restricted
cash, end of period
$
421,352
$
422,581
RECONCILIATION OF NON-GAAP
INCOME (LOSS) FROM OPERATIONS
(In thousands)
(Unaudited)
Three Months Ended
March 31, 2022
March 31, 2021
Loss from operations on a GAAP basis
$
(30,524
)
$
(15,583
)
Add back:
Stock-based compensation expense (1)
16,439
11,141
Amortization of acquired intangibles
4,177
3,253
Acquisition related costs (2)
600
1,863
Impairment of intangible assets
—
—
Non-GAAP income (loss) from
operations
$
(9,308
)
$
674
(1) Stock-based compensation expense
includes employer related payroll tax expense.
(2) Acquisition related costs are
transaction costs, which include legal, accounting and consulting
professional service fees. The 2022 costs pertain to the pending
recently announced go-private transaction with Thoma Bravo. The
2021 costs pertain to the prior year acquisitions of Intello and
ERP Maestro.
RECONCILIATION OF NON-GAAP NET
INCOME (LOSS)
(In thousands, except per
share data)
(Unaudited)
Three Months Ended
March 31, 2022
March 31, 2021
Net loss on a GAAP basis
$
(33,084
)
$
(15,291
)
Add back:
Stock-based compensation expense (1)
16,439
11,141
Amortization of acquired intangibles
4,177
3,253
Amortization of debt issuance costs
468
633
Acquisition related costs (2)
600
1,863
Impairment of intangible assets
—
—
Effect of income taxes associated with the
above adjustments (3)
3,323
(1,150
)
Non-GAAP net income (loss)
$
(8,077
)
$
449
Non-GAAP net income (loss) per
share
Basic
$
(0.09
)
$
0.00
Diluted
$
(0.09
)
$
0.00
Non-GAAP weighted average outstanding
shares
Basic
93,939
91,684
Diluted
93,939
95,066
(1) Stock-based compensation expense
includes employer related payroll tax expense.
(2) Acquisition related costs are
transaction costs, which include legal, accounting and consulting
professional service fees. The 2022 costs pertain to the pending
recently announced go-private transaction with Thoma Bravo. The
2021 costs pertain to the prior year acquisitions of Intello and
ERP Maestro.
(3) The GAAP effective tax rates were
(3.2)% and 5.5% for the three months ended March 31, 2022 and 2021,
respectively, compared to non-GAAP effective tax rates of 22.1% and
37.5% for the three months ended March 31, 2022 and 2021,
respectively.
RECONCILIATION OF NON-GAAP
WEIGHTED AVERAGE OUTSTANDING SHARES
(In thousands)
(Unaudited)
Three Months Ended
March 31, 2022
March 31, 2021
Weighted average outstanding shares used
to compute net loss per share, basic and diluted, on a GAAP
basis
Basic
93,939
91,684
Diluted
93,939
91,684
Non-GAAP weighted average outstanding
shares
Basic
93,939
91,684
Effect of potentially dilutive
securities
—
3,382
Diluted
93,939
95,066
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220505005756/en/
Investor Relations Brian Denyeau ICR for SailPoint
investor@sailpoint.com 512-664-8916 Media Relations
SailPoint Technologies Holdings, Inc. Natalie Reina
Natalie.reina@sailpoint.com 956-878-9176
SailPoint Technologies (NYSE:SAIL)
過去 株価チャート
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SailPoint Technologies (NYSE:SAIL)
過去 株価チャート
から 11 2023 まで 11 2024
