- Annual Recurring Revenue of
$266.3 million grew 16% from the prior year period
- Revenue grew 12%
year-over-year to $68.9 million, of which 93% was
subscription-based
- Operating cash flow increased
79% year-over-year to $24.1 million
- Dollar-based net retention
rate of 109% accelerated from 2020 fourth quarter level of
108%
Ping Identity Holding Corp. (“Ping Identity,” or the “Company”)
(NYSE: PING), the Intelligent Identity solution for the enterprise,
today announced its financial results for the three months ended
March 31, 2021.
“We had a great start to the year, with all of our key metrics
performing well,” said Andre Durand, Ping Identity's Chief
Executive Officer. “The demand environment and pipelines have
clearly improved, and drove an ARR acceleration, much stronger
revenue growth and record cash flow generation. As such, we have
increased confidence for 2021, and have raised our guidance
accordingly. Our investments in cloud are building momentum, with
our new PingOne Advanced Services platform at 100% SaaS feature
parity with our core software platform, and uptime availability of
99.99%. The investment is driving customer demand, as we deploy
into our customers' clouds of choice with flexibility and
reliability like never before.”
Financial Highlights for the First
Quarter of 2021
ARR: Ending ARR at March 31, 2021 was $266.3 million and
represented a 16% increase compared with the same period last year.
Ping Identity defines ARR as the annualized value of all
subscription contracts as of the end of the period.
Revenue: Total revenue for the first quarter of 2021 was
$68.9 million. Subscription revenue was $64.2 million. Given the
impact that deployment mix and contract duration have on GAAP
revenue, management continues to believe that ARR is the key growth
metric of a subscription business.
Cash Flow: Net cash provided by operating activities was
$24.1 million in the three months ended March 31, 2021 compared
with $13.5 million in the three months ended March 31, 2020.
Unlevered Free Cash Flow was $19.5 million for the three months
ended March 31, 2021 compared with $9.6 million for the three
months ended March 31, 2020.
Dollar-Based Net Retention Rate: Ping Identity’s
dollar-based net retention rate at March 31, 2021 was 109%. The
Company calculates dollar-based net retention rate as ARR as of the
last day of the current reporting period from customers with
associated ARR as of the last day of the prior reporting period,
divided by ARR as of the last day of the prior reporting
period.
Please refer to the section titled “Use of Non-GAAP Financial
Information” and the tables within this press release which contain
explanations and reconciliations of the Company’s non-GAAP
financial measures.
Recent Business
Highlights
- In the first quarter, Ping Identity announced that it has been
named a leader in three KuppingerCole Leadership Compass reports,
including the Consumer Identity and Access Management (“CIAM”),
Access Management and Enterprise Authentication Solutions reports.
This is the second consecutive year that Ping has been named an
Overall Leader in the CIAM report and follows the company’s recent
recognition as a Leader by Gartner in the 2020 Magic Quadrant for
Access Management and leading placement in Gartner’s Critical
Capabilities for Access Management Report.
- Added Diane Gherson to its board of directors in March.
Gherson, a high-impact technology savvy chief human resource
officer (“CHRO”), previously served as CHRO for IBM for seven
years.
- Ping Identity further strengthened its management team. In
March, Peter Burke, Senior Vice President of Research and
Development, joined the Company. He is an accomplished business
leader with more than 25 years of technology experience. In
addition, the Company plans to announce a new Chief Revenue Officer
in May who brings deep channel and cloud transformation expertise
as well as significant international experience.
- Virtually hosted YOUniverse (formerly IDENTIFY), Ping
Identity’s annual identity security event where security
professionals came together to share real-world identity management
stories and solutions for improved digital experiences.
- Ended the first quarter with 265 customers with more than
$250,000 in ARR, representing a 10% year-over-year growth rate in
that customer cohort.
- Joined the Decentralized Identity Foundation in March 2021 to
help forge open standards for protecting digital identities to help
people and organizations gain control over their digital
identities, enabling them to conduct trusted online transactions
and interactions safely.
Commenting on the company’s financial results, Raj Dani, Ping
Identity’s CFO, added, “This quarter’s results provide evidence of
our ability to continue driving profitable growth. Our 16% ARR
growth accelerated from fourth quarter levels, and at $19.5 million
in the quarter, Unlevered Free Cash Flow was our strongest ever as
a public company. These results give us confidence in our ability
to outperform for the balance of the year, and thus, we have
increased our guidance across the board. We will continue putting
our cash to work investing into cloud and channel solutions that
enable zero trust, seamless digital experiences, and passwordless
authentication.”
Financial Outlook
Ping Identity provides the following expected financial guidance
for the quarter ending June 30, 2021:
Total ARR of $272.0 million to $274.0
million Total Revenue of $65.0 million to $67.0 million
Unlevered Free Cash Flow of $2.0 million to $4.0 million
Ping Identity provides the following expected financial guidance
for the year ending December 31, 2021:
Total ARR of $298.5 million to $300.5
million Total Revenue of $264.0 million to $272.0 million
Unlevered Free Cash Flow of $11.0 million to $15.0
million
Webcast / Conference Call Details
In conjunction with this announcement, Ping Identity will host a
webcast conference call today, May 5, 2021, at 5:00 p.m. Eastern
Time to discuss its financial results. The listen-only webcast is
available at https://investor.pingidentity.com. Investors and
participants can register for the telephonic version of the
conference call in advance by visiting
http://www.directeventreg.com/registration/event/5391305. After
registering, instructions will be shared on how to join the call
including dial-in information as well as a unique passcode and
registrant ID. At the time of the call, registered participants
will dial in using the numbers from the confirmation email, and
upon entering their unique passcode and ID, will be entered
directly into the conference.
Following the conference call, a replay will be available until
11:59 p.m. Eastern time on May 12, 2021. The replay dial-in number
will be (800) 585-8367 or for international (416) 621-4642, using
the replay number pin: 5391305. An archived webcast of the call
will also be available at https://investor.pingidentity.com.
Use of Non-GAAP Financial Information
In addition to Ping Identity’s results determined in accordance
with generally accepted accounting principles in the United States
(“GAAP”), the Company believes the following non-GAAP measures
presented in this press release and discussed on the related
teleconference call are useful in evaluating its operating
performance: Non-GAAP Gross Profit, Non-GAAP Gross Profit Margin,
Non-GAAP Operating Expenses, Non-GAAP Net Income, Non-GAAP Net
Income Per Share, Free Cash Flow and Unlevered Free Cash Flow.
Certain of these non-GAAP measures exclude stock-based
compensation, depreciation and amortization expense and
acquisition-related expenses. Ping Identity believes that non-GAAP
financial information, when taken collectively, may be helpful to
investors because it provides consistency and comparability with
past financial performance and assists in comparisons with other
companies, some of which use similar non-GAAP financial information
to supplement their GAAP results. The non-GAAP financial
information is presented for supplemental informational purposes
only, and should not be considered a substitute for financial
information presented in accordance with GAAP, and may be different
from similarly titled non-GAAP measures used by other companies. A
reconciliation is provided herein for each non-GAAP financial
measure to the most directly comparable financial measure stated in
accordance with GAAP. Investors are encouraged to review the
related GAAP financial measures and the reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP
financial measures.
Forward-Looking Statements
In addition to historical consolidated financial information,
certain statements in this press release and on the related
teleconference call may contain “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve substantial risks and uncertainties. All statements
other than statements of historical fact included in this press
release and on the related teleconference call are forward-looking
statements. These statements may include words such as
“anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,”
“believe,” “may,” “will,” “should,” “can have,” “likely” and other
words and terms of similar meaning in connection with any
discussion of the timing or nature of future operating or financial
performance or other events. For example, all statements Ping
Identity makes relating to its estimated and projected costs,
expenditures, cash flows, growth rates and financial results or its
plans and objectives for future operations, growth initiatives, or
strategies are forward-looking statements. All forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially from those that the Company
expected. Specific factors that could cause such a difference
include, but are not limited to, those disclosed previously in the
Company’s other filings with the SEC which include, but are not
limited to: our ability to adapt to rapid technological change,
evolving industry standards and changing customer needs,
requirements or preferences; our ability to enhance and deploy our
cloud-based offerings while continuing to effectively offer our
on-premise offerings; our ability to maintain or improve our
competitive position; the impact of the COVID-19 pandemic; the
impact on our business of a network or data security incident or
unauthorized access to our network or data or our customers’ data;
the effects on our business if we are unable to acquire new
customers, if our customers do not renew their arrangements with
us, or if we are unable to expand sales to our existing customers
or develop new solutions or solution packages that achieve market
acceptance; our ability to manage our growth effectively, execute
our business plan, maintain high levels of service and customer
satisfaction or adequately address competitive challenges; our
dependence on our senior management team and other key employees;
our ability to enhance and expand our sales and marketing
capabilities; our ability to attract and retain highly qualified
personnel to execute our growth plan; the risks associated with
interruptions or performance problems of our technology,
infrastructure and service providers; our dependence on Amazon Web
Services cloud infrastructure services; the impact of data privacy
concerns, evolving regulations of cloud computing, cross-border
data transfer restrictions and other domestic and foreign laws and
regulations; the impact of volatility in quarterly operating
results; the risks associated with our revenue recognition policy
and other factors may distort our financial results in any given
period; the effects on our customer base and business if we are
unable to enhance our brand cost-effectively; our ability to comply
with anti-corruption, anti-bribery and similar laws; our ability to
comply with governmental export and import controls and economic
sanctions laws; our ability to comply with HIPAA; the potential
adverse impact of legal proceedings; the impact of our frequently
long and unpredictable sales cycle; our ability to identify
suitable acquisition targets or otherwise successfully implement
our growth strategy; the impact of a change in our pricing model;
our ability to meet service level commitments under our customer
contracts; the impact on our business and reputation if we are
unable to provide high-quality customer support; our dependence on
strategic relationships with third parties; the impact of adverse
general and industry-specific economic and market conditions and
reductions in IT and identity spending; the ability of our
platform, solutions and solution packages to interoperate with our
customers’ existing or future IT infrastructures; our dependence on
adequate research and development resources and our ability to
successfully complete acquisitions; our dependence on the integrity
and scalability of our systems and infrastructures; our reliance on
software and services from other parties; the impact of real or
perceived errors, failures, vulnerabilities or bugs in our
solutions; our ability to protect our proprietary rights; the
impact on our business if we are subject to infringement claim or a
claim that results in a significant damage award; the risks
associated with our use of open source software in our solutions,
solution packages and subscriptions; our reliance on SaaS vendors
to operate certain functions of our business; the risks associated
with indemnity provisions in our agreements; the risks associated
with liability claims if we breach our contracts; the impact of the
failure by our customers to pay us in accordance with the terms of
their agreements; our ability to expand the sales of our solutions
and solution packages to customers located outside of the United
States; the risks associated with exposure to foreign currency
fluctuations; the impact of Brexit; the impact of potentially
adverse tax consequences associated with our international
operations; the impact of changes in tax laws or regulations; the
impact of the Tax Cuts and Jobs Act; our ability to maintain our
corporate culture; our ability to develop and maintain proper and
effective internal control over financial reporting; our management
team’s limited experience managing a public company; the risks
associated with having operations and employees located in Israel;
the risks associated with doing business with governmental
entities; the impact of catastrophic events on our business; and
other factors disclosed in the section entitled ‘‘Risk Factors’’ in
our most recent Annual Report on Form 10-K. Given these factors, as
well as other variables that may affect Ping Identity’s operating
results, you should not rely on forward-looking statements, assume
that past financial performance will be a reliable indicator of
future performance, or use historical trends to anticipate results
or trends in future periods. The forward-looking statements
included in this press release and on the related teleconference
call relate only to events as of the date hereof. The Company
undertakes no obligation to update or revise any forward-looking
statement as a result of new information, future events or
otherwise, except as otherwise required by law.
About Ping Identity
Ping Identity is the Intelligent Identity solution for the
enterprise. We enable companies to achieve Zero Trust
identity-defined security and more personalized, streamlined user
experiences. The Ping Intelligent Identity™ platform provides
customers, workforce, and partners with access to cloud, mobile,
SaaS and on-premises applications across the hybrid enterprise.
Over half of the Fortune 100 choose us for our identity expertise,
open standards, and partnerships with companies including Microsoft
and Amazon. We provide flexible identity solutions that accelerate
digital business initiatives, delight customers, and secure the
enterprise through multi-factor authentication, single sign-on,
access management, intelligent API security, directory, and data
governance capabilities. For more information, visit
www.pingidentity.com.
PING IDENTITY HOLDING
CORP.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per share
amounts)
(unaudited)
Three Months Ended March
31,
2021
2020
Revenue:
Subscription
$
64,216
$
56,818
Professional services and other
4,728
4,594
Total revenue
68,944
61,412
Cost of revenue:
Subscription (exclusive of amortization
shown below)(1)
9,414
7,109
Professional services and other (exclusive
of amortization shown below)(1)
5,583
4,013
Amortization expense
5,809
4,602
Total cost of revenue
20,806
15,724
Gross profit
48,138
45,688
Operating expenses:
Sales and marketing(1)
25,549
22,190
Research and development(1)
21,702
12,214
General and administrative(1)
14,455
11,515
Depreciation and amortization
4,365
4,249
Total operating expenses
66,071
50,168
Loss from operations
(17,933
)
(4,480
)
Other income (expense):
Interest expense
(396
)
(506
)
Other income (expense), net
(872
)
(1,250
)
Total other income (expense)
(1,268
)
(1,756
)
Loss before income taxes
(19,201
)
(6,236
)
Benefit for income taxes
3,267
1,944
Net loss
$
(15,934
)
$
(4,292
)
Net loss per share:
Basic and diluted
$
(0.20
)
$
(0.05
)
Weighted-average shares used in computing
net loss per share:
Basic and diluted
81,339
79,743
______________________________________
(1) Includes stock-based compensation as
follows:
Three Months Ended March
31,
2021
2020
Subscription cost of revenue
$
535
$
146
Professional services and other cost of
revenue
591
84
Sales and marketing
4,198
797
Research and development
8,512
888
General and administrative
3,103
942
Total
$
16,939
$
2,857
PING IDENTITY HOLDING
CORP.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(unaudited)
March 31,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
55,003
$
145,733
Accounts receivable, net of allowances of
$652 and $828
65,702
82,335
Contract assets, current
61,562
62,503
Deferred commissions, current
6,819
6,604
Prepaid expenses
15,250
17,608
Other current assets
1,840
1,940
Total current assets
206,176
316,723
Noncurrent assets:
Property and equipment, net
9,134
9,446
Goodwill
441,352
441,150
Intangible assets, net
175,502
180,422
Contract assets, noncurrent
8,119
11,288
Deferred commissions, noncurrent
9,715
9,325
Deferred income taxes, net
3,997
3,962
Operating lease right-of-use assets
14,808
15,619
Other noncurrent assets
3,327
2,516
Total noncurrent assets
665,954
673,728
Total assets
$
872,130
$
990,451
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable
$
571
$
2,795
Accrued expenses and other current
liabilities
8,026
7,339
Accrued compensation
12,948
17,170
Deferred revenue, current
45,993
49,203
Operating lease liabilities, current
4,065
3,979
Total current liabilities
71,603
80,486
Noncurrent liabilities:
Deferred revenue, noncurrent
3,359
3,195
Long-term debt, net of current portion
39,076
149,014
Deferred income taxes, net
14,334
17,867
Operating lease liabilities,
noncurrent
16,173
17,213
Other liabilities, noncurrent
1,565
1,566
Total noncurrent liabilities
74,507
188,855
Total liabilities
146,110
269,341
Commitments and contingencies
Stockholders' equity:
Preferred stock
—
—
Common stock
81
81
Additional paid-in capital
759,645
739,051
Accumulated other comprehensive income
(loss)
1,623
1,373
Accumulated deficit
(35,329
)
(19,395
)
Total stockholders' equity
726,020
721,110
Total liabilities and stockholders'
equity
$
872,130
$
990,451
PING IDENTITY HOLDING
CORP.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Three Months Ended March
31,
2021
2020
Cash flows from operating
activities
Net loss
$
(15,934
)
$
(4,292
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
10,174
8,851
Stock-based compensation expense
16,939
2,857
Amortization of deferred commissions
2,329
2,102
Amortization of deferred debt issuance
costs
62
62
Operating leases, net
(142
)
59
Deferred taxes
(3,546
)
(2,050
)
Other
(10
)
282
Changes in operating assets and
liabilities:
Accounts receivable
16,640
13,030
Contract assets
4,128
797
Deferred commissions
(2,934
)
(1,536
)
Prepaid expenses and other current
assets
2,466
4,822
Other assets
(820
)
49
Accounts payable
(2,013
)
2,734
Accrued compensation
(1,865
)
(6,222
)
Accrued expenses and other
1,659
1,104
Deferred revenue
(3,046
)
(9,164
)
Net cash provided by operating
activities
24,087
13,485
Cash flows from investing
activities
Purchases of property and equipment and
other
(953
)
(1,094
)
Capitalized software development costs
(3,974
)
(3,299
)
Payments for business acquisitions, net of
cash acquired
—
(4,703
)
Net cash used in investing activities
(4,927
)
(9,096
)
Cash flows from financing
activities
Payment of Symphonic and ShoCard
holdbacks
(993
)
—
Payment of offering costs
—
(295
)
Proceeds from stock option exercises
1,770
1,309
Payment for tax withholding on equity
awards
(565
)
(1,205
)
Proceeds from long-term debt
—
97,823
Payment of long-term debt
(110,000
)
—
Net cash provided by (used in) financing
activities
(109,788
)
97,632
Effect of exchange rates on cash and cash
equivalents and restricted cash
(111
)
(645
)
Net increase (decrease) in cash and cash
equivalents and restricted cash
(90,739
)
101,376
Cash and cash equivalents and
restricted cash
Beginning of period
146,499
68,386
End of period
$
55,760
$
169,762
PING IDENTITY HOLDING
CORP.
SUPPLEMENTAL FINANCIAL
INFORMATION
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL DATA
(In thousands, except per share
amounts)
(unaudited)
Three Months Ended March
31,
2021
2020
Gross profit
$
48,138
$
45,688
Amortization expense
5,809
4,602
Stock-based compensation
1,126
230
Non-GAAP Gross Profit
$
55,073
$
50,520
Non-GAAP Gross Profit Margin
80
%
82
%
Three Months Ended March
31,
2021
2020
Total operating expenses
$
66,071
$
50,168
Stock-based compensation
(15,813
)
(2,627
)
Acquisition related expenses
(2
)
(1,069
)
Amortization expense
(3,444
)
(3,344
)
Non-GAAP Operating Expenses
$
46,812
$
43,128
Three Months Ended March
31,
2021
2020
Net loss
$
(15,934
)
$
(4,292
)
Stock-based compensation
16,939
2,857
Acquisition related expenses
2
1,069
Amortization expense
9,253
7,946
Provision for income taxes(1)
(6,549
)
(2,968
)
Non-GAAP Net Income
$
3,711
$
4,612
Net loss per share:
Basic and diluted
$
(0.20
)
$
(0.05
)
Weighted-average shares used in computing
net loss per share:
Basic and diluted
81,339
79,743
Non-GAAP Net Income per Share:
Basic
$
0.05
$
0.06
Diluted
$
0.04
$
0.06
Weighted-average shares used in computing
Non-GAAP Net Income per Share:
Basic
81,339
79,743
Diluted
83,940
82,220
_____________________________________
(1) The related tax effects of the
adjustments to Non-GAAP Net Income were calculated using the
respective statutory tax rates for applicable jurisdictions.
Three Months Ended March
31,
2021
2020
Net cash provided by operating
activities
$
24,087
$
13,485
Add:
Cash paid for interest
339
514
Less:
Purchases of property and equipment
(953
)
(1,094
)
Capitalized software development costs
(3,974
)
(3,299
)
Unlevered Free Cash Flow
$
19,499
$
9,606
Net cash used in investing activities
$
(4,927
)
$
(9,096
)
Net cash provided by (used in) financing
activities
$
(109,788
)
$
97,632
Reconciliation of Unlevered Free Cash Flow
Guidance for the Three Months Ended June 30, 2021 and Year Ended
December 31, 2021:
Three Months Ended June 30,
2021
Year Ended December 31,
2021
Low
High
Low
High
Net cash provided by operating
activities
$
6,395
$
8,395
$
30,345
$
34,345
Add:
Cash paid for interest
265
265
1,140
1,140
Less:
Purchases of property and equipment
(200
)
(200
)
(2,735
)
(2,735
)
Capitalized software development costs
(4,460
)
(4,460
)
(17,750
)
(17,750
)
Unlevered Free Cash Flow
$
2,000
$
4,000
$
11,000
$
15,000
PING IDENTITY HOLDING
CORP.
SUPPLEMENTAL FINANCIAL
INFORMATION
KEY BUSINESS METRICS
(In thousands)
March 31,
Change
2021
2020
$
%
(dollars in thousands)
ARR
$
266,274
$
229,957
$
36,317
16
%
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Investor Relations Contact: David Banks
investor@pingidentity.com 303-396-6200 Media Contact:
Kristin Miller press@pingidentity.com 720-728-1033
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