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2019 Press Releases

May 13, 2019

SailPoint Announces First Quarter 2019 Financial Results

SailPoint Technologies Holdings, Inc., the leader in enterprise identity governance, announced financial results for the first quarter ending March 31, 2019.

“Our Q1 results were in-line with our guidance, with total revenue increasing 24% year-over-year. We added 46 net new customers during the quarter with solid partner contribution and ongoing success with legacy replacements. As organizations of all sizes move along their digital transformation journey, identity governance is increasing in strategic importance and our leading solutions are well positioned to meet the needs of our customers,” said Mark McClain, SailPoint’s CEO and Co-founder.
“We continue to be excited about the identity governance market and our best-in-class solutions, but we’ve seen some recent changes in our pipeline that are impacting our expectations for the second quarter and remainder of 2019. We believe we have identified the challenges and are making changes in our go-to-market initiatives. We are confident that we are on a path that sets us up well for the future.”

Financial Highlights for First Quarter 2019:

  • Revenue: Total revenue was $60.6 million, a 24% increase over Q1 2018. License revenue was $18.7 million, a 11% increase over Q1 2018. Subscription revenue was $31.8 million, a 41% increase over Q1 2018. Services and other revenue was $10.1 million, a 5% increase over Q1 2018.

  • Operating Loss: Loss from operations was $(6.7) million, compared to $(3.7) million in Q1 2018. Non-GAAP income from operations was $0.5 million, compared to $3.6 million in Q1 2018.

  • Net Income (Loss): Net loss was $(8.4) million, compared to net loss of $(2.3) million in Q1 2018. Net loss available to common stockholders per basic and diluted share was $(0.10) compared to net loss available to common stockholders per basic and diluted share of $(0.03) in Q1 2018. Non-GAAP net loss was $(0.1) million, compared to non-GAAP net income of $2.3 million in Q1 2018. Non-GAAP net loss per basic and diluted share was $(0.00) compared to non-GAAP net income per diluted share of $0.03 in Q1 2018.

  • Adjusted EBITDA: Adjusted EBITDA was $1.1 million, compared to $3.9 million in Q1 2018.

The tables included in this press release present reconciliations of non-GAAP income from operations to GAAP loss from operations, non-GAAP net income (loss) to GAAP net loss, non-GAAP to GAAP weighted average shares outstanding and adjusted EBITDA to GAAP net loss for the three months ended March 31, 2019 and 2018. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Financial Outlook:
For the second quarter of 2019, SailPoint expects:

  • Revenue in the range of $59.7 million to $61.2 million

  • Non-GAAP loss from operations in the range of $(3.5) million to $(3.0) million

  • Non-GAAP net loss per basic and diluted common share of $(0.05), based on estimated cash income tax payments of $0.8 million and 89.0 million basic and diluted common shares outstanding. Expectations of non-GAAP income (loss) from operations and non-GAAP net (loss) per basic and diluted common share exclude items outlined in the “Non-GAAP Financial Measures” section below.

For the full year 2019, SailPoint now expects:

  • Revenue in the range of $277.0 million to $281.5 million

  • Non-GAAP income from operations in the range of $17.1 million to $18.6 million

  • Non-GAAP net income per diluted common share in the range of $0.14 to $0.16, based on estimated cash income tax payments of $2.0 million and 93.0 million diluted common shares outstanding. Expectations of non-GAAP income from operations and non-GAAP net income per diluted common share exclude items outlined in the “Non-GAAP Financial Measures” section below.

These statements regarding SailPoint’s expectations of its financial outlook are forward-looking and actual results may differ materially. Refer to “Forward-Looking Statements” below for information on the factors that could cause its actual results to differ materially from these forward-looking statements.

All of SailPoint’s forward-looking non-GAAP financial measures exclude estimates for stock-based compensation expense and amortization of acquired intangibles. SailPoint has not reconciled its expectations as to non-GAAP income (loss) from operations and non-GAAP net income (loss) per basic and diluted common shares to their most directly comparable GAAP measure due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to stock-based compensation expense. Stock-based compensation expense is affected by future hiring, turnover, and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to change. The actual amount of the excluded stock-based compensation expense will have a significant impact on SailPoint’s GAAP income (loss) from operations and GAAP net income (loss) per basic and diluted common share. Accordingly, reconciliations of our forward-looking non-GAAP income (loss) from operations and non-GAAP net income (loss) per basic and diluted common shares are not available without unreasonable effort.