Ping Identity Reports Third Quarter 2019 Results, Provides Outlook for Full Year 2019
ARR was $206.7 million, up 23% from the prior year period
Third quarter total revenue was $61.8 million, of which 93% was subscription revenue
Company raised $187.5 million in Initial Public Offering
DENVER--(BUSINESS WIRE)-- Ping Identity Holding Corp. (“Ping Identity,” or the “Company”) (NYSE: PING), a pioneer in Intelligent Identity, today announced its financial results for the quarter ended September 30, 2019.
“Our strong third quarter results were driven by Ping Identity’s Intelligent Identity leadership in securing customer, employee, partner and IoT identities across the enterprise market, and bolstered by market-wide momentum for identity solutions that enable digital transformation and simultaneously enhance security,” said Andre Durand, Ping Identity’s founder and Chief Executive Officer. “It’s been a momentous year to date for both Ping Identity and our clients. We completed our initial public offering, successfully launched several new identity solutions for securing users, applications and APIs across the hybrid cloud, strengthened our leadership in the customer use case, and landed many new Fortune 1000 corporations. Enterprises continue to partner with Ping Identity to modernize their legacy identity systems and accelerate their cloud transformation and API first initiatives. All of this creates momentum toward our main goal, which is to enable seamless user experiences while balancing the need for security and privacy in a real-time world.”
Financial Highlights for the Third Quarter of 2019
ARR: Ending ARR in the third quarter of 2019 was $206.7 million and represented a 23% increase compared to ending ARR of $167.7 million in 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 was $61.8 million, an increase of 45% year-over-year. Subscription revenue was $57.5 million, an increase of 49% year-over-year.
Cash Flow: Cash provided by operations was $8.5 million in the nine months ended September 30, 2019 compared to $23.7 million in the nine months ended September 30, 2018. Unlevered Free Cash Flow was $8.1 million for the nine months ended September 30, 2019, inclusive of contingent deal consideration in the amount of $4.9 million, compared to $26.9 million in the nine months ended September 30, 2018.
Dollar-Based Net Retention Rate: For the period ended September 30, 2019, Ping Identity’s dollar-based net retention was 115%. The Company has achieved 115% or higher for each of the past eight quarters.
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
Ping Identity recently secured a notable customer win with a large global entertainment and ticketing platform, which purchased and is implementing Ping Identity’s hybrid cloud platform to replace a homegrown solution. This is a core part of the enterprise’s digital transformation strategy to establish a more personalized relationship with their customers and a better user experience for event access.
Ping Identity closed the largest PingIntelligence for APIs deal in company history at over $500,000 in ARR, driving further innovation around API security.
The Company’s industry leadership and accomplishments have been validated recently by the likes of Gartner, KuppingerCole, InfoSec, and CRN. For example, Ping Identity currently scores 92% on ‘Willingness to Recommend’ by Gartner Peer Insights and was positioned as a Leader in Gartner's August 2019 Magic Quadrant for Access Management.
Ping Identity hosted Identify conferences in Chicago, New York, Europe and Asia Pacific, and announced the launch of PingCentral to help customers automate centralized identity services.
Ping Identity is now a NYSE-listed company (ticker symbol: PING) after completing its IPO on September 19, raising $187.5 million. The majority of net proceeds were subsequently used to pay down debt.
“We are pleased with our strong third quarter performance, driven by our continued leadership position in the enterprise market due to the flexibility of our platform and our ability to address multi-generational IT realities,” stated Raj Dani, Chief Financial Officer of Ping Identity. “Total ARR grew 23% versus the prior year period, which we believe provides the best representation of the underlying health of the business.
We’ve also been able to effectively balance our commitment to invest in growth and innovation with profitability by delivering operating efficiencies that have resulted in a net loss improvement from $5.6 million in the third quarter of 2018 to a net loss of $0.6 million this quarter.
Adjusted EBITDA margins were 22% in the quarter, and year-to-date cash flows from operations as well as Unlevered Free Cash Flow were positive.
We believe there are significant whitespace opportunities within our existing customer base by adding identities and use cases and selling new solutions, as we further penetrate an overall $25 billion market opportunity for Identity Access Management software and hybrid cloud solutions.”