Ping Identity

Ping Identity, a competitor to Okta reports for the first time tonight since going public. Its 2018 revenues were $140M, and sports a market cap under $2B.

This one will be interesting to watch, as they aren’t a complete overlap with Okta, and have a strong presence for mobile Identity and Access Management. I will add a summary of this thread after their announcement.

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Earnings:
Non-GAAP: $0.13, Beat by $0.12
GAAP: -$.01, beat by $0.13;

The numbers:
ARR : $206.7 million, 23% increase compared to ending ARR of $167.7 million in the same period last year.

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: 115%. The Company has achieved 115% or higher for each of the past eight quarters.

Fourth Quarter Outlook:
Quarter Ending December 31, 2019:
Total ARR of $222.1 million to $223.1 million
Total Revenue of $64.7 million to $66.7 million
Unlevered Free Cash Flow of $(11.9) million to $(10.8) million
Year Ending December 31, 2019:
Total ARR of $222.1 million to $223.1 million
Total Revenue of $239.3 million to $241.3 million
Unlevered Free Cash Flow of $(3.8) million to $(2.7) million, inclusive of contingent deal consideration in the amount of $4.9 million

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…And sorry for the short post, I wish there was editing… they currently have a 12% price bump after hours.

OKTA was asked about Ping on the last earnings call:

Alex Henderson – Needham & Company – Analyst

And one last quick question if I could. The Ping filing, they’re obviously setting to go public, how often do you run into Ping, how do you see them competing? Can you give us any color around, what they might say or how you might position against them? Thanks.

Todd McKinnon – Chief Executive Officer and Co-Founder

It’s – so I talked earlier about the world is really separated into legacy in the cloud future and the best thing that’s happened us over the last five or so years is that everyone in the world now, they know, they want to, they’re either in the cloud or they want to get to the cloud. That’s the future strategic direction. And I think that the competitors, we see are mostly in the legacy bucket.

They’re software companies, they’re part of a major suite of products like the IBM identity products or the computer associates or maybe they’re stand-alone niche vendor like Ping. But they’re all legacy on-premise software. And I think, the market as – has basically decided that the cloud is the future and that’s why you see our results, twice the size growing, twice as fast as someone like Ping.


OKTA, being cloud native, thinks they an advantage over Ping who is a legacy provider trying to adapt to the cloud. OKTA growing 2x as fast is correct so far.

Jim

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PING was asked about OKTA recently and said the same thing, they are in a different customer base than we are. PING has seen nice growth over the past week. Just moved my 3% position from LVGO to PING.

Ping had revenue growth of 22% and no big increase going forward. Okta had revenue growth of 46% and lvgo had over 130% and over 90% forecasted. Maybe I’m missing something…what is your rationale of dropping lvgo and buying a much slower horse?

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