PING - Earnings call transcript Q4 2019 | Ping Identity Holding Corp

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Ping Identity Fourth Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Hugo Doetsch, Vice President of Finance, Strategy and Corporate Development. you. Thank ahead. go Please,

Hugo Doetsch

provide joining call and our where quarter XXXX the for year for Ping XXXX. results to Identity fourth and year fiscal conference we of initial us everyone outlook welcome fiscal today the for our Thanks will discuss

I to XXXX fourth its we market full that year the results. remind quarter shortly announcing begin, Before today, press Ping release you after financial closed Identity would like issued a and

call. this supplemental slide presentation Ping Additionally, published accompany Identity a to

You release With Investor today CEO; may press Relations section CFO. is our the access presentation on our the and Durand Dani, of me and pingidentity.com. Raj Andre

Today's discussion results Commission to will cause statements. see September refer dated XX, actual our may XXXX, factors these the a and company's discussion where final you of the Please that Exchange to initial filed could differ public and perspective forward-looking include from offering with materially statements. Securities

you non-GAAP Identity's we like call that to the would performance. related I measures remind also during some to discuss will Ping

can nearest in statements. comparable financial measures our quarterly the GAAP to the reconciliation You measures of those find

to initial housekeeping follow-up. as you the limit Just that many to we item, as one possible one can during we analyst call, questions your please question ask ensure and one questions address

And Founder call of with go that, Officer over I'll turn Durand, Chief and please the ahead. Executive to Andre Ping Andre, Identity.

Andre Durand

thank joining second our and for earnings a you afternoon, company. everyone, publicly as Thanks, traded Hugo. Good call

our my to identity. a I'd through support begin, I safer partners results. world to thank dedication QX now like our the and customers on And and making Before their team, our to for place

total profitability, and highlighted market, of the revenue $XXX.X across quarter, platform. further tremendous XX% Annual in record growth, million. new a had by in strong a wins culminating fourth enterprise year-over-year, top grew our ARR recurring innovation customer success We continued line

was revenue million. $XX.X QX

and only use our measure Ping provides XXX will are GAAP a representation prevailing to relatively offering key of of when we number story, the Given is today's of the to evaluate growth and and our that our review we drivers. call believe earnings ARR the impacts we the topline identity this and briefly an platform, is second revenue, the market sell our business. continued participants I metric to important ASC hybrid Since new our

identity intelligent applications and of and their enterprises platform identities, enabling enterprise helps most IT These the the complex manage across partner access customer, hybrid resources infrastructures. while seamless workforce

one of we heartbeat the company. Fortune With as hundred of identity, the recently and one the several tens the XXX cited of the important are of now infrastructures most rising users me, millions mission-critical told applications. another importance Ping protecting in of customer And company,

of functions data for Identity Ping single identity for API security, platform security. which partnership growing. result a enabling upon as; Ping's the As identity such digital viewed access of sign-on, solutions future to our we directory, and multifactor authentication, of comprised Identity's are security governance their C-suite with called is the CIOs And meet because importance, relationship rising strategic with as efforts. transformation of This mission-critical rising is to bodes six the well often tide is

open the cloud, data Each deployed customer's their conjunction be cloud solutions in standards solution is upon with in other built or and center. Ping our standalone or in can

the whole, and engagement a as of security. a digital workforce Taken for customer Ping transformation provides powerful foundation platform the

environments all turnkey platform. address ability flexibility, Our platform and hybrid to primary hundreds with is differentiated integrations through cloud identity one use cases an with of intelligence, deployment

to and result, employees increased partners. enterprises enhanced an their security user a experience are provide able As customers, and to

of absolutely many responders highest standards Ping day-in customers frequently move the rely the money Ping's platform common Ping happen and won't Identity day-out not on theme does ensure hear and mission We of safety. won't resiliency. among the A our perform that, from won't to fly, Even are our security enterprise and public planes many customers first to that today's is if surgeries and platform technology of critical.

two are The opportunities: solutions of the their architecture. is identity replacement of The broken legacy approximate first $XX serve reached be market billion that can inhibiting mobile API-first have the down end-of-life large we cloud, and into and adoption

driven demand The solutions. second opportunity adoption a authentication, such customer of and is Greenfield new identity technologies security expansion the by our multifactor API growing as; for

We've solutions at the market. chosen -- enterprise our direct our to

match need performance, mission-critical DNA enterprises our infrastructures, most cloud, for private hybrid solved the These only can on-premise and a as the and company. that enterprise our hybrid based the platform or With and security, integration that scale, be customers. solution secure require security strength the needs requirements capabilities control, deployed solutions advanced control, We our wherever not for cloud, they require compliance. a requires: can enterprise upon for

this maximum are rapid leverage for in within to to hybrid ability the the control within rapid the need Increasingly, for in enterprise their cloud had of choose end-to-end. and cloud to and cloud platform of and a flexibility Customers we've customers center their Many Ping containerization they in center, larger secondary. invested when deploy data DevOps for offering customer's in our Others to deployment secure enable choose control deployment, our level and leader their security. of undergoing same choice. service the Ping regulated data technologies deploy identity cloud. Ping the the Ping is choose industry deployment to customization our the requiring an more of transformation, as but

applications. connect Ping where integrations Irrespective to to leverage the connect they and of to leverage customers our standards consume applications on-premise prebuilt our cloud choose platform, open to

and chooses. enterprise as is whatever whole, deploy ability are to as Taken solutions flexibility the Ping's our advanced unmatched, a hybrid

our and of standard banks; ability Ping largest hybrid scale, Ping solutions, deployed enterprises biopharmaceuticals; a at emphasis XX% for our large of companies. XX include XX with has all on without XXX; integration, the flexibility fundamental the the solutions largest chosen of and security. five become over a ease largest of globally, XX identity As cloud retailers. compromising result, for seven advanced the U.S. U.S. the eight to industry largest X,XXX XX proven of seven Fortune These They've plans; of healthcare the deployment

advanced with fiscal year cloud the our lastly, such applications as Azure, new in Ping legacy assistance of which and new the application visibility a choice, control; a array need of new integrations customers' cloud protection of age our and our a Google allowing legislation cloud for requirements to of Ping for regulation. compliance platform new capability we without to APIs offering the of in applications, their include: migration of of delivered broadest developers systems history. enhancements want by security additional platform privacy data in service; integrate which and enterprises During from as which teams from sharing, API importance and for enhancements a consume the offering we and self-service and machine These who speeds AI enabling our and identity AWS IT; for new streamline a privacy customer-facing leveraging growing and the solution, to with hybrid is Cloud; offering enhancements identity released learning; and security simply deployment platform for a XXXX

to Fortune a market. customer XXX to who enhancements partner television of To identity strengthen Taken strategic satellite wanted Ping's wins. customer sign-on. and take security enterprise homegrown and We eliminate provider, as moment some advantage, a for I solution authentication as share the is serving underscore their identity whole, single and a position new looking QX competitive our a their these added

in chose The provide Ping over customer Amazon way cloud The their a service X to authentication and selected users. testament deployed for your platform increase security drive further only million our Ping deliver. central scalability of to flexibility to Ping that was single proven revenue can being Cloud, and is the because

of insurance expanded expanded to use long-time access existing upon access our their modernize same expand by replacing one use Ping's the in And Ping at customers that Ping's customer multifactor workforce Ping security Building the include and use of the lacked adding platform. the they case. a time, the security example, homegrown Fortune for to solution. industry their solution existing In single customer XXX and another sign-on, flexibility solution upon identity, of our workforce features case authentication their success,

track our savings comprehensiveness cost offering, was maturity selected projected successful overall and company. because of the Ping and record to our of

the now digital their and modernization experience of initiatives. customer are cornerstone We

was all customer for to of testament millions and the a remarkable a our repository to vendor scaling hundreds replacing legacy scalability, Directory by top selected a three Ping As identities, the SaaS of service the into users. Titan

ability This was exhaustive performance cemented X-figure and competitive prove of an unmatched to Ping's scalability, our and the ARR deal security. landscape review after

case. just in position highlight the our I'll customer strong use

that on secure user a But sign-on, better by XXX,XXX healthcare over governance Ping This This all to multifactor using their directory, provide Ping customer to was data million successfully API access over already with comprehensive security, identities. solution. identities. in our licensing workforce to a security purchase and authentication, leading XX new went expanded secure customer quarter customer single provider success

Ping was extraordinary scalability to able experience and in meet platform proven compliance, is its chosen security security is and With our will and end-to-end be because this extremely customer experiences, better Ping, customer flexible. enables its objectives.

in examples in relatively where innings investments the into still AI our their across early and learning we're APIs beginning customers provides enterprise. protect traffic are the to our and we're machine visibility helping While of are entire API new, hear much-needed and implementations production

the importance of a and prospects growth we securing of of long-term new security on As bullish growing a APIs, API press this offering. remain feedback on result of the our amount

Switching integrations several partnership. in Amazon, continue we Iovation CyberArk to our with our and gears important about to invest talk we completed partners, Microsoft and

manager single sign-on CyberArk jointly policy solutions. Ping example and multiple For Ping's integrations CyberArk's and and between central directory developed

this fine-grained AWS integration We new identity past the Conference also can to Reinvent resources. AWS enhanced customers AWS so December. at demonstrated simplify our was This that support features, for access

our As channel part certification on to formal train partners solutions. efforts, we launched of a better partner program Ping's enablement

XXX the program in relatively over security we half certified While professionals the is XXXX. of new, second

enterprise quarter bullish of extremely platform In our enhancements success to our of closing, the full proud XXXX The and results. year fourth ability customers. continued and remain continued We across contribute in to our our knowing that delivered important broadly. offered. use along our comfort market cases diversified several and business opportunity our the gained solutions on including and and security tailwinds markets dimensions identity in is served, We we're

as provide over of Identity Ping detail, quarter as to I turn Dani, our for financial call more to CFO XXXX. in well Raj results through walk Raj? the year and outlook full would to now the like

Raj Dani

Thanks, Andre, call. for and everyone today's joining

highlighted we Andre year our with and pleased are earlier, QX full results. As extremely

intelligent financial an to Ping's to like years. on our basis, primarily results under with offered going we reiterate contract contracts X in average detail, would term of that identity platform multiyear is Before subscription a

customers Regardless in advance. all of contract are billed annually our almost term, subscription of the

licensed the IoT. identities pricing case, solution subscription and partner workforce, number Our by and by model based use of is on customer,

with revenues, upfront, SaaS-based recognized reminder, associated support to nature a is the over the As important ASC license XXX, be subscription subscription term-based hybrid given over revenue is which cloud term. the an term. of ratably and maintenance our the under subscription be continues duration. dynamic, by can impacted our model contract ratably and revenue recognized This deployment recognized

degree may and this, As focusing revenue contracts quarterly free by XXX, subscription Ping's under on growth our important from ASC deployment exhibit in ARR normalize or of both the ASC unaffected To are flow, performance. our the we operational are annualized and cash a believe based a which that decisions value result, assessing our of for upon unlevered XXX, high variability period-to-period customers. of

year-over-year across Growth leverage ARR Now the of new cases logos solutions expansion XX%. ARR strong the to year fourth driven ended and drive We with and which our to by healthy turn quarter represents of growth of the by deployment results. across Ping's continued a enterprise. wall-to-wall customers use and distribution base was flexibility $XXX.X million, I'll

was on revenue was our or Subscription of for retention total $XX.X a XX-month rate revenue revenue, net $XX XX% million. the calculated growth. quarter dollar-based fourth basis. trailing Fourth year-over-year total accounted In representing million, XX% quarter, XXX%,

rate from refer of at non-GAAP will we have to rates can very retention for this remainder I dollar-based While the consistently least stated, metrics. strong vary P&L, of the period-to-period, XXX%. net achieved otherwise Unless

release. a You numbers reconciliation press the GAAP can non-GAAP to in find of accompanying

our fourth the margin GAAP XX%, for quarter margin XX%. was was Gross subscription and gross

margins to innovation business, continue gross to without sacrificing strong us in enable and growth profitability cash of Our and flow. the invest

collections. primarily incremental we marketing, driven million, the in $XX cash in the Unlevered cloud focused development our Total our in than of in offerings representing a operating Adjusted flow both, research million, was activities. better use go-to-market expected, margin XX%. made cash was quarter especially EBITDA growing fourth sales well as and year-over-year expenses $XX.X and growth and in QX $X.X due quarter, XXXX on strong investments as were of innovation, fourth primarily hybrid as million a to by free during

Fiscal million, margin gross was full XXXX year Full total full subscription a revenue highlights. revenue, and total $XXX.X percentage subscription our revenue, XX%, year-over-year on was a year growth. for GAAP XX%. of representing as XX% was the Gross touching margin Quickly was XXXX XX%. year year

Total in consideration XX $XX XX% unlevered of million. ended was the by growth fiscal EBITDA flow this million, $X.X adjusted ARR, a deal in million contingent in is expenses We $XXX.X year the free XX% operating margin over the year million, were burdened of with cash in and cohort year-over-year. amount representing $X representing customers spending our

growth our solutions to ability and is across this strategy to driver deploy land-and-expand core enterprise. our A the

homegrown to customers identity, our for long-standing subsequently XXX Fortune manage costs a with solutions. maintenance managing move of For example, to ongoing vendor-first X sought reducing model to associated

quickly units their the situation, systems. with and Directory, digital and use Ping's workforce many that the expanded Intelligence Access, found SSO, to releasing from customer chain Solutions customer remedy the supply new inflexible due back were identity being partner through held the products for To Additionally, MFA business cases.

selected leadership, and applications. was enhanced competitors self-service completeness X,XXX of market platform, to over for ability migrate mission-critical Ping its over the

and will result, be consolidate productivity. partner efforts significantly improve employee and speed the customer go-to-market a systems, and to internal As able vendors

and company phenomenon workforce We Ping SSO, are of solutions to mobile streamline Intelligence cost and management purchase. European and initial In leveraging and homegrown and Ping's processes of buying They a a collection, cases applications. growing went create partner at to an MFA, the experience, also seeing consent are delegation burden services Directory and remove customer, Solutions improved use with secure QX, in to identities. all customer multiple technical the customers Access,

now and the of selected critical Ping as was customer engagement and vendors, will modern productivity. component incumbent over both the and workforce serve enabling

to which newer bring Some intelligence, beginning traction, solutions leverages APIs. are complete as see AI visibility to to API of security our such and

Ping XXX to all we services APIs secure QX, across the the their of API customer win in Intelligence Fortune addition financial fourth gateways. quarter, purchased In highlighted in an existing to their

on end remains balance strong cash of of hand sheet Our at million quarter. with $XX.X the fourth the

we million XXX loan an we as result, annualized December, with term line rate credit. point our $XXX In anticipate And basis a a approximately of interest refinanced improvement.

facility balance a XX, XXXX. credit December XXXX, with revolving $XX.X Our at December date was maturity of million

in software to opportunity us and to We will we be that are taking the confident our a business. structure successful growth are existing capitalization allow this company, reinvest profits

this of ShoCard. acquire we signed year, to QX an agreement In

the no operating year we forecasting contribution approximately million For meaningful revenue full an expenses. $X are total and impact to

leverage our We ShoCard to include and excited to proofing. offering MFA technology are partner ID the augment adaptive team with to their enhanced

Coupled of the offerings, will customers with identity platform. our and we MFA to with other continue and comprehensive boundaries most provide cloud innovation push our the

ASC due and Turning may to of XXX on a that revenue deployment of important model. impact is hybrid EBITDA exhibit guidance, reiterate it high our to our quarterly degree from variability period-to-period the adjusted cloud overall to

seasonality contributing the proportion the experience cycles, do the we fourth with nature annual revenue. largest of purchasing enterprise Additionally, given of quarter

performance ARR primarily assessing time. for For as top KPI Ping line the over this relies reason, on

XXXX to revenue million be For end We XX, ARR further with free to $XX.X $X million March flow and between we million anticipate million. be between $XX.X the and $XXX.X $XXX.X quarter million be project unlevered $X and QX cash to between million.

$XXX million between million anticipate $X ARR and between $XXX.X revenue and cash million; unlevered the For $X we million; XXXX, to $XXX.X and be flow and year free between full million. $XXX million

of revenue in quarterly similar total of contribute revenue, we expected relatively the with fiscal about help deliver and percentages to of expect QX revenue. the further QX QX QX, amount As year largest thinking seasonality continuing our to

flow XX-K, footnote to as acquisition mentioned burdened onetime contingency with guidance certain like million is associated call $X.X of annual unlevered one the also the that of Beam. XXXX our free such in by five items would Elastic of cash out We payment our the

take for to will advantage expectations growth and as reps, partnerships Speaking on success. and invest sales communicated, and and cash training customer free enablement, primarily to to large channel will opportunity. investments our we specifically be strategically flow market continue include which our quota-carrying These focused unlevered of marketing, XXXX, previously in

bring XXXX levels a to will investments XXXX, continued non-GAAP These in similar than across ARR of quarters that saw we with operating as percentage higher in XXXX. in slightly expenses a distribution total

by encouraged are investments. the we points from early proof are these We seeing

Finally, $XX expect the compensation for approximately of million. we stock-based full year,

In positioned sharing to digital the premier closing, to partnerships we're and for throughout full progress journeys, pleased Ping on large industry. year our and remains with and XXXX. choice our and security innovative quarter customers' bold fourth and the they we initiatives XXXX strong look embark results, their forward our global transformation in enterprises as be our

over turn With questions. for that, it I'll the operator your to

Operator

first Sachs. [Operator from comes Please go The Goldman question of Heather Instructions] Bellini ahead.

open. Your line is

Heather Bellini

the comment so your one guess, had wanted sale prepared I bit Great. about in you taking of then base. into to remarks follow-up you just and question products for a your time. I Thank much little installed multiple follow-up. I one the the made on

what us wondering you sense new maybe it compare that today. if it what like anything does just driving is if product your ago? the How COVID you look breadth customers the what's related related the business was could And to follow-up give outlook us And question signing kind of that. in of you're a to or would seeing was virus? I with a of year you're conservatism share to be in then the could

Andre Durand

is Thank Andre you. this Heather speaking.

about make multiple customers' I related existing right. your customers of me uptake trends got -- sure question the first you asking Let Were to products?

Heather Bellini

new your customers few Well, that where they're just you're than new products with I like ago? that was they're starting were with -- bigger-size starting at maybe years customers if wondering seeing today more more a

Andre Durand

is absolutely that happening. Yes,

bigger average. are on landing we So

of our products combination or single of to authentication our multifactor companies lot for We their authentication provide customers. combine workforce are a sign-on We global make for solutions. that a see centralized or with up a authority either landing with their

customers here we identity our X. one several of all and cases in QX in, that are in use day day on all also are And on literally we All mentioned X. solutions seeing -- now going

that a is So trend.

Secondly, you related were to about asking any coronavirus. impacts the

first yes, our kind state have that in that of I sensible today. be are kind are to relative are seeing an and all coronavirus. going guidelines travel are had do the that And the by thoughts policy. impacted with we by following been any department coronavirus from that think of impacted know to foremost not And That conversations we today said, we not business. have our impact so families

Heather Bellini

you Thank very much.

Operator

Your next Saket is ahead. Barclays. Kalia of from go Please question

line Your is open.

Saket Kalia

Hey thanks. are guys Hey Andre, how you doing?

Andre Durand

thanks. Yes,

Saket Kalia

maybe Andre, with just to Hey start you.

about like Just velocity talk for single of SCA sort vendors can in versus talk the example; about just competitive broadly, that displacements, especially larger you just you area legacy of of competitive can the sign-on landscape? SiteMinder

Andre Durand

a over that Thanks Saket. the of had of RSA noticeably has conference with identity away existing I acquisition Broadcom Yes. that their just back probably conversations and prospects. the CA, the Symantec as stack. customers dozen of kind And Oracle known will from the management I since movement changed I'm well where as atmosphere say acquisition from probably the has had

I a urgency the kind am seen in to of sensing systems legacy that of get off and couple passion frankly years. past of those I energy haven't and

bodes well describing modernization that think displacement legacy I we've of systems. as what those the for So been or

for that in space And been we've years.

web solution relative to the most replacement. access proven have management We

of hundreds stories. have of thousands We've migrated of We applications. success tens

in a been that offerings. We've the migration network. tools self-service with partner of investing lower IT of best risk our cost the and lot the have We

sentiment these there encouraged of we're by And so, enterprises. seeing I'm large in the what

Saket Kalia

for helpful. makes follow-up it. it's for and sense Got Raj. That Maybe you my

sort you for the a bit if remarks, you XXXX whether on maybe adoption, your business? how talk just or think can that to in us, impact even mix cloud contribution that this on calculation touched about of has prepared And in about increases? review cloud just better, You the little but ARR maybe any

Raj Dani

Yes. Thanks, Saket.

of strong cloud offerings. our to see and really continuing adoption all we're momentum So

enabling cloud the As really But than we deploy cloud in rate or We're either our a focused right? your on focused on way, grow mentioned the faster customers to to ARR cloud as our in our past, continues we're in essentially, of overall cloud. their business.

what we of cloud essentially deployment. the that's So in see terms in enterprise

software metrics. question is regardless growth your actually on whether of the In ARR the impact impact or using terms not our agnostic that whether metric. to which our does chooses right? of ARR, of go-to be or -- That we there impact So we're as around no key whether for beauty sell a on cloud ARR to software it customers, would cloud, customer ARR, our

Saket Kalia

much. Very Got guys. very it. helpful you Thank

Operator

Your comes Please of ahead. Markets. from Matt go RBC next Hedberg question Capital

Your open. line is

Matt Hedberg

which guys. Thanks that highlighted customers is Hi. both motion approach taking on guess, with the API this core different quarter it a to Andre your hear. or in you you SSO nice of adjacency done than I a Well Or when both, for considered MFA mind? it wins intelligence my their and I'm questions, quarter. few sort curious, great Raj, sort of product, sales sort is an is of products?

Andre Durand

lot about us Thanks, we uncommon A question APIs, who a CISO, the cares things for into ask the stares. the for or their is enterprise. blank get what the of hacks the of to to all times when the And understanding either and detection the we're of not lot protection typically of talking visibility security of Matt.

or decent of who front somehow protect the of certain. door standard companies identity done in hackers the But door. have for kind the visibility have companies API a These buyers, Most are traffic these in job OWASP gotten and/or recent the leveraging no front API. behind anomalies have years same into our the to

APIs, and the is, these we provide is into visibility is, protection security new. Now reality API as

and what API teams to teams currently understand and And regards back are doing to need understand their so with security. existing threat our many times buyers to go the their

did year conference RSA receive conference doing I blank set later stares they that different. at protect you the when year will is RSA noticeably stage last We would a of, say sentiment were and one kind of kind APIs. number fair I to what the the if the the asked of, at question I

CISOs saying, are the APIs same mission-critical company. These to are

data, understand start have We are apps them. services most of All moving in they we sensitive and and protect are connected kind to them. to of visibility interested that to with our We now want POC. to

say proposition, are with this product beginning I selling interest would to as product. different in that it. market. value to to is that So we the talking right We're But bring center a proposition understand there we of the

Matt Hedberg

That's the great. from to follow-up guys trend Obviously I'm how application to does curious as on go that. byproducts maybe you or of everybody remote I'm that be more curious And then the could you event, one a thoughts coronavirus. But out impacted employees benefits access. think this or of home. working outside about workers when remotely

Andre Durand

the identity-based that, of one being security is in to the the on of security notion VPN of somewhat being network becomes or model. the irrelevant or another on Well way entire building being said the the benefits

by application hear a identity are Trust people that So any allow to you're as identity that resources anywhere. Zero anytime what is identity single when anywhere, its really access you about does -- all strong anywhere from to and security allow sign-on strong to -- resources, essentially association leveraging in workforce to a work hearing foundation, identity with

position good strong ones going are adopted good and Trust to to access especially from roadmap allow solutions, to sign-on their and I home. single kind their while, foundations of workforce are the the a have work adhering really of go that have authentication in Zero and to direct as maybe think are as companies conferencing, video on So management drivers don't that everyone's in identity

Matt Hedberg

That’s done great. Well guys.

Operator

Wells Your question Phil ahead. next go of from Fargo. comes Please Winslow

Your line is open.

Phil Winslow

the I two businesses. Ping employee those on guys. side to of thanks great just in a quarter in Yes, and because the is workforce great your want customer business fiscal focus Congrats that versus obviously year. unique fact on

two guess just first trends ago seeing? of question and Andre you've in segments? you're been sort business a could there to technology just changed Raj. mix or hearing you're wonder And and when trends just like think thinking? remind two you versus just maybe What's us looks what rate about the And if you're of year those years from what growth you I then I ago? hearing the the and what what ARR customers

Andre Durand

Phil. Thanks

the first So question. and breaking serving We tackle that between will tell -- with you all customer, your been identity types. for up ARR long relatively serving have time. I'll our necessarily workforce a We're but one actually we out I balanced not grew platform

and to -- capability within able users use to and scale. At hundreds regardless of deliver be of the Ping up platform have we So the case. of to scale the performance of millions

and So said, recent is you right? look customer, I'd at when -- newer more the more has But that case X. faster overall, the customer use are be the leaning that So balanced seeing balanced growing being the it's is than ARR it towards overall of ARR rate continue business. we will been trends to growth say fairly between the

Raj Dani

piece of second that. take the I'll

opportunities opportunity, frankly. customer So market actually we different two see in the

We services has a and/or all especially various XX over moment at initiatives that considered that they experience grown become M&A time digital transformation through and might course experience the XX of have have customer user where were the that the built to very years and across last have of are companies in seeing acquired transformation separate. fragmented service offerings the

engage world, to Google is people when access with the this have ID, company ID. one and a one Amazon and or an see what the Microsoft one or identity In through to want all identity new They services. or login, Apple ID, experience all customers services. have one they products And ID

of consolidating of these modernization identity seeing access into systems that a all disparate customer identity is legacy a systems So are and management single large we system.

have for These a long by with are environments time. typically large deals. IT. been that They're because fairly around They're we're dealing complicated, led

in log is said, customer one the As I goal. the

Here Ping is uniquely qualified.

performance, integrations the it make advanced scale projects possible to our Our of for first happen. these security large audience. capabilities, our That's all

identity thinking the time to And audience a about inside thinking delivery not new line API-first of want for they of of thinking up about about entire a just them, simple in are business There's and new app. enterprise. -- they're are IDaaS to application. They code how who their solution a developers market of to time

And thinking customer, of for Again, PingOne they're target have because them in new that a enterprise. about solution business. for not in our it that line does entire the we developer

make I between two. some the getting they're by what consolidated doing So had years those lines doing for IT. or been In business XX these a today want last business of senses, are that is line distinction now to create of --

Operator

Zelnick next Suisse. Your of go ahead. Please from Brad question comes Credit

is line open. Your

Brad Zelnick

been in Thanks marketing and of what productivity Fantastic. just plans? year? sales wanted in investments much. assumptions And are your to some on an you've update year this making. I Guys, full your so are that for get guidance you along How the your far

Andre Durand

want you take do Raj, to that?

Raj Dani

Sure.

in the planning about. back process we've really midst as started sales our talked we're Brad, XXXX. and for It the of marketing So, investment in

XXXX, and XXXX and to throughout ramp enablement productivity we expect that and increase. training see So hiring, through

to also that to we're mature really in those when products, that new these investments the events gestate. making continue pointing there confluence occur. have pointing all in products made these -- all to past we're those We're really year to and where the And coupled investments as -- with all XXXX have and and point XXXX the as the new in of

Brad Zelnick

on with solutions. follow-up And quickly to I Raj. the I Andre, if new could touch just Thanks, wanted Andre. maybe two

on WorkforceXXX. Could and Thanks. new builds use CustomerXXX released that addressing. what portfolio product idea the us maybe of an you you're how give existing recently You cases and

Andre Durand

Yes, to. happy

of you large same with will, multifactor were adding following many So then directory. in essentially of at a companies if or their workforce profiles the user our successful single leveraging evolution, and we their starting in unifying -- customers and times authentication sign-on, either our -- this observed is the that

is look the authentication enable, CustomerXXX if so, they service you a centralized entire And actually global are, the they or what enterprise. those a authority for and actually authentication what at capabilities, WorkforceXXX

being of idea combine there customer with standards all and access then source with and better price, cases time and single The resources users our professional XXX services they use best into XXX preconfigured leverage strongly a gain faster single single value. solution to to solutions workforce get with to the of one package bundled, to a best The And and access need all the authenticate on applications truth. they from to. to to sign

Operator

Your Pritchard Citigroup. comes Walter next from go Please of question ahead.

line Your is open.

Drew Foster

suggests Thanks recent to identity Foster Walter. Drew administration with work platforms their questions. looking and access our We on some taking did their identity are survey platforms. management actually is This for for and CISOs consolidate governance that that

in you hearing something on changing And that are preferences? the how to adapting more sort if can wondering you just planning of corroborate field. I'm that's of those

Andre Durand

Yes. Thanks for the question.

are We and a and our us say CyberArk, seeing for partners the others. not Salepoint customers ask between consolidation

companies ask I serve. is So the mentioned we strong market maybe expect that an with best-in-class that the from that and It's enterprise solutions. others. why downstream Enterprises partnerships we that have is that

access We with And management. pleased privileged to and authentication to down access do and or for along partnerships deploying either who our be easy frankly doubling those. management want happen we're governance it with services on make customers Ping's

with those practices easy know use along pressure commentary also with around make is products to that lines. of of those they cases have the the we're want are But companies. our it technologies Certainly various why the with we or the integration partners integration we the partner reason Many involved. investing not our seeing all and partners that in so of

Drew Foster

And just I six seat helped of terms That's factors Thanks. retention quarters the expansion your of color any or that in -- was Thanks. rate net dollar-based for then change sustain XXX% you the some wondering if really have near things? other versus you above helpful. combination put here in here around could last

Raj Dani

into they which the solutions or more number use is case. for they Well we just solutions buying essentially expand a in can use of may existing it's similar they They already use a also or identities Drew, of additional case covered could grow expand cases. our different things like in Or within base. a really with that terms Workforce how just combination of have products buy

we're What expand count additional and value is, to we ability sell quick the see them additional seeing customers is that large and in just enterprises cases. to we're take from through to deliver for pride as that, is It's then solutions them. fairly great typically bands And money. we buy seeing more because our with less identities. as our on them so in expansion coming of we we these customers and seat use well land what value with And to the time value where

first really from it's the So X.

Andre Durand

is, it to add larger would And Maybe goes question are retention the that. net which seeing I the the lands. only headwind to we rate, I to had, Heather first think

products the what upfront, right been so, that some expansion in multiple one we they're day maybe of consumed natural And that have on buying and they've seen might have would year.

Operator

Your ahead. go next question comes from Stifel. Gur Please from Talpaz

Your line is open.

Gur Talpaz

briefly. Have a remarks GDPR seen drill or Thanks CIAM? in Andre, regulation you my in like initiatives into your question. that. for want and shift awareness to I you mentioned CCPA drive great. taking Okay, interest prepared in

Andre Durand

have. We absolutely

is a are consent new I'm So gather to users. a kind required pointing identity the to this of consent did offer which systems out creating management of capability, In Companies now the their management. of the particular, regulation box. not demand privacy for

And consent parties. be with to that systems user might that that propagate the then information all about sharing third

of our have we capture directory other actually services the and out-of-box capabilities on built so, consumers. And manage that in actually behalf consent and

The challenged second deeper, is, of result the enterprises with as have to partners only fines, part information. right access this that associated to are regulation your that now question a is which ensuring a and bit personal little the

are So has consented? requesting user map the the it's that to that They enough to to requesters also that simply say, have not information. actually

driving that this That last in of to all different APIs solution for set a your is entire are who a allows receive the of information enterprise, the define partners introduced to demand to of policies and of governance, top across repositories. of the connected the your -- called as that all can hundreds them information top receive what data we product Think identity the over product. sits a have not year new PingDataGovernance your uncommon that identity can which information. of to Sits company over enterprises information have as of the

the policy the fines. product upon associated over And way the control it these product, companies centralized the say, of is allowed regulations and better demand literally sees get data to This allowing will directly that. fines. request is that to is the a of But product your based sharing, social hopefully driven and the a of partner heels see out of the out security response. if of on strip not that This example, stay that for of

Gur Talpaz

That's really Andre. for helpful. And more maybe you one

you noted, funding a getting it But movement out out pure-play to back going of ahead coming there like in new space how there's positioned kind the of lot Just the coming see of of early I curve. yourself do really the API the think, versus, round feels RSA these and product, you security as days. of and you've of been

Andre Durand

that last We a suggest. lead, pretty in Ping significant the accelerated stealth years, of we acquired joined they've company years. couple I for four have that Ping technology then once would has lead, in the nearly The was team. And

position, are coming advantage we So advantage to I really our what's a feel take of good position in first-mover in direction. in

providing leg defense. here As needs provides thing there API APIs Ping a front programs, I security APIs. the standards is This just over to stool. the today already And to of door is what second mentioned that, other The to to are data the is now APIs. multiple the the these of to OWASP third level happen the facets protect governance protect

make they they APIs? a APIs, talk protect and story through comprehensive API-first data what So those when are doesn't What has here. their their sure a the lead about we initiatives, very that Ping are to we to customer doing doing into go wrong

Gur Talpaz

Very helpful, thank you.

Operator

go comes of America. ahead. from Bank Your next of Please Liani Tal question

Your line is open.

Tal Liani

just then on have guidance quick question question a Hi the the guys. business. a and first I on

outlook On the $X is above. the the guidance, year but million, $X expectations by million you for beat

So of guidance you the of that that's This but the reducing part year. $X embedded the effectively million rest by that's the you're for what is mean, kind not numbers. means in the

And could the year? quarters. performance for you through better drive could drive the the are is, the remaining are -- conservative why that So question rest factors what what of the

So that's you this and want why number don't one. other go to number then one. the I I'll answer two, And --

Raj Dani

Okay.

Tal. Sure Okay. Thanks.

So to and new view best year products. see we're continue to today. guide we strong the see our And guidance philosophy the about of all is to excited the we demand where

against So talked as we're we've about. investing

we it you with the every these certainly products be But quarter, of that we that. We're we as update enterprise expect for new continue. on and demand leave are to impact points. Ping But how just in could we And cautious accelerants. model to very strong the seeing the will proof early is which I'll

Tal Liani

Got it.

don't want I'm... it's environment you change the more public, mouths, there's of went why your conservatism the this I to quarters words no two So put versus versus see in ago upside way you that's the in when your quarter?

Raj Dani

we're well little pipeline, our to say as think our current just customers come we just constantly is visibility a would and with guidance. as where our it with up differently. I getting our we're at to -- just say that's how Yes I'd have philosophy data from guide field looking we I our triangulating

So...

Tal Liani

Okay.

The question second about is the also. numbers

up was bit the to? before. OpEx? rest roughly Your see $X for year? do what Where is R&D. math the And the the it majority's of expected in little the Why expected a million above about outlook You I OpEx we on if do what going higher street it what's we touched

Raj Dani

The QX? R&D for

Tal Liani

about street The -- $XX million why I'm $XX was OpEx. the million. on the you answer at OpEx was just hold Yes don't about

R&D sales -- said expectations. quarter, marketing So $X about was I I'm sales there are majority. it this million sorry, the was marketing -- and for And above and

Raj Dani

go And which that's very really behind and new consistent engine the there. Tal R&D now are Yes. giving invested traction, been marketing by putting fairly the that we're several with messaging which in Yes. introduced from -- seeing product in we've is, products get muscle sales we've encouraged and early the our and the were we've we're

areas reps, to have and extent, to in growth. channel what success to So We're all our to that doing customer enablement, see further that's in help those opportunities numbers. invest quota-carrying invest the drive sales in you we

Operator

Your next question James. go of from ahead. Raymond comes Please Michael Turits

open. is line Your

Michael Turits

their Okta with replacement are side, gateway? the Hey, legacy of on guys. any access seeing Back more you

Andre Durand

transitions the replacement gateway probably access that's think network scariest will present companies been we proven the And those become some of replacements. tens legacy with fact many done systems thousands systems, having to are These and has of the Okta reputation. The so I WAM as through. of migrated, go apps not of largely large due so in a that our

only that any change those environments, these involved -- very everything, invested product. conservatism proven. mission to are would connected a several that of You result and I is years protecting that we've there's all. to replacement, this as They're legacy an in it's Ping, of critical Ping Ping. that, replacement The era things. seen, very in for say, of big it's typically And this, they're can applications. along really mission-critical sense, mature, teams are our that with goes It's of it's And those WAM has every first

Michael Turits

then from on Andre, PingOne enterprises about for you increase And a just enterprises the Can thanks very take as well consumer? as for much especially larger talk rate, for follow-up. that.

Andre Durand

cloud applications. center to all their customers you data said, of deploy enterprises turns of leverage in integrate leverage a I out enterprises Well, our SaaS as our fashion. uncommon on-prem if the connect of Yes. hybrid are it also Not hybrid, that in most of will. to large many for to assets, software PingOne and Ping all kind the their large solution Simultaneously our

many way. large so, deployed of And our customers exactly have that us

hundreds on-prem. leveraging connect And had shall PingID, that of essentially front, cloud They're leveraging I essentially that we've to now. product to adoption. hundreds solid service our PingOne. is the software and on our really out, MFA, is we to to it They're legacy point a our customers connect And cloud. leveraging and of service have

Operator

of Blair. question William Please Ho comes ahead. next from Your Jonathan go

line open. is Your

Jonathan Ho

than just percentage trends public this And cloud of seeing opt Ping you Ping actually offering a in native folks general AWS Good Does what offering? do a maybe out we're are now. shift afternoon. there? or why sort deployments curious, use rather that the to I'm follow of AWS listed

Raj Dani

or native deploy for Ping to a start with that AWS Ping customer their Azure. wants cloud is the really offering part. last no I'll There to in

that don't I of been in have deploying the their Ping percentage. to say, in just, have cloud would companies While I choice. We've quarters two begin inventory that the maybe last

implementations in in users running one As over I've deployed, we've AWS. the instance. to many company Ping been million got in said, XXX of of authenticating I directory, our PingFederate largest their with in think, AWS prior the them And call, have many

there most company trend a event our we've we're DevOps just recently is an containerization reported volumes think through capabilities. an I in towards ticketing Ping evolution AWS of that also unbelievable of are I native their and deployed closely. why very was the and company the really instance. This advanced the And invested It's transaction has all roof. in of following cloud that

And we as the a that future. primary are seeing for deployment model

cases. such the really in inside cloud those platform of delivering are choice, can deploy their our a way companies We that software some Ping minutes entire in of in

What seeing also of preferred their and have we're is a model companies those model. for practices deploying according security are and own kind a that DevOps especially model use this the of kind to best of consumption all We're large they being in the program seeing deployment the DevOps that going. cases other customer-facing kind as

Jonathan Ho

I to the I initiatives about bit little about you. the training. of the guess Thank go-to-market some bit a you. channel more engaging Thank you're you effort? a continue as that build terms some you new of Can then of think launching programs you terms that with And helpful. engagement, talked little in out talk in just That's channel

Raj Dani

right underway would effort that probably the now. that, I primary say is

with the for of partners the the up the and who many certification trying the audience proud primary pace the implementations. for that obviously train services are of our developed really outside Ping program. having we're of customers So channel to around team professional And deploying essentially is that are our to keep demand

the So primary that focus. is

Operator

of Securities. question Please comes Moskowitz Mizuho from Gregg ahead. go next Your

line Your open. is

Gregg Moskowitz

net were than time I'll a around segment year. afternoon it impacted Thank that or prior level keep one And churn for Andre just in either in know count logos you of added you much new a effectively interest in is you the basis XXXX on the I Okay. low by so XX better in which to guys. very XXXX Maybe much Raj, and was the deemphasizing. customer good that

had improve further you last net I number you something sustainable you is can look guess do potentially think of year are you even the that as the or that But adds question ahead upon?

Andre Durand

great last Well, API our SaaS traction identity our But say offering both we this, question. are in MFA seeing your customer offering, and customers our can't new offering. with comment our of me on let we landing part offering, that

new All us. logos of driving those are for

are We focused on new in now. growth logos

we increasing We as that, investment acquisition. focus on those on years. have didn't dedicated we And said been marketing -- in have and Raj customer team and have have teams sales that we our a in prior focused new do

focus we So started expect -- that It was last began I continues for would was year on accelerate. into we certain. again focusing it and year And XXXX good last that a does year. --

Gregg Moskowitz

helpful. Thank Very you.

Operator

comes next go Oppenheimer. Shaul Your of ahead. from Please question Eyal

is line open. Your

Shaul Eyal

it you on -- Thank just length Thank outlook? me and you. sales in. talk fitting you Good can of as cycle Congrats as as about Andre Thank to guys. typical afternoon the performance the us the outlook. it intelligence also for international domestic it to and relates to relates about versus to you. quarter the the to 'XX and note relates business paying during fiscal ongoing

Andre Durand

can system Raj successful Okay. answer we've said, as POCs. that I'm in of sales innings guess, point. API have purchased their what they right looks now building on that we us in to are, going of product, from And that successful are customers to the now. and making what intelligence, in detecting traffic. cycles looking but in so start for model understand we're with API been customers respect that in to like I they're But, have anomalies frankly, and second see we early visibility production, sure that focused But they the have blocking to we one.

little the a pretty sense, of identity the than into value product different I this management, implementation. is to this prerequisite is the going other where that products future, in significant a product and project bit customers see My were on offer if before a we prerequisite integration

a lighter attacked that I to will. from to of we kind if purchase. existing and And of to are ultimately is going to And goes a a We running of agents today. already as APIs with you all much companies POC as trial in the are think side result manage is that see footprint, API of that a shorter APIs. gateways cycle run This a product the that. we protecting that, suspect, I result sales know are fact the being this about their

As on of of there. with itself all that is They're management enhanced are out the API attacks we've the number the this gateways And result, by as model coming. APIs, the integration the I fact a already done pre-integration all number one. work said, two, of

Shaul Eyal

versus Got it. what then international domestic. And about

Raj Dani

will Yes, Shaul. over our We at last -- don't I couple that focus, ANZ the your growing have second have than I'll our say faster overall question, significantly and that business in to is of investments EMEA when the where in take we in of look and Basically, we in in exposure those direct the we regions, quite America. North ANZ rate years, ARR EMEA particular. And Asia. international expanded

be to strong. it So continues

demand. see Strong demand EMEA revenue do in GAAP we revenue. see in disclose all From strong where a standpoint the shy about we continue of just our our It a-quarter of and as it's to international is, you'll we that. XX-K, still operate. And regions

Operator

Your last question BTIG. comes of from Powell Please ahead. go Gray

open. line Your is

Gray Powell

then, Thanks of you the over I'll of how months, do next that And in. adoption to Great. growth on working about we should rest profile think MFA? the Hi. to product me relative the enterprises quick. are the the Where for be XX curve with most stack? identity XX think category

Andre Durand

ways to have go MFA. still we a long on think I

all strong we way standards app authority fact these and and that central is had their gain but on hybrid has correct MFA campaign. to do MFA sign-on of application applications enable link belief ways But access market. the enterprise. authentication, to innings. before time it MFA models of in security leverage centralized passwords single or have It to MFA long covered are to Putting go from is all are every to global not to an put our has in still single in a authentication for enterprises authentication the that the the a is everywhere early critical. across weak the MFA enterprises. It's some the We individually, every everything to on a that in

Gray Powell

That’s Got very you Thank much. helpful. it.

Operator

time. closing are Durand questions Andre at There remarks. this the no will over further call turn for I to

Andre Durand

you. Thank

to through Thanks everyone digital to want thank we're questions. We today's Ping's certainly forward everyone. the We world upcoming your year joining excited and time I identity. the the So look earnings to mission of call. thoughtful intelligent for continue appreciate and securing

Operator

concludes your This Thank today's for call. participation. you conference

You may now disconnect.

Ping Identity Holding (PING) 4 Mar 202019 Q4 Earnings call transcript