PING - Earnings call transcript Q1 2020 | Ping Identity Holding Corp

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Ping Identity First Quarter 2020 Earnings Call. [Operator Instructions]. Please be advised that today's conference is being recorded. [Operator Instructions]. I would now like to hand the conference over to your speakers today.

Raj Dani

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

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

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

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

Securities ended include filed may March materially Exchange quarterly see could the our to actual for and XX, Securities discussion report you filed Commission, filed discussion for results Exchange the XX-Q refer cause year of report with Form quarter forward-looking will Commission, Today's factors the these that statements. to where company's a XX, XXXX, our and and annual and on statements. Please XX-K on the from and XXXX, December differ ending Form the with filed

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

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

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

And over Andre with to Durand. I'll that, call turn the

Andre Durand

experiencing of are a different. change, lot and Raj. experiences Thanks, all recognize we're our all I

times. For very most, challenging are these

To our all by the COVID-XX, are part, the we're navigate to wishes possible. and current our safety as all are ensure guidelines with we to employees individuals as protected and As best adhering families impacted do safe events. our

environment, no for the multifactor whom months facing at PingFederate providing a employees their to task of charge. secure X many our authentication customers, For solution transitioning we're of work-from-home existing difficult are customers

providing Ping X offers we're sign-on customers, ways multifactor through new authentication. free just championing single this is and customers months For of of are our couple These a transition.

aspects believe has shifted While their We our many remains imperative in is to level mission rising and importance unchanged. secure strategic accelerate ahead. a identity and long-term of impacted new remote our the COVID-XX focus the our workforces, of helping has to near-term customers quarters of will world,

the identity ever, anywhere more Now secure appreciate to In work well Zero come that to beyond enabled interaction necessity. secure future perimeter, be and a believe anytime, work identity weeks, and than the this we has must world Trust enable a the matter security. bodes become has of digital of for

changing end, busiest rapidly conditions near the to continued few quarter, a through lot has weeks April. we our of typically business. Despite continued activity That quarter of close

representing And revenue. ARR XX% $XXX growth. represented customers. to of top QX great culminating ARR of new PingCloud, QX total XX% our revenue in marked As highlighted growth, early enterprise advanced cash flow year-over-year and of by XX% line revenue was million, $XX.X start a a subscription cloud year-over-year, grew a million. total for strong a result, profitability, year, the customer adoption offering

take reflected And of Before our and best foundation that our and the to and we business out diving how can into transparency, results, to like bring plans going in I on forward with build opportunity a not the this with describe COVID-XX has would our consistent may values. quarter's to would like be worst trust Crisis impacted companies. our color numbers. in

role of from communication as renewals well during CIO Insights the brings. position prior in uncertainty CISO and as focus, security roundtables. customer model, enterprise business Furthermore, these teams with places that to the and in constant subscription identity sheet and we're us strategic base, strong success growth market our to COVID-XX. COVID-XX customer begin, our diversified customers focus and interactions on To through strong and balance increasingly vertical profitable a our after weather reaffirm

we the reality, more have identity, been Zero we about we that as, not full important While being see double-down in talk perimeter this and and security ever while until highlighted than security we of Trust all over frozen statement digital foundation identity projects the world, identity could customers Several multi-cloud hybrid have the a experienced from including as past is mission-critical nonidentity month new truth interactions or the or in COVID-XX. foundation. quotes on such have the or

for to accelerated Near X the than use days. of over who or end time XXX% deployments of in XX authentication time applications customers, achieve less of workforce. customers represent line the expanded authentication either had particular, remote power deployed people accelerated their XXX,XXX speak digital a several each March, multifactor solutions. to larger efforts to on multifactor Ping herculean of of our all We scalability, These to and strong in and authentication value the to

until world. experienced a some in larger see leading It's yet recovery note us projects, the forward cycles in crisis. credence in have we giving longer through to large to believe norm the the of continued identity QX, that primarily time, which to have importance industries larger heavily new by stabilization did same delays this in path for the At projects impacted companies to important COVID be our April, sales that to deals, in close will or not were the but move

we found On be to solutions front, incredibly our resilient. renewals the

staff a that in highly customers terms flexibility are the identities result outside be would we consider few we in than adjusting payment seeking rather renewing a verticals to terms, of experiencing license of multiyear, or X-year for anything are reductions, While affected norm. not under as

and placed such teleconferencing center. day per was fielding clients perfectly. focus billion that leverages month, performing as Ping customers increased One in health given and support on which our we reported traffic, their In care, we've XXX the customer, priority special experiencing Ping past our service, responder in over transactions first infrastructure

that which performed in without also to infrastructure who investment reported work-from-home. Another flawlessly shift K-XX incident. surge traffic, online for board, in the immediately position Ping to Ping Ping has their Across that surges in in have put reported a has them and customer serves learning strong customers the their traffic severalfold handled a

of hybrid a leader interactions, result remain the identity. we enterprise well cloud in and to Ping believe COVID-XX positioned is these weather As

it's it's support to is remotely; precisely a impact digital While and business, enterprises one partners thing difficult forecast customers, the be requirement. certain: long-term to for employees longer secure on no nice-to-have, a is equipped our must their

our to milestone XX of and proud in a Fortune highlight now are and as statistics few in customer Ping Now begin, say gears advantages we the further flexibility To secure I cloud, would infrastructure. the manage like of hybrid reached XX% IT new customers solution give notable Furthermore, enterprises of validating Ping QX deploying are the a their we they switch XXX. and the and we the architectural QX wins. unique to

front, leverages On PingCloud This single financial testament of continued customer-facing our directory. central the providers and largest full the for Ping's data the and advanced This of their and act large million superior cloud. technology enterprise one and in for customer support advanced flexibility, ability control to Ping cloud investments entire the as provide deal new access our to multifactor $X to markets was sign-on, of the deployments. is for ARR security chosen enterprise our cloud our of authentication, landscape. complement solution chose identity service capabilities

leveraging expanded identity accounting into Ping are their their In another systems. use Ping legacy identity They migration their from for to example, case. Big a leveraging X accelerate workforce, firm off customer

ARR Before Ping. million the $X expansion, in the customer with was already spending approximately

By this already to leveraging federal X agency In million customer-facing example, over secure grow as into a XX Ping's in will utilizing access to increases. expanded provide applications, case use next within years. The deployment expected is Ping current agency use volume large state, case. a from customer the citizen-facing third of now the million users the applications X for partner platform number for for to the

winning customers to see expanding and with new existing continue positive addition with new to customers, points we solutions. our proof In

requirements million customers, creating efforts. to existing our identity is and privacy them transaction The with and The and implementation existing foundation serve our single complement and of ARR, privacy in and their expanded to the to managing consent solution Ping their time. regulatory will same compliance the spending financial as strong over Ping, the into a allowing customer of $X new a company assist privacy data for in through view comply governance One services compliance forward. at was legal strict going

and to to additional infrastructure. solution Customers strong AWS the placing layer AWS into work-from-home are we Ping's and cloud by product security procure secure can deploy integral Our strategies. Amazon technology ecosystem go-to-market QX, part channel part an built strong a of as we In partnership and our of now our with their authentication and our expanded adding an partners while success MFA of our Marketplace.

for new Slack the FX, needs us migration we off work-from-home to world-class mobile secure integrations As capabilities, continue for which we simplify to new private dashboards APIs the and of offerings in In building hybrid risk the advanced highlighted Ping's services the applications, continue the new public, Zoom, enhancements API which delivered and customers. Zscaler. QX, of to or meeting to enterprise. MFA, adaptive security new Ping to authentication our streamline highlight PingId in self-service new integrations the IBM, our investment of and the and PingCloud, with Akana services, Kong usage to These capabilities monitor deployment of look to and an new legacy by interactive platform with expect authentication Ping Ping, future, array new innovation commitment solutions

more first and this resiliency the a Ping sterling and by In the to our and closing, pleased transformation, at remains platform we're even COVID-XX. of areas vital employees performance quarter scale X of massive enterprise rendered digital security the dedication difficult with time. our results, component Ping imperative during

We and in the that several track enterprise the we offered. our on important industries including geography is business diversified comfort dimensions, along market us in our of solutions outlook confidence Our remain and market and business, gain gives opportunity. served, the in bullish cases record use knowing

Raj call would turn Dani quarter's I to in walk the more like the results to detail. through now to over Raj?

Raj Dani

Thanks, Andre.

very QX mentioned, execution. As are our and pleased we with results

team, cross-selling of with model, balance accounts. by business turbulent growth nature of navigate quarter representing sheet, industries from positioned year-over-year solutions XX%. of customers our across big we business Given into well our feel to the ended and customers of ARR We customer the enterprise growth first was strategic base million, economy. with strong Growth and our base diversification driven the the landing new our and ARR $XXX subscription verticals,

million, representing First quarter $XX.X growth. total was XX% revenue year-over-year

contract a calculated In trailing our rate we XX-month hedge XXX%, new was retention dollar-based and market shorter uncertainty. net experienced March, durations to sought renewals on against deals as customers both In basis. on QX,

customers. Engagement by-product the a partner. from quarter, chosen on process was While it Ping as cycles these decrease in prior go-forward existing remains from sequential certain approval X% this deals a been represents longer a has customers with larger as strong of

However, remainder final after stated, to purchase refer decision-making otherwise the mounting P&L, I to Unless solely of the was QX, uncertainty. will postponed metrics. due non-GAAP to macro for

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

margin the margin gross million, Gross due cash in in capital million operating XX%. and and than a EBITDA representing million comparatively, first margin collections. were was primarily XX%, higher was to marketing. primarily the quarter expected $X.X first flow subscription free the in favorable $X.X XX%. our Unlevered quarter and $XX during cash first Total quarter quarter, for was deferred expenditures sales driven by GAAP was the Adjusted increases expenses of

QX. as and the our help longer with measurably case. turning to solutions market meet We MFA well customer include security applications and customer as are to our can where use initiatives, existing continued no These excited growth scale cloud growth and them their see are requirements. in in receive new drive and Enterprises acquisition to growth positive solutions Ping feedback

In work-from-home and secure addition, solutions times. of growth new strategic these even identity customer seeing acquisition a team positive enterprises towards remains uncertain looking in with are we Ping's our signs priority, to

that yet vital momentum While remote some the legacy environment has but We prolong continue April, to deemed particularly modernization the the the identity projects work to created call to can another surmise just strategic current activity we may seeing this not is environment as are modernize. from through migrations, gain end of business.

Ping visibility has our less last far forward, Looking in the difficult spoke remainder than when March, times but the of in past. into is weathered XXXX we early

the with in Our investing track taught of X mind. us record has decades spans prudently nearly ROI and importance

and go-to-market operating business we to our in position of degree continue when us the believe model leverage a demonstrated investments and economy Our technologies will recovers. high growth strong that thus, key has initiatives for

the The demonstrates sheer in an geography QX created historic we importance While difficult pandemic uncertainty identity, COVID-XX. makes for predict the elevated has to that are vertical magnitude it the modern the this of it future. cognizant and enterprises like of never event world every and experienced has

our XXXX depth and is guidance believe a to we have for until full withdraw it result, we of the handle prudent a line impact As recovery. on better year time

For between $XX from we convert negative to incorporates ARR XXXX, sponsorship quarter This fees XX, $XXX.X be million format as million revenue XXXX. $XX impact range a virtual June Identiverse be to million approximately we the million. registration $X to $XXX.X revenue revenue the million and project and ending between event in in and and

In addition, anticipates This on impact shorter-term and the deployment mix in growth to overall this and revenue our relative business. with duration have highlights license under ratable customers subscriptions XXX. revenue ASC that faster GAAP the our contract

million we higher. contract with circumstances, longer revenue approximately normal durations, come would to expected $X have Under in

management evaluating of presentation for the the revenue point impacts we continue more on year-over-year of key Please metric color As subscription earnings a our to refer business. for a to ARR growth as the accompanying result, variances. to

to expect we $X cash free from unlevered million. Finally, to flow breakeven range

reminder, we QX, a flow $X.X As guidance. will contingent Beam free in XXXX payment acquisition Elastic unlevered to of related burdens cash million which our a have

quarter. are wider than is ARR provide the our normally the primarily because Our guidance last month in booked would of majority the ranges we of

guidance stability operations. existing in have impacts deferring reviews until own reflects We been similar internal QX to that our own conducting to their Thus, following business and are customers confident our on transformational some feel noticed protocols, those for factors. closely capabilities prospects the expanding large longer our near-term initiatives they the are of and

relative secure applications. to While could to customer see larger historic retention sales levels, enterprises to we their longer as cycles deals we continue to transformational high expect on on remain mission-critical Ping rely

will customers by with on impacted team COVID-XX. as renewals Our payment those items such heavily particularly work terms,

will of the long-term longer-term It's size our engineers prudent our take extremely to business. fully impact attractiveness potential our will continuing continue and of of before going on COVID-XX to we manifest investments into invest in model sufficient support the growth enterprise-purchasing We cycles. increased global optimistic to ability we have support. customers quota-carrying and our remain time customer and to year, further sales our market, augment in economy solutions. an enable in Throughout and about the reps, the product the the and to market clarity These grow confidence make in hire

we're for enterprise the Ping with customer solutions. results, pleased the modern positive we're product from closing, journeys, our quarter In our to digital and respect secure seeing to first sales the base and providing resiliency scalable, security transformation marketing of and points proof global enterprises, choice be and our large with and their investments. remains positioned premier

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

Operator

comes the line [Operator Goldman Instructions] question from of Bellini Your Heather first with Sachs.

Unidentified Analyst

Heather. is This on for Caroline

more investments this reps you environment impacts also your the I well you and about is off, how can and and cadence hiring question investments. hire are hope first your give First ramped. and do really curious these ability healthy that current families in staying doing if and about sales the reps your just My an environment. to update specifically, I'm us get and your marketing

Andre Durand

Andre, Hi, Caroline. This and I'll that take is question.

investments continue the we to So, company. make in

planning year. We not have, most hires. deferred this of sales just with in our for position entered existing have, new respect for capacity year as companies our hires, good many the but a some in We to the year except for next critical

we feel so And good that. about

remote how prospects insignificant engage monitored we've or essentially was out customers. We we before with respect had our environment business do or Ping in COVID, to remote And our prospects so closely with actually interruption with and to either it customers. have fairly operate work a ability turns largely

Unidentified Analyst

little if to in And retention it attributed versus, my much of the more larger is make might is with seeing any of of rate. a landing later? how on I'm then of net curious kind follow-up you're And then to which changes terms set customers harder just perhaps, churn. COVID-XX a products, downtick expand bit the

Raj Dani

Yes.

Raj. to that going retention be expect platform would it this QX take in be went net resilient, to longer to downtick as high, couple has incredibly is high incredibly one. we historically. be has retention Caroline, of I'll as right? just well in a The forward Basically, proven and So Ping retention attributable procurement into a honest. that to slight the I say directly base deals rate remains was cycle, that

as So industries, and we QX, in into mentioned, legal the to I progress. have And ton impacted was that engagement process even contracts past, deep into retention And But rate. these -- your of impacted the think, deals had deals. lands net QX. we're highly customer continuing are specific in larger those would seeing have Andre going a in it to

Operator

next comes with Hedberg Matt from question Your the RBC. of line

Matt Hedberg

for That really, ARR Raj, clarity the your for Maybe, and deck thanks about was your the, remarks helpful. in slide the and differences revenue in between prepared guys. you super

can volatile estimate. what ASC XXX you low a the wondering, of can lot and obviously, your in QX frame That form end Now I'm our of your guidance than was up which for a said, with your effectively line terms ARR, recovery. of make are in more revenue high some of assumptions sort

Raj Dani

Sure.

deployment deployment million factors low prudent when So XXX I it have in really, revenue. and a would about say of are is we're of terms about we equation. mix, of of a terms duration the deals in higher said, would to just So And related there's from we being the close. an the on also larger $X duration-normalized high $X couple mix, the million and like basis, assuming, the right? really part duration end of and

highly in XX-day to may industries, X. deals And see not industries, And assuming slip a we're say, non-impacted, that impacted highly a XX- affected within just may slip. we're or we that. as impacted in So industries, quarter should assuming I

So been in timing just it's cautious if, where have or identity not. of that's from the The little highly deals, world. of matter we where high. It significant digital when, And and in sort really, these when close. customer security industries just all But are prudent perspective, engagement underpins they're importance impacted we they of hit not a around super remains deals have quarter. whether a the those engagement, the a

Matt Hedberg

impacted then, post-COVID customers that think PingCloud? there majority for That's super impressive. new a customers helpful, to half Raj. that normal COVID about this might of super see Is Andre, for mix? a choosing be even is you And how of new PingCloud any way And you choosing

Andre Durand

Yes.

was that or under queried control, the of north enterprises. reported sales are look of So, platform we've trend. And a kind I as was either I Amazon that and going actually And in our as SaaS cloud that Google the of What can on offer We quarters. offerings to is Ping was can forward, in is know that a that, a for PingCloud. seeing describe their Cloud but gets Ping or he deploy Ping been or options private clear, under tenets. customers the trend deployment large in consume their choose what of also XX% consuming or engineers that we Azure choice growing are deploying be I saying confusing, of one their or control. that maybe as Ping public there a long-lived the bit we it, way, customers platform in believe that they cloud the to unique we forward, little customers control or your flexibility preference and our They

that our in doing made a the we've market to is in really to year last We accelerating cloud. enable of do the and offerings pleased the that adoption that in investments the are customers our lot

Operator

comes with from the Kalia of Saket question Barclays Capital. next line Your

Saket Kalia

you. for first maybe Andre,

Oracle a less willing in for CA it this new COVID? Manager, can But still bit or ask that about systems that prepared environment? of you type prospective You desire a light to expressly, touched modernize SiteMinder customers they're do more or the saying in of legacy their to your Identity in just an on remarks. Meaning, just about talk are you like are using feel explore their those project of identity your some what little to customers

Andre Durand

from they had had Well, couple the least with fundamentally the the of conversations is reflected have critical quote the to where I've foundation network XX course a in held of days. to than by the I'll the kind corporate to ever roundtables work-from-home so digital CISO dozen new they speak and over this has a the dozen another world I've -- recognize identity or conversations environment. the they've at as a perimeter half half more that I've accelerated maybe a clearly of CIOs. dozen of Universally, and security last defined

between them that seems and an path, gets there logic mobile the if you a So, connection Zero events, or customers. the that to current will, current environment gets interactions, importance clear digital interactions, to to to of them better with identity be the foundation Trust,

of is -- understood by Now inside the identity months of are large ago realm best that, infrastructure. the it fairly I companies. We've projects general probably that think these of legacy several had had been purchasing behavior modernizing in started

those and towards not As that reported, whether their closure. those they surprised, are nature would end guess, or really would shrink. with reinforcement, the obviously, call And an of level the priority projects interested, which and resume, through, QX, company Raj if it, they level pleasantly would we've continuing. with all resume, projects or in saying of of the not of of I been extremely urgency We additional we've identity, whether what you reported they went inside that were the will, delayed or I temporarily mission-critical been about scrutiny the

yet have It's occur haven't them to been X, oh, have been expect weeks COVID, X necessarily I a not would I going frankly, are, are and heard, total. about accelerate to of this result that they go maybe coming. we're maybe those in only to as project, I directly yet. one and privy and Now conversations just

X in their the or And X so many weeks, remote. were getting first executing companies workforce tactics the of absorbed just

Saket Kalia

Andre. sense, Raj. lot for follow-up of you, a for makes Maybe That it. Got my

clearly prepared more new contracts You renewals durations, opted that has on impact mentioned revenue. some which and shorter an the for of in remarks

guess, think subscription about the So do revenue you thinking to that, how in component? are I Does that forecast maybe revenue sort of cloud multiyear, the multiyear guide, about as QX are subscription make the just revenue And how how I QX? guess, you the term sense? you you thinking about connected versus

Raj Dani

definitely. Hi, Yes, Saket.

So from health for revenue why saying of a consistent best is and the perspective, this fairly growth the in exactly ARR that the along metric all measure we've is go-to and for us been the subscription business.

Our that we revenue by terms. for in QX, QX. used impacted was a guide as also we shorter And how sort modeled of

saw We going at knowing deals some visibility customers CISO, deals, -- and more get we as did scrutinized. is higher, internally every contract the get right, approved and the just So top everybody were duration forward. see started cycle priorities to the like to as started is got contraction to super that important, customers X-year more deals of CIO so to X identity moving security on the this procurement

tilt assuming more And towards that continued we're there's drop QX. deals. revenue in there X-year So that causing that be will just a what's is mix

SEC filings. part in revenue be duration-normalized as revenue that and it's we're the revenue at would a the basis, growing mentioned most earlier, $X million is that on duration, as ratable of ratable the pace more you'll see a expect just Now of And the growth I which we to is in and that a higher. about seeing, that small

Operator

comes Pritchard line question the with from of Walter Citi. next your And

Walter Pritchard

questions. Two

on-prem, but if relates to the already able you think to cloud, propensity those on or -- look and on-prem on to sort off one, any at versus as pushed if just the in cloud? hold, projects there there cycles, been of to asked deal cloud the sort customers deals Just the be propensity difference pushed bite of you of for get pieces put was versus it in

Andre Durand

in for any modernization enterprises not Andre and we acceleration is enterprises, take Many of hybrid got the around XX, for gradual. been think the And been in complex if seen one XX how building large in we've they a Walter. deployment of large a that legitimate the we've if here, system type for deployment say ahead very has times cloud consume of models. we've behavior in this months, years. seen I been journey shift don't have preference want legacy adoption mean to and I I of an identity now give years, the difference another. can't reasons in our as will the authority speaking might they place for that them. where plan over to capabilities they've quarters, Yes,

And on deployment -- -- I experiencing I anything don't not noticed what so yes, or drastically change that have we're certainly, we seen would haven't preference.

Walter Pritchard

driven an numbers, any around update, you're around MFA And or magnitude know then anything, general penetration has in I pickup. just you as if if of what of in order -- sort not have specific here anything base. terms your MFA the sense giving of but to we've seen

Andre Durand

go. offerings But certainly identity we've now or their -- to companies There's enterprises SaaS we're of still But hundreds our suffice Ping talking are and so platform. their a most successful ways percentages. one -- added are been hundreds or PingID. that numbers have penetration. MFA good it giving say, we're of capabilities we've not to really has got to And leveraging

Walter Pritchard

different it of way, Maybe you sort a COVID that have in or a with to place? and seen not just underway big ask was uptick necessarily already

Andre Durand

It COVID. was underway long before

than particular XXX,XXX that scheduled And X of weeks. deployed months, those. quarters, each less We XX if over it's there's X customers were of who that into in them days. their MFAs roughly reported to in on workforce, if think saw, one for PingID maybe and I we both had remote I deployments accelerated it not thing did

saw massive we of that. a acceleration So

had sense. we've our kind Now in say and we of of have that as if and for X are I register open would months MFA, offered that now makes a well free that of hundreds trials, companies hundreds offering

trial to their se. productive the industry offering our a ability an remote really This not to of get way per it's Now was workforce and secure.

that. so we've solution. And unlimited adoption usage of months any unlimited PingID strings. It free of the was an X applications, But seen that of offered MFA user, we good

Operator

next comes with from question your Wells line Phil Fargo. And Winslow of the

Phil Winslow

just that. sense Once give about I and about echo, percentage pushout. of that. on of identity retail, pushouts your does and well. Ping ARR high And of could you hospital of when the want us base the the industries, you despite wanted if whole in affected you just I of size again, guidance follow-up the end the is energy, and And some talked you of in I to think towards that team affected a hope I to your the your Wondering transportation, focus doing represent? families to industries. the you Obviously, one what customer just came sort have just

Andre Durand

as know, markets, very Phil, concentration across Well, all anything end we we're so geos in don't or like have you or that. customers well-diversified

platform which diversification. the is agnostic, that completely vertically helps with So

of impacted in entertainment-related. that couple also couple pushout, to terms were more that were larger that maybe and through there in a industries travel- there were just kind of a So the had cycles. multiple not-so But deals and were go just

down getting Raj? of cautious procurement projecting is enterprise with the cycles, as to business the those have the being we're of of strong some pipe. sort when that those mentioned earlier, in most cycles tend going our those more and through a month of as they month we all of And of signed. come timing traction those in we're last April Now just we on be in done the given are really which approvals. through But quarter, the today of line about

Raj Dani

base. that the for directly expect, would overall hospitality, it impacted piece our those ones like and/or are example, that you travel, smaller verticals, of a actually customer ARR turns out The

Phil Winslow

the that. Great. in think When And about on past. follow-up obviously, we've pipeline, talked then you this your just about a

BXC those the the outlook but Did in would the partner-oriented just also of it, sort call the BXB call business, Anything relative You've you business. got anything the change employee, world to in out the for or X? land? BXC

Andre Durand

were been the of prudent year priorities of September a were in business important the I environment would industry things or of remained would say, we to more macro had large. near immediately priorities has we short- been long identity emphasis user and desire the at were own December were engagement has a environments. assessment of both partners our we to identity outside took plans and planning also use provide nothing year. for digital have I'm in us for changes an the implications adjustments on our once term, look The term, of to that to a immediate report, kind both the I there access and And and any One that foundation when there we into controls COVID, at always to of and we happy say customers. intact October given the for we and felt of going priorities. remote in the seeing, resources, long-term really cycle did corporate our assess is emphasis case. our remote as changed that an All for to what workforce productivity on

So there's X. nothing changes we've about what a of as result experienced case month the that that in last or use

Operator

Blair. Ho of line Jonathan Your William comes from next with question the

Jonathan Ho

the at perhaps running remotely are point? about bit this this done little into deployments? a be really can most talk around you professional challenges you services side? Can Or of any on-site And

Andre Durand

bottom We impact COVID to environments of almost of as really any really of time. rates, been and business strength from And services or customers been to any engagements service some the It's here has have ability of Ping has to productivity services time. there. changed providing remotely actually some for COVID seen for a And usual. of report in or did services. also the our of professional to haven't services frankly, one a it's perform recently we kind not key loss to either of happy utilization work-from-home just Many the our key ProServe, Professional top I'm kind for that professional strengths.

Jonathan Ho

just about both a of maybe well in talked response the about guess little new as what to there offer terms -- then do I sign-on And single build a you as customer you talk initiative for initial pipeline and Can new win rates? this MFA. could and free customer bit customer

Andre Durand

trials And mid-March. I since sign-ups, got of XXX time. as we've had -- over kind effort then, over and said, at hundred several that launched we open this Well, we've

campaign. was global So this a

Now out customers advantage probably, the take actively, prospects wanted we and/or of. only get X could We ran or there to something weeks. immediately X that for that first

But work-for-home; But companies could in of really interest. up on companies we of number a were had just that probably that be value term, us wave their we we if technology that: we've those months customers be to and the out we'll How semblance beyond to turns it that to COVID we're rapid that taken provides seen offer it. adoption of need done us our long conditions. that wasn't with the think X time, have things to resolution happy happy pleased the if we If a, really -- beyond the those that months. Everyone kind and that didn't X as as Frankly, respond translates trial. changing would beyond of is so period help it TBD. of to quickly we're they serve as them something with I get could a them to had that pleased we well. happy back free go normal. And of some

Operator

line with of James. next question the comes Michael from Your Turits Raymond

Michael Turits

Andre, first, work-from-home to log authenticate. to in and need go they or Employees for you.

more of you put, your simply old-fashioned they're demand second and are an tokens? general. just quickly? gone immediate Is accruing X-factor why direct more channel -- in they competitors more to you said to Why for factor, has And Or beneficiary? not wouldn't demand the be it has have it for deploying of is lot of a some that strong So the access seeing up.

Andre Durand

position a have work-from-home had enterprises have call part-time to of larger these X would they them day I'll think Ping all deployed were that many of where they a from a reported, really that I good initiatives, home. -- this week already kind I quickly shift. And as work lot of what reported employees in enabled maybe the occurred, when

So, they had they devices, place. already authentication computers and sign-on addressed already had single in of trusted strong and the issue provisioned and

enterprise think conferencing market on a as, such as service as in market, say, the Zoom. not access is the secure enterprise large simple turning providing or I

modernized, for least identity Ping anywhere of the at enables immediately so Trust the And platform us, deployed experience what any and on saw work benefit we saw device. and integrated recognition the to somewhere that seen customers infrastructure. hybrid but in be older COVID, top of their subsequently that queue to across priority by were and of the pipeline, need continue. We've that having systems evolved validation en deals We those the from impacted was masse Zero a then

the identity hybrid I breadth or technologies in enterprises don't at or of single you week. that the in again, don't these a and sign think deploy those space, large enterprise scale But MFA

you're which gain you work why bump, would mobile all that I immediate Trust, transformation, like I would see if any referring And all things digital so about is reside companies to through cloud I on-prem legacy, all I appropriate resources of those in are those or will near-term those all believe, initiatives, And the those pain access -- once believe their things on anywhere to an Zero expect is device and what resources of kind wherever accelerate. initiatives... points, think things and all we from of experiences, these

Michael Turits

Yes. Yes.

to And then you. I could makes a Raj, obviously on for sense talk or or impact think accommodating the takes then you as there's go terms First, cash year. extension me I yet so weaker follow-up to about don't there. But terms you in you anything puts about, That transformation of terms that no bad of can you're the any guide in be of I Sorry. deals, annually, payment that, Can bigger the and talk flow debt impact to to I shorter-term would is in customer cash get if with that flow? come. billing clarify you of of want know have impacts lot a I finances? just products terms assume And to there any would

Raj Dani

of of and handful see working a fortunate with regain footing. really strong partners sheet material we're in and partners, are regard. on amount, them that help we are Michael. there their to a able to short-term So hasn't basis it's hurting, are not through But been material balance us, customers far, a there to this they We've had have them requests that to out our and until to be a

all not In of what to on think a temporary full all where here overall, you'll responsible But pause, have highest out our is value time of nearest and ROI yes, and we're see figure year. like for to companies done, the terms priorities flow commenting assess cash investments. sort is we're taking I

so we're doing And that.

Our all running. that done we've and we're sort is of over management team and that, off and

our term, pause, which the us. opportunity to to expect into of likely market to slightly flows sort fully this to sales large investments of go marketing temporary near will our after increase of the and we cause ahead So cash advantage take in leaning back

Operator

of line Your next the Brad comes Suisse. Crédit from with question Zelnick

Brad Zelnick

crazy of one Andre, Raj. I've and cloud-based leaning out hearing what got cloud, X, for one lot times for a there customers identity during Andre the suggests into even and are more we're so solutions. these

and So when how does going that now? positioning impact what your leading competitive you're with you're perhaps into opportunities

Andre Durand

you've cloud in heard, we've years investments as making offerings. Well, our for several been significant

Cloud we through customers windshield, their or we a earlier, rearview commented in Amazon, our center, who customers or way seeing the you north the the mirror, deploy number if enterprise the have whereas we our allows cloud. deploying have capability Google kind DevOps of our And Our our of SaaS of now of cloud combination as -- customers, in XX% their have of that's tenet to in of we platform deployed or Ping consume public offering look are your I Azure. Ping platform data as And in the the some platform deployed the identity our of look cloud. SaaS on also

aggressively customer the last PingCloud. upon PingCloud We've that investing in So the seen financial better that. not that part we've to of which to a We've -- shift gradual I offering that services reported that. offering seen been that anticipate that rapid offering, like the year large the our and DevOps into just pretty I shift it's selected builds for a of

for the proving key the solve even be Ping. tend They of our they're just the they differentiating complex model, really looking they've talked preference might out customers And to got on a of I challenges. asset to focus primarily. on problems nature that to that It a a kind when lean into be deployment but flexibility to, is

Brad Zelnick

you're do other factors could, or lower should that and with I Raj. now, one way scenario if right the you but Raj, the about the just that visibility rest metric? on own expansion bounds sensitivity for your how in maybe I of analysis, limited And sense. the on we the the makes world, and That like operating appreciate think moving as needle

Raj Dani

slightly being the that -- Brad, why cycles sort and of just NRR handful So, the of earlier, mentioned back went here worked that -- were into lower, of a why ticks because deals was through QX. reason we are as base I in approval

We continue and high. our of remains and customers to really engagement retention the close business,

aspect to But the and So, retention high extremely rates. it's is seeing solid, difficult timing. deal predict retention I we're really that of think just that

a So, of deals momentum, close. it's to Like be lot process. a engagement, matter a timing all going of in lot the legal said, these I deals of of when seeing deep

we've that timing sort But hopeful some issue. see can -- of there. we're it's a stabilization -- really So it's seen just

Operator

with Talpaz Your next question comes the Stifel. line of Gur from

Gur Talpaz

about? if were on and deals remarks, you have the I some pickup see on discussions just based of based of you in some seeing prepared Andre, a to the commentary the CIAM IAM convergence wanted around talked in

Andre Durand

we've the that been system before, access between ARR part our case. the has system and workforce use all the customer what business management as roughly serve identity our our a since business beginning of belief our use is And of case, refer you types. identity should in That's to the balance belief as reported our reflected the platform customer one and company. Well, and

many platform in for Now ideally customers the that we around of use Ping to deployed our address customer our have the is large privacy or believe extreme and case. existing demands scale of demands suited some that the new of

been X new that. X were think as And into I CIAM or reported of report, least them and/or at customers that we've in the that, as of we expansions we result So deals. customer-related a leaning

So we're very on bullish it.

really proven at really is robust, kind uncontested, if of scale is that Our will. you platform

is had conservative, day. service very billion, the I've As I unique, unique that servicing of was of scale fairly billion XXX well height us I report Ping. kind reported, we over to well transactions one during a to That that, over been XXX sort fairly platform COVID Ping to mean, customer ability that and our

is said, lot near-term work-from-home a focus forward, of looking think, companies. So probably I've I as a for

believe I engagement we things customers think term, accelerate going boardrooms the longer digital and transformation. going digital around, mobile to strategic hit is is that of to priorities the and all

think that and position we've going place we there CIAM our So nice timing our the to in forward. historically seen and the a success us historically investments around is and acceleration going

Gur Talpaz

of That's really shift go and of the the past out stand-alone few environment. kind weeks. the helpful. in And sort Have seen broadly you in of then just here? seen few market more raise some any terms competition a capital vendors We've in here

if saw to you curious see any sort there. Just changes of

Andre Durand

for with for markets is really this them really Nothing has approaches where with integration proven customers, quick, They will. a journey, more success competitive for many with us through been large mean live a enterprises challenges multi-cloud a gold decade, standard figure in landscape us a several them, environments with continues and anything, we I evaluation of to to as major. IT largely technology now sophisticated that pretty The there, world at and hard becoming and which which and the probably out, looking them those hybrid for And if what for either position. are of in years. partners work are gone strong. boundaries you our very had Ping be the that have formed kind of in they've And in strong think and I flexibility People the solidified, know self-service solutions are I appropriate are they're think, if reputation which at or we've approaches technologies of put And precedes provide. evaluate. continues and are. smart. This lot we much over a scale that partnering to the

And XX% continue now Really we of continue over on focused to be Fortune accounts. global those on reported. to to proud large certainly, we the enterprises look, XXX. we'll as focus serve And our very

Operator

the line comes And from your Mizuho. with question next of Gregg Moskowitz

Gregg Moskowitz

just constraints. it one, given the to time keep I'll

what you or and terms for seeing of adoption But So how is multiproduct change if the MFA. growing could earlier, about in the rates could elaborate on changing demand you wondering spoke Andre, environment. this you're -- I'm current overall in

Andre Durand

that multiproduct we Nothing solutions has -- Ping. we products selling products than back. years or expanding cross-selling years better products changed. has introduced multiproduct anything, the it or multiple We simply saw or in getting exception multiproduct character X. we're landing as multiple If solutions or norm day probably became started we and X that with the the base. expand the a into the We land several more nature ago of company product -- not new and become of now has And the big And at started on it. inside matured, X

problems at I team, get I every the as underneath seller products they selling sales how successes think mean, some that solve become and products sell multiple kind the anything, integrate with for multiple they and products. customers, of how if we've better

for already X. customer's hybrid that enterprises in We're our and We and are these solutions or CustomerXXX some all partners access the all to the successful for a the our, their easier cloud several Ping's on that Fortune authentication across accelerate the gives call of environment. really employees XXXX of of deploy most at did solutions This global them the for customers really enterprises, quicker applications day to hundreds secure This to or it X solve launch has over really, our kind our products, all many one start to will those of what pre-integrated combination popular most last capabilities proven making in authority. together, is solution and that place large much of all them the of authenticate with the or just and then enterprises years. that. WorkforceXXX course new deploys The challenge to authentication solution out and centralized been products cloud, packaged solutions global it's

Operator

comes of line from Your the BTIG. final Gray question Powell with

Gray Powell

do then -- that And I a on of there. customer's you using that they if just before? of were they doing, more it bill of some What MFA I other is kind the up in weren't follow with to to questions, on I just from MFA the something when add don't focus QX significant with comp? you uplift benefit you to acceleration on in couple that there want follow-ups promotions much the the see think ARR but Or it's to have quick too a MFA? was like a feel on like the side,

Andre Durand

as I think between give fair is out points don't relative same to price single -- we call it, that the our -- that the the while products, relatively in the it's sign-on it's realm solution. MFA valued, say

And something so us do our leveraging the their not single that be we is upgrade ARR there? they of if that just to MFA. for increases solution, cross-sell or a MFA have then would result customer uncommon and sign-on Raj, it you add materially

Raj Dani

Yes. Hey, Gray.

that We business. I So faster clip the growing we've actually talked including just significantly our the of overall mean, of saw trend products, in continue the a terms ARR pace, MFA, before about at in same SaaS than QX.

So has we do done that relative the it the and to that. really pace always overall saw of business, product just well to continue

Andre Durand

roll MFA of planned in quarter I licenses the the trial, rapid a QX business. X, impact out it's deployment I of over weeks to matter free Really, they was TBD business, think that saw to as or future on days. what a in out trial free in of think result, initially the first still rolled the we had a they pre-existing few

Operator

call management. turn the to over will now And I back

Andre Durand

Thank you.

in year joining to Thank particularly to So We continue the the safety, times. updates call, I for given everyone want on business you. and and thank best today's the provide all earnings wish the progresses. health as you we'll

Operator

concludes for this gentlemen, and you conference participating. Thank Ladies today's call.

disconnect. You may now

Ping Identity Holding (PING) 9 May 202020 Q1 Earnings call transcript