PING - Earnings call transcript Q2 2020 | Ping Identity Holding Corp

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Ping Identity Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [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, CFO. you. Thank sir. ahead, go Please

Raj Dani

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

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

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

the you with Andre You statements. of presentation Today's the Exchange for filed quarterly that some and and related and CEO filed actual access for call, statements. the and may also Exchange to press on With the Form Securities the year Commission, the report on and with our annual forward-looking Founder. the Investor XXXX, these cause release differ quarter on pingidentity.com. Please XX-Q ending results of Form to me Ping remind where like and performance. discuss Identity's see would during XX, our we filed Company's report to ended non-GAAP XX, materially the and Securities XXXX, refer will discussion include XX-K Relations Durand, section that may could will today to is our from filed I measures a June Commission, you factors discussion December

initial I'll call, with one can the to as we those the and please nearest statements. in of And can Durand. GAAP to as measures ensure quarterly turn the Andre follow-up. that, to your To questions you questions that possible call many find address reconciliation a over one limit we You financial question our ask comparable analyst during that measures

Andre Durand

today. you with thoughts thank COVID-XX. hope Raj, your for affected safe are our those all We and remain families and joining us by Thanks, and you

past remain And the efficiently expect of our customers we're COVID-XX as employees beginning As of evolving be a transformation navigated digital to journey. until the safety for of months, and enterprises environment. our of the remote our for operate fully proud security environment to five a in a their company, this to extension we result, solutions identity can our the in Having continue posture continued assured. support to

work exceeding remote are of we dedicated accelerate, transformation and security never strong digital mission. another expectations As been our board. the Team trends advancing identity across and with the results delivered to quarter has greater importance

capabilities and larger and discussed light to experienced grew during their of $X.X approach highlight resiliency QX subscription by our bookings Our in to from our sustained and $XX the revenue, at and identity trends macro we customers we ability XX% in new access to and platform digital renewals to hundreds uncertainty, Engagement remains an companies difficult economic The these a flexibility new thought on choice. delays cloud their circumstances. many million. flow environment of up cash Ping the enterprise high all with QX leadership hybrid and they a earnings retention identity performance of that utilizing customers total would our yielding or environment. this I for looked and of time provide increased public we and following protect DevOps total the ARR in $XXX.X and speed, private challenges year-over-year, quarter. and market of representing why increasingly Similarly, enterprises XX% the trends demonstrates like million, strategic customers continue the few execute of our Ping new also unparalleled free million. remain revenue new call capabilities deals. investments strong, start enterprise identity. deployments large our and In with R&D Cloud have in are the we Customer management unlevered of to was consume as now testament to adoption clouds. and advanced resources control is accelerating associated as Ping our their platform critical to remote these see at selecting some within revenue

their However, But a realize this of with purchases of are in deals. resulting with in smaller is electing they're their solutions. initial customers heightened journey number and purchases of budgetary Customers their Ping. our identity importance phase starting scrutiny, to the phasing and

phased of now we the For a have The deals of phase QX delayed, number quarter ARR in greater impact had originally was from this approach. on the what deals by of approach we executed closed this that a than anticipated. majority example, during mentioned were offset

from have for identity their recovered enterprises beginning initial of prioritize shock As are to both COVID, their customers. they and employees security

this and Our base, customer subscription market pandemic. business the model, and weather us to diversified enterprise leadership of market vertical has focus, beginning identity allowed the

QX Now, highlight wins. few gears and customer I'd switch to a like

and to application. service new his in seamlessly example, the of to hotel to and leverages customers both customer from for their the third vendors use primary Ping platform customer all advanced the Ping's authentication, environment. enterprise deal of to days establish sign-on, application. solution our new another enhanced current provider leading healthcare an seven chose The directory. for six mobile multi allow better and behind one On as record migrate, within Ping case. largest to figure hybrid access, and workforce is This performance. with and all case central to operate customer modern, in go a deal fast a ordering ability factor the expanded chain was Ping another consolidate as accelerate experience In its the the brand Company user cases to complement dollar the serve use existing European identity enterprise. the serve the of purchased track launch new single multibillion to loyalty The authentication XX PingCloud will and testament ARR the use to in chain chosen figure to wall securing ability example, workforce front, In providers customer applications, a for full scalable, wall in capabilities solution of food cloud

Specifically, to MFA, They secure to security and solution. management. they're directory strong leveraging customer customers, loyal embed plan and and factor for manage millions authentication capabilities their authentication enhanced Ping's cloud SSO, application of into care their identity

global the technologies API top include newer more tend our are move continue five These three we a in XXX to pharmaceutical, enterprises. deploy now where emerging While cloud. solution and down time, to security large APIs at we successfully protecting

their data centers. activity manufacturer large, are and bank And we XXX API global where across at seeking a protecting finally, a is Another firm both track Asian all X,XXX to APIs API the cloud hybrid for and cloud, in across identity now every and a contract user these on instances, applications per across clouds basis. multiple aware activities is user their entire solution

associated new intelligence threats Zoom, through In Zscaler innovate of and mobile we password trust delivered hybrid increase, solutions, a array integration to capabilities we proofing attack support to metrics identity our as scores web, its of array of Atlassian. list, and for QX, to leveraging device data and zero the the case identity IT, ID better vectors continue recognition largest Furthermore, we identify through enterprises of for sign-on the and for meet platform demanding risk customer for most threat such across and the security. needs cloud wide most delivered enterprises. and single new the security As world's about themes

value LinkedIn We our of that innovative Microsoft strong customers. is more, times future result, Symantec also adding engaging of thousands building and speed partner Intune, and of And for ever a for enhanced identity integrations to and production and More partner our integrations VIP future enhancements of than social the the Ping's C These highlight with login, pre-built viewed strategic digital security we're together. the for the ecosystem. Ping as as security. suite, a more culture

the starts the no of identity. XXXs best and people we proud released opportunity small ever engaging and sharing teams. future of for and X,XXXs execution, also the also partner with than newly is just conference participants largest vision GSI identity building virtual our feat. takes a luminaries program insights, industry I'm it visions of adenoverse with of of Capitalizing and are XXXX their great together, future on and We've with revamped Speaking but ever. announce practice It more completed to

Chief the development experience product time through the she turn to resiliency Web the top Worley technology walk So, Ping Candace for related the I'm of proud brings over I global Raj? one amidst and Services encouraged excited to COVID-XX. our In would leadership advances closing, largest results expertise the that some Amazon second to companies, the for difficult and for welcome as Candace call results Officer. uncertainty Raj and like over backdrop strategy partners our thankful to our more during and quarter of identity remains Product We're to product CIOs Dani and I'm of to as to I'm from Candace's now of quarter enterprise the employees, pleased years as have vision. CTOs. detail. customers in I'm McAfee. such priorities and of XX this

Raj Dani

Andre. Thanks,

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

large business and Given enterprise diversification our COVID of driven XX%. the year-over-year We expansion the able $XXX.X by and impact million, second capabilities ARR to customer and across of efficiently. of our nature industries new our of verticals, our ability ended accounts. Growth quarter representing and in enterprise, strong model, base adoption seamlessly and land enterprise navigate quickly of executes was balance with to sheet, were the initial ARR of solutions cloud our of we our by subscription business the continued growth

we XX% closer mentioned, in relations renewals $XX revenue new which million normalize for than levels faster pre-COVID what Second anticipated both began was first had experienced quarter Andre bookings quarter. and was we total subscription of the and revenue. contract had to

some than retention was QX, XX net XXX% in base trailing larger renewals months year on basis. rate higher had also three our revenue that expected. a resulted dollar calculated We In

quarter, overall identity of infrastructure. continue with enterprise second customer experience We customers modernization strong engagement for need in as engagement the and work-from-home increased the their virtual security highlighted to

non-GAAP rates XXXX, for the XXXX. net remainder to the by stated, I certain to second their purchase deal customers of dollar in Unless refer of will phase economic the for of resulting retention base smaller However, otherwise second quarter our driven given the to in uncertainties and these our as enterprise COVID-XX, a the sizes quarter P&L, of in solutions, reduction metrics. elected of compared

we You the can comparatively, gross second million. due primarily GAAP subscription second deferred was half of as Similar and second investments to expected by for press quarter to to XX%. that million this and what our increasing reconciliation continued were $X.X pandemic. was QX, XX%. million. the SaaS new market, representing the the cloud Elastic EBITDA final during gain accompanying Total the solutions platform numbers find timing, $X.X a several to in expenses adoption and was is quarter release Adjusted in in XXXX Gross we case. customer the flow contingency significant use higher margin margin the Note non-GAAP XX%, Unlevered experienced free in margin was to second than the figure traction Beam Cloud of for Pink quarter due of due burdened of $X.X first our in cash in quarter, particularly $XX.X our million, the GAAP to the of payment operating the acquisition

in strategic team pipeline with landing priority quickly enterprise. acquisition customer New our in and a remains growth generating the

hand. the net cash with $XXX.X the we quarter, in remained a strong on of As million of position of cash end

to pragmatic and this, in guidance in this retention keep are QX as saw net renewals solutions. still the by than but our outlook constantly Ping, macro this our our economic situation global while lower identity both upside offset believe of not higher to execution revenue, purchases entire a is Because demonstrated is it timeline. prone ways a customers of was than year outcomes, result, rate decided XXXX expected and we maintaining forward but we to prudent We as a the of more dollar their expected phase business, enterprise only it landscape. withdrawn our increased larger the of long-term evolving as that an normal to of full the understanding large than the during until to variance and we have customer regarding backdrop, a recovery of QX, cut number uncertain as Looking provided the relates strong mindful resiliency are of

from million well shorter For business and XXXX, we term as the be $XXX.X range impacts be expected the between $XX ARR our million. our growth $XXX.X million relative to project customers. XX, anticipates This with as some quarter to September revenue faster million overall and ratable and ending license between revenue revenue in to $XX subscriptions

on believe impact the metric mix revenue, contract ARR growth Given and a continues of the have business. management key that is subscription that to GAAP duration deployment

to we timing driven expenses hosting in $X Finally, QX. of free insurance expect other and range negative negative equity of items, follow to and $X million, fees flow from as annual prepayments approximately expenses, million million well cash miscellaneous QX $XX to unlevered costs, on related and by offerings primarily as of

full XXXX. an profitable cash our attention prepayments success XX-Q. for footnote to of This employees to would plans macro environment, that pause as be unlevered be would a we on its XX We marketing roughly flow have for the Vista's of COVID-XX. specific for sales year we is the disclosure given bring of in curve are second and QX absence for the to equity basis in in to quarter we provided past expect result the looking market addition, the investment return realized In expense, it of break filings and still in select and a performance operating cash-on-cash the offering navigating and latest and outlines the on year Ping. R&D investments half free were put even and resume like also on In tied

XXXX. XXXX. Given be our threshold Ping, investment we long-term the expect $X appreciation compensation million do based plan in Vista non-cash IPO successes will million met incentive and its stock in since probability long-term will expense approximately that in be further We share the in to believe additional $XX charges and these approximately of accrue for monetizing price

new in so second go-to-market platform While a our temporary do to have hiring a remain the compelling and we scaling enterprise in we we durable year. priority. continue investing initiatives during during innovations building on and performance service with our closing, the sustainable market, the took margins. In business pause and QX, QX to investment, with efficiently business expect in in given and half top Along the remains a on best platform of a growth providing customers focused identify the resumed

model profitability it us Our circumstances. growth to and operator unprecedented operate strong to your that, with we questions. track the great confidence balance of continue turn subscription record for provide business as sheet, in over balancing and With I'll

Operator

& Instructions] [Operator question with Company. the of William from line comes First Blair Jonathan Ho

Jonathan Ho

activity. sort you the to here? how guess, wanted better to about sense a by out you a get Could decision little the increase start just talk you the duration just I much of bit a I of And the and those benefit customers from around, of multi-year renewal to saw why is deals?

Raj Dani

This I'll that. Raj, take is

So, large little renewal. that that, a saw go with bit our that we two renewals really are pretty first year And quarter as we on backs durations also to to a and environment. the was, a to had May, we normal such. operating saw deals looking quite were with three There What pre-COVID in back across, provided levels. of experience durations more healthy the we in modeled terms bounce in guidance we of decided bounce not at back when business in

was So say, about I impact also on do that website revenue And newer some presentation $XXX,XXX have too. $X.X then earnings was our out would that our about duration broken And in million. the related ACV. on on there we

Jonathan Ho

container of continuation like? saw are trends How July? What visibility improve in trend the And so get sense that whether maybe of do or seeing to towards to what the end quarter? about for Just that follow-up. think then, continues the looks trying a a this far you is you that you

Raj Dani

we so what Yes, saw.

Jonathan And in as we more then to environment. visibility where environment of a started everybody and better paralysis bit to a customers became back saw normal I our sort was little unquote took bounce quote get this retrenched. in that bit things in things I think were we of over also and normal QX, a QX, more think what living little an

going longer seen what more have have saw still and though in QX, Now, similar that that deals cycles. in been and larger procurement through QX, see are are do contract through we scrutiny we durations going we to

Operator

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

open. line Your is

Gur Talpaz

you Can way a look Can approach bit deployments. change does customer And typical that approach Andre, on embarking here? what might phased within cohort? to you customers you think that? a on the about talked a us walk the like it elaborate through about lifetime long-term you value

Andre Durand

larger Ping anticipate on multiple they cases. So, I using would expands enterprises, character these are larger either lands capabilities the or the multiple for larger the platform, Ping where say of use

case of have the customer typically whether fairly are In they're use embody, seeing and we're and deal might to we companies or same the projects case as do X, and where workforce that want customer forced vision the what to, still for essence they phase forced but significant a environment, rolling. both under products that our a of paying use was being they still the really a land budgetary expand. constraints, to this They vendor, X, in X strategic would a use So, see an the go. selecting

identities So, we an we Ping be for to uncommon MFA. a with on use well, it start into sign Ping not project for all directory. identity them one the And or might or with unification the single we're might case to of use say, a postpone going or might cases other single of start our store

still creative Ping. start getting the are choosing And business, so, the constraints work they're journey the of to with within to but they

Gur Talpaz

one helpful. for And you. then, maybe very Raj, That's

money put you of on might in year. bit likely you're elaborate and You to that what talked a Hoping about could to the entail half work back here? the a pickup investment most in where

Raj Dani

Gur, Yes, sure.

for the be side. continued well about talking marketing and been innovation as continues R&D we've us a as as focus to sales keen So, on

made investments feel XXXX. about good we've in the we do So,

starting early are some to from see that. pretty We results good

And we down in to areas second double the expect half. continue so, those to in

Operator

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

is open. Your line

Saket Kalia

first you sign-on Ping's you. if customers desire just to relatedly or all? the other PingCloud Can start products that deploying at hosted a competitive cloud products in may does impacting Hey, maybe win for example? by your talk and single Andre, rates be like bit about little And how specifically for

Andre Durand

Good question.

upwards cloud our in are We combination a XX% deploying of of and/or seeing the of is private PingCloud. newer public today that and deployments are

deployment we architecture, our we as part scale your cloud large our that kind and control provide flexibility way that provide of the to So of of our, of flexibility as part part is enterprises.

say our would of competitive we I are cloud, would place So, a that, in the majority I that that there as seeing deployments newer we're becoming and take well. say increasingly

Saket Kalia

Raj. are I'm Does trying they PingCloud you are for Maybe Or for moves ARR deal on deals? the on if deal an fed deals what these different a average term is And there guess SaaS, and sort more us different that example, Can you, as, different, ARR basis? similar of sense? how get my to remind Ping make the to possible? an How follow-up it is basis versus business to I how?

Raj Dani

sizes they deal very well in as similar Yes, are as actually, factors. both deal duration

Operator

Next Trebnick question comes Catherine Securities. Colliers from line of the with

open. is line Your

Catherine Trebnick

give API after what these opportunities? and elaborate And to -- interesting One you have of you should some well you've you your point they lot just API a business done be like on a very Could with work. the doing to could do in FX. API you respect partnerships finer maybe things going of with the during also is

Andre Durand

and number API have We with security we are that of on partners working intelligence a product. API our

us of those intelligent one to the essentially and gateway, gateway have companies. companies products. worked now Ping most is we with API partnership build where with the several endorsed have integrations and API of to for So integrations essentially vendors management FX

purchases. their security of If and and behind enterprise and managed to products. divisions is complete will back, a And API gateway many if you APIs of all multiple run API enterprises large over protected the with step to They first API have into many traffic. large you between foremost, these or gated, generations gain goal of respect visibility

go to can into important integrate So, those other work tell it's in as the all NGINX value large them global their able and they to And tools. into very then, give API traffic. to of enterprises to with be that with complete visibility API technologies us FX proposition able that our a and can be management for paying catchall all

to we and traffic. then apply whether there's anomalous that not So can our or AI determine learning machine

seen see offer to can FX have continue like to with slew sure promise you we'll partnerships So, we with, a to that and whole companies that others large IBM, these of global protection. partnered that and and we've giving completeness I APIs spoke some large, these to extremely enterprises. thousands multiple and of is span of of deployments we're deployments value about, visibility across And that infrastructures. the that the The make recently that are

Operator

from RBC. Matt comes the question with Next line of Hedberg

open. is line Your

Matt Hedberg

the How expectations. you those and QX Raj, there on can should guide at relative And guide? that of you little about QX to bit then multiyear or think above of ARR that how renewals. could here? context thinking high either about up when think some these renewals your QX more large assumptions provide low perhaps of to revenue are on more light show larger you're the continue end wondering, we a QX in macro guide, was of the I'm if about Street the

Raj Dani

same good philosophies to we by guide, more ARR the the to visibility we respect is, with what moment. the -- determined our at it's which essentially So, it's have

CEO. the is and the constantly to, will bake you in we're that into if So, checking macro pipeline with that visibility, trying at looking

good pre-COVID not multiyear durations where expecting year. something feel with And have durations, relatively happening. well, any don't our where in QX, would And quite pretty and that there's for But single we so, a where have like ranges renewals as of what happened we're always as new to respect mentioned, visibility levels. now, bounce like right renewals now. with we about Right possibility to surprises then I to customers that just of kind back

Matt Hedberg

of are or new higher about existing attach accounts MFA business? thinking you and how SSO post-COVID seeing Andre, importance MFA then, world? net CIOs And the are either And a versus

Andre Durand

accelerated who thousands a their of some not years. of weeks. several higher probably in before, few matter trend if reported that a to for case. a XXs honestly of is attaches few deploy had landscape, MFA I've SSO, had seen drastically COVID MFA several a to the ubiquity. customers frankly, In We've as We've short hundreds we a deployment, of companies purchased in had thousands,

So, we single products in that we do now that MFA are represented It product success line within of seeing penetration authentication. on in -- around. is don't there believe a our and to and expect the strong sign coupling our the of customer turn I is had that we've base,

a days companies. I MFA these think is for simply requirement

want be don't phishing, social hasn't to You that as two much engineering is on. with the MFA around Company which going deployed factors

it that to believe do table any phishing responsible company these stakes the continue. becoming users I their baseline I attacks. from looking for protect to that or expect So is

Operator

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

open. is line Your

Rich Hilliker

a up that each XXX This you ago, say and were project favor and what you'd Phil. I mentioned today, my you've about wondering of identity for was is Andre, heard shifting open Rich it but Hilliker just I'm those budgets taking question. Thanks on of days Ping's well today? prioritization for think

Andre Durand

of what think deal the ago today And I larger stands deals a phased. being larger with said and I well. as quarter timing exception

highly the acid reported deals tests is have to here we've experience some continues that I Identity largely resiliency that early of the some of of everything in think that of our weeks impacted five. industries. in continued in month manifest COVID of we to to be resilient, spoke in the that

For example, hotel that expanded us. European just with

event that with the ticketing reported I expanded As us. company

the month deals and around also face larger the I haven't to seen if So requirements to five the true. as of and feel being things. in reported, larger I essentially resilient a continues as of change in hold identity of purchases we've posture teams COVID, deals, scrutiny of But their

closed large to said, deals, Now pre-COVID we levels. that but not have some

weeks. here status five, first of the month its it within was think quo I So, sitting couple at

Rich Hilliker

And trends that have And fixing you then I'm the projects any in side, customer comment follow-up mix versus in a you're been wondering, can of the seeing talking I on this prioritization quarter. on light the employee if about? of guys here. of we've that

Andre Durand

those these rate seeing solution as many growing have is own than especially strategic an modernization large mandate to of identity I've are their their use runs case developer said that faster just has large of website. and/or modernization out the our really services. There's workforce looking cases for the of development going the solution enterprise and between customer wheelhouse. In application a we consolidation And our of or identity for website homegrown with or their the a large for or for transformation business digital only circumstances, We to into I'll am before, enterprises the that really the a or under we years single app, we solution. And what wanting a for procure difference line call complexity of their out I in business team these of consolidations customer of a purchase difference large of products line the into all with have is app these And kind that and/or ideal the business of leaned or think to legacy create right for enterprises. that solution. particular some between big XX siloed or a products. overall And XX, the noticing

in we're Fortunately, both well now. positioned

have going a And a rapid SaaS solution the deployment recent, was app under we out solution customer. of example a paying new We platform timeline, now that have modernizations. reported they one an this large an as here, single selected we our for and our ideal And it. for in for

Operator

Sachs. Bellini the next with line Goldman of Your Heather comes question from

open. is line Your

Heather Bellini

have don't I if couple, just a you mind.

any rip from one often a back of kind seeing API most replacements? terms a that deals landscape, competitive those who of large also Just on sense mentioned. to you're wanted then get replace the on And and of you in of update

us with your much on share and think ramp? that you expands how could you do think anything you Just market addressable that quickly do how

Andre Durand

at and been XX probably longest. the XX replacing upwards on for the of we years there are replace, the years, infrastructure Heather, has that rip maybe

changed So, and of the for years. us significant, legacy not landscape for modernization frankly has opportunity the for

We of are done hundreds we've those. --

announced for at -- to And those products, same around win a seen to if full some deals see have do those in we at their deals be legacy products. up they're acceleration all activity to as hard whole actually really About end the the that there's as of but We lot have have legacy modernizations. renewal to vendors announced wait go life have enterprise of you modest rate, past. them of as those of and we the times of have continue it's once. staggered large We not some And companies until as the a the come those we've mass of in of modernized. we to hybrid tend as

I and is of feel the really we've market. the new been brand if expansion, modernization at to market seen your and is legacy, about this as we've a it, several for the landscape has rate quarters which same roughly both So competitive for before said the API later question the and as opportunity

kind early see of that some kick projections putting to expectations for creating and COVID QX, too we're us for in that. projects In you, so any into And still were did off environment. slated we

without that points exposed the solution now to our All APIs. early report. as untenable. future doorway industry this but through several increasingly deployed gain All the facing delayed, got attention that be being belief the a APIs are APIs. are projects customers of things more of excited would does foresee is I those and earnings And level maturing, focus like public they the involve all cannot is deploy. a could protection just said use where put and QX you global through rest of it where deployments, suffering, Any and We're we our or to those because would the had than email signed the we globally. API, really QX we into value. services, actually that's data that in is to those in email that not comfort about APIs proof PingIntelligence mean, I I towards internet of product will for Some really and deployed and those getting those customers reported look to I maturing the what reported,

based for step defense art API. And so, PingIntelligence second APIs of of oaf, is for the is security state layer the of is first the API, through which historical defense. identity in

hope as, in and early growth that we're I we optimistic I can of give very the we the very product, on it, would you better in as answers that share it. visibility more into but will future, So get innings, certainly still and

Operator

question comes Owens of the Your with Piper from Rob next Sandler. line

open. is line Your

Rob Owens

velocity landscape things as starting to taking consistent talked for evolve, demand lot Andre, question. some around deals. a with But the the that relatively picture anything painted on there Thanks transformation is hearing, there's or all of puts in legacy around digital business the acceleration coming the discussion of terms it's that my and the horizon. of of you sense any we're about, and there's else a you

Andre Durand

transformation. Rob, I of feel is enterprises. that in some focus experiencing digital real And use that's you the case the as know, part customer

digital It plane the resources, no equation, transformation perimeter application side take digital oftentimes gain you had is the for if a acceleration need user access identity the for experience, when to back which longer single customer network let's of that It's all the an identity I seen don't step for better over of we But digital of think a end the a totally driving. and COVID. to is to oftentimes zero part around what's know workforce. transformation. of really is COVID I because the really it's a of if control the identity or there's mobile to customer that prior manifest around inspired around based security trust, the approach. kind So switch

customers all sudden, offerings, prior chain. that physical a was are with those seems transformation part everything, example, in described, it engagement of of that they that digital to list, digital of scheduled fast for in roll like out all needed taking think COVID maybe a QX. And versus app were environment, acceleration. to XXXX. roll back ordering I out contact in the then to things mobile go food to They my all an the I on And that

do impact given therein business. the their of we hotel that hotel, example. inspired So timing was lies an that, believe European announced, the The that especially of innovation that for digital now our the of makes timing there that And the that I experiences that going was hotel. around need of on physical sense. kind hotel by in right better we that's a inspired lot touch, participants of there's also if

think I so yes, seeing customers. is around that So we're if there's beneficiary some one that there is urgency

Rob Owens

relative click of a in Is Can you across offering And the getting coming you increasingly or bit the little a hybrid that then little of paying of up that majority fashion? breadth on competitive end being around terms deployments cloud republic? it the bit up privates there. your a Great, me Is double your then with senior and secondly, functionality? maybe color being for? give to in new

Andre Durand

We've functions leader. hybrid the flexibility for enterprise always been full

I we been was bit where of offerings. different not investments cloud our rich a the Maybe might or requirement. here were the a priority. cloud in lean scenarios our was think deep And functionality considered enterprise into first provide was little we a mandate we some secondary maybe have as in or maybe

entering we're think we first position a you environment. in solution citizen considered class could class cloud will, a if I first where to a a be

for think been changing. it's investing years. And So probably what's as we've I natural that there that's

Operator

comes The next of Liani Bank Tal America. question line with the of from

is line Your open.

Dan Bartus

this Thanks is questions. Tal. for Dan guys, Hey on for taking our Bartus

success customers plug is curious opting and environment, and new more could I I'm one. you about guys one but of much specifically more for hearing up And in The first with with if for offering, of talk it's what for or play because PingCloud, kind doing this I'm a is you, you last PingOne? wondering that deployments was well I understanding are product? my think piggybacking PingOne quite But, Andre, are if the

Andre Durand

that offering Well, offered a PingOne we sense. that ever offer our of on it solutions kind our on of we number makes and been our and is has platform have MFA solution our through PingOne PingID largest PingOne only

good years. new our PingOne the fast We PingOne their mobile as And PingOne over services in the is we've we of chain introduced app, that number platform. of traction reported deploy I've customer have a selected The that seeing for most are to customer. recent for food one

PingOne and there's the to offering app new and for not into have the are to their We traction website. that or that into more cater their The in to PingCloud large, more service that want basically customer complex is by more consume private several or enterprises to to to AWS, is run or so We're run cloud, larger, capabilities But Ping interesting. in full kind of it Azure, when offering Google our the in Cloud it pretty or rich platform. the say PingCloud. to of flexibility designed is use seeing good hybrid a come as there. really us. catered then offer hybrid it offering want we Now, about our we SaaS developer two developers cater in run in things enterprises. it the Having that That historically actually identity wiring ways in done, our the to or complex arsenal your

to receiving as of cater the But enterprise of lot interest. different a are being parts of new is offering. Both kind market. said, those, One I to both SaaS of

Dan Bartus

lead it's the some smaller exactly really talk that over just new the quickly, because but customer with deal sorry, don't sizes, I'm Raj, you understand headwind, would retention I about I is rate well why that more phasing work get horse and what dead in is that beat up renewing And a you some the here. been basics struggling in because a of guess be to can renewal? what why has in pushes would phasing But net of just I XXX% could

Raj Dani

is are that retention, you've new booked new from yes, So, the net two an ARR components. that customer. ACV it's One existing

that been it to base to like exceptional, expanding So, seeing latter the pipeline, larger customer you're that generating deal customer. ARR from the seven that's or what expanding workforce I customer, side, coming we in, customer big to those phased back either opposed existing to deal. with just a had then new say, the use So what And point, solutions being there vice goes that have may customers on or net in would were deals versa. right? your is return. that in And you our new we're much retention as for case figure net has

essentially. two components those So are the

Operator

Next question line from BTIG. the Powell Gray comes of of

Your line is open.

Gray Powell

a back I'm Just my behavior. of circling on purchase couple side,

versus months. taking you in talking enterprise buying have larger at been for stocks So few longer all decisions, about once things guys more and customers, a

back do what case you stabilized? or really do get surprising. do potential buying happens? not patterns Now, normalizing X to next levels for you feel XX how the But think the you or months over it's normal those have and of timeframe think And then

Andre Durand

a return now. what when think And yes, does see to normal we're the hope would I world normal. I Well, seeing to to return

this that we seen as think to are experiencing long continue I will we've as enough expect what are in we environment.

on from customer customer tailwind both being perspective. and deals, identified The use used cycle focus Tailwind, digital a the think of is are headwinds and procurement trust the deal we're I the phased. MFA headwinds that seeing larger the size itself in real around zero case engagement.

fact in the industries. even that high, engagement by encouraged those pipeline are we think I impacted our customer that is is intact, our

provided return to that they expectation what as our semblance a conditions better And business is conditions we continue seeing our pre-COVID, would return with it the pre-COVID. so experiencing of you're When I are. that line is expect in think more we're what something to

Gray Powell

Got it.

duration. pretty Okay. like one we just from And sure expect year. think significant, thinking XX that done figure about in that then that before. and one, quick should to renew years. just a That's I'm just three helpful. Like what to had Or so this another XX, out deals you've It make strong any to I QX we sounds contributions assigning trying I'm exactly. other multi-year used you guys how deal shorter about for year QX want XX QX three like

Andre Durand

the No, correlation term and I don't there's really for that initial a between one, think not there's, renewal terms. the well,

say pre-COVID been duration deals. longer seeing, was have what So, we

So three renewal, they say one, renew deal two came for for year or couldn't three years. a they on up when

they just because Now, great pre-COVID, getting had product longer the seeing true. customers term of a the trend were it. of value tried out towards a made and were and we And solution was a renewals commitment;

normalization a closer probably but I'd they that's and pre-COVID just those quite were, that occurring levels, we're if there there think to yet. I say getting So not

Operator

with Citi question of the line Bank. comes Next Prichard from Walter

Your line is open.

Walter Prichard

doing Thanks. sales imagine of questions that in those upfront make to I side your seeing account terms for first, their on I'd a to or harder sales are just just compensation, up what quotas. And that. follow related to deals you're training what about the to that? folks Two for you smaller just had

Raj Dani

smaller with the So shorter I if were asking deal you Walter durations. sizes understood correctly, and

Walter Prichard

on getting or and Correct. getting from velocity done to A in try probably ARR an bigger to terms a from even I'm tenant less upfront? enough more deals as the training something of you commitment opposed more of sales have person, to drive perspective quotas And adjusted basis.

Raj Dani

but the velocity growth We And of a philosophy, have highly haven't changed with focused on have especially comp products. across a whole certainly the higher sales that team lot lands we in board. some our invested with enablement newer is cloud

model has value smaller seeing the and lot transaction our upfront, increase, they even are butter years. of but and we the So, may for bread though be a expand of land been

we're living So this in used space. to quite

Walter Prichard

to behavior that some of those terms maybe smaller do the And on And by follow-up deals thinking see those customers already? of Or NRR did QX of being and behavior? you follow about expect back what in have you you metric purchases? come the do ups timing started how impacted are in

Raj Dani

Like to continuing in smaller, the well. I also said, work expands some and out of are pretty phases. but see the some the lands of are expand We're land

while So have a to resumed staying I in until, this visibility businesses normalize their their I little think budgets we'll own customers level. of or for think and probably some wind revert to up longer into range more

Operator

comes next question Gregg from Your Instructions] line with Mizuho. of the Moskowitz [Operator

open. is line Your

Gregg Moskowitz

cloud back themselves with changes or words, the just which any to new AWS XX% seeing customers are it of you're by the private other versus mix cloud. Curious the being in I Azure? in to in if deploying deployments wanted PingCloud First, versus running, get

Andre Durand

two mix Amazon Azure, into been of Ping There's PingCloud public Web because bulk early are the increasingly into is interest say a I the pretty good early would Services into there, that Microsoft so and going has those predominant least the at offering but there our clouds.

more we to And all because are the of more would continue. the advanced to. as so custom it that become has maturity PingCloud offerings a our have our s starting that PingCloud that interest why around in see I they would offering, expect and the continues, capabilities

for advantage it that's to And But way offering. our most cloud a making is take easy Ping so, offering. the in of and companies newer advanced again, capabilities a consume your cloud compromise no

cloud. And of is speak public Ping going we so I think the bulk that deployments to the into when the

Gregg Moskowitz

as you how strong going mentioned new be a What background. a forward she incremental Andre prepared very Officer, might has and then will opportunity for this And in and potentially you've Product your remarks, here hired Chief recently focus Ping? areas represented

Andre Durand

the set we their new We have capabilities deploy a those cloud for entire platform service experience the providing platform, of user it like Ping the a in offerings choice and of we are things capabilities that that large fairly Making out. now. MFA, better are coming the advanced for accelerating hybrid have easier consume service to our that offerings cloud that companies companies

multiyear well We have roadmap, a kind of a roadmap. documented

help it's that But in the outside come of addition probably and I getting of just is I'll in based our still commercial us lot say here. upon market and us. we're brings on. on team insights perspective Candace, some a to legs lacked started fantastic she's fine commercial focus what her ways about have lot in us. XX kind security think prior Having we're a that now we so, days underneath and We started with Candace accelerate we her experience thoughts, experience that McAfee, at before, focused things cloud tune a

I'm and She is with her daily. fantastic. I work So pleased really

Operator

The comes Oppenheimer. with next line Eyal question Shaul from of the

is open. line Your

Shaul Eyal

of pipelines can give little Has quick market the this there one. of a two more a building any Maybe, event? Just color identity industry flagship adenoverse Andre, on result reference? you us set as

Andre Durand

registration free. that. conference. to conference We We a was I for switch as our as Maybe all-virtual an result that. a noted early before had of little ever largest as did It everyone did the bit

sudden, them. wide hear now in all we four-day physical tracks appreciate people was X really of great I fact were which available of of up run people X on-demand delivered all the think to about felt we the in content a way nature the the Whereas to missing the many adenoverse stressed and that really content, event event. I

been, relationship good exact think I some these, was our to under something the to I stick. to it circumstances from the hybrid probably in build. we'll forward can go probably build, we transition be respect has physical manner. the would So will event on times always a experience in back many use physical, when here the that opportunities to pipeline would a With imagine

big and figured as the to said, material from a that recovered And think what was to annual a face-to-face. go travel negative physical all to are result relationship don't adjusted impact the if we virtual gatherings. to will how adjusted I nobody now user's Early, and I I our immediate really, say impact we've allowed was of our largely of number was building there's But an we've conference. pipeline, have All since reality. hosting And know but there of physical impact largely smaller have feel events. where that us absence a of a the absence if as events. out I of

Shaul Eyal

I'll just Raj. let's up quick And follow then, really with

as us regions, that regions gradually can they the what reopen? those me. recovering On are big driving for Raj, that's it growth? the see understand, And international that's help side, we some growth targeted you are And year-over-year.

Raj Dani

revenue and of say, I'd all major typical markets few for last EMEA behavior international the markets and the our over had So, our we're quarters. same been in are which from the seeing has we quarter, XX% fairly in second Australia, some of regions.

cautious are large and traction our markets. little we're seeing those think certainly but some I given all in bit an enterprises as a enterprise leader positioning stem, on

Operator

call I closing no this over the have further questions at will remarks. management back now for to time. I turn

Andre Durand

Thank everywhere. you. hard it's and want of team, QX that's but so remote. conversation Well, one everywhere, including I to weird with in look, thank weird, this I It's report. worked said. my tough everyone it's tough concludes it's our them, know and he

we and work. we our do down I our an put where think head environment just we're

working been healthy for Take hard. has happy very, everyone and I'm wish for And I joining. Thanks, but of want very to exceptionally everyone care. proud see. a a hopeful team speedy time, them. I'm Our and recovery, we'll

Operator

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

You disconnect. may now

Ping Identity Holding (PING) 12 Aug 202020 Q2 Earnings call transcript