PING - Earnings call transcript Q3 2020 | Ping Identity Holding Corp

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Ping Identity Third Quarter 2020 Earnings Call. [Operator Instructions]. And I would now like to hand the conference over to your speaker today, Mr. David Banks, VP of Investor Relations. Please go ahead.

David Banks

XXXX us where welcome results of we third of joining Identity the for fiscal for outlook quarter call, our conference will fiscal year everyone, XXXX. today, fourth to and Ping the for Thanks, the provide quarter and discuss our I company to last lead efforts. Investor Relations joined the month our Very be here. happy to

press shortly XXXX closed today, market we I'd begin, the quarter like Before third issued to release a after financial our remind results. you that announcing we

accompany to presentation call. slide supplemental a published also this We

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

our measures to turn a find financial I'll Andre. in GAAP can reconciliation [Operator You quarterly comparable Instructions]. to of measures over with nearest statements. those call the that, And the

Andre Durand

of X a I'd acknowledging and our are are efforts we hope welcome to today. of customers. you whom work-from-home you your Thanks, posture safe like our both all vital of support families the in winter. employees to continued month our in ensuring David, to success by partners, for We for the Europe the continued of thank start as and healthy enter and us and and Ping, joining

into a in expect continue for to of do As so remainder company, fully XXXX. operate the to likely and remote a we early and environment year the

closed While commitment I'm transition a we digital remote and our board. enterprise of to increasing has by across there stronger. been curves, in mission-critical report leadership expectations learning enterprises security work, exceeding and helping accelerate that another validated resiliency great increase remain as nature new quarter, and confident have never to pleased number the transformation been and our We customers. across our existing position solutions initiatives our enterprise of the to support

$XXX.X with revenue million. rate million, recurring was year-over-year. revenue was growth revenue. $XX.X annual of representing cash revenue total Our flow at usage Unlevered representing end QX was free $X.X a of QX XX% million, the a subscription XX%

adoption those Given cornerstone X Along core Trust themes. as the of Zero increasing personalized cemented customer home, are and focused of work pervasiveness has a security we lines, itself from identity experience. customer and intently engagement, cloud on

unified a hybrid cloud First, platform.

across map to helping platform administration hybrid a administer QX, architectures. hybrid which global the portal, companies launched In their become Ping's all while As enterprises journeys, services, road provides Way. of are, mission-critical PingCloud where providing enterprises Your flexibility, Cloud SaaS a embark they cloud centerpiece myriad partner cloud enterprise we managing deployment of applications of employee the on new digital stand-alone and will we called DevOps, Ping Ping unparalleled deployments Through thousands and meet identities. their unified customer,

identity are A tens providers. Second, serving pillar identity. Ping's of users. millions of scalability unmatched and amongst core customer performance of

of per peak We are our of with enterprise proven many at second volumes XX,XXX customers. over handling transactions

compromising ease level to companies And use enable to look of that experiences. personalization of the profiles increasingly result, also expect without are their enterprises entire an central enables have across come to these We unified digital as Customers Ping and security. directory properties. a this

and teams $X migrations application to annual projects that company's for Ping invested billion Analyst legacy. make integrate and from systems. spend completed centralized migration of legacy easier identity on rapid has Third, billion costly suggest capabilities to Ping Having with less these allow self-service platform. between the of $X enterprises, our estimates these is hundreds there through

embracing our partner which and our and to success. our core operations customers' to expanding Finally, network, is vital

environment as through selecting Our integration expansive technology go-live invaluable expertise as our the and process. the partners clients of complex consists partner network collaborate enterprise our and in who most partners provide channel alongside both Ping and when such and CyberArk, who Sailpoint Ping well to IT as

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

global tens and Ping selected its for cloud performance. the On support SiteMinder SSO, Ping cloud best-in-class thousands agency, seamlessly leverages workforce our capabilities. protecting off new solution users. and leading achieve credit serve authority, access selected of Ping's to hybrid legacy a ability their implementation, scale MFA to of migrate customer as TransUnion deployment hybrid a authentication and TransUnion, front, This

Sharp the expanded During experience. launch world-class Healthcare quarter, digital customer to with a and unified Ping

consumer on will the with CARES data platform and Act, Sharp manage privacy Ping the While better requirements. sharing help placing heavy compliance focus a

For patient release consent data third parties. example, any when capturing to to

in to journey. are alongside assist proud work to their identity We customer Sharp Optiv

Third, the authentication Ping of for serve portal. of new to the largest authority as a one partner manufacturers pharmaceutical selected employee products and

external system was Before launching, the highest users the to worldwide. would level business the of ensure be as keen security accessing

future adoption, was portals deployment quick retention increase we Insight, user set and time value. initiative to ultimately new to better with Together XX to private this replace help drive the our disparate to and outreach. were driving company partner, able addition, In

requirements. to and a customer Ping Finally, against provide partnered and improve end-to-end with platform Australian a modern identity to leading security engagement user deliver bank compliance better

MFA, access, are leverage policy-driven reach with unified Ping they IBM SSO, to market share and existing plans view. leveraging a bank to directory better infrastructure. replace to The solutions customer grow customer Specifically, and authorization Ping's

IDENTIFY. our external of at of speakers. October partner year, in from on attendees customer participate Our we Ping had as well many as Identity conference, content hours was success hundreds This and full display annual companies XX-plus users Ping our many

champion These to include for Schenker, their authentication work millions serves work organizations. and transition customers, their thousands that from its Identity tens for authorization of rapid in recognized to of extraordinary of securing deployment home. Ticketmaster During the its number truly event, we and commitment logistics for DB loyal employees across giant, a customers of their to

I seeking mentioned with align as modernize look Group Herjavec are deliver days SSO ways vital to we our care partners capabilities our partner workforce and their infrastructure. In health MFA are the partnered under to earlier, company our success, to in our better and team always customers. with a As XX QX, growth to and

new built would state-of-the-art on a expanding providing We're platform. multi-tenant in discuss PingOne, SaaS of made exciting announcements like number our also stand-alone SaaS during services to our that offerings detail. by I enterprises IDENTIFY We product solution

X If is and PingOne time. experiences. device our evaluate authentication experience for the understand to can and that via so level behavior, frictionless first transaction to PingOne customer authentication Risk services and offering integration. and policies risk make through for brand multiple signals of streamline experience delivering access particular MFA and an web Zero important fund Users account authentication service and solution leverages choice posture user provide The entirely, resource. by our as custom approvals, organizations the security detect threats be to activities other needed. enforcement our to is goal end organization also only mobile amongst signals, allowing are adaptive transactions. passwordless improving to authentication PingOne location for customers attempting are from MFA machine risk when high, identities embedded while transfers use uses service accessible end-user block methods. of such can of Risk utilize leveraging achieve a takeover, to Ping's protect MFA authentication Risk malicious user's real access credentials, a PingOne may level evaluates a the risk trigger to in The enterprises into the easy users. is user PingOne access signals MFA new higher applications, The part services. an compromise Trust a fraud posed user PingOne or other to and a high-value PingOne prompt of including learning MFA and for APIs

provide As one-stop easily Ping documentation. hybrid allows their we latest shop to new This training of manage trial user their a view efforts add administration our holistic unified and continue we identity to a console deployment, exceptional platform. products, access new cloud entire environments, enterprise experiences, launched the teams to deliver new teams and

is a As where to pleased promises customer to we're control we're innovation look Individuals that to announce of in today. their in over leverage identity. especially control paradigm the or we future, the individual to context, new industry. their the no our have information little acquisition how consumer investing in usher and to to used And intention recent ShoCard over our reshape

key over experiences both We control is give believe to that to this lower we their to holds and cases. it fraud, for workforce transform more and personal use better vision user better users paradigm the customer privacy, and call Our identity, the identity.

While ahead. years no is we're by use be in and the platform emerging personal identity believe excited identity an potential without the complete case, it will

and efforts central having capability for enterprises the and lowering Zero this component new Trust organizations welcome is become global faster. delivering a After the channel are Integrated Symphonic partnership, Through of to digital solution. to and security to extend These and enterprise be address of able Ping comprehensive will and the our acquisitions, security both the lead to platform, regulatory seeking part and through acquisition, Ping to delivers be services future, controls fraud industry, to with the API of now we Ping. we requirements earlier expected Symphonic as in better is broader identity reach as combined forward serve expand to technology vital announced a authorization excited privacy, Ping Speaking acquisition centralize at while Symphonic and PingDataGovernance couldn't I authorization week, identity. team with customers data family. look our a partners. invest our more X-year the continue dynamic identity to exciting as times This collaborative

through updated results outlook Dani detail. Now I'll the the and turn Raj? walk in more to over quarter Raj call to

Raj Dani

very Thanks, time and optimistic our that our for about thus QX ability Andre. I and our remain customers. and we seamless results would comments quick echo value deployments are to with Andre's execution, drive pleased to

as Trust customer of bookings durations and of and and road business such customer, to provider such customer Zero with renewals normalize for driven both data by of was begun new us. closely strong representing testament CoreLogic, for expansion and expanded cloud continued within access Australia, management levels, a We digital platform suite long-time MFA year-over-year EMEA more and security maps. $XXX.X and another renewal grow contract addition, to of the quarter bookings XX%. with business. pre-COVID QX with The international new in closed its with prominence adoption customer One financial looking a Growth to use was and of identity million, analytics. solutions have to was and revenue to ARR of Ping the Identity of leading leveraging stream the services accelerate the case In growth in its

of dollar-based net our Third trailing quarter total subscription revenue. retention rate on basis. XXX%, was revenue was calculated XX-month QX, million, a which $XX.X up In XX% was

prevailing our the purchase of stated, to customers the remainder in retention driven I by non-GAAP Given a the deal for phase smaller refer of continued will COVID-XX, enterprise otherwise metrics. P&L, number net their Unless in and our slightly economic solutions, a to dollar-based reduction resulting sizes of uncertainty rate. in

margins. XX%, margin to was the gross You non-GAAP Unlevered in And $XX.X $XX.X million the quarter, generation accompanying which of third of XX% period of can than $X.X strong continued was of primarily cash quarter the we expenses Total comparatively, compared cash slightly typically up third better-than-expected to the free lower the GAAP in high during in our to million. was Cloud is annual prepayments. a and in for due the margin GAAP as release. subscription usage million, XX%. gross margin find Adjusted operating year. million, business. the EBITDA result, offset $X.X press rate to subscription XX%. a a Unlevered prior collections, were overall free third flow the numbers quarter reconciliation cash was solutions quarter saw representing same Gross the quarter faster a year-to-date grow

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

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

Moving now to guidance.

revenue some to growth based on our expectation. the well to ARR to million revenue million range $XXX expected subscriptions between our $XX business with For customers. revenue million with between annual and project as relative million. $XXX be as project ratable $XXX.X QX revenue quarter, anticipates between we of from impact million $XX million, We our fourth and the be license This faster overall $XXX.X and in shorter-term

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

Finally, and Note we between approximately year negative unlevered free cash that negative $X material unlevered $X with flow million fourth flow to $X our to ARR. or quarter impact revenue cash Symphonic based have million expect range a expectation. $X free million of not expectation QX full to the QX will on million

unlevered cash inclusive burden. increased free is $X of Our guidance approximately of flow million

services. and resumed Given world-class and macro pause R&D and COVID are investments PingCloud delivering channel and operating were marketing in our investments QX. we success and SaaS These that the on put organization partner on PingOne heavily sales new a building navigating and have innovative fully environment, on focused

meeting investment be the in IPO $XX.X are This Ping. of early their considered ongoing compensation to probable and $X vesting in as which incentive stock-based requirements, in quarter expect to Vista's between QX. long-term the since accrue million monetize efforts predicated and stocks and plan awards these price which of $XX additional on of approximately is We the for Ping as appreciation could long-term the million million first

charges. expect disrupting of Ping customer access early enterprise We be and innovation In are we of enterprise we years solutions. innings while that Identity experiences. is security both opportunity noncash digital among legacy will as management, transforming excited in identity still remain about the leading XX our these closing,

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

Operator

Instructions]. [Operator

Wells of Winslow Your first question will Fargo. line the come Phil with from

Philip Winslow

side. Wondering us your if of some business BXC on, give then you more the and employee/partner call color the side could it,

recovery year-to-date if for sort call COVID of 'XX? Sort would I it, of And been in about seeing QX? expectations sort you've what and those think economic your trends a, of how how you about think from you guess this perspective,

Andre Durand

cases Andre is those use this remain Phil, strong. speaking. of Both

architecture designed cases. We said but always really smaller company. It's identity before, of is to should a our into use our our growing have, has faster. cases. That single the been been historical and inception the all to That's and serve platform as I've able goal, customer market identity a belief that case, serve said, use leaning which realities use platform be design since our the our been investing both

So adopting say, the I we certainly COVID in Trust environment, seen, have security Zero the would in earnest, model. in identity interest

has the that architectures for longer of do And network. with workforce into remote. the corporate more on the of that reality VPN kind the case, of think And the corporate a sudden back to are now, users I have use to workforce don't of all no looking they're have network. where

impacted kind customers. But has digital experiences of desire also a which So the use for we COVID do time, have workforce focus simplify on the omnichannel Trust, case. across Zero incoming see some been has likewise, for been increased to

looking we the to then or Ping to siloed experiences and see platform rally consolidate a lot companies around And fragmented of that facilitate so customer consolidation.

of, actually say, we've it. has kind positive on equation. is by use a and is COVID growing of would influence faster customer So both into as for design sides that that us, had leaned case The I

Operator

line next James. the Raymond of of will Tindle from Our question Adam come

Adam Tindle

help cohort? does make I they compete pricing not, XXXX. ARR can a catalyst, it maybe and as number? follow-up, a assumptions pretty that But a imagine purchases. but maybe, think but anything think acceleration question is It approach initial a I corral could us what that see that that wondering going to around ARR normalized growth they new help become any as way the like in phased that's material would Raj, if there have that catalyst how that smaller I'd around customer you're would ARR where quarters some imagine play start, perishable, like on a size seems growth, way be I'm future seeing start or demand to there's and would be if we'd out? away? and wanted just just And size Because I customers not to to us Andre, taking I to expand. to just we

Raj Dani

here. Adam, Raj thanks. is This Yes.

saw COVID into in seeing larger in in So see phasing back and QX. started these Phase certainly, what QX. we It's the deals typically in and we're of now and starting in to starting cycle with -- of we terms beyond the QX X

I'd to say seeing we're larger the phased X in it, what deals So quarters. call typically, over, are X is being

still of really that said, That selected Zero we're Customer is journey. and intact. Ping I road Trust, like seeing strong. it map part now. It's they is engagement customer's pipeline all and a So for

of of expect few I would a terms So over next it's those, the phasing in the just time to matter continue that but in of quarters.

Andre Durand

the to is Andre new. here. degrees And say, environment. QX. perishable. budgets in this fair saw varying dynamic a it's think that expectations We impacted. that the saw to that's budgeting we serve Every brought COVID any is large this been and And And impacted that in Adam, about in enterprises. this demand QX. have been not We by We sector has have is don't We

in that to vision. They've got have or one any Ping multiple selected we've multiple reality They that discussed multiple vision. of capability us, be starting typically map larger what use and/or commitments I deploy now do a to kind to what or and for when we is reported, for just companies a strategically product either think commitment. Phase Raj would larger they as a on see reports and a be are closed. They've Phase typically a case can X Ping make as And of quarter. deal road X

Operator

William Jonathan the from will question of next come Ho of Blair. line Your

Jonathan Ho

start And to Can us understand out? help with maybe identity just give play this could that consumer few potentially of assuming be And us business going the a build you examples it. how I'm case direct-to-consumer the how understand ShoCard but to market? out help maybe the is out type wanted just you opportunity. of maybe can not I maybe a offering, around

Andre Durand

This an clear. Jonathan. Thanks, new to entirely paradigm Yes. is be

us, talked individuals industry, if we it the information at conversation. do as and in what you're shared. stated consumers with embedded control it we the industry, engage as identity I deeply been I is companies, a little as by -- have over about identity in is But or hasn't So IDENTIFY, guess, we

simultaneously Now information enforcing appropriately also identity management can into consent phone and privacy consent their Makes future Ping there's company interactions required seconds actually regulation collect and lot share, as concept identity money we identity, users' the going is users verifying verified the participant show a in their fundamentally companies your in capture consent paradigm. in they cases. relationship meaning -- could end authenticate. that really businesses, of a It when friction for is better identity that Where pieces lower use then customer account so individual for that And The control with tremendous then of spend consent to present to verification before friction, in privacy-enabling customers end data. businesses. lot with you to is the they sharing they're they an to active a the especially, amount a to and gets this establish entire user. their the side their changes wallet, The and privacy to a And policy. matter of the and and have of ensure on before in in that violating other of a you user improve register in new do create is is individual a the they the begin a that new skip registration an it's identity privacy or information an apply and completely the call that and companies in this sells identity Companies identity a in once capture what -- relationships basically allow notion make privacy. up registration of need with sure to or the interesting, model. not companies. there's going an to both that to to with a requested for and enforcement, enables way of

identity. in customer it the is applicability we also So It's show that use have identity a a value consumer just we that employees consumer use case. cases. believe But they new a significant has use this -- employees up company, have also will think When model verify to case. customer in not all to

Jonathan Ho

That's it's that Got state. just the helpful. it. maybe you sort And normalized a normalized moved very I want passed think contract a can I the here of durations? to in that mean of bottom to said that whether already duration, just terms point and sustain back confirm we've contract But I more

Raj Dani

good It's Yes. a Raj. question, Jonathan. This is

do, talked back in everyone to to retracted So in a is when we what's could levels. minimum actually, system, saw pre-COVID back Realizing normalized everything sort we we bit that right? COVID of as had identity saw it they and QX. to mission-critical bounce we the shock about sort that to QX, back the a QX, of

conversations that get is felt we that's with customers feel that to feeling we that we in that bottom. same Now I the COVID. anecdotally if those the don't prior But these the discussions certainly know in

Operator

next will from of Saket line of Kalia the Your question Barclays. come

Saket Kalia

joined Oracle maybe or identity from late. Great. I CA SiteMinder the talk can has sense? like the likes Okay. this of just heavy legacy of a been quarters? of amidst infrastructure apologize of there And these make like customers that I of an how for does call Access coming and look for Andre, already the the you, your the systems you of example. addressed. guess displacements and like in Manager, I sort types maybe qualitatively, kind pipeline pandemic? But if how about the those approaching are here ripping prospect Does replacing of sort out

Andre Durand

as trend Oracle in that stickiest the been turned I legacy to discussed tend really web the a particular, the SiteMinder is which products, other one modernization say become management, application. of those would is Manager, identity had access do has and of Yes. products to products trend we've the We seen unsupported Access Broadcom, because renewals a legacy probably every suite their in of vendors. It does, they playbook, the on Saket. before, of have CA's those screws they've In by and largely of some seeing a as the case, according touch products.

increasing there desire I I products, has say So tailwinds acceleration been replacement the in companies have and At projects would the the and/or priority do. been a for they under scrutiny time, that those budget general At call that. the to same general same need so though to time, environment, move something this heavy off asked come COVID we of a lift. the even would highest of that in is are and large

enterprise a to any day these trends will in not able are billion seen long billion At And front. $X be the still to market that said, the legacy $X that hold they market. but there's estimate large on They we all grows on enterprises. some puts replace to legacy in point, moment will that just heading a where they so need as and we've of existence on That large pressure to replaced, we the every as both time longer. believe that can, with and takes in hold does to be towards

it's brutal. I've before, said As become

Saket Kalia

very That's for you. Raj, helpful. it. Got maybe

want or maybe zoom some their off those Just And seeing on maybe in Or a mean just I length, little renewal duration? for that you specifically. X maybe given at bit they renew to guess are pandemic? contract the years that question duration. I last renewals to what prior in I is continuing on of there are sort perhaps are contract to of change piggyback

Raj Dani

impact new tend a significant the because focus on That's renewal has much we But good of Saket, on revenue duration ARR ARR, well. a right? so as to question, very

what we that back a think of or when also where fair according term for rec did And as back. X much single you the were to so whether of QX of multi-year, X, those but subscription years, But preference. were in were at pretty we are seeing have and had multiyear, in back licenses were years unfold. terms rev renewing customers X much amount ago we that to several If their those time terms were year X 'XX, we renewal That's those were to pretty right? before

Operator

come seems will from to question missing. Gray Unfortunately, of Powell the BTIG. line next Your of be

question Next Hedberg the from will come of Matt line of RBC.

Matthew Hedberg

pipeline. talk this are follow-up bit? deals guess could question. bit that And to if macro Or that these ultimately nature stability the things an of that just prior health seeing? function of the is rate. phase-in that I there pipeline a accelerate you can actually you're some I'm could imagine guess reduce perhaps accelerated business new I you control increasing a that about wondering I have your on at really is COVID a more could the of

Andre Durand

of The business, to very, strong, recently. we this our base been this new actually and actually returned look side Matt, at the or balance has has at also between pre-COVID very mix that business pipeline largely When levels Andre. is stage. new

yet conversations a had a is haven't demand on internally impact? And then we're COVID sudden, kind we all new of the strong that of Now about, front. seeing

-- the The second part part question. of your your repeat second of

Matthew Hedberg

Well, of there pipeline is healthy like sort you imagine, is stability Or you? a can that I very it this way, for of ultimately macro that a things guys function would brakes are Maybe a you're function do of even that you follow-up accelerating mentioned I spending. reps. more to increased it's a that resume tenured you -- Raj, to be, control. or guess, would reps Then

the Just sort of of curious house. that on side

Raj Dani

continue are those and/or we that sales many to customers the less respect actions that expanding stability like closure friction expansion. the close cycle impacting to an already a have is the we experience rate had is do that we for -- tends With it can that customers with with on others, control we, be the take to rate, macro associated aspects I focus would we believe that of phased-in deals. deals relationship say to size with initial is and do we've the of

so entered of base to a we with We to lands QX, when business. We That other that of the focus simply sure were did know along equal said, jump made And we, that a on wholesale healthy all COVID, paying expansion new attention not make QX amount opportunities. we new in expands. in and future business. into companies, we experienced

with focusing so the we new heavy, accelerate while base, probably could of too closure landing on some at if customers. it focus And comes expense increased

like don't also We that trade-off.

Matthew Hedberg

marketing question bit and sales there. double-click just that bit of you of next R&D. a think maybe as a year? where we in about rep maybe to imagine Raj more on I do But ask then for kind could new sort additions hiring. rate a focused? terms color you you're how of mean the then And about of And prepare the and I

Raj Dani

absolutely. Yes,

our plan a So has been in year we strong and be coming good seasoned into those getting reps felt with this this next good year enabled year. terms pretty reps year of hiring for to and productive

capacity. we about the So good sales feel

which offering the is past, well. Now as team, of PingCloud been several we're down mentioned say, and focused are on, Andre our we've has in XXXX. Global platform the about, XXXX as we've products. our cloud as We've our our phenomenally new in innovations there that in doing that growth around team, And terms to that the investing been PingOne well the highlighted also talked platform. Fortune services

is we from things in network well And fine as channel a rep-specific grow are investing. team focus all real of of their of, of too. our and a partner cloud those cloud and about our be in to we're where in is as investments expected there, and around enabling the I'd growth our infrastructure continuing support what teams. So to other to around enable general, advance investment customers as putting say significant areas growth that our go we just the on spending R&D, there terms in in hosting standpoint, of combination journey the certainly,

Operator

come of next of question the And line Crédit Brad Zelnick Suisse. your will from

Brad Zelnick

Matt follows question what Great. actually, And just was my Raj, you. asking

or trends team actually at in look having. sales that doing seems Yet new guidance, implies absolute say dollar half. the in expansion ARR QX adds look your the marketing whether back same you're your I just be the in the to well. to and ARR business it So I first you And relative and net to number they if deceleration referred at deteriorating time, productivity where that is were further at growth the year-on-year, phenomenally

in So the that marketing? ARR missing you confidence resume new to going relative how forward? might I productivity gives investing you're adding to And what that be should we about sales think that and

Raj Dani

Yes.

of the sales good a it's force. tailwinds And I and COVID question, think headwinds this basically, enablement here. year of we're mean, right? spent I we on our seeing the Brad,

products. So time growth with productivity do our going quicker like cloud our to also we who that improve We've forward. productivity selling will leading -- feel seen are reps for our

net QX. we feel ARR of doubling in about think a a here year look world like So lived we're guiding healthy, we will we what we to is in and COVID lead the in sequential investing time that increase the QX generated we've When almost there, quicker ARR at productivity. to this to the in

are I point into those confidence in all going would So signs what of terms to and beyond. QX us gives the

Brad Zelnick

duration characterize then you. on you shots follow-up customers shorter that I portfolio a expansions? gives goal, if signing and and you in are Maybe just for that, for would size actually of more your year? opportunity fair to it the assume in upsells speak, mean to so and next How grows renewal deals, QX size is Great. renewal into

Raj Dani

and our coverage We've we're Well, that now for have ARR talking success in in great group continually regard. over customer customers. been to our years investing several our snowball

value customers that important to making contact make with constant is sure them for from upsell everything in that and there money we in for new are So cross-sell if to the early time that And value group. getting are add to opportunities them we're and customers. super getting to value sure stay order that on identifying

that where sort certain were the renewals basis, what seeing we're seeing see reverting too. -- And now durations, over last deal, a term I We doesn't the a renewals duration pre-COVID. actually just And year. point. on is regardless renewals to renewal initial typically the it weighted we couple like pattern X years just of of said happen of renewal traditionally, So longer of the at started historically, back were average were of earlier, were to,

opportunity issue cross So that's there or I of sells. of sort had don't anything terms from renewal upsells see specific in and duration different any we've else

Operator

come with will question next of line from the Gray BTIG. Powell Your

Gray Powell

Can you hear me this time?

Andre Durand

can. Great. we Yes,

Gray Powell

mute. great. not right. when All on better right. That's All work they're to Phones tend

Okay.

in us So today? yes, on you least for at sort potential Europe, could your can color you and talk then October? And with about QX? in of And what on the linearity you that just saw you saw any overall visibility like in recent give volatility the lockdowns, pipeline macro

Raj Dani

Can Greg, that, please? So first around part your on expound just was of the you linearity. question

Gray Powell

terms Yes, like trends. just What bookings saw July, September? you so in August and pace between your of monthly of

Raj Dani

pretty off what start -- us for typical where the And get for a had a quarter. is We what given reasonable QX Yes. to just is then fairly typically in we of the there's And lull a end our very quarter. the the finished the That then tends to us, -- business. especially international with in quarter. strong of we be middle at

ordinary. So out the was that I say anything there wouldn't of

we We monthly have month. that. QX, well continue just like to executing mentioned, around regards a quarterly the executed focus and your to With and to Andre question as pipeline, in well have a a strong second focus, we we have we're

with the the from these that happens on some see let's certainly, of So what you and internationally, mentioned quarter, macro of shutdowns trends beginning of we're some track. but

Operator

the Our line Pritchard Walter comes of next question from of Citi.

Walter Pritchard

SaaS any And driving percentage as seeing side. to SaaS particular a there? as extent are the from you Anything go you're revenue into And Any XXXX? on about that? there change thinking in Question on total? update of how you the

Raj Dani

take I'll that. Raj. is This Walter. Sure, Yes.

our all ratable. last quarter we we investing our to about the footnote the and services towards we're couple shift ratable X. excited every really you gradual because in That's see here of So continue quarters PingCloud. one innovations and PingOne as being know, that certainly revenue unveiled a we've been way, disclosed we've And new over

adoption continue good and good to build that. we behind pipeline So see

complex navigate world -- in architecturally help on to cloud embark get we desire get state. so hybrid advantage them And to their different. are of terms of our right, them in them like them and to with customers, an there. to And their differentiated way it's to our And we are also all their cloud desired to and feel that help through journeys,

see fair a growth. of ratable did So amount revenue we

XX% QX. in revenue grew QX, ratable XX%. overall, Our QX. was year-over-year And that for XX% revenue of growth In ratable total revenue was

So talked that we see as expectation. continue about before, when that's to an we trend,

We as occur go in more gradual continue a the to cloud. through to believe transition future enterprises will

Walter Pritchard

that there guess, the are I there uptick SaaS And implication, the within as is you just implication percentage seeing Okay. that ratable? a

Raj Dani

Absolutely. Yes.

clear, business. been the SaaS overall are to Just businesses several now. a be the yes, at our we're that's case for quarters And growing rate -- faster significantly than

Operator

will come Trebnick from of the Catharine Securities. next Colliers question of Your line

Catharine Trebnick

imagine more any macro conversations much and the going environment. that so they're financial has banks with XXXX. with on tools health really adding and can't they're care saying more they Mine I've they at to many already of large in spend money more tools. had procurement retail, And to sites do just not officers that many have And

type officers. you with almost this of how procurement view rationalize with you your is feedback senior can opportunity So I'm different growth XX very And that getting? that

So you growth to your rationalize how what saying. trying fit in they're and I'm just

Andre Durand

Catharine. This is Thanks, Andre.

What seeing absolutely and thing. consolidation vendors movement hearing the we several are seeing same replacement we modernization vendor and So a legacy are Ping. of for and or desire is to

modern of can legacy have which a personally exactly been we in Budgets be played ways several you in pretty where describing. cost shift conversations reduce what that flat out to asked involved spend partner year-over-year. share I wallet being this We're were while should find might Ping. a from So in the consider we much case to possible.

have At new slowed time, the landscape, the desire not being but same of that pressed are down. vendor our by supported for use a we're onboard units have environment. new demands legacy the applications, also our We accommodate to to complexity cases reduce not the business business

those see legacy with consolidate to essentially them vendors several we so And and companies Ping. dialogue in replace

bound -- Ping. legacy but So we by our a not by necessarily look is budgets, our to growth at transition flat from

Operator

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

Christopher Speros

the into think XXXX? how during quarter the you can of the Chris about that use level should about case forward for and Gur. API going Speros saw opportunity on we that you talk Andre, for security demand evolving

Andre Durand

Yes, thank would have been not in I that high we interest you. the things and level product API changed. say since introduced have all security

an COVID important, not suffered also As one a the QX, be while QX, future also was security It X conversational that understand incoming, being I consistent say, from of in the in would topics and X top vector I CISOs top reported API attacks. in priority it tends environment. to of is

our that improve cases, It have our thousands new in deploy took do opportunity been postponed have hundreds QX some security experienced we QX. large of QX fully cases it enterprise-wide, that market. an We going many to is customers emerging QX through is away. the in cases, we of We APIs protecting, validate, and and that So that, API solution see and expectation extremely early and around in the in that introduce API with scalability security not QX deals product. as fully that signed several and other deployments, QX

several interactions technology, top emerging many of the of the large is budgets to products it seen the the that of in to the our make a lack API security. course a introduced enterprises. of in that growing have APIs trend that not not under and in over X high-priority is if, are new this new matter the a projects categories XXXX, COVID of like concern of exposure and this before. and level least emerging of it All But increasing in product, belt their quarters. as space history. groups traffic into companies at will customer of get I've an matter of the you is of they validating all incoming, the we've APIs interest things my tight is of are in awareness new Ping's security return an And new these the When of technologies expectation couple this get that and My time, a did when. last visibility it's

Operator

the line of Your of next Securities. Romanelli Michael question Mizuho comes from

Michael Romanelli

addressed. been Most already my quick me. have just one Maybe questions of for Yes. one

saw you change the to at if churn customer quarter? with any just in wondering of sort respect all Just

Raj Dani

as Andre budgets wallet more We really towards to And Identity share and these going traditional mission-critical security mentioned, didn't. enterprises. for you identity. continues see from be more anything, if

always strong as see continued retention we have our really history. have in we So to

Operator

concludes now call remarks. over for presenters to That today. turn our questions back closing for I'll the

Andre Durand

providing want to today's all wish to carry look updates on guys joining you as you. the health. our of Thank you. continuing thank to everyone I year mission, progresses. forward We the I Thank business earnings out the call. for best

Operator

participating. for you Thank call. conference today's concludes This

disconnect. You may now

Ping Identity Holding (PING) 4 Nov 202020 Q3 Earnings call transcript