PING - Earnings call transcript Q3 2021 | 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 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to David Banks, Vice President of Investor Relations. ahead. go Please

David Banks

and joining today, Identity for results. for And to announcing after quarter fourth welcome third full third for Thanks, XXXX. our issued year call, us a where Ping Shortly quarter the for conference provide market results financial our we the outlook quarter, the close everyone, the outlook today. update we will XXXX the release discuss press

set of addition our presenting supplemental In the a These portal. we financial website call. to through be will slides will to results, the published webcast the live be following

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

limit in to GAAP as website. call, address a are the questions can find third we during To analyst measures comparable can reconciliation press you You ask our many that questions we closely plus release to of as ensure measures our please we the the most your quarter those on follow-up. one posting slides possible and the

I after XX end will over call the that, will to We Andre. turn With minutes. the call

Andre Durand

point will several financials and strong XX% detail wanted delivering revenue $XX.X guidance XXX% another once I solid focus XX%. our today the year-over-year of key in retention time in SaaS metrics. each durations. four percentage grew we Raj and our performance environments. grew to QX results against of the on quarters. last also again QX year-over-year, of million up and and Annual Thank to cloud quarter, in compared you, grew for solid with recurring growth all the XXXX reflecting cover in update revenue again was contract IT of more by first XX% moment. on quarter from David. platform net million quarter a a of themes again sales our companies help first rate based entire the to increased, their focus $XX.X dollar our hybrid up secure core Revenue

In one we Nearly customer were base. team to five XX more of services expectations dissimilar For brought global to top the offering. congratulate PingOne a enterprises starters, to for use advanced exceed the our and of I’d are thank just as XX XXXX. our this our across are like we experiencing customers case, new advanced trend we which the Ping continue leveraging deals all far of XX% with sophisticated in year, past these so their largest XX not most broadly to PingOne complex services, and in

driver the investments are Speaking of these past Platform, becoming future of investment been but now scenes, much our of behind the PingOne over major years Cloud the growth. two has a

And new identity the an with bring into customers customer to gets coming need detect now Together that a for entire of offerings, of our but of the Authorized in QX next do an immediate spans by comprehensive identity authorizing in integrate we Through Conference, security custom any use Intelligence authenticating, to enhancements the we we experience from behavior without Ping’s and to to recent last intelligent, from secure validate monitoring availability PingOne of took platform. which coding, and solutions without these any single can malicious several XXth technologies cloud Platform of month, PingOne for only to to all identity our recent of this PingOne identity acquisitions. identities, delivered which resource Verify announced any all This place verifying, end our But transaction authorization the year. a of Key, Annual platform better. API enable identity technology users, API and Cloud includes user to services and Users PingOne services workforce need we real related During existing or extraordinary Fraud and transactions. new ensuring to PingOne PingOne application and acquisition Singular of integrate access it cases. our not lifecycle the can army orchestrate developers. can orchestrate centralize

matures, resiliency. redundancy To offering so world invested multiple regions we investments active/active have around the growing cloud have through operate across mission our providing at coverage, to with critical geographic our to these meet globe. while As to resiliency around regions the expand in aimed the improving demands, request different

am PingOne Lastly, announce and available regards in FedRAMP such, to expect of officially pleased government our Department with we from sponsorship our we for as have received Energy, XXXX. make cloud to that the platform, I broadly

partners, one channel we significant investments in continue our ecosystem. core our another embracing Focusing to on of themes, make

and our in year, channel, programs through our investments is supporting with more partners. customer and XXX XX% and support enablement helping marketing resources nearly prospect partners up facing than this Our

team more our technical than implementations led program, such XX delivery shift increase certification with now including professional investment an to and approved of sales partners. services Our implementation XXX delivery the helped grow training, partner our This has sales, partner support representatives. important training, with to enabled in along

to leading we company operates states, and activity. to to which third are in example XXX,XXX more look layering operators highlight lead we assets refine continue logo our have partners PingOne tied landed key to to Also, like their customer, internationally, These and both business this the or acquisition this Ping in integrators increased And more serving website and few In Catia especially market This contract with new owned now became the the a capabilities our of pace system to our authentication serving Brazilian in customer a a using of Internationally, Economica new Coast than media was risk global and publicly sought warehouses warehouse in their story, a start to secure expanded customers. a protect as Services. partners step the We Canadian-based up case, working is with our evoking a for XX portfolios, how of framework sale suspicious recent our Ping we to XX,XXX club footprint GSIs. to stories. relationship by with Advanced Their with capabilities. are eager activity. enhance I’d XX of one applications. the and authorization authentication employees XXX in of Ping or existing going quarter, extend mobile leveraging and with banking a identify government their million their Brazil’s a America, company banks is extended East XXXX new largest Ping to Latin fraudulent to authentication and one than Catia. held They They with plan Netbr. their open conglomerate signed the largest we Federal Ping journey great to bank digital multinational in members

now citizens, Ping of Colorado the nearing employees currently customer a their state to Canada, to are new In financial the another leverages ready open extend has their expansion went the business. state based open agreement XXX,XXX, live the relationship use digital regard We with deployment. of both story, Flinks of in their for issue banking proofs Colorado, and those empower second provide a Montreal, relationship Coloradones to to to based provides upon banking driver’s leverage than successful for Flinks With organizations which completion institutions deployments, success complete to case. the other Ping State licenses, of More to and environment Ping expanded for drive vaccination we IDs.

for a Health, who adhere non-profit organization in the this Simyo We states. live a to were Flinks SCL in us celebrate serving go also standards. strict western to a partner Canada Canada’s was to healthcare Joining longtime managing Ping residency several implementation is with pleased solution [ph],

Our along with Champion, and confidentiality. adhering was while physicians, strict winners, Health patient workflows Identity to award XXXX and authentication SCL data TIAA, staff Innovation streamline Banco our other for Old Itaú. hospital also solutions and Eurofins, recognized as Mutual

metrics of see Identity was all quarter closing, In a deals. partners, you expanding we across for to the Security. return quarter and notable including Accor finalists, our Security, recognize customers of also great for other and all We another Schneider Thank a growth and solid of partners and TransUnion, larger key Netbr, pleased Electric, to are significant boundaries Hotels. healthy Altron QX and ProofID

to of to our for hard take We the managing start experience. strategies are a Interactive. drastically and for also McAfee, Security Kees customers as CISO long acquisition our recent CBS Oracle mass with a Chief Groupon, that and reach has Singular and game work identity believe will recently is dedication PingOne on in teams, We Officer. simplify succeed and cybersecurity critical opportunity track I’d orchestration of the thank to and our team like integration a excited their Information developer changer also at enhancing hard Cloud this large Jason Jason record Key new code years our Ping helping the as no identity most work, security to see welcome Platform. and and enterprises but acquisitions Siebel,

like invite Day on our to Finally, December Investor virtual Xst. to I’d upcoming you all

Raj and outlook the will Relations in metrics provide invite leaders. full while the QX for more And call with on go an roadmap a through year. to will look for our our from that, now our detail our over Raj? greater walk and vision, Investor depth an of key team. into official to results QX and I hearing provide the Please turn strategy We product from and senior number

Raj Dani

Andre. Thanks,

all $XX million net are the QX XXXX. our million added was metrics. ARR key QX pleased of to ended year-over-year. delivered with XX% of up have ARR ARR up above million, with of guided XX%, QX We for net $XXX.X ranges We in $X.X of compared

with This solid performance reflects a that normalized some large return consistent durations average activity, quarter’s more more averages. historic with a are and continued deals to

adoption than least grew primarily XX% Subscription based more in increase term license in XX% of from up and revenue solution, million by Platform. by of from license QX, quarter term $XX.X revenue revenue. generated Growth acceleration our by as to now based. year-over-year driven We and SaaS was grew in QX. Cloud subscription at XX% than SaaS PingOne XXX SaaS we more year-over-year. multiyear the revenue using XX% grew XX% million, quarter SaaS customers have was revenue, one Third total $XX.X which

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

retention than with ended trailing dollar customers on stated year-over-year. was QX and metrics. refer calculated with consistently based the Our rate again growth. $XXX,XXX I XXX net otherwise to with accelerating will more remainder quarter XXX%, P&L tracking a We XX-month the ARR, Unless in the of up XX% for non-GAAP ARR basis

acquisition You $XX.X subscription cash flow Key $XX.X gross we our Total margin million enter of GAAP X.XX was with This cash can last of quarter press as shares cash of $XX.X Ping flow Year-to-date strong price due led fourth reconciliation of expected reversing free $XX free usage for continued margin generation the $XX.X We to were release. negative find third QX cash flow $X comparatively, innovation but to and positive $XX.X of year-to-date. growth, reduction in in unlevered strong accompanying due quarter’s Key. Gross XX%, $XX quarter. cash we capital was to changes, the stock timing consideration million included in the operating cash XX%. unlevered of remain the of expenses numbers Even of collections. GAAP acquisition for in a and million. is of cash by operating at the on for partially Singular The was the third non-GAAP investments quarter valued million $XX.X at $XX.X million quarter to drive cash the The position million as million. profit million million QX driven ended our hand. the working million of chiefly quarter-over-quarter with a by with and Singular million tag to cash

the midpoint raising Moving to now million, of million XXXX. are $XXX to year, our we guidance, full growth ARR at with to the $XXX projection XX.X% for compared

at at midpoint revenue to expectation expect the million We $XX million with of $XXX midpoint. full million XX% million QX growth growth $XX of the or year range, to XX% $XXX of revenue

and cash free to than the $XX.X expected expect million with includes negative Singular of continued about our and end for of In impact balance million, we and year optimistic levels, million unlevered closing, This $XX.X We $XX year lower are to both flow slightly about $XX the this for acquisitions. year-to-date the great SecuredTouch feel with Key of longer QX. trajectory negative million term. performance to the prior growth

to over your forward that, looking for to at with Investor December it Day. are sharing We Xst you With turn questions. I will Operator our the more

Operator

Thank We [Operator Instructions] your Fargo. from with you. Andrew question have first Wells Nowinski

Your line is open.

Andrew Nowinski

Thank you. great Congrats on quarter. Great. a

Just you want is on you to the are quarter start consecutive a have subscription year-over-year an This over basis. had inflection off XX% with, seeing clearly second growth. in growth

might be inflection your just driving you growth? that talk can So about how have and and evolved products what

Andre Durand

this for Andy, Andre. is question. Thanks the

reaching Platform Cloud PingOne a Our level product of maturity. the platform, is

Advanced with Fraud, QX Services some organically, some like services those services, and Verification, online of new as acquired Now well. line coming year, it’s our several last combination coming online Risk, combined of built a

here So Ping being the of the Cloud customers, as new offered existing -- customers. it Platform story maturation is really well as to the

Andrew Nowinski

And think SecuredTouch here in them? do Singular in September. and fit about including Great. you to June the those we now then inorganic product acquisitions in this ask recent where contribution acquisitions should from the want about think How evolution, I to platforms into those some acquisitions, How XXXX? Okay. your headed of Key then

Andre Durand

make a decisions. have identity risk signals be needs We and and better by fraud authentication authorization intelligent, always vision that had to to informed

the had case. by risk which use consumer a Risk, fraud was We introduced in signals offering for SecuredTouch use our the for So PingOne consistent that. workforce service earlier risk with year. SecuredTouch completes case customer now is and that and

that risk list trust us, password so just in, no to also So is our and such achieve the experience risk It’s behave. there way how that inform list are user towards to building implicit is signals control where plane the a a the leveraging we we is signals virtuous and notion speak. identity high, password entire the if without cycle, to available are that instrumental vision, low to let fraud

this acquisition was that or an little plane. The of identity Singular part our -- around control Key the a intelligent So bit acquisition is yeah, strategy different. Singular

If back step game. identity an you is integration

to it much with critical Key the achieve And allows to just the to trying and these We are us connect to a integration. the say, XXx has on can done to and everyone coding, which is integrate, the of so technologies companies time to because value in coding to all identity Singular actually speed everything, point-to-point advanced hard been of historical all time not Singular large value flexibility of but we now more Key. integration, the does the the speed basic, as enterprises.

So it allows to design the experiences without business user coding.

without matters, an integrate Key is integration coding. these really all experiences identity of identity Singular to value, us So game, speed allows to orchestrate to time

Andrew Nowinski

on color XXXX should too still contribution early? is or how Any in we their That’s great. think about

Raj Dani

is Raj. early. Andy. a This Yeah. little is It Hey,

of just these weeks into couple the integrations. into months a are We couple and a --

these SaaS solutions. them in our our So now tell business our continue is force, I generally our of of build around the from and and you first is order integrate platform right marketplace that, pipe. from with customers, just there’s to excitement ton What a sales to will own

just So watch the space.

Andrew Nowinski

Thanks Sounds very good. much.

Andre Durand

Andy. Thanks,

Raj Dani

Thanks.

Operator

Raymond your have Adam next We with from James. question Tindle

open. is line Your

Adam Tindle

to over Okay. $XXX Thanks. had ARR. on Good afternoon. year, be going year I wanted start and Last guidance on $XXX just based just million. million to this it’s you over

the level mark about at the highest think ARR I ever. million, adding new that look I $XX So would are you which

of of basis, on you composition on the maybe as think and forward ARR, puts a this ARR new a Thanks. basis? we Just of down break to some adding the takes level could and forward sort if wondering of go

Raj Dani

Hey, Adam. Sure.

So business. growth on of rate no been have of and SaaS based overall ARR the right, what talking about, surprise, multiples the been has of growing we

over including base. Advanced customer tremendous our an quarters, has We have PingOne building the introduced frankly, four SaaS Services, within three a which amount adoption, several and pipe interest of new services past or and

think SaaS point of year, So I that delivery. kind sort when it’s of inflection our in really about this

are along us terms that on changing of parody, Andre for our feature game As of competitiveness. with in platform mentioned, function really services independent the sort these SaaS

into and seeing market. the we So -- are that in wins translate

a driving of growth. that’s there lot So our and success overall

In fact, overall in QX, SaaS quarter our bookings come we actually saw the majority for of the from services.

we really to So see excited that. are

Adam Tindle

Okay. Yeah.

Sounds sustainable.

about benefits U.S. wanted the a help of you kind investments maybe of coverage place investments the in already this scale on And ask of then, to want needed Andre, the expansion opportunity did to any two-parter, precedent? anyway talked be you a to Cloud. and that? as active/active with on different Raj to wondering incremental comment this in clarify from size I you. for I Okay. maybe up or I maybe potential going incremental cost, and secondly, geographies. am with this the do kind the can of they’re sizing Thank our follow

Andre Durand

them, of a critical All don’t of many basically occur, access authenticate, mission their own transactions Tier our they customers, most if treat authentication or network, users can’t or well, people work. of customers the as X service, them don’t cannot

critical which is of the resiliency when to infrastructure. services It in and of to the of what we enterprises. very are nines AWS. in now This part there, the credibility deliver We cloud behind to and lot identity so offering four Active/active more large need a obviously, achieve our our investments our us, our A be to is really investments services. critical do and the our of really the acceptance SLAs are ways availability we than run is do we big cloud clear. application. is So in mission one of

we new online. territory where in that of in driving customer AWS capital cloud. decisions data online. within bring large bringing companies just a second about is There but a the know, lot are region as a are is or data residency these that’s to to do, There really not obviously, to even region their we have So outlays, put a data employee is able work

order me the or as in are of state to want of us. you Most can. in territory So say, now and really behind you customers expansion to them many or nines geographic demanding, active/active in let are to resiliency country best four get in level our of just an availability investments the offer of

expect But all investment now So will active/active the continued that the covered going there regions Australia program. -- U.S., India, major in are be our now forward. I our now under Ping cloud under really operates don’t Canada and

Adam Tindle

the helpful. Very congrats results. Thanks on and

Andre Durand

you. Thank

Operator

next have We BTIG. from Powell your question with Gray

Your is line open.

Gray Powell

Great. taking the Thanks questions the good for on and numbers. congratulations

Andre Durand

Thank Gray. you,

Gray Powell

product I or want the was just So, back first drove And of plus don’t to like looks of I I it about mean, see stabilizes? two-thirds in question, SaaS you? is that on seem math. speaking, the know, like, where some point business kind yeah, XX% versus your to just Adam’s half about like envelope SaaS you then XX% in new point the like Does of a the more QX to in ARR SaaS of more I roughly there or right follow-up on-prem net the a new sort of year. where coming mix of natural do from XX% is

Andre Durand

several where have do business made over our of platform important bookings an PingOne. We the if and the cloud bookings. in platform, validation, -- outstrip investments noted, will, you continue. the years our we was quarter expect was to outstripped first our inflection the in quarter software the the SaaS As Raj in really this This SaaS that of

we Now it. level of obviously, product that reaching is to in continue the a invest maturity,

these DevOps continue so the run largest company managing to are are cloud, clear, their is program, We from how of identity, clouds. running some direction that or be of newer to, or they but as cloud our anything another. are in or Ping. the public DevOps or they public way cloud consume choice in it your either many program, SaaS us leveraging want the It Ping advantageous but one to to public customers a cloud -- their in software or don’t for tip our more whether of of the say, on-prem table We one on-premise give maintain in customers it’s deployments our we their our do public they

expect that that continue. So -- would and I would

ARR. You point there think It I that made of resting there faster a in at part our business. a future the point. about statement is future is balance. some healthy a XX% where dominated do growing is a SaaS

don’t expect now assuming to that but I XX/XX, XX/XX, continue that point if Ping balance think at are correct to I up directionally underway. into XX/XX, transition the for is future. We know ends for the SaaS in the example, you well

Gray Powell

would months? potential traction. drive my product be the Okay. metrics? just helpful. That’s about should be should think better XX set good coming Is something business seeing just we that really months to And then we and up follow looking SaaS How six clearly is to next its the growth that for is over the customer headline

Andre Durand

It hasn’t primary been the focus.

the course that been how services, the story. complete companies into the use Ping both the through a focus to the a has have growth on everything the we these platform no primary more focusing our one. cloud, on is the platform and our platform that as now the is right differentiation as that services all the differentiated, do of as of are are workforce on new And the the have sure to attention lot focus important. and platform focused on believe Risk been Introducing so I which making places that ARR acquire into use think much focus. and the been the that of year, has back expanding been platform we case, from will very customers right forward our integrate entire the number of API tuck-ins, these some into come building that orchestration. and very product for has been level but And focused Fraud will technology That’s reaches We code in future, Security, strategic customer acquisitions the the customer I consumed the focus through be count, the maturity customer can and orchestration case. the cloud next going do over bringing

Gray Powell

sense. makes That

very Thank much. Okay. you

Andre Durand

Thanks, Gray.

Operator

Borg your have with Stifel. question next We from Adam

line Your open. is

Unidentified Analyst

to This thank question. for for upper just spot of you Hi. your Hasan And talk you the and the and any, XXXX? the more taking Thanks. Devgan SaaS if could SaaS and prospects Maybe is SaaS, customers one, Andre has your [ph] Adam adopt the about, largest moved by market? on Borg Global have down if end in for obviously, below receptivity so sweet two, the the opportunity been for more market

Andre Durand

to I advanced we solution of success the services. that think among giving and services enterprises of adopt won willingness some in some are enterprises well of the of to large advanced speaks them larger cloud the the being some

So begins speak itself. for I think that to

expect a We lot more of that.

lot enterprise market, tends is legacy an down to larger SaaS It’s of market. lot things focus very is a There enterprises. of than different think on integration, area market where hybrid not the it cloud strong. integration tends Ping integration down be a or app for I to large is the very, -- there just

case on-prem those to cloud the consume that use put market. level and think sophistication SMB is to wants SaaS, paralleled So but identity are by market the cases, continue down will back reach differentiated all the the into the hybrid we foresee enterprise That large as of enterprise I legacy we or very of and hybrid to time. that some everything for not very differentiated sophistication in there related be use it on for

on So they tend focus some things. different do to

Our I as a the we help. bit I it however, Global so extend intention is go new the market that the necessarily the XXXX like say, market beyond orchestration there. as of and and to maturity continues services XXXX, below not little are new to will say, PingOne will down introduce

XX multiple services As simplification that be preclude our have identity some said and down and new I not speed identity of opportunity that the with services appeal. times I integrated, services, the platforms would market can which

focus. is all of our from but a it’s view, it, go-to-market So primary open to not point

Unidentified Analyst

Great. Thank you.

Operator

from We Securities. Catharine Trebnick have your question Colliers with next

Your line open. is

Catharine Trebnick

I quantify looking identity of is when Thank you they you and Zero start when they that architecture it question, architecture’s if in their the fit you not sure are at can first use with cases? CIOs, know my piece at, you. how are into speaking long us many Trust for can taking but And are am process drive this, looking that takes you all then me to of decision? how explain to that really -- Thank soon they the

Andre Durand

question, Good Catharine.

Trust stretch six, seven is as mean awfully lot marketers been last commandeered months the by So Zero word, the big of it’s its different to to at an a foundation. but of things,

you trust, the network they they on. user, We are we a essentially from were perimeter are the device you trusted, on security high very or where the are moving there perimeter if the trust was inside were meaning to to world where neither want

Zero we users Trust network, need that the an do presume is within our control cannot when them. and do we reside to what the the of So and don’t embodiment trust we applications

need to we However, in. let somehow them

identity of why or endpoint cell or the a managing Zero are based security who either Trust to Zero let from cornerstone right is the thinking a reason foundational appropriately are the perimeter to So that We we or move to the being phone. laptop want only really we Trust authorized we users is and device Trust as and identity on perimeter. a

are which be the anywhere vis-à-vis could of home. in the they neither example, building at network, For on necessarily

of identity-based as sure identity, what new what both making notion at is strongly every are we with to most we foundational the pieces user access level right what synonymous security is two Trust perimeter in Zero user which fairly identity authenticate to or you So One being to are central that major to. platform they of we authorization, our allow are them the its of Trust. see, the creating. user. they are can authentication second is And need the talking Zero are to can going There do,

Trust from Zero How aka security them is and how cornerstone list to both attention all to platform are that begins authenticate to really perimeter frictionlessly, move it second and Ping as going password of layers to allow of everybody, towards. the the the into. move and journey. authorization, going to So The and if VPNs authentication we do why are begins begins then we of traditional are are what firewalls and focus going and which we the possible accompany

within are history the the ago. that largest to -- perimeter X,XXXs and is deal security day, be moving security you you well, Zero I two in a five transformation announced to to And to large So and on. clear. want based enterprise Trust, big weaponry of Zero the are machinery both of need cloud you services of two or said. very makes global that company transformation journey I that, they as This for users very, is XXs a other this that, one maintain the support to the happen sure to XXXs our make X,XXXs that initiative of significant And a year of from of connection looking company quarter one want be tends that them, a it’s first our is going deal they The to to Trust would customers. a this a now number event achieve

shift, secular central. So is a this identity to happen it’s happening, move going is not it’s overnight,

Catharine Trebnick

All right. Thank you very much.

Operator

from have next question Capital Hedberg Matt We Markets. RBC with your

Your line is open.

Matt Hedberg

with from we maybe I a think legacy large reopening extent solutions, as frequently those come or the come with kind more some of helping scenario, you understanding bit what to COVID of things of up replace to could And the I up period here renewals guess of Ping? some Andre, think opportunity the can some help now? ultimately timing how mean a these bit guys. you of replace Thanks of when about a a more either in partners do these to do Great. Okay.

Andre Durand

I will on us with essentially when last understand instrumental are start part are in the partners that the terms infrastructure. up helping

and a until to a They then rush right is channel they necessarily partners infrastructure. critical of that. in on this So don’t is term the -- honing look importance you to replace they of game, identify a up are right, and the it modernize. to in bit waiting is It

modernization an year seeing those there projects are hold now we tipping seeing begin -- or years, of We we rushes just to We for everyone is have get accelerated that many been return do on point a are the to of asked projects for legacy. put were whether return. COVID, some those where of of of anticipate not rid first legacy

We have steady almost state see large as not seen legacy. that, replacement we of a this

a Now is, the every brittle. bit year becomes more it little truth

stack migrated very identity really enterprises company has very platform. complex wholesale of modern to identity go-to modern are a from the We legacy that or large, hundreds large,

these So, very, good to monetizations we a wait are position essentially occur. in -- until very

working are We them they with identify as partners to happen.

Matt Hedberg

and had it. officer sales little in And have or corporate helpful. have marketing of bit helpful. it’s hybrid Super then, -- you Got a you activity guys That’s field. out work folks whether the

the case in we if fact, that next guess Do as and people forward have XXXX, As face-to-face pipeline on do out think generation impact sales And well? a meetings I anticipate somewhat think you that’s clients could and year? to positive it’s getting question. you related seeing more

Andre Durand

COVID pipeline through enterprises am matter, people be eye-to-eye able do, create generation is, the But to matter. We in will the traveling. does without seeing large with do truth I relationships pleased

been have to looking back while through where we and kick think boarding customers I the effectively first to Whether do three white pipeline. face-to-face. it impact want team I will off you it’s our it’s have that So the team is able positive more sessions, of get to do whether I to it, on going operate two getting implementations, together or forward days, there the are anticipate believe so, be a together.

Matt Hedberg

a Thanks the guys. lot. Congrats Great. results on

Andre Durand

Thank you, Matt.

Operator

with your Colley Brian have Stephens. from question We next

line open. is Your

Brian Colley

for questions. Thanks the guys. taking Hey

environment during can curious, about of kind like play AuthX? pure talk the competitive just Okta’s And you and am you some are trended kind it any how of vendors rates win XQ? change SaaS I in and So also against seeing

Andre Durand

of a recent. We of of improved are result some the really maturity -- win the capabilities as rates seeing as our and of cloud differentiation

whether of has will, how own would noticed, rapid or AuthX there is cloud any maturity in made they I Okta and up showed We you or if more on overall, where there’s would say the not have those no they that material the or up. have We competitive showed -- change deals. been aware our us environment. necessarily impact no watched not

speaking, were included are I think where have before, strong. generally we not included we historically but where might we been

this areas to that deployments our we your PingOne might SaaS continue cloud prior our an is -- in not in absolutely hybrid We improving world. in where historically of maturity be in strong, enterprise, large considered way been own of have years is the because

Brian Colley

you meaningful now have you start it’s I there? investments been channel or two seeing just to have the since a about been made there curious channel partners and am on impact if that’s I you are thinking year more mean pipeline investing

Raj Dani

Yes. Raj. Brian, take can this I that. is

all now our working deals we to I all going really do that. with that feeling partners committed partners they a just are at and with pushing are channel deeply almost channel. of that’s to our just least And So and think the or in in are channel manifestation

but channel have that partner up think this sort year, of We amped commitment. I -- have to good always folks, been a we we really have

have in not As beginning kind improvements XXX% overnight, you is we channel And are seeing the year come not now sort at we the that and is of also talked previous to and that together. flip are you it’s something switch quarters. of the in of the company channel engaging we steady the but about in see expected a and just it’s

are how doing pleased reacting with and those to they investments. how are So and team we really partners our channel are

channel XXX partners over have there. out We

of and in certifications around are activity. of enablement training terms marketing investing We sales and and in all them other sorts

continue. expect would that trend we So to

Brian Colley

time. the appreciate I Great.

Raj Dani

Thanks, Brian.

Operator

Romanelli your question Securities. with have Michael from next Mizuho We

is line open. Your

Michael Romanelli

guys. Hi, Thanks. Yes.

this customer one shift me in quarter but vis-à-vis bit actually the a there Just on from any touched workforce business identity earlier, was identity? this

Andre Durand

pace quarters been now. an to several has relative at for Customer workforce trending accelerated

This quarter was no different.

So many capabilities solution have that the case on the around platform been majority use been is customer our generated leaning acquisitions customer now our design in we the our is where have heavily of of by new focused case, being customer ARR from use use case.

see -- clear, have is use both signaled I XX% be So to for do we that we before our cases. are of one the that of where as both workforce for use our increasing. is have platform cases from consolidate, vision customers us to that gain they using to customer platform very the for platform a leverage are well they can desire from they and both as the large enterprises identity. identity, that use both partner but

said, faster a we platform growing in use some now in for our the use is scale we All time differentiated future of case and been believe has that be a larger today, it to a case expect the customer on performance. and ultimately

the of with systems be off in believe differentiated can the we vis-à-vis journey larger Ping, Some the focused run in speed the amount in experiences that but incredible user generate with we both the world which minimal will of identity the future, user journey of singular do coding frictionless is the without a key through user on acquisition, which so coding. enabling and

Michael Romanelli

Perfect. Thanks.

Andre Durand

you, Thank Mike.

Operator

your We next and with Cikos question have Needham from Mike Company.

Your line is open.

Mike Cikos

for return QX. that gross this quantify to are a the looking can to taking talk in as am these to things in But at that, to more a addition of the question decline talk maybe off, kick that, we slight decline was saw we you we real the you if of deals trying looking compression was and regarding in margins saw Raj for There the I what we Hi. to, And the Thanks professional you year. at to anything seeing the large could in side the are subscription. future business? one guys, services quick are just impact but

Raj Dani

Yes.

Let that time. one at take me a

are were with not to about and that now But it’s So part the more coupled saw more see -- into behavior, seeing seeing going we in sort onesie, is quarter over in what -- back, we a run saw seeing rate go are we we several we a size more of deal the was jumped culminated deal that -- starting a QX, normal are in where but And of the a we most as we largely -- back From terms basis. an really quarter call is phase That’s I cloud, but the return in about in of away, of contrast are sort other way. a not has of deals to time. our get figure -- where quarters twosie anomaly, we last margin on buying into couple bunch six sort to investing an come But in period talking would which levels QX, now. If I seven deals. come a sort us, saw original up smaller right. pre-COVID of And largely them phased that high normalized pre-COVID to for activity I -- similar talked for quarters’, figure, we been probably call behind will that on normalized large activity quarters. that that transactional am of we what standpoint recalling have which away. correctly, what to COVID that of saw deals we

We of of but building lot have entire we infrastructure of a are kind services in traction that. introduced our several we new services, there, including PingOne advance are seeing advanced and

cloud but to and infrastructure advance building operating once see are support we that in -- will certainly we infrastructure out that. the sort leverage we scale, So hosting on where of hit our more and

On the long of for think come function largely I’d function in of a pro-server of those channel side, business. for We partners some timing us healthier enablement mind. It’s are billing. to the directly probably our the of it’s that’s hiring. versus our that also factors a run say maybe

Mike Cikos

answering that own But real with growing market It as because you about that. the market mean for I and have. services making curious just I is to services talk for that on XXXX maturing question expand you see that? am and expanding SaaS is, opportunity to Ping’s extrapolate you that earlier of these I think that number here did in a Global characterization. Global we what Can down consumable more about is the is a fair by we Thanks you my am that, sense commentary had one Andre, this quick my And then maybe XXXX. would or one is Ping potential sense do

Andre Durand

essentially Those infrastructure to maintain market consume to are skills down not The accurate. XXX% required are It’s present. capabilities. identity companies

deploy However, maintain same the large they do. critical have way the infrastructure, to and that they skill but can them, get don’t sets enterprises mission the

can for as or to our So our historically an in in only SaaS SaaS run companies which a cloud create of and go you now software all available available account as capabilities now as the are services, offering. consumable were

for In without that addition focused either the companies acceptance inherently consume is we built the of and are have sophistication that the the SaaS them. of going new to that opportunity which and/or all to very things acquired level increase same

Now, that problems market every more market has But some It company provide advanced probably authorization for example MFA of API down those and single might down cater that governance we almost has those be data like to needs. those like sign-on and services and the and that many do the capabilities services. security. we offer of

Our address or issues large enterprises that only problems have.

enterprises of should that we to large market, optimize to have. in is to challenges going cloud improve we the has are been the to is optimized choose. So our ability let’s move our are cognizant that the portfolio. down That product It sorts all offering say But portfolio, just complete right. tend that at tackle you

Mike Cikos

Thanks the color. I appreciate again, guys.

Andre Durand

Yeah.

Operator

We next Deutsche with Patrick Bank. have question from Colville your

is line Your open.

Patrick Colville

of guidance kind quantify acquisition? help if give includes so, a Thank metrics guidance can to ARR or the of big XXXX for Singular so kind or help Singular us that Hey. kind even you like kind of of kind much Key company -- does me in. any was terms Can private in understand ask as it from can share squeezing of And anything inorganic how was I us I framework, of employees the you is any fiscal you guess just Key. about contribution the the

Raj Dani

is this I Raj. can Yes. that. Patrick, take

the between company of didn’t ARR way probably required. relatively contractors. small So between is dozen and in employees a just and a folks over Singular Key have They much employees

we out insignificant. the spending to really And just are than it’s roll it time now So rush there. simply rather

taking are platform. PingOne into We it integrate our our time to cloud

guidance from so coming that. fiscal of have anything XXXX - much really on doesn’t And the

Patrick Colville

the year-to-date, say I of of calculating It’s relative I flow free line at free to cash so would where next over understand, guide XXXX can fiscal should from I the And and Thank am has last profile on looking how five cash you framework speak guess now, years here? I just I correctly the a guess, profitability -- just this from up year, to help me am dynamic as So that’s margin you. increase and can’t give we ago? margin things to model margins that one been if helpful. and flow impressive in most negative from two coming but about clearly year us thinking the

Raj Dani

that, too. take will I Patrick Absolutely.

as So expect years you is to ago company this growth are, breakeven profitable a we again and a year, be you as year. be to to -- we know couple close our of mentioned, financial cash positive were ethos and flow last

highest aren’t peanut sort initiatives don’t best delivering in from what invest. measuring has in we are very accident. we we last model in But looking we we been where mode say investment again a for ROI investments lean of business are. sort not So spread And our not of too off. this and We and the we into efficient that to around quickly they but butter pretty maybe far those to will those we investments it. -- in how undertake operating down things I’d that paying disciplined are very everything lot in invest leverage ahead, were year year, pivoting the and and hope are that’s we of that continue surgical have doubling in that and and by not the

Patrick Colville

much. Thank That’s so you here. right

Operator

We Ho Jonathan from with next Blair. your William question have

is line Your open.

Jonathan Ho

I maybe has side? Microsoft, am a start Ping with for afternoon. on wanted I been time with at just could capabilities, out I terms is had Good guess, this. cloud wondering bit the which I to now. Hi. oftentimes this partner large you that your little of improvement all a have And in of If the relationship just

Andre Durand

our Jonathan. of as a change our There’s platform, no maturation relationship in result of cloud the been capabilities,

to with are nearly provide own integrate have on-prem, are if cloud consume relationship or We that identity our legacy looking Microsoft large not and you their every, are Microsoft have Microsoft they but imagine deployment. a good enterprises would enjoyed as of other their other just there strong services relationships, capabilities with they not technologies, all cloud

providing emerging identity on-prem. allow of always set large that be clouds, orchestration believe is So new in to neutral opportunities I and been Key. relative our legacy there those integrate of Microsoft to their a capabilities between of instrumental enterprises do the their will of set of that some all Ping Ping services across Singular their identity pretty That’s and an case.

in those to anticipate years exploring explored yet. do come. haven’t We We the those

Jonathan Ho

and terms government for PingOne it. guess maybe talk And be the how try that now I about some vertical? Got bit to for you. push XXXX in U.S. an little of in the big Thank into rationale just to could then opportunity you opportunity. of government a of why Can

Andre Durand

time us We have have some had that a number customers on-prem. of for run government

but FedRAMP new federal We that have suggest a the there with government There would the offering solutions is that is swath also requirement opportunities. that a sector good business FedRAMP be certified. or had certified growing existing I the demand of from government those enterprises and and customers new FedRAMP interface with for simply limited a government that certified do isn’t offering it our private to

also government. Ping enterprises federal opportunity sell allow with the an larger So private are It’s running to to is FedRAMP simply government. than the opportunity FedRAMP interface the federal certification to large the who

for been a So some is on goes, bullish we where non-trivial. a very time. Getting sponsor we wanting are FedRAMP this FedRAMP certification have for solution

us certification, very some have existing which Ping into great. multiple in with to have move higher the a some been We federal who environments levels time of government allow agreed sponsor of who some has they the secure and do for of very, Department customers FedRAMP customer business with to our Energy, a got highly will levels strong for of the us sponsor

Jonathan Ho

you. Thank

Operator

question Nowinski Andrew Fargo. Wells We with from have your next

line open. is Your

Andrew Nowinski

was are I one deals, me the new maturity if creating wondering the into PingOne in great, Well, one impact more. for will solution, be know thank reset the more your more when in the you you those for and think their do companies XXXX you squeezing cloud or recent priorities the felt about from bringing Like of but budget? I that detected Microsoft in demand attacks. attacks cyber talked

Andre Durand

traditional what think a shift already an I is on are security of methods identity-based cyber security to all paradigm. attacks these and focus secular more paradigms essentially putting from

see I all to of attacks to pointing of security, of where capabilities. issued is Trust, building there and which one of I So trusted that am to persistence distributed, don’t But the and perimeter do combined to users on is need everybody and and/or to are basically the through it the still firewalls moving we need company in notions notion computers the is going secure VPNs world the from and based Zero speak. steer must yet identity the a we attacks that necessarily is what and so this, with immaturity. attack seeing you essentially nature to, of And nature themselves identity identity exposing the weaknesses any the are the

as that it adds argument and anyone pending see immediate don’t change to I attack, So but identity. every to need in these the attacks, an from they one cyber invest of

Andrew Nowinski

Great. Thank you.

Andre Durand

our look and So I forward to with December We thank earnings additional want X, for at that Thank concludes updates joining Investor our providing to you call. today’s you us. evening. everyone good Day.

Operator

Ladies and now your you gentlemen, participation, you for this conference call. Thank disconnect. may concludes today’s

Ping Identity Holding (PING) 4 Nov 212021 Q3 Earnings call transcript