PING - Earnings call transcript Q1 2022 | Ping Identity Holding Corp

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Ping Identity First Quarter 2022 Earnings Conference Call. [Operator Instructions] And please be advised that this call is being recorded. [Operator Instructions] And now at this time, I'd like to turn the call over to Mr. David Banks, Vice President, Investor Relations. Please go ahead, sir.

David Banks

the us where welcome quarter full we'll provide outlook joining Identity the XXXX year. for update our call and conference discuss for everyone, today, for to and Ping results, our Thanks, outlook quarter the second our first first Shortly our closed release market results. the we issued financial after press a today, announcing quarter

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

report with the statements. our You presentation CFO, Exchange the quarter for Durand; access may and for Form may the press With XX-K on discussion our the our Commission. Investor March Form release Please annual XXXX pingidentity.com. XXXX, XX, Securities XX-Q include of me refer ended to and and forward-looking Raj Today's filed Relations CEO, section Dani. on quarterly our today is Andre and report on

factors Here, company's of you'll to cause to measures call, also that would statements. remind see Identity's results we materially like you the Ping certain during performance. actual a from related non-GAAP discuss I the these discussion that will could to differ

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

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

Andre Durand

the a had We Thank you, David. to start year. good

revenue to Net rate. overall more at by fifth sequentially XX% recurring robust grew with of base percentage ARR by revenue customers retention QX in We our ARR $XXX,XXX from our growth or XX%. Total X year-over-year. million delivered straight quarter grew XXX%. grew again by $XX our surpassed points climbed we matching driven growth annual quarter, XX%, XX% that and of revenue the accelerated For SaaS

Our driven a our negative flow free investments, an $X originally than financial expected, cash non-GAAP in by timing will some cash results. and million, unlevered address Raj of was collection which bit lower acceleration

make Cloud, labeled use the We customer in our case that XCs: channel. our to progress XXXX QX we've the initiatives and strategic continue advancing

where SaaS drove SaaS. this sell strength, of differentiation revenue to solutions. a First, the cloud in results our at cloud acceleration with our of our our clear XX% XXX% to adoption see ability accelerating quarter growth available the We indicator solutions as and growing

of customers straight once overall third total again least and number the solution. X the For quarter, sales drove than half versus more increased software of SaaS with at SaaS

also customers We customer with the of in the terms punctuated uplift is newest where SaaS sales increase such in both pipeline in building. addition identity solid and PingOne implementations And platform, activity, activity Services Advanced DaVinci, customer as of number federal government ARR. is PingOne importantly, One customer meaningful excitement is commensurate the a our sales saw to new strong. the and U.S. another

government as integrates U.S. to tens identities, interacting PingOne PingOne other citizens various to The the acquisition with of GSA the agile federal with websites. other LexisNexis including per services. This verify that of In through TransUnion order for their management, thousands to and the an identification verify orchestration and various quarter, also various government-wide which General scalable citizens' engine is GSA Administration, things, real month, DaVinci such agencies, conduit millions. with gives sold among providers DaVinci Services provides citizens U.S. a estate for we centralized GSA

significantly of customers expected. capability is DaVinci, but live the DaVinci driving are compliance of countries top European-based customer which still leverage brought relationship early on results the to the XXnd our as into We growth. than for early Cup it. software, us call FIFA this customer identity pilot, users user customers compelling engine, globally. location our FIFA fraud a phases PingOne well-known body some deeply governing and as After and set pillar deployed solutions, An verification months in in In grown and identity results of leverage will existing London-based people cloud into days serving verifies through One tournament host thousands Qatar, Advanced new is FIFA we of a and coming on PingOne more MFA, we scale To its of the X billion of more The orchestration as April, and FIFA, will Services our case services SERD-based our with It's in orchestration Beginning the the over. already viewing November, advanced partners, successfully will soccer, were builds its engage to with we yielding believe early decided cloud-enabled that scale will FIFA we bet took fans have of delivering in of future. U.S. world our year QX, entry World ramp services. available capabilities. world tens digital provider plan very can the in our is our a of the transformation in that early the a migrating PingFederate clients to with or more this GSA. live platform. others several SSO PingDirectory the integration Advanced we pleased Both In intelligence, this in for point in to the as we opportunities management and EasyDynamics, customer of development an digital help FIFA football various platform, engaging Services. XX international also initial FIFA successfully use the an DaVinci billions and PingOne of in through digital

consistent the workforce growth customer strong is was QX growth use use second the than is ARR XC MFA financial a seen customer for the software PingOne Columbia. a use the of states this District deployed case went than launch as over cloud deployment, by institution purpose-built XX billion across Bank, bank, serving share requirements, kit. A headquartered data Northeast integration with Services since to to Advanced other global Identity's data live a The XXX Southern Within quarters. solutions. customer-owned the more right their several in last banking future consumer trend compliance with their Buffalo, millions able M&T's XXXX, allows existing case, meet in of members with the expanding case quarter offer data in successfully and case Ping QX drivers, bank of Great the our M&T consumer more great contributing use customer enhancement in platform to in we've using We PingOne Two customer This Xx. to implementations customers open Bank, increasingly of each capabilities examples. part Australia's enable $X initiative which right with providers. largest months X complement of banking Ping seamlessly is

the key growth channel, third our Turning driver. to

IT This professionals. Ping's available at make local Carahsoft to In trusted us was the by Technology, highlighted the levels. announcement the broadly state provider master X quarter's with solutions our initiatives. progress serve Carahsoft government and the of important to partnership public as announced February, more will aggregator, They and solutions tech distribution we announced a government footprint, industry. sector federal, become leading new enabling partnership partner In with Identity by major aggregator global some TD significant a solution we TD SYNNEX, through Carahsoft's supported distributor distribution in network. XX,XXX the resource reseller distribution partners. a IT will SYNNEX exports the for March, a Ping partner global global

integrators or We continue to systems GSIs. global develop leading relationships with

One the of GSIs GSI our recipient those partners a Partner told well-known to recently group become GSI our to hope one of of the of that of our large, leaders they XXXX unseat Year. existing

deemed of a can an competition know facilitate and between case-focused. them. to source great are more bigger logos customer new the is We deals and growth. that We of both driver The use the important are be often channel channel

plan routinely we're our to more metrics the track we to help As expertise, develop we progress release making. channel

to with And against out we'll continue pleased A and on we're are closing. ongoing We channel. Cloud, the thoughts those XCs: quarter. in our making few progress each report customer

government more making on our We're PingOne within about to the government-related stages We'll operate for I progresses final to complete as more government level. have as to authorization FedRAMP than and and focused say reason. the U.S. good for business there. a bit under headway year First, usual authorizations we the Moderate capabilities vertical strong activity our add of

XxX, of and announce financial additions Anil integrated and I'm our Vikram Verma, X Directors, Second, management. pleased at technology, recently cloud the appointed whom previously | was meeting leader wealth yesterday. Yodlee, intelligence Arora Board a communication Anil SaaS of company. by Envestnet Vik both of cloud-based CEO was were to Board most CEO their of in data to new an

down to ability in critical. their the lead Board periods stepped from massive to after to from companies invaluable. status their to and public With through over experience Stockholder Her a yesterday's us insights lead contributions helping X-year Board Annual like will of I'd her private our Hook, our also recognize Lisa who were Meeting at transition period collective be through space technology term. change,

environmental, the build social practices and with diversity promote report. and stewardship. social an to strong inaugural or efforts in governance the of It recent highlights important corporate our surpassed workplace, our and we Third, inclusion governance publication milestone promote and ESG environmental

commitments some some the in areas, have on but we're We pleased ground. do have stated work to to

committed I basis I'll and to to having shields-up ongoing With U.S. the stepped-up and and war are want level it part to we're at now Raj? turn the in here Trust, and Finally, remains through our Raj Identity. to over our management cyber Ukraine the emphasize and of outlook. results driving the vigilance we doing maintain walk access our alertness in given for Zero Ping to Identity that,

Raj Dani

start fourth ARR quarter SaaS fifth accelerating pleased accelerating Andre. of year to growth of highlighted We're strong and straight revenue growth. by by Thanks, our quarter the our straight

grew of $XXX.X ARR of with with net QX ARR quarter quarter $XX.X XX% the XXXX. year-over-year up million million, compared of XX% in First

$XX.X well of grew than by rate less M&S. subscription-based. SaaS SaaS XXXX of We growth QX revenue was its or size. First the Revenue up revenue was in driven QX, quarterly as X/X and of strongest year-over-year, maintenance as when quarter to $XX.X XX% which since million, XX% support of was growth million year-over-year generated current XX% SaaS

from comprise ARR of versus half represented revenue XX% revenue year-over-year. new revenue. QX. license of third up QX, subscription categories grew total Term XX% our approximately and X% This We of revenue quarter, straight It revenue The approximately M&S the in revenue it up of together which million and subscription represented than XX% M&S revenue. was QX, for $XX.X SaaS XX% in of quarter. making made software in XX% SaaS ratable year-over-year more revenue. generated subscription up of revenue our XX% subscription

QX, term and the we M&S revenue SaaS, More lower at was year-over-year again in $XXX,XXX shifts pronounced a than more and these with our of outlook. percentages ARR, in $X.X a forecasted on change customer we and services primarily license year our as at in revenue in ended XXX expected XX% We line by XXXX a I ARR with X%, quarter, last the up moment discussed when least progresses. quarter Professional in we million implementations. As with expect update that delayed customers decline once growth. driven year-over-year

QX Our of strong to the sequential the rate a driven otherwise I improvement compared calculated for Unless remainder quarter. metrics. by basis with percentage in refer a expansion first base the will of net of dollar-based non-GAAP P&L, quarter X was XX-month retention trailing on noted, points XXX%, XXXX,

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

XX% in profit primarily QX with by non-GAAP for XXXX, our Our was first compared margin driven SaaS. quarter the high-growth gross XX%

QX, million. more expenses used with in flow ended This the bottom was operating gross non-GAAP activities subscription cash, We of Total quarter the end our margin with free this of than GAAP in $X.X slightly $XX.X first were in the million unlevered operating guidance $XXX in million million $X.X QX Our range. quarter XX%. resulted in of quarter. negative below in cash cash

Now turning to guidance.

effect. shift $XX range persist as impact QX revenue For in We can between to you mix we to impact see take further license mix $XX will the reaccelerates of support the this see as maintaining in are shift and second the anticipate million start growth maintenance we meaningful and of the in revenue our of million revenue more outlook quarter, before the wave. QX,

million raising outlook midpoint. year up in XX% QX, of are to year-over-year our full outperformance $XXX a million, at our range Given revenue new to $XXX the we

growth accelerating to ARR revenue to We continue SaaS to GAAP expect reported adoption lower growth than be market growth. and cheaply due

up We partially upfront. of are an now the showed percentage revenue a over in recognizing life increasing ratably change QX. contract That of versus

in our the forward earnings see presentation. our reflected revenue also You'll of it disaggregated can in footnote, continue find to going supplemental which you appendix

XX% in end $XXX recurring at QX million annual to with the $XXX of growth million revenue to midpoint. or expect the range We year-over-year

to to raising tightening revenue full new difference the year-over-year in are XX% We a $XXX midpoint. between the will of and at slightly growth XX-month we growth ARR time, million, guidance Over range our year ARR of expect shrink. and $XXX million our trailing that

quarters, our belief for the growth we have ongoing several metric that revenue As best said fluctuations for measuring ARR is trajectory. support these things

to In areas: timing quarter's and more growth The customer and the use aggressive reflected focus addition collections, to in our the XCs. continue cash cloud, expenses the of investments case this flow channel, our driving X

substantial sizable order increases progresses, vast to we year in COGS the expect becomes As up expense with accelerating in more growth. keep hosting as

we significant such new develop well historical above sales to as growth incremental Additionally, levels. spending risk, expect R&D and as fraud and DaVinci, continue we marketing and products

of the investing and should line harden will risk flow collections, we more The an of heightened infrastructure track due $XX our durability flow unlevered to We to free cash QX in below unlevered both significant platform our and negative our just and revenue. expected ensure and million. given are the timing standpoint, $X on be expect environment. margins also ARR security fluctuations of resiliency free growth. impact the to or to million payments G&A due in negative From cash between

year unlevered breakeven. unchanged flow Our at cash full approximately is estimate free

half to of may rapid market take year. the of the during second business, our opportunities Given the acceleration further of we advantage SaaS invest

your turn continued the We case our also to With X conclusion, growth experience start the of use expect of the by threat over channel. focus In as monitoring landscape cloud, invest to and needed. we've strategic to and I'll had the ahead a operator execution questions. continue will customer strong curve areas that, year for acceleration against to it driven

Operator

William [Operator first we'll this Blair. that, Instructions] our at With take afternoon from question Jonathan Ho

Jonathan Ho

you little to, wanted it U.S. investment dig is of And to commentary programs guess, that your any a why I could more there around benefit to potentially terms specific government. why the sort comes the when in vertical? the here? now? U.S. government Like Just bit of from decision directives in the Are or accelerate

Andre Durand

is of We certified. with our out had this a get that Jonathan, years ago Andre. years. on to build a eye the federal FedRAMP federal market decision a We've to couple made our coincided practice for conscious commitment

now So out built dedicated reported a as for we've we federal. have team before,

service our although get have been a Carahsoft We the we investing have at pipeline announced commitment number as is things customers mandate come certification along with some FedRAMP by we in create announced the a was PingOne as our we with out, well guidance in obviously, concern large The sponsor like X as Department regulation to the a and there we of of partnership federal has federal government well, identity. just as The do particular growing the by -- watched are any Along and one months, and very for or early government. a last we a us out commitment, is obviously growing exciting call for with mandates not as other to that that opportunity pretty coming that government. Energy GSA. and that for driven we've

We it So we're the good. is closely. think timing watching

Jonathan Ho

driving in talk you customer around quarter of or Can Xx said terms case. even were just the then And ARR of the portion it. getting larger expand do what's remain in were case, terms continue use is wins of associated either somewhat I Or to a strength use in that consistent? think Got to to the expect this going an little with And the customers in maybe about your there you that be revenue? you bit commentary to market? that that that

Andre Durand

We both a larger one our made case. than customer let growth It me a do company, market focus -- expect and the case was and use this that choice We we focus. ultimately our do step that part strategic as the as stickier. so conscious the long-term -- see deliberate is of that use back is areas of workforce very strategic

you have digital and the market, to customer the complex a across now current If use competitive experience the consolidate the dynamics omnichannel the historically is cases need landscape but at look the homegrown been in user very of and driving requirements. new most

a there's that So lot space. of for in innovation room

So it's a combination.

reality across tremendous growth for homegrown Our interest much across and the with do do commercial is the doing the historical all with has a is ready with the done has experience, to there room the with there exceptional has of has space fraud, do to user in been has on innovation to what for do of has and we're products. with omnichannel. been risk, TAM, verification that focus what now It DaVinci to

strategic out So you what is we've are a our continue. we this do focus that as materially now in investments pan to that see of are made and beginning had, to focus seeing long-term We business. the that we've that area reported and expect growth

Operator

We Markets. of Hedberg go RBC Matt now Capital to next

Matt Hedberg

one you the Raj. to a the quick about for Fed. great one progress hear -- and Andre, for also in U.S. I

I consider of the maybe DaVinci you're in Could one the capabilities out DaVinci of watching prepared mentioned orchestration provider on that the senses of especially you more think is also DaVinci? really legacies. little bit some expansion, of remarks. interest, also seen things we're of but a when talk we perhaps You And seeing your the some

Andre Durand

Matt. I caught of part that,

I just there. got breaking little you think I a bit were the essence up but

bit little around was and more. we're you of think I seeing a there, elaborate So asking and the question to DaVinci successes were some

Matt Hedberg

right. That's

Andre Durand

commented integration for past, have challenge is enterprises. large -- an We the yes, identity in we've

fund distributed new a and that only this it the they from center but control not see speed achieve the make case, large a is to exceptional outcomes and identity of integrating wants center -- use companies in companies -- elevate leading tool personalization, better or a the of speed the their focus into is integration their So is or allows with and their can everything Zero of privacy It really security, spend identity the identity to improvement experience integrating identity and the which plane enterprise Trust important. DaVinci value for customer both the time world where if extremely on investments. is security XXx else.

of -- and starting point on and if go-to-market identity every real adaptive customer bunch websites the matter whether the trying We identity in users them before for DaVinci the use It you're trying a them orchestration for user to have off-journey, pursuing a modified put you're focused enroll consolidate list not end register whether authorization for to centralize as whether trying or you you're focus a or our verify journey. siloed case, your doesn't to password identity you're or system. to of

All is on integration of require steel DaVinci becoming thread and those that use cases the delivers experience. that

it lead how we ultimately to an that GSA. with, in and -- our how we the and beginning that we now So the value. seeing what approach and POC we And what to deliver go-to-market, is we experience to application are customers are

they delivering billions. FIFA exceptional into the DaVinci, than base a we live Plus measures ultimately has an expected gone about now much worldwide and of announced sooner for So that experience are that fans all on

it highly is the the is time, see this and heads hear over partners extremely our and platform, more differentiated and and to back an but customers, from about coming both of competition. going component important heels You're it of the and

Matt Hedberg

for helpful. Super you. Raj, then, one And

down little year, to local of balance this really sort But that's sort of lot pipeline the breakeven a you're more, it's the this guidance this maybe some spending additional break some maintaining changed side, levels. of could on unlevered flow I free the if year. presume but in effectively free flow that but the because cash again, a seeing. But about impacting your year? just the you're bit you On higher the unpack wondering margin year, drive for of what on of some rationale also quarter spending talked cash spending you for not

Raj Dani

Yes, absolutely, Matt.

As spend proven and have over here you focused a we're ROI around know, of highly years. rigor as we've several around the lot last

right, spend. However, surpassed that acceleration are accelerating seeing XX% incremental does year-over-year some SaaS expectations. at this now, we that And create opportunity our

Additionally, progress seeing we're great channel. the on

see into and of we said, these -- we SaaS channel As that. signs to when adoption acceleration we we've see lean are when and going start acceleration, to

I is think clear we've -- the we've fairly on that, and been this time.

year good the the and investing be caveat further. that's we're the we than to still expect again, of that opportunities Now perspective. to a the that about, behind with I course market, thought, it's success happening But lean year, sooner breakeven. from we with we're had -- on, to XCs, we over actually won't as thing in we've do those -- in talked the our seeing go will kind on of if be see afraid after we

Operator

We go next now to Andrew Nowinski at Wells Fargo.

Andrew Nowinski

And start with benefited curious and from to might the that question like security sustained? that customers you actually migrate the over? DaVinci on to pain helps if landscape. I'd the of it migrate they and be active breach customers how if I'm off at combination swinging the competitive incident a all

Andre Durand

saying say day. industry we we And are to we that and by obviously, customer every identity safe. trust maintain keep trust everyone ensure I'll that start customer and in that I'll this earn customers also investing work the gate. we hard is And to Well,

cloud most addition and couple starting hybrid compete not significantly recent the that the have fact all benefited needs cloud risk the DaVinci benefit we to just clearly platform commoditized, been to now investments of unified and think us. to that, fraud across are competitive would with cases the is Okta, overall, by the has cloud-first use other seeing address in our can mandate. more truly but has I I a advanced all cloud, that made cloud vendors that acquisitions the As who and the in the our in to become ability all and that differentiate a platform, and with not say, against years our And that. in verification last a we been very we've just are customers authorization

there's think that as mentioned, I the number competitiveness. you breach of increased a So that leading been occurred has factors, just, to not

Andrew Nowinski

great. maybe a -- growth. just to want new about your And ARR I That's net ask on follow-up

growth just Specifically XX%. in year of QX new really realize came was wondering fairly looks last QX And but QX, based of net ARR year like guidance? last you off abnormal I on might there with net in consider ARR tough strong in QX growth as to anything if why to comp, a I'm QX decelerate so much your

Raj Dani

it's just strong QX was a particularly Andy, year. Raj.

we In single fact, deal -- that's I that booked was last the Ping's that what's in believe is and it skewing the -- in biggest year, quarter comp. history

Operator

James. Raymond Adam at Tindle

Adam Tindle

years thinking Okay. a that Could we XXX%. I on ARR ago. updated in to up Is And touch metric business basis that there XXX on between retention, gross to like used I wanted you to that points XXX upsell? key think the just sustain? sequentially about nicely you're XXX obviously to for ask attribution the an question back think range can

Andre Durand

commentary a offerings a number increase, service comment had. that the percentage new in I'll range. of result color of the Raj let expansion SaaS on of little But X a updated of the a QX terms as point in base lot we on we've did

the adoption growth So and I'll our when say, acceleration and we vision. our continued, cloud of about platform of talk

cloud also the had only, do which new SaaS of become services, number available the journey -- number that, a the with we When to are they customers Ping. So to of decide a them. to go take

SaaS new don't are the introduced slow Ping where the seeing the of So chapter now we've I of expect the the quarter Ping new cloud think over GA platform acquired down in kind unified of that to X. services of We that the and a last and beginning course a and a cloud. a now of in has you number of that day or transformation trend to

Raj Dani

rate the our itself, I look especially when mean net the evolution over to continued pleased the with really you of you last growth. the at XXX%, X tracks And retention it quarters with if on increase. look numbers at And we're that, generally ARR has

So band and point within we're point retention. XXX to XXX net basis basis ARR between the

rate the to continue now, we range line rate as see net retention you’ve for along in expect. ARR kind with up of So fixed quarter that the started that tick accelerate to that on we

Adam Tindle

And Got of and the help partnership the you a with in motion came about are could the partners. bit just secondly, really follow-up, the as that names us those partnership different a of two understand it. little Maybe in terms impressive first And how Andre, in Crowdstrike terms it’s Cloudflare, place? in you offering and intention a to at you wins early where a convert would indications some with point. sort to I free assume, customers essentially about of to, paid? upfront customer planning some an are implement you're product Can funnel of of paid talk terms how converting any conversion to

Andre Durand

or Trust X a securing a way about we're But Zero now increased the of question, an user of up how that conflict develop quarters. last result It it and of that companies protecting over as and the endpoint user's Zero crisis the of a just start the model. are over starting It's early edge, of digital Ukraine being partnership. around strongly the your role, Cloudflare's accentuated question. fabric Ping's all then about? cloud the The came the these really role, anticipated shields The is drumbeat pipe the world several where in shift been see think as it that the probably is security a part themselves to identity, on what Ukraine. clearly protecting attacked the actually the last towards a shift that's the that with Trust, I'll result protecting coming We course from is drum are that -- in attacks front. and from seeing and new of growing pillars X is of Russia, in that has was up make quarter Ukraine part

were Up instrumental So call the we the government week contact they I protecting to in got and with from up Ping were build the a seen have in Trust Zero Shields companies, infrastructure. did call that looking our challenge. action with that to we that We risen last NFA. the we Anytime got has is for that mandate, to a and around saying before. step before our a -- Yes, companies at Cloudflare obviously critical this awareness there protect to call some time with help announced

of and sure to very where a end-to-end right, business. companies. in been a infrastructure proud edge, everybody growing two but the the we connect important what We in need have is as the lot as role lot just appropriately in opportunity the it really we see critical strongly shift Trust cloud a we are not but towards see defined project, Cloudflare's of those with partnership announced, in in we selected by partner is authorized, secular authenticated, central and to We a in new play endpoint opportunity everybody Zero making edge the

Operator

We Barclays. take at Kalia our next question now from Saket

Saket Kalia

start joined shape I this so of with do those if that I cleanest talk this great at. apologies, guess year? maybe Can about increasing is you. see, for late, metric look you to care ARR think SaaS revenue these already shape were apologies the year? little to about asked. the with And just just the bit of Raj, revenue, you which us to of how clearly, about the mix, of sort revenue is But a for

Raj Dani

to shape, growth call pretty end wave revenue of it's presentation. to I'd targets. word evolve like XXXX because think, And and we revenue been Well, out really is Saket, going the -- that just to revenue thoughtful how cash flow our the earnings have we there towards interesting attention ARR, about not we in say the have but kind you of because

want low you don’t of QX well it will targets. a QX a as do when be quarter about and say our -- I So towards some to trough quarter, in necessarily we then being as but to start certainly back year revenue, QX full will see think think we acceleration

about let’s we we And think out that upfront. year, about of and there dampen by-product of as so full rightly right? And So will more ratable, business how sort our kind right? XX% is almost ratable. I see you -- we again it getting So think will that’s is say And are see now ratable we rec rev of reaccelerate. the XX% it XX% pointed when it’s the and flip-flopping, and revenue of I

And starting have meaningful see are for very term long run is does -- us. that. that through predictable what shifts impact good to it thing more ratable and lot happens the you impact does all is a revenue but it’s it over know a a process near we from some as more which a So lot

Saket Kalia

just for little more it. That's think helpful. Andre, working focus bit, you, this zooming really channel this a with lot I it. year very the just maybe started you with year. a on out Got Got

the some strategically, think you of increased data that. sales I some have increased that question focus? And going guess fact, the comp channel is focus points focus In that you SaaS talk how how about for changed early the transition. does can is, to you've reflect that -- from help I to the channel seen -- that with channel

that but there, does sense? Sorry, there's make a lot

Andre Durand

for channel initiative multiyear top journey a partner it's come a market. saying by to -- the a versus from it start a direct I'll is Saket. a XXXX, but does, market from through essentially it Yes,

we Accenture, middle, all for So actually, the year right half And the are the we're our and above of the largest from channel. KPIs of is government, conversations, in this of that federal conversations getting the of people but on of heading all first for of side, of for GSIs, the the KPMG, in Carahsoft the level it anecdotal number data reseller indications kind the targets we're SYNNEX the anticipation the the the back our TD the of The conversations, Deloitte, as other in direction. strength opportunity the in DaVinci will the conversations, depth tremendous on slew going whole number a very channel are in we level and is significant. continued authorization where company. acceleration be see a and major see that opportunity tremendous things. of They They the track very, and within

more our So on stats there to the positive commitment future unsourced our be around sharing track. the we deal. pipeline, and of are of rate, And is indicators that, in all attach every aim in a but will have partner

Operator

at to We now go Bank next America. Tal Liani of

Madeline Brooks

about This just on what results Tal. see for guys. international is to were quarter. the the I question segment for this quick check A Madeline you and on wanted in for

Raj Dani

international and I think It trended? that I got business how the around Madeline. was question, that

Madeline Brooks

That's correct.

Raj Dani

Yes.

still was be had. for roughly contributor whole So historically to lot anticipate year-over-year. international good quarter our it flat XX%-XX% about domestic, shifting continues of don't we and a XX% to the International mix to a business. international of revenue sort And from we that the

Madeline Brooks

across be what to for terms you cross-selling from about there your the retention. talk I'm that motion. X in second or mix investing seeing Or able there too, maybe And offering? if solutions And of it guys? is the follow-up, you in just are natural steps just net board companies one on after? you'd wondering X that a Are going product really third or the on

Andre Durand

in land We expansion dimensions we case in One the to to historically, with with the authentication single their list. workforce of customer existing case, for case. cases. they was And our directory use either took those the use customers. the in X land password use started X use or Expansion one in was tend if and authentication tended sign-on

So MFA list for and journey. adaptive password would an they or authentication risk add

just the from serve The a unified they customers we're that paying on very can expand use other can use about both cases. under we other in cases. And would that get that have successful, is that. leverage and roughly That's case use dimension platform our Companies for expansion cloud they use that reason focused were case. X/X the of one started of into use both

sophisticated and/or authorization other more either in and say they scenarios one of start would journey the over So simpler authentication they the typical or use other they expansion case expanded authentication use I start the and in cases. case. use they expand is or time, authorization into to And

Operator

Adam Borg at Stifel.

Austin Gewecke

Andre you Gewecke Adam talk in how Austin this can for API periods? is Maybe security, This Borg. security, to role coming the market on on for API in evolve you expect your about

Andre Durand

you broke one. sorry, up on I'm that

we evolving? API how about security market asking were You anticipate and the

Austin Gewecke

Yes. Exactly.

Andre Durand

that see they APIs. one, to and Number that there their API who our to door, things access Okay. APIs, secure that do companies to use of that is APIs. lot in for called can access companies a OLAF have the access is X Well, is us security. a by we front have market. to A leader basically major protocol Ping is gain enterprises the to And secure used

have we APIs machine learning visibility to API The second the transactions intelligence across the those believe and is for see thing product. multiple we clouds, into and complete must against is all internal APIs, external, our that attacks leverage and

those control the authorize companies access is The and what centralize in security to, data returned way from to fine-grained of is third level APIs APIs. essence, those

It's be gone of their So essentially third X X, vendor and has Ping parties. where levels industries deep. the solutions accessible by we now are has security identity to and exceptionally certain and APIs that really important in are regulated that forced across all open only

hear or one one CARES in have X in So whenever vendors the services, of financial to And we're APIs healthcare, can you the secured. provide be only the protection. us of about Act, talk one banking open open layers that that

Operator

next go now Gray Powell at to We'll BTIG.

Gray Powell

numbers. All right. on the good Great. Congratulations

million million sequentially. annualized at this look please That's SaaS it good again I side, numbers a like I'm this And but I there. tell sequentially. $XX revenue, really incorrectly, $X.X the increase. at $XX million look ARR, SaaS If by if increased on if So up doing me

think So for Or almost in of to then the that unique your should all of driving the is year? ARR something how quarter? And growth? incremental about the is safe there now SaaS it say that rest happened we is that trend just

Andre Durand

it's of the It's but deals, to are in SaaS-based. a is the suffice right? Either companies chunk all good it Great. SaaS substantially say, not going or incremental it's deal growth, most of wholesale -- driving

rec I there just I kind of upfront drawing. will think of for I a you're predictability feel a ratable And and full is last year. quarters. we likely for flip about But it said, over think think the about drives like to expect the like good if in year a that ratability the XX/XX on said, that's growth to the the bit continue have ratable rev like full little into basis of the I thing. the front, that rest to XX/XX year to which, may of X, linkage the We been you the there -- rates So coincidence X, and terms X the of CAGR way

Austin Gewecke

existing conversion That or customers with customers pure there either really takes the that new sense. uplift follow-up just of SaaS Yes. expansion, new question versus SaaS? how expansion lot given a a ARR my I when guess way the would sort customer from a quantify the customers to there's least product, is of much That's growth helpful. to is And pure taking of net Xx makes at be that of a existing

Andre Durand

-- Yes. existing. new I'd still saw we Right say close XX% XX/XX. to we're was now, about probably we're and XX% what

Gray, So the for a quarter, base. it in it's take existing -- our will while,

for right? to $XXX occur. It take We have here while a million-plus ARR, migrations a base of will

And it benefits potential. of yes, the would Xx from as But renewing, the if so contribution we're it we I seeing to at having period near makes on-ramp on the these And advance. of over cloud think that for migrations. are in well see time, you discussions look more a expansion sort of those and the sense companies them when are you for longer term, new that them, we putting are

Operator

next at count go Stephens. We Colley Brian

Brian Colley

if curious the either could buckets and net SaaS buckets kind customer competitors? on from market curious where new is it in of I'm rates to the was and new mature ARR incremental coming as progress in those rates you X just you've like against vendors to your and in adds kind of how platform win those I XQ when if at some well. any SaaS and comes gain of legacy continues net seen as between just So awareness win color specifically provide modern acceleration

Andre Durand

the legacy competing on of with say, the go the winning cloud be If couple think not was there modern, or SaaS we competitor. years, you on mix a incumbent I of a against of we requirements healthy were depending back enterprise, may occasion, a probably or pretty and may

proven in track cloud, still the forward to and of list or kind place. legacy extent taking and to the deployment today scale record short are roll of You their have there companies needs. that own hybrid on-prem are their their meet And their it's very a that migrations needs hybrid meet or to maybe

for We the exceptionally to are many enterprises, offerings our they now that say platform. changed. XXX% granted. planning what's up almost so. I well And that's is do in they our today, changed What's cloud are for So yes, are able is entire to to cloud, there, take migrate And rightfully that the starting now and SaaS. of or across

rate that a been have where having And SaaS a result, our competitive for the win capabilities offered now our So is, less the might able of requirements, that. XXX% to just get or is SaaS, disadvantage win one past, it it past our but a changed. of to has we're say in we or not yes is rate to which cloud -- first ability materially not our as

So it's improving.

is as SaaS and our win improved. improving competitiveness maturity rate has Our

Brian Colley

with Got multiple it. new products. solution wanted results in about with that also along cloud customers And your you I those announced to whether ask seeing DaVinci packages then landing you're more and

Andre Durand

one. as that and packaging that and pricing. of would a We've I tell SaaS use, and simplicity with offering, too it's includes imagine, you think early all -- to about simplicity ease of on it's had

to but what into on which they it applied onboard and began buy big to X we the house, the strategic Ping the will, goal is a needed right cloud. base the customer simplifying journeys the to be long-term in competitive typically in bundles. that, simplify would wanted the we higher that SaaS simplifying our customers of from customers those with one report solution advanced look like. take a a early prior they have from all both initiative the packaging their in is what we direction. a SaaS in base purchased step of enough and what you cloud, That new way of took more new We in to versus to knowledge land seen heard enough to in And Too if us tiers. everything to from who customers we've landing for so had our be and where package as an know the want products initial We in package features that felt features customers

Operator

now next go to We Mike Cikos Needham Company. & at

Mike Cikos

and historically, but have the of guys the guide half ask, half that know when of for the from net just we pretty last I cadence 'XX perspective, over was when have the through first net but we fair And new or with of a year circumstance print much maybe to front? Or X I COVID total years. ARR, probably this takes are or to years? half the X guide, you way XQ for in about Raj, wanted wanted I more net going been new it about seasonality, think on year, be is at thinking the the in second just anything calendar I chance around we've the -- last year? ARR of couple ARR you X/X more look environment hand on because what and XQ the a the that to of given QX back the tends over been to least the ARR at it's to that's see, the is that the new

Raj Dani

Yes.

QX right be to we loaded, you necessarily now, it us. look that typical at I second half, that's will fairly but QX don't the As and would when know, guide you for say

Mike Cikos

about in possibly the was history to second that totally think a year year-over-year guys know ARR we're else I you largest half so earlier benefited last your how seeing Okay. mechanic on for difficult because from of I and XQ we're year, of XQ mentioned think we of as to Is on but pen deal large understand the there comp. to which And this company put Obviously, another model? question the impact that anything looking during point, paper signed you standpoint deal that. there had ARR,

Raj Dani

more think months there have platform, we ago be we've solutions we developed as as months Certainly, XX don't unusual. I did XX will ton anything we've ago. than and our certainly a now

deals. deals the drive for larger deals. is PingOne Services driving larger getting Advanced naturally, are PingOne bigger. some government will So

than strategic with more it's sort So existing getting new of else. and more anything about customers

Mike Cikos

this one -- have please. commentary guys then that And positive. more, had obviously tack awesome. you on call just if and could the I been on Awesome, have But I didn't has

implementations. I environment, on I connected, but you you any? obviously, don't customer addressed least it's in the not that prepared the could this, sure remarks make impact the can did was those to in there has I delayed services the And than did this to But if that, and whether One misunderstanding if forum. out. operating at was but this And were public that then the that that just things want hash that concerns. know make relation a to you're question. I volatility, had know quarter in -- are the want the geopolitical to I difficult see wanted in you, I talk expected a of macro, lower I'm X sure if from professional comment to derivative

Andre Durand

in the seeing those by professional we and SaaS to to accelerate not mostly a a of go-live large at services and more the are customers ProServe, that's and connected, are Now seeing the from on support identity, to the and leveraging of same our channel. scale, whole. market way. to and a you're the are referenceable the issues of been focus -- the macro successful strategic with lot experiencing respect macro urgency have what do the cloud identity as a as arm very training speaking, more And partners a conditions Ping. the there. learning we interest Generally market healthy With tailwind putting on acceleration It's to very putting

Operator

Davidson. at Kessinger D.A. Rudy Next,

Rudy Kessinger

down switching the It license I year coming customers. up license terms, you One renewals renewals was did seeing a X-year for up X-year year-over-year in to your XX% of license factor that more term of for multiyear customers it pushing Am looks license subscription Or for XX% SaaS? a job really like term nice quarter, year-over-year. multiyear right? is

Andre Durand

doesn't us, duration opting to what's which anything really have customers do SaaS. switching with of for it normal X-year saw in more is to contracts. we was -- The longer What for

reversion and deals, to we seeing kind sign that. of the correlation bigger a the longer the where the up for that strategic customers -- longer, seen So more time are the projects, we have over

confidence of road Ping go the a and in road map. has is, they Ping. is some does when little embodied runway. improved I our future would Obviously, correlation bit. the of There all it's It kind up in confidence But environment cloud it a think open map. say, I the in with

Rudy Kessinger

then, housekeeping question. And just Raj, a it. kind Got maybe of

You there incremental said from the specifically to line this sales of you this you kind around kind faster. to growth any expected share, grow year, anything you in R&D G&A growth of is grow put quantify and guys then bound expect year? you in the have And S&M could to maybe intend ARR those can Is with S&M, lines? capacity more

Andre Durand

the Rudy. will a marketing board commitment reps. I quantify quota-carrying and and channel, customer we're reps, channel we've the enablement from quota-carrying way marketing, all sales success everything But certainly to the don't say is investing that -- to that the awareness in the and and to made We across and and

is we're a curve to accommodate build can that out on also that we infrastructure you sales make is is the make kind -- primarily tell security in I I'd in of well security, the out business. constantly say, so the then just balance evolving investment So will marketing we're and And and areas. we R&D, ahead growth one, the through and areas, sure will fairly our sales of SaaS our we're balanced spend. continuing And other X across see in the you us What to are and in the the that marketing invest those year, of internally. seeing X SaaS that's

Operator

from time KeyBanc. that have Heath now take We for one at further We'll question. Eric

Eric Heath

ARR guess the have services called the on delayed I out just on the impact a implementation follow-up that side. quarter? to any Did professional in

Andre Durand

be implementations? subscription that On the not ProServe delayed ARR. revenue, would No,

revenue in that ProServe So impact. the line, you see that

Operator

call I'd comments. At this any to back turn like the over or time, final further for to Mr. Durand

Andre Durand

start tuned the case hard look work drivers: Cloud, So well. most channel. like throughout paid the quarter. was importantly, all forward today, you. all the for to thank talking their call. our and here. with And X progress really that It's all year, team to concludes QX we making the we're today's use customer off strategic of strong earnings you Thank solid against for to in who a I'd growth our but

Operator

us for all Quarter and the you Thank Earnings like you, a thank Ladies conclude Identity and Durand. I Ping will Mr. We'd Call. gentlemen, joining Goodbye. great wish all evening. you much to First XXXX so

Ping Identity Holding (PING) 6 May 222022 Q1 Earnings call transcript