Company Overview - SailPoint, Inc. (NASDAQ: SAIL) specializes in providing identity security solutions for enterprises, which include lifecycle management, compliance management, and analytics [1] Unique Selling Proposition - The company offers a modular-based identity platform that is powered by AI, positioning it uniquely to capture a larger share of enterprise customers [1]

Financial Data and Key Metrics Changes - The company reported an annual recurring revenue (ARR) of $925 million, representing a 30% year-over-year increase, with fast ARR growing 39% year-over-year [5][23] - Total revenue for Q1 2026 was $230 million, up 23% year-over-year, with subscription revenue of $215 million, increasing 27% year-over-year [26] - Adjusted gross profit margin was 76.3%, and adjusted operating margin was 10.2%, exceeding expectations [26] Business Line Data and Key Metrics Changes - The contribution from non-employee risk management, machine identity security, and data access security modules more than doubled compared to the same period last year [25] - The average ARR per customer is nearly three times higher than that of other identity security vendors, indicating a comprehensive enterprise-wide role [18] Market Data and Key Metrics Changes - The company holds nearly 21% market share in the identity governance and administration (IGA) market, significantly outpacing its nearest competitor [8] - Customer retention rates remain strong, with net revenue retention (NRR) at 115% [25][17] Company Strategy and Development Direction - The company emphasizes a strategy focused on identity security as a critical investment priority for enterprises, aiming to address the complexities of modern digital environments [5][24] - The innovation strategy includes the introduction of new offerings like agent identity security and Harbor Pilot, which leverage AI to enhance identity governance [12][13] - Partnerships with cloud providers and systems integrators are being strengthened to enhance market reach and customer solutions [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that there has not been a fundamental change in demand due to the macro environment, with identity security remaining a top spending priority for enterprises [24] - The company is confident in its pipeline and sales velocity, expecting continued growth driven by both new customer acquisitions and existing customer expansions [25][20] Other Important Information - The company ended the quarter with $228 million in cash and equivalents and no debt [27] - Guidance for Q2 2026 includes an expected ARR of $965 million, up approximately 26% year-over-year, and revenue of $243 million, an increase of 22% year-over-year [28][29] Q&A Session Summary Question: Insights on machine identity market dynamics and pricing - Management indicated that machine identity is a top concern for customers, with pricing expected to be value-based and a significant opportunity for the company [31][33] Question: Observations on macroeconomic pressures - Management reported that business remains stable, with no significant impact from macroeconomic factors observed thus far [39][40] Question: Details on ARR strength and customer acquisition - Management noted that half of the ARR growth came from new customers, with strong demand for identity security solutions amid competitive displacements [44][46] Question: AI's role in identity governance - Management explained that governance tools are well-positioned to address questions related to AI access and performance, differentiating from access and authentication tools [52][54] Question: Customer migration from legacy systems - Management observed an acceleration in migration from legacy IGA solutions, driven by the flaws in those systems and the need for modern solutions [58][60] Question: Contribution of migrations to NRR - Management confirmed that migrations contributed low single digits to the NRR, indicating ongoing customer transitions to newer solutions [104] Question: Growth in non-SaaS ARR - Management highlighted a strong term business for Q1, with some sizable customers opting for on-prem solutions, although SaaS remains the primary focus [111]

Financial Data and Key Metrics Changes - The company reported an annual recurring revenue (ARR) of $925 million, representing a 30% year-over-year increase, with fast ARR growing 39% year-over-year [4][22] - Total revenue for Q1 was $230 million, up 23% year-over-year, with subscription revenue of $215 million, increasing 27% year-over-year [25] - Adjusted gross profit margin was 76.3%, and adjusted operating margin was 10.2%, exceeding expectations [25][26] Business Line Data and Key Metrics Changes - The company saw a 62% year-over-year increase in customers with ARR greater than $1 million, indicating strong demand for its solutions [5] - ARR contribution from non-employee risk management, machine identity security, and data access security modules more than doubled compared to the same period last year [24] Market Data and Key Metrics Changes - The company holds nearly 21% market share in the identity governance and administration (IGA) market, significantly outpacing its nearest competitor [6] - The company reported that half of its new bookings in Q1 came from existing customers, reflecting strong customer retention and expansion [15] Company Strategy and Development Direction - The company emphasizes a strategy focused on innovation in identity security, particularly in governance for emerging identity types, including machine identities and AI agents [10][12] - The company is expanding its ecosystem through partnerships with cloud providers and systems integrators, enhancing its market reach and customer solutions [14] Management's Comments on Operating Environment and Future Outlook - Management noted that identity security remains a top priority for enterprises, with no significant changes in demand due to the macro environment [23] - The company is confident in its growth trajectory, with a robust pipeline and strong sales velocity, indicating resilience in identity and cybersecurity budgets [19][24] Other Important Information - The company ended the quarter with $228 million in cash and equivalents and no debt, having paid off its outstanding balance [27] - Guidance for Q2 includes an expected ARR of $965 million, up approximately 26% year-over-year, and revenue of $243 million, an increase of 22% year-over-year [28][29] Q&A Session Summary Question: Insights on machine identity market dynamics and pricing - Management indicated that machine identity is a top concern for customers, with pricing expected to be value-based and competitive dynamics focused on authorization capabilities rather than just authentication [31][35] Question: Impact of macroeconomic factors on business - Management stated that they have not seen significant macroeconomic pressures affecting their business, maintaining a strong demand for identity security solutions [39][40] Question: Details on ARR strength and customer acquisition - Management highlighted that new customer acquisition is strong, with half of ARR growth coming from new customers and half from existing customer expansions, including migrations and upsells [43][46] Question: AI's role in IGA and competitive positioning - Management explained that IGA is well-positioned to address the governance needs of AI, focusing on access and authorization questions that are critical for managing AI agents [51][54] Question: Customer migration from legacy systems - Management noted an acceleration in migration from legacy IGA solutions, driven by the flaws in those systems and the need for modern solutions [58][60] Question: Contributions to net revenue retention rate - Management confirmed that migrations contributed low single digits to the net revenue retention rate, with a balanced mix of upsells and cross-sells driving growth [101][103]

Fiscal Q1'26 Earnings Presentation June 2025 This presentation includes market and industry data and forecasts that the Company has derived from independent consultant reports, publicly available information, various industry publications, other published industry sources, and its internal data and estimates. Independent consultant reports, industry publications, and other published industry sources generally indicate that the information contained therein was obtained from sources believed to be reliable. ...

Core Insights - SailPoint, Inc. reported strong financial results for its fiscal first quarter ended April 30, 2025, highlighting continued expansion among its customer base, particularly within Fortune 500 and Forbes Global 2000 companies [2][3] - The company emphasizes its AI and data-driven identity security platform, which is designed for extensibility and resilience, as a key factor in its consistent performance [2][3] Financial Highlights - Total Annual Recurring Revenue (ARR) reached $925 million, a 30% year-over-year increase, with SaaS ARR growing 39% year-over-year to $574 million [6][7] - Total revenue for the quarter was $230 million, reflecting a 23% year-over-year increase, with subscription revenue at $215 million, up 27% year-over-year [7][39] - The company reported a GAAP operating loss of $(185) million, or (80)% of revenue, compared to $(68) million, or (36)% of revenue in the same quarter of the previous year [7][40] Financial Outlook - For Q2 and the full year of fiscal 2026, SailPoint expects total ARR guidance of $963 to $967 million, with a year-over-year growth rate of 26% [4] - Total revenue guidance for Q2 is projected between $242 to $244 million, with a year-over-year growth rate of 22% to 23% [4] - Adjusted earnings per share (EPS) for the full year is expected to be between $0.16 to $0.20, compared to prior guidance of $0.14 to $0.18 [4] Operational Metrics - The number of customers with more than $1 million in ARR increased by 62% year-over-year, indicating strong customer retention and growth [6] - The company’s adjusted operating margin for the quarter was 10.2%, consistent with the previous year [40] Cash Flow and Balance Sheet - Cash and cash equivalents as of April 30, 2025, were $228.1 million, up from $121.3 million at the end of the previous quarter [33] - The company reported net cash used in operating activities of $(96.8) million for the quarter, compared to $(55.4) million in the same period last year [36]

SailPoint, Inc. SAIL will release its first-quarter financial results before the opening bell on Wednesday, June 11. Analysts expect the Austin, Texas-based company to report a quarterly loss at 1 cent per share. SailPoint projects quarterly revenue of $225.16 million, according to data from Benzinga Pro. On March 26, SailPoint reported fourth-quarter fiscal 2025 revenue growth of 18% year-on-year to $240.12 million, compared to analyst consensus estimates of $235.26 million. Share Price : $0.80 Min. Invest ...

Revenue Growth and Financial Performance - Revenue increased from $365.3 million to $793.9 million from the fiscal year ended December 31, 2020, to the fiscal year ended January 31, 2025, indicating significant growth[105] - The company recognizes most of its revenue ratably over the term of agreements, which may delay the reflection of downturns in sales in operating results[123] - Fluctuations in quarterly results may not fully reflect the underlying performance of the business, making period-to-period comparisons less meaningful[119] - Revenue recognition may fluctuate due to the shift from term subscriptions to SaaS subscriptions, making period-to-period comparisons challenging[129] Customer Acquisition and Retention - Customer retention and expansion are critical, as customers typically enter into three-year contracts with annual billing upfront, and there is no obligation to renew[110] - The company faces risks in acquiring new customers and retaining existing ones, which could adversely affect future revenues and operating results[107] - The sales cycle for the company's offerings is long and unpredictable, requiring considerable time and resources to educate potential customers[121] - The company faces risks related to customer acquisition, retention, and the introduction of new solutions, which could adversely affect its financial condition[111] Market Dynamics and Competition - The market for identity security solutions is rapidly evolving, and the company's future success depends on the growth of this market[114] - Intense competition exists in the identity security market from both established companies and new entrants, which may impact the company's competitive position[130] - The competitive landscape is characterized by rapid technological advancements and market consolidation, which could lead to price reductions and reduced revenue[133] - The company may struggle to maintain its competitive position due to the constant change and innovation in the identity security solutions market[130] Operational Challenges and Investments - The company expects to continue investing in research and development, sales, and marketing, which may lead to earlier recognition of costs compared to revenue[128] - The complexity of operations is expected to increase as the company grows, necessitating substantial investments in operational and management controls[135] - The company may face challenges in integrating acquired businesses and technologies, which could adversely affect operating results and liquidity[159] - The company must maintain adequate research and development resources to remain competitive, as failure to do so could adversely affect its business and results of operations[181] International Operations and Economic Risks - The company operates in over 60 countries and has employees in over 20 countries, highlighting its international expansion efforts[145] - The company anticipates that unfavorable global economic conditions, including inflation and geopolitical conflicts, could limit growth and negatively impact results[148] - Risks associated with international operations include currency fluctuations, political instability, and compliance with local laws, which could affect financial performance[146] Cybersecurity and Compliance Risks - Cybersecurity breaches could disrupt operations and expose the company to liability, particularly as it becomes a more attractive target for cyber attacks[182] - The company has legal obligations to protect customer data, and security incidents could result in litigation and damage relationships with existing customers[188] - The company is exposed to potential legal and financial risks from cybersecurity incidents, which could harm its reputation and customer trust[200] - The company must navigate export controls and economic sanctions laws, which could impair international competitiveness and lead to liability if not fully compliant[242] Intellectual Property and Legal Risks - The protection of intellectual property rights is critical for the company's success, with reliance on a combination of copyright, trademark, patent, and trade secret laws[209] - There is a risk of intellectual property claims from third parties, which could result in costly litigation and damage to the company's reputation[215] - The use of open source software could negatively affect the company's ability to monetize its solutions and expose it to litigation risks[220] Financial Structure and Governance - The company has a senior secured term loan facility with an original principal amount of $1.59 billion and a revolving credit facility of $125 million[222] - The company may incur significant indebtedness in the future, which could impact its strategic flexibility and liquidity[222] - Approximately 86% of the voting power of the outstanding common stock is controlled by Thoma Bravo, which influences corporate decisions and board elections[264] - The company does not intend to pay dividends on its common stock, focusing instead on retaining earnings for business operations and expansion[260]

Financial Data and Key Metrics Changes - The company ended fiscal year 2025 with $877 million in annual recurring revenue (ARR), a 29% year-over-year increase, with SaaS ARR growing 39% [5][19] - Total revenue for Q4 was $240 million, up 18% year-over-year, with subscription revenue of $224 million, up 22% year-over-year [20] - Adjusted gross profit margin increased by 80 basis points year-over-year to 78.9%, and adjusted operating margin increased by 530 basis points year-over-year to 19% [20][22] Business Line Data and Key Metrics Changes - The company reported an almost 80% year-over-year increase in customers with ARR greater than $1 million, indicating strong demand for identity security solutions [6][21] - Dollar-based net retention rate remained steady at 114%, driven by suite upgrades, migrations, upsell, and cross-sell initiatives [21][26] Market Data and Key Metrics Changes - Approximately 68% of ARR comes from the U.S., indicating a strong domestic market presence [120] - The company is focused on expanding its presence in the public sector, which represents about 12% to 14% of total revenue, with U.S. Federal business being less than half of that [37][39] Company Strategy and Development Direction - The company emphasizes industry leadership, continuous innovation, and efficient growth as key factors for success [6][13] - Recent innovations include the introduction of Harbor Pilot for AI agents and the development of agent identity security, addressing emerging market needs [12][11] - The company aims to leverage its expertise in identity security to address the challenges posed by AI agents and machine identities [11][76] Management's Comments on Operating Environment and Future Outlook - Management views identity security as a resilient market segment, with continued strong demand despite macroeconomic challenges [30] - The company is optimistic about its future, citing strong market leadership and technological expertise as key advantages [17][26] Other Important Information - The company expects ARR to reach $898 million in Q1 of fiscal year 2026, representing a 27% year-over-year increase [24] - For fiscal year 2026, the company anticipates ARR of $1.08 billion, up 23% year-over-year, with revenue expected to be approximately $1.03 billion [26] Q&A Session Summary Question: How is the macro environment affecting the company? - Management believes identity security is considered essential by customers, and demand remains high despite macroeconomic challenges [30] Question: What is the size of the U.S. Federal business? - The public sector business represents about 12% to 14% of revenue, with U.S. Federal being less than half of that [37][39] Question: Can you quantify the momentum in machine and non-human identities? - The machine identity security product launched in October 2024 saw strong demand, contributing to Q4 results [48][49] Question: What is the strategic opportunity in identity consolidation? - The company targets complex environments, where it believes it can deliver significant value compared to competitors focusing on simpler solutions [56][58] Question: How is the geographic mix performing? - The company continues to see a balanced mix in ARR, with approximately 68% coming from the U.S. [120]

Revenue Growth - Total Annual Recurring Revenue (ARR) reached $877 million, a 29% year-over-year increase[8] - SaaS ARR was $540 million, reflecting a 39% year-over-year growth[8] - Total revenue for fiscal 2025 was $862 million, an 18% increase compared to the previous year[8] - Subscription revenue amounted to $794 million, up 27% year-over-year[8] - Total revenue guidance for Q1 fiscal 2026 is projected between $224 to $226 million, representing 19% to 20% year-over-year growth[8] - Total revenue for the three months ended January 31, 2025, was $240.1 million, a 18.5% increase from $202.7 million in the same period of 2024[36] - Subscription revenue reached $224.4 million for the three months ended January 31, 2025, up 21.8% from $184.3 million year-over-year[36] Profitability and Loss - GAAP operating loss for fiscal Q4 2025 was $30 million, or (12.6)% of revenue, an improvement from a loss of $65 million in Q4 2024[8] - Adjusted income from operations for fiscal 2025 was $133 million, representing a 15.4% operating margin[8] - The net loss for the year ended January 31, 2025, was $315.8 million, an improvement from a net loss of $395.4 million in 2024[40] - GAAP income from operations for the three months ended January 31, 2025, was a loss of $30.214 million, an improvement from a loss of $65.228 million in 2024, resulting in an operating margin of -12.6%[42] - Adjusted income from operations for the twelve months ended January 31, 2025, was $132.744 million, significantly higher than $54.250 million in 2024, with an adjusted operating margin of 15.4%[42] Customer Growth - The company reported an approximately 80% year-over-year increase in the number of customers with more than $1 million of ARR[7] Financial Position - Cash and cash equivalents decreased to $121.3 million as of January 31, 2025, down from $211.6 million in 2024[38] - Total assets as of January 31, 2025, were $7.4 billion, a slight decrease from $7.6 billion in 2024[38] - The company’s long-term debt decreased to $1.0 billion as of January 31, 2025, from $1.6 billion in 2024[38] Deferred Revenue and Expenses - The company reported a deferred revenue of $413.0 million for the three months ended January 31, 2025, compared to $335.5 million in the same period of 2024, indicating a 23.1% increase[38] - Research and development expenses for the twelve months ended January 31, 2025, were $169.7 million, down from $180.8 million in 2024[36] - Equity-based compensation expense for the three months ended January 31, 2025, was $3.797 million, compared to $2.782 million in 2024[42] - Amortization of acquired intangible assets for the twelve months ended January 31, 2025, totaled $103.483 million, slightly up from $102.967 million in 2024[42] - Restructuring costs for the twelve months ended January 31, 2025, were reported as $3,541 million, compared to $94 million in 2024[42] Gross Profit - Gross profit for the twelve months ended January 31, 2025, was $555.9 million, compared to $422.9 million in 2024, reflecting a 31.4% increase[36] - GAAP gross profit for the three months ended January 31, 2025, was $159.772 million, an increase from $129.735 million in the same period of 2024, resulting in a gross profit margin of 66.5% compared to 64.0%[42] - Adjusted gross profit for the twelve months ended January 31, 2025, reached $673.132 million, up from $538.503 million in 2024, with an adjusted gross profit margin of 78.1%[42] - GAAP subscription gross profit for the three months ended January 31, 2025, was $161.972 million, compared to $129.471 million in 2024, achieving a subscription gross profit margin of 72.2%[42] - Adjusted subscription gross profit for the twelve months ended January 31, 2025, was $667.786 million, an increase from $525.415 million in 2024, with an adjusted subscription gross profit margin of 84.1%[42] Performance Metrics - SailPoint's performance exceeded the "Rule of 40" benchmark, combining growth and profitability metrics effectively[3] - The weighted average Class B units outstanding increased to 86,781 for the three months ended January 31, 2025, compared to 81,651 in the same period of 2024[36]