Summary of SailPoint FY Conference Call - September 10, 2025 Company Overview - **Company**: SailPoint (NasdaqGS: SAIL) - **Industry**: Security and Infrastructure Software Key Financial Highlights - **Annual Recurring Revenue (ARR) Growth**: 28% year-over-year [2] - **Revenue Growth**: 33% year-over-year [2] - **Net Revenue Retention Rate**: 114% [2] - **Free Cash Flow**: Record high for the quarter [2] - **Margins**: 20% [2] - **New SaaS Logo ARR**: Best quarter ever for new logo acquisition [2] - **Federal Business Impact**: $7 million revenue impact from federal renewals shifted from Q3 to Q2 [6][5] Guidance and Market Outlook - **Guidance Philosophy**: Conservative approach to guidance despite beating metrics [4] - **Federal Government Contracts**: 100% renewal achieved, indicating strong performance in the public sector [6][7] - **Public Sector Revenue Contribution**: 12% to 14% of total revenue, with U.S. federal being less than half of that [11] Growth Drivers and Market Dynamics - **Customer Acquisition**: Balanced growth from new customer acquisition and expansion within existing customer base [21] - **Upsell Opportunities**: Expansion through new modules and suite upgrades, with a typical 25% price uplift for upgrades [21][22] - **Migration to SaaS**: Existing customers migrating to Identity Security Cloud, expected to yield 2 to 3 times uplift in ARR [22] Product Development and Innovation - **Upcoming Product Launches**: Major announcements expected at Navigate conference, including Agentic AI and other new solutions [30][43] - **Implementation Improvements**: New technologies aimed at reducing implementation times significantly [33] - **Machine Identity Security**: Focus on managing machine identities and service accounts, addressing a growing security concern [39][40] Competitive Landscape - **Market Position**: SailPoint is positioned as a leader in the security space, with a focus on addressing complex identity management needs [15][35] - **Legacy Market Opportunity**: Estimated $2 billion to $2.5 billion in legacy maintenance available for replacement [50] Customer Needs and Data Governance - **Data Security**: Emphasis on securing data alongside agent management, with plans for enhanced observability and integration with other security solutions [58] Conclusion - **Overall Sentiment**: Positive outlook on growth opportunities, product innovation, and market positioning, with a focus on execution and customer satisfaction [41][45]

Core Viewpoint - SailPoint Technologies Holdings (NASDAQ: SAIL) is a significant player in the identity management sector, providing solutions for secure digital identity management and competing with other tech firms in cybersecurity [1] Group 1: Stock Performance - As of the latest update, SAIL's stock is priced at $20.66, reflecting a decrease of 7.73% with a change of $1.73 [4] - The stock has experienced significant volatility, with a yearly high of $26.35 and a low of $15.05 [6] - The current market capitalization of SailPoint is approximately $11.5 billion, indicating a substantial market presence [5] Group 2: Analyst Insights - Keith Bachman from BMO Capital has set a price target of $25 for NASDAQ: SAIL, suggesting a potential increase of about 21% from the current price [2][6] - The Q2 2026 earnings call attracted analysts from major financial institutions such as JPMorgan Chase, Morgan Stanley, and Goldman Sachs, highlighting the company's importance in the financial community [3][6] Group 3: Trading Activity - The trading volume for the day is 8,724,659 shares, demonstrating active investor interest and close monitoring of the stock's performance [5]

Core Viewpoint - SailPoint Technologies Holdings is experiencing a mix of strong financial performance and market volatility, with a recent upgrade in stock rating but concerns over future growth forecasts [1][2][6] Financial Performance - The company reported a 33% year-over-year revenue growth in Q2 2026, indicating robust financial health [2][6] - Despite the revenue growth, the stock price decreased by 10% following the earnings announcement due to investor concerns regarding Q3 guidance [2][6] Stock Performance - SailPoint's stock is currently valued at $20.66, reflecting a 7.73% decrease with a change of $1.73 [3][6] - The stock has shown significant volatility, trading between a low of $19.60 and a high of $21.41 on the day of the report, and fluctuating between a peak of $26.35 and a trough of $15.05 over the past year [3][4] Market Position and Outlook - SailPoint has a market capitalization of approximately $11.5 billion and a trading volume of 8,724,659 shares on NASDAQ, attracting attention from major financial institutions [5] - The company's adherence to the "Rule of 40," which balances growth and efficiency, is viewed positively and may present investment opportunities despite recent price dips [4][6]

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For the quarter ended July 2025, SailPoint, Inc. (SAIL) reported revenue of $264.36 million, representing no change compared to the same period last year. EPS came in at $0.07, compared to $0 in the year-ago quarter.The reported revenue represents a surprise of +8.6% over the Zacks Consensus Estimate of $243.42 million. With the consensus EPS estimate being $0.04, the EPS surprise was +75%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compar ...

SailPoint (NasdaqGS:SAIL) Q2 2026 Earnings Call September 09, 2025 08:30 AM ET Company ParticipantsScott Schmitz - SVP - IRMark McClain - CEO, Founder & DirectorBrian Carolan - CFOBrian Essex - Executive DirectorMeta Marshall - MD & VPTodd Weller - Managing DirectorJonathan Ruykhaver - Managing DirectorMatt Mills - President - Worldwide Field OperationsGabriela Borges - MD - Software ResearchSaket Kalia - Managing DirectorShaul Eyal - Managing Director - Equity ResearchGray Powell - Managing DirectorConfere ...

Financial Data and Key Metrics Changes - The company closed the quarter with $982 million in annual recurring revenue (ARR), a 28% year-over-year increase, with SaaS ARR growing 37% year-over-year [4][21] - Total Q2 revenue increased 33% year-over-year, with subscription revenue growing 36% year-over-year [21][23] - Adjusted operating margins expanded 980 basis points to 20.4%, with a record cash flow from operating activities of $50 million [21][24] Business Line Data and Key Metrics Changes - The company saw a 48% year-over-year increase in customers with ARR greater than $1 million, indicating strong demand for identity security solutions [4] - New SaaS customers had a 40% attach rate of add-on modules, up from 25% in the same quarter last year, contributing to the growth of emerging add-on modules [22][24] - ARR from emerging add-on modules more than doubled year-over-year, contributing to a net revenue retention (NRR) of 114% [22][24] Market Data and Key Metrics Changes - The company is experiencing strong demand across various industry verticals, with a notable increase in average ARR per new SaaS customer by 30% [22] - The company is positioned to lead in the evolving market of identity security, particularly with the rise of AI and machine identities [5][10] Company Strategy and Development Direction - The company aims to build a foundation for the next generation of enterprise security, focusing on real-time protection and governance of all identities, including human and machine [14][15] - The company is enhancing its platform with innovations like SailPoint Accelerated Application Management and SailPoint Machine Identity Security to address emerging challenges [16][17] - The company emphasizes the importance of integrating identity, data, and security to provide a comprehensive solution for enterprises [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position heading into the second half of the year, citing strong performance and record free cash flow [31] - The company anticipates ARR to cross the billion-dollar mark in Q3 2026, with an expected growth rate of 26.5% year-over-year [25] - Management acknowledged the challenges posed by the current macroeconomic environment but remains optimistic about continued growth and modernization efforts among customers [60][61] Other Important Information - The company is one of the only independent, enterprise-scale identity security platforms, which allows it to offer flexibility and extensibility to large complex enterprises [12][19] - The company is actively pursuing partnerships to expand its market reach, including a new partnership with HCL Technologies [19] Q&A Session Summary Question: Can you provide more details on the guidance and the impact of federal term renewals? - Management confirmed a 100% renewal rate for term-based federal renewals in Q2, which resulted in a $7 million timing shift in revenue recognition from Q3 to Q2, with no impact on ARR [30][31] Question: What are the dynamics between Q3 and Q4 regarding net new ARR? - Management noted that Q2's net new ARR was consistent with last year, and they feel confident heading into Q3, expecting to maintain or increase the rate of movement to SaaS [37][38] Question: Can you elaborate on the opportunities in machine identity? - Management highlighted the importance of discovering and assigning ownership of machine identities, noting that customers are increasingly recognizing these as part of the attack vector [42][43] Question: How does the company view the integration of AI-driven connector integration? - Management acknowledged the need for a tight alignment between identity and data access, emphasizing the importance of understanding the characteristics of agents and their access to data [48][49] Question: What is the current state of legacy systems among customers? - Management indicated an acceleration in migrations from legacy systems, with a sense of urgency among customers to modernize their identity solutions [54][55] Question: How does the company view the competitive landscape? - Management noted that while there is increased competition in the governance space, their win rates against traditional competitors remain strong, particularly in the mid-to-large enterprise market [78][79]

Financial Data and Key Metrics Changes - The company reported an annual recurring revenue (ARR) of $982 million, representing a 28% year-over-year increase, with SaaS ARR growing 37% year-over-year [4][20] - Total revenue for Q2 was $264 million, an increase of 33% year-over-year, with subscription revenue growing 36% year-over-year [20][22] - Adjusted operating margins expanded by 980 basis points to 20.4%, with cash flow from operating activities reaching a record $50 million [20][23] Business Line Data and Key Metrics Changes - The company saw a 48% year-over-year increase in customers with ARR greater than $1 million, indicating strong demand for its identity security solutions [4] - New SaaS customers had a 40% attach rate of add-on modules, up from 25% in the same quarter last year, contributing to the overall growth [21][22] - ARR from emerging add-on modules more than doubled year-over-year, contributing to a net revenue retention (NRR) of 114% [21][22] Market Data and Key Metrics Changes - The company is experiencing robust demand across various industry verticals, with a notable increase in average ARR per new SaaS customer by 30% year-over-year [21][22] - The company is positioned to capitalize on the growing trend of enterprises recognizing the need for real-time identity security controls [6][11] Company Strategy and Development Direction - The company aims to lead in the evolving identity security market by integrating identity, security, and data context into a unified platform [6][11] - The introduction of new products like SailPoint Agent Identity Security is designed to address the governance of AI agents and machine identities [8][15] - The company is focused on modernizing its offerings to meet the challenges posed by the rise of AI and machine identities, emphasizing real-time controls and governance [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position heading into the second half of the year, citing strong performance metrics and a robust pipeline [30] - The company anticipates ARR to cross the billion-dollar mark in Q3 2026, with a year-over-year growth expectation of 26.5% [24] - Management highlighted the importance of adapting to the evolving landscape of identity security, particularly with the rise of AI agents [8][11] Other Important Information - The company is increasing its fiscal year 2026 ARR outlook by $10 million to $1.11 billion, reflecting a 26.6% year-over-year growth [24][25] - The acquisition of key assets from Savvy is expected to enhance the company's capabilities in SaaS application visibility and identity risk detection [14] Q&A Session Summary Question: Can you provide more details on the guidance and the impact of federal term renewals? - Management confirmed a 100% renewal rate for term-based federal renewals in Q2, with a $7 million timing shift in revenue recognition from Q3 to Q2 [30][31] Question: What are the dynamics for net new ARR in Q3 and Q4? - Management noted a consistent performance in Q2 and expressed optimism for Q3, expecting to maintain or increase the rate of movement to SaaS [36][60] Question: Can you elaborate on the machine identity market and opportunities? - Management highlighted the need for governance of non-human identities and the unique approach SailPoint is taking to address this challenge [40][41] Question: How does the company view the competitive landscape and governance space? - Management indicated that while there is increased competition, the core competitive landscape remains stable, with strong win rates against traditional competitors [77][78] Question: What are the implications of the shift towards integrated identity solutions? - Management acknowledged the trend towards tighter integration of identity with security ecosystems but emphasized the need for flexibility in customer solutions [88][89]

SailPoint (NasdaqGS:SAIL) Q2 2026 Earnings Call September 09, 2025 08:30 AM ET Company ParticipantsMark McClain - Founder and CEOMatt Mills - PresidentBrian Carolan - CFOScott Schmitz - SVP of Investor RelationsOperatorGood day, and thank you for standing by. Welcome to the SailPoint Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you wi ...

The cybersecurity company's third-quarter guidance disappoints investors. ...