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 ...

Scott Schmitz, SVP IR ir@sailpoint.com AUSTIN, Texas, May 14, 2025 (GLOBE NEWSWIRE) -- SailPoint, Inc. (Nasdaq: SAIL), a leader in enterprise identity security, will report its fiscal first quarter 2026 financial results before the US markets open on Wednesday, June 11, 2025. Media Relations Contact SailPoint will host a conference call that day at 8:30 a.m. Eastern Time to discuss the results. A live webcast of the conference call and the financial results press release will be available on SailPoint's web ...

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]