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]
SailPoint Inc(SAIL) - 2025 Q4 - Earnings Call Transcript