- Total ARR of $251.0 million, up 40% year-over-year
- Fourth quarter and full year 2020 total revenue of $103.3
million and $365.3 million, up 16% and 27% year-over-year,
respectively
- Fourth quarter and full year 2020 subscription revenue of $56.0
million and $196.8 million, up 38% and 37% year-over-year,
respectively
SailPoint Technologies Holdings, Inc. (NYSE: SAIL), the leader
in enterprise identity governance, today announced financial
results for the fourth quarter and full year ended December 31,
2020.
“SailPoint closed 2020 with a very strong Q4, marking the
largest quarter of total revenue in our company’s history. Our
results for the year were driven by solid execution across the
business and continued strong demand for SailPoint’s identity
platform which is foundational to securing today’s dynamic
enterprise,” said Mark McClain, SailPoint CEO and founder.
“2020 represented an inflection point for SailPoint as the
criticality of identity security became more apparent than ever as
the pandemic accelerated digital transformation and required
businesses to manage and secure a highly distributed workforce.
SailPoint’s business was not only resilient during this time but
experienced significant growth as we helped hundreds of companies
manage the balance between enabling access and protecting their
business from the risk of ungoverned access. We believe we are
well-positioned to drive continued value for our customers and
shareholders as identity security becomes increasingly critical to
securing the modern enterprise.”
Financial Highlights for Fourth Quarter 2020:
- Revenue: Total revenue was $103.3 million, a 16%
increase over Q4 2019. Subscription revenue was $56.0 million, a
38% increase over Q4 2019. License revenue was $34.1 million, a 10%
decrease from Q4 2019. Services and other revenue was $13.2
million, a 25% increase over Q4 2019.
- Operating Income (Loss): Loss from operations was $2.9
million compared to income from operations of $6.0 million in Q4
2019. Non-GAAP income from operations was $13.4 million compared to
$15.2 million in Q4 2019.
- Net Income (Loss): Net loss was $4.7 million compared to
net income of $5.4 million in Q4 2019. Net loss per diluted share
was $0.05 compared to net income per diluted share of $0.06 in Q4
2019. Non-GAAP net income was $10.3 million compared to $13.3
million in Q4 2019. Non-GAAP net income per diluted share was $0.10
compared to $0.15 in Q4 2019.
Financial Highlights for Full Year 2020:
- ARR: Total ARR at December 31, 2020 was $251.0 million,
a 40% increase year-over-year
- Revenue: Total revenue was $365.3 million, a 27%
increase year-over-year. Subscription revenue was $196.8 million, a
37% increase year-over-year. License revenue was $120.9 million, an
18% increase year-over-year. Services and other revenue was $47.6
million, a 12% increase year-over-year.
- Operating Income (Loss): Income from operations was $0.9
million compared to loss from operations of $9.4 million in 2019.
Non-GAAP income from operations was $48.3 million compared to $23.2
million in 2019.
- Net Income (Loss): Net loss was $10.8 million compared
to $8.5 million in 2019. Net loss per diluted share was $0.12
compared to $0.10 in 2019. Non-GAAP net income was $38.3 million
compared to $18.5 million in 2019. Non-GAAP net income per diluted
share was $0.41 compared to $0.20 in 2019.
The tables included in this press release present a
reconciliation of non-GAAP income from operations to GAAP income
(loss) from operations, non-GAAP net income to GAAP net income
(loss) and non-GAAP to GAAP weighted average outstanding shares,
each for the three months and year ended December 31, 2020 and
2019. An explanation of these measures is also included below under
the heading "Non-GAAP Financial Measures."
Financial Outlook:
As of February 25, 2021, SailPoint is initiating its outlook for
the first quarter and full year of 2021.
For the first quarter of 2021, SailPoint expects:
- Revenue in the range of $90.5 million to $92.0 million
- Non-GAAP income from operations in the range of breakeven to
$1.0 million
- Non-GAAP net loss per basic and diluted common share of
approximately $(0.01), based on an estimated non-GAAP income tax
rate of 24% and 92.0 million basic and diluted common shares
outstanding. Expectations of non-GAAP income from operations and
non-GAAP net loss per basic and diluted common share exclude items
outlined in the “Non-GAAP Financial Measures” section below.
For the full year 2021, SailPoint expects:
- Total ARR in the range of $333.0 million to $339.0 million
- Revenue in the range of $404.0 million to $412.0 million
- SaaS revenue in the range of $96.0 million to $100.0
million
- Non-GAAP loss from operations in the range of $(10.0) million
to breakeven
- Non-GAAP net loss per basic and diluted common share in the
range of $(0.10) to $(0.01), based on an estimated non-GAAP income
tax rate of 24% and 94.0 million basic and diluted common shares
outstanding. Expectations of non-GAAP loss from operations and
non-GAAP net loss per basic and diluted common share exclude items
outlined in the “Non-GAAP Financial Measures” section below.
These statements regarding SailPoint’s expectations of its
financial outlook are forward-looking and actual results may differ
materially. Refer to “Forward-Looking Statements” below for
information on the factors that could cause its actual results to
differ materially from these forward-looking statements.
All of SailPoint’s forward-looking non-GAAP financial measures
exclude estimates for stock-based compensation expense,
amortization of acquired intangibles, acquisition related costs,
severance of certain key executives and impairment of intangible
assets. SailPoint has not reconciled its expectations as to
non-GAAP income (loss) from operations and non-GAAP net income
(loss) per basic and diluted common shares to their most directly
comparable GAAP measure due to the high variability and difficulty
in making accurate forecasts and projections, particularly with
respect to stock-based compensation expense. Stock-based
compensation expense is affected by future hiring, turnover, and
retention needs, as well as the future fair market value of our
common stock, all of which are difficult to predict and subject to
change. The actual amount of the excluded stock-based compensation
expense will have a significant impact on SailPoint’s GAAP income
(loss) from operations and GAAP net income (loss) per basic and
diluted common share. Accordingly, reconciliations of our
forward-looking non-GAAP income (loss) from operations and non-GAAP
net income (loss) per basic and diluted common shares are not
available without unreasonable effort.
Conference Call and Webcast:
SailPoint will host a conference call today, February 25, 2021,
at 5:00 p.m. Eastern Time to discuss its fourth quarter and full
year 2020 financial results. The dial-in number will be
1-877-407-0792 (toll free) or 1-201-689-8263 (toll/international).
Additionally, a live webcast of the conference call will be
available on SailPoint’s website at
https://investors.sailpoint.com.
Following the conference call, a replay will be available until
midnight on Thursday, March 11, 2021. The replay dial-in number
will be 1-844-512-2921 (toll free) or 1-412-317-6671
(toll/international), using the replay pin number: 13715179. An
archived webcast of the call will also be available at
https://investors.sailpoint.com.
Operating Metrics:
Total annual recurring revenue (“Total ARR”) represents the
annualized value of the active portion of SaaS, term-based license,
maintenance and support contracts and other subscription services
at the end of the reporting period. We calculate Total ARR by
dividing the active contract value by the number of days in the
active portion of the overall contract term and then multiplying by
365. See Item 7. "Management’s Discussion and Analysis of Financial
Condition and Results of Operations" in the Annual Report on Form
10-K for more information regarding the Company’s utilization of
the Total ARR metric.
Non-GAAP Financial Measures:
In addition to SailPoint’s financial information presented in
accordance with generally accepted accounting principles in the
United States (“GAAP”), this press release includes certain
non-GAAP financial measures to clarify and enhance investors’
understanding of SailPoint’s past performance and future prospects.
Generally, a non-GAAP financial measure is a numerical measure of a
company’s operating performance, financial position or cash flow
that includes or excludes amounts that are included or excluded
from the most directly comparable measure calculated and presented
in accordance with GAAP. SailPoint’s management believes the
non-GAAP financial measures described below are helpful to
investors because they provide an additional tool to use in
evaluating SailPoint’s financial and business trends and operating
results and because they facilitate comparisons of SailPoint’s core
operating results from period to period. In addition, SailPoint’s
management uses non-GAAP income (loss) from operations for
budgeting and planning purposes.
Our non-GAAP financial measures are adjusted for the following
factors:
Stock-based compensation expense. We exclude stock-based
compensation expense because of varying available valuation
methodologies, the use of assumptions and the variety of equity
instruments that can impact our non-cash expense. We believe that
providing non-GAAP financial measures that exclude stock-based
compensation expense allows for more meaningful comparisons between
our operating results from period to period.
Amortization of acquired intangible assets. We believe that
excluding the impact of amortization of acquired intangible assets
allows for more meaningful comparisons between operating results
from period to period as intangible assets are non-cash items that
are valued at the time of acquisition and are amortized over the
useful life, which can be several years after the acquisition.
Amortization of debt discount and issuance costs. The expense
for the amortization of debt discount and issuance costs, which
relate to SailPoint’s credit agreement (which is undrawn) and the
convertible senior notes issued in 2019, is a non-cash item, and we
believe the exclusion of this interest expense provides a more
useful comparison of our operational performance from period to
period.
Acquisition related costs, severance of certain key executives
and impairment of intangible assets. We exclude these expenses
because they are unrelated to our current operations and are not
comparable to the prior period nor indicative of future
results.
SailPoint’s non-GAAP financial measures may not provide
information that is directly comparable to that provided by other
companies in our industry because they may calculate non-GAAP
financial results differently. In addition, there are limitations
to using non-GAAP financial measures because they are not prepared
in accordance with GAAP and exclude expenses that may have a
material impact on our reported financial results. The presentation
of non-GAAP financial information is not meant to be considered in
isolation or as a substitute for the directly comparable financial
measures prepared in accordance with GAAP. SailPoint urges you to
review the reconciliations of our non-GAAP financial measures to
the comparable GAAP financial measures included below, and not to
rely on any single financial measure to evaluate its business.
Non-GAAP income from operations. SailPoint believes that
the use of non-GAAP income from operations is helpful to our
investors to clarify and enhance their understanding of past
performance and future prospects. Non-GAAP income from operations
is calculated as income (loss) from operations on a GAAP basis
excluding (i) stock-based compensation expense, (ii) amortization
of acquired intangibles, (iii) acquisition related costs, (iv)
severance expense of certain key executives and (v) impairment of
intangible assets.
Non-GAAP net income and non-GAAP net income per basic and
diluted share. SailPoint believes that the use of non-GAAP net
income and non-GAAP net income per basic and diluted share is
helpful to our investors to clarify and enhance their understanding
of past performance and future prospects. Non-GAAP net income is
calculated as net income (loss) on a GAAP basis (a) excluding (i)
stock-based compensation expense, (ii) amortization of acquired
intangibles, (iii) amortization of debt discount and issuance
costs, (iv) acquisition related costs, (v) severance expense of
certain key executives, (vi) impairment of intangible assets and
(b) adjusted for the effect of income taxes associated with such
non-GAAP adjustments. SailPoint defines non-GAAP net income per
basic and diluted share as non-GAAP net income divided by the
non-GAAP weighted average outstanding common shares.
SailPoint’s presentation of non-GAAP net income (loss) includes
the effect of income taxes associated with the non-GAAP
adjustments, which is calculated using an estimated effective
income tax rate that is commensurate with our non-GAAP pre-tax
income (loss). The non-GAAP effective income tax rate is adjusted
from the GAAP effective income tax rate to reflect the impact of
non-GAAP income (loss) adjustments. Due to the adjustments, the
non-GAAP estimated income taxes may differ from GAAP estimated
income taxes and actual tax liabilities. Estimated income taxes and
tax liabilities reflect currently available information, as well as
other factors and assumptions, including current operating
structure, existing tax positions in various jurisdictions and key
tax legislation in jurisdictions where SailPoint currently
operates. Non-GAAP estimated income taxes may change for a variety
of reasons, including global tax environment, significant changes
to geographic earnings mix, acquisitions, or other changes to
SailPoint’s strategy or business operations. SailPoint re-evaluates
its non-GAAP estimated income taxes at least annually, or more
frequently if significant events occur, which may materially impact
our non-GAAP income tax calculation.
The accompanying tables have more details on the reconciliations
of non-GAAP financial measures to their nearest comparable GAAP
measures.
Forward-Looking Statements:
This press release and statements made during the above
referenced conference call may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995, including regarding our strategy, future operations,
financial position, business outlook, prospects, plans and
objectives of management, growth rate and its expectations
regarding future revenue, operating income or loss or earnings or
loss per share. In some cases, you can identify forward-looking
statements because they contain words such as “may,” “will,” “will
be,” “will likely result,” “should,” “expects,” “plans,”
“anticipates,” “could,” “would,” “foresees,” “intends,” “target,”
“projects,” “contemplates,” “believes,” “estimates,” “predicts,”
“potential,” “outlook” or “continue” or the negative of these words
or other similar terms or expressions that concern our
expectations, strategy, plans or intentions. These forward-looking
statements are not guarantees of future performance, but are based
on management's current expectations, assumptions and beliefs
concerning future developments and their potential effect on us,
which are inherently subject to uncertainties, risks and changes in
circumstances that are difficult to predict. Our expectations
expressed or implied in these forward-looking statements may not
turn out to be correct. Our results could be materially different
from our expectations because of various risks.
Important factors, some of which are beyond our control, that
could cause actual results to differ materially from our historical
results or those expressed or implied by these forward-looking
statements include the following: the effect of the novel
coronavirus disease (COVID-19) global pandemic and its aftermath,
as well as governmental, business and other actions in response, on
the global economy and on our business; our ability to achieve and
sustain profitability; our ability to sustain historical growth
rates; our ability to attract and retain customers and to deepen
our relationships with existing customers; an increased focus in
our business from selling licenses to selling subscriptions;
breaches in our security, cyber-attacks or other cyber-risks;
interruptions with the delivery of our SaaS solutions or
third-party cloud-based systems that we use in our operations; our
ability to compete successfully against current and future
competitors; the length and unpredictable nature of our sales
cycle; delayed effects on our operating results from ratably
recognizing some of our revenue; fluctuations in our quarterly
results; our ability to maintain successful relationships with our
channel partners; the increasing complexity of our operations; real
or perceived errors, failures or disruptions in our platform or
solutions; our ability to adapt and respond to rapidly changing
technology, industry standards, regulations or customer needs,
requirements or preferences; our ability to achieve and maintain an
effective system of disclosure controls and internal control over
financial reporting; our ability to comply with our privacy policy
or related legal or regulatory requirements; our ability to
accurately forecast our estimated annual effective tax rate for
financial accounting purposes; our ability to successfully
identify, acquire and integrate companies and assets; our ability
to maintain high-quality customer satisfaction; and our ability to
maintain and enhance our brand or reputation as an industry leader.
More information on these risks and other potential factors that
could affect our financial results is included in our filings with
the Securities and Exchange Commission, including in the “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” sections of our most recently
filed Annual Report on Form 10-K and subsequent Quarterly Reports
on Form 10-Q. Moreover, we operate in a very competitive and
rapidly changing environment. New risks and uncertainties emerge
from time to time and it is not possible for us to predict all
risks and uncertainties that could have an impact on the
forward-looking statements contained in this press release. We
cannot assure you that the results, events and circumstances
reflected in the forward-looking statements will be achieved or
occur, and actual results, events or circumstances could differ
materially from those described in the forward-looking
statements.
Any forward-looking statement speaks only as of the date as of
which such statement is made, and, except as required by law, we
undertake no obligation to update or revise publicly any
forward-looking statements, whether because of new information,
future events, or otherwise.
About SailPoint
SailPoint is the leader in identity security for the cloud
enterprise. We’re committed to protecting businesses from the
inherent risk that comes with providing technology access across
today’s diverse and remote workforce. Our identity security
solutions secure and enable thousands of companies worldwide,
giving our customers unmatched visibility into the entirety of
their digital workforce, and ensuring that each worker has the
right access to do their job – no more, no less. With SailPoint as
foundational to the security of their business, our customers can
provision access with confidence, protect business assets at scale
and ensure compliance with certainty.
Stay up-to-date on SailPoint by following us on Twitter and
LinkedIn and by subscribing to the SailPoint blog.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
Year Ended
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2019
(In thousands, except per
share data)
Revenue
Licenses
$
34,126
$
37,973
$
120,874
$
102,800
Subscription (1)
56,010
40,461
196,817
143,390
Services and other
13,205
10,565
47,563
42,325
Total revenue
103,341
88,999
365,254
288,515
Cost of revenue
Licenses (2)
1,198
1,082
4,467
4,239
Subscription (2)(3)
10,717
7,887
37,644
26,877
Services and other (3)
10,920
8,998
38,517
34,359
Impairment of intangible assets
5,119
—
5,119
—
Total cost of revenue
27,954
17,967
85,747
65,475
Gross profit
75,387
71,032
279,507
223,040
Operating expenses
Research and development (2)(3)
18,416
15,802
71,191
56,120
General and administrative (3)
10,052
11,997
37,783
39,816
Sales and marketing (2)(3)
49,770
37,239
169,656
136,537
Total operating expenses
78,238
65,038
278,630
232,473
Income (loss) from operations
(2,851
)
5,994
877
(9,433
)
Other income (expense), net
Interest income
229
1,625
2,019
2,468
Interest expense
(4,855
)
(4,480
)
(18,612
)
(5,041
)
Other income (expense), net
255
(64
)
33
(1,082
)
Total other expense, net
(4,371
)
(2,919
)
(16,560
)
(3,655
)
Income (loss) before income taxes
(7,222
)
3,075
(15,683
)
(13,088
)
Income tax benefit
2,510
2,344
4,920
4,588
Net income (loss)
$
(4,712
)
$
5,419
$
(10,763
)
$
(8,500
)
Net income (loss) per share
Basic
$
(0.05
)
$
0.06
$
(0.12
)
$
(0.10
)
Diluted
$
(0.05
)
$
0.06
$
(0.12
)
$
(0.10
)
Weighted average shares outstanding
Basic
91,083
89,403
90,512
88,907
Diluted
91,083
91,022
90,512
88,907
(1) Subscription revenue is further
disaggregated as follows:
Three Months Ended
Year Ended
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2019
(In thousands)
Subscription revenue
SaaS
$
20,133
$
12,257
$
66,913
$
42,432
Maintenance and support
35,057
27,813
126,792
100,435
Other subscription services
820
391
3,112
523
Total subscription revenue
$
56,010
$
40,461
$
196,817
$
143,390
(2) Includes amortization of acquired
intangibles as follows:
Three Months Ended
Year Ended
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2019
(In thousands)
Cost of revenue - licenses
$
1,008
$
1,008
$
4,031
$
4,032
Cost of revenue - subscription
807
788
3,549
1,076
Research and development
160
170
703
647
Sales and marketing
1,068
1,069
4,274
4,273
Total amortization expense
$
3,043
$
3,035
$
12,557
$
10,028
(3) Includes stock-based compensation
expense and the related employer payroll tax expense as
follows:
Three Months Ended
Year Ended
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2019
(In thousands)
Cost of revenue - subscription
$
500
$
316
$
1,809
$
1,170
Cost of revenue - services and other
596
328
2,026
1,450
Research and development
1,609
875
6,395
3,586
General and administrative
1,965
1,301
6,969
6,062
Sales and marketing
3,372
1,904
12,520
6,876
Total stock-based compensation expense
$
8,042
$
4,724
$
29,719
$
19,144
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
As of
December 31, 2020
December 31, 2019
(In thousands, except per
share data)
Assets
Current assets
Cash and cash equivalents
$
510,289
$
443,795
Restricted cash
6,355
6,325
Accounts receivable, net of allowance
112,255
106,428
Deferred contract acquisition costs,
current
15,592
10,905
Prepayments and other current assets
26,027
16,965
Total current assets
670,518
584,418
Property and equipment, net
19,443
21,300
Right-of-use assets, net
27,048
31,104
Deferred contract acquisition costs,
non-current
38,510
24,247
Other non-current assets, net of
allowance
15,016
6,307
Goodwill
241,103
241,051
Intangible assets, net
63,962
81,651
Total assets
$
1,075,600
$
990,078
Liabilities and stockholders’
equity
Current liabilities
Accounts payable
$
4,753
$
3,224
Accrued expenses and other liabilities
59,460
40,214
Income taxes payable
978
1,994
Convertible senior notes, net
326,672
—
Deferred revenue
165,995
127,132
Total current liabilities
557,858
172,564
Deferred tax liability - non-current
1,329
8,900
Convertible senior notes, net -
non-current
—
309,051
Long-term operating lease liabilities
33,080
38,035
Other long-term liabilities
—
2,500
Deferred revenue - non-current
18,723
24,901
Total liabilities
610,990
555,951
Commitments and contingencies
Stockholders’ equity
Common stock, $0.0001 par value
9
9
Preferred stock, $0.0001 par value
—
—
Additional paid in capital
484,012
442,407
Accumulated deficit
(19,411
)
(8,289
)
Total stockholders' equity
464,610
434,127
Total liabilities and stockholders’
equity
$
1,075,600
$
990,078
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
Year Ended
December 31, 2020
December 31, 2019
(In thousands)
Operating activities
Net loss
$
(10,763
)
$
(8,500
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization expense
18,290
14,992
Amortization of debt discount and issuance
costs
17,787
4,691
Amortization of contract acquisition
costs
13,684
10,130
(Gain) loss on disposal of fixed
assets
158
(4
)
Provision for credit losses
586
178
Impairment of intangible assets
5,119
—
Stock-based compensation expense
29,057
18,714
Operating leases, net
(415
)
477
Deferred taxes
(7,553
)
(7,268
)
Net changes in operating assets and
liabilities, net of assets acquired and liabilities assumed in
business acquisitions
Accounts receivable
(6,772
)
(5,072
)
Deferred contract acquisition costs
(32,634
)
(17,330
)
Prepayments and other current assets
(9,180
)
(3,392
)
Other non-current assets
(8,875
)
(4,798
)
Accounts payable
1,529
(1,630
)
Accrued expenses and other liabilities
16,262
11,786
Income taxes
(1,016
)
(149
)
Deferred revenue
32,685
37,266
Net cash provided by operating
activities
57,949
50,091
Investing activities
Purchase of property and equipment
(3,945
)
(6,173
)
Proceeds from sale of property and
equipment
29
39
Purchase of intangibles
(57
)
(379
)
Business acquisitions, net of cash
acquired
—
(32,393
)
Net cash used in investing
activities
(3,973
)
(38,906
)
Financing activities
Payment of debt issuance costs
—
(9,572
)
Proceeds from issuance of convertible
senior notes
—
400,000
Purchases of capped calls
—
(37,080
)
Taxes associated with net issuances of
shares upon vesting of restricted stock units
(797
)
(351
)
Proceeds from employee stock purchase plan
contributions
7,378
5,649
Exercise of stock options
5,967
3,053
Net cash provided by financing
activities
12,548
361,699
Net increase in cash, cash equivalents and
restricted cash
66,524
372,884
Cash, cash equivalents and restricted
cash, beginning of period
450,120
77,236
Cash, cash equivalents and restricted
cash, end of period
$
516,644
$
450,120
RECONCILIATION OF NON-GAAP
INCOME FROM OPERATIONS
Three Months Ended
Year Ended
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2019
(In thousands)
Income (loss) from operations on a GAAP
basis
$
(2,851
)
$
5,994
$
877
$
(9,433
)
Add back:
Stock-based compensation expense (1)
8,042
4,724
29,719
19,144
Amortization of acquired intangibles
3,043
3,035
12,557
10,028
Acquisition related costs (2)
—
214
—
1,024
Severance expense of certain key
executives (3)
—
1,277
—
2,403
Impairment of intangible assets
5,119
—
5,119
—
Non-GAAP income from operations
$
13,353
$
15,244
$
48,272
$
23,166
(1) Stock-based compensation expense
includes employer related payroll tax expense.
(2) Acquisition related costs are
transaction costs, which include legal, accounting and consulting
professional service fees.
(3) Severance expense of certain key
executives includes employer related payroll tax expense.
RECONCILIATION OF NON-GAAP NET
INCOME
Three Months Ended
Year Ended
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2019
(In thousands)
Net income (loss) on a GAAP basis
$
(4,712
)
$
5,419
$
(10,763
)
$
(8,500
)
Add back:
Stock-based compensation expense (1)
8,042
4,724
29,719
19,144
Amortization of acquired intangibles
3,043
3,035
12,557
10,028
Amortization of debt discount and issuance
costs (2)
4,527
4,315
17,787
4,691
Acquisition related costs (3)
—
214
—
1,024
Severance expense of certain key
executives (4)
—
1,277
—
2,403
Impairment of intangible assets
5,119
—
5,119
—
Effect of income taxes associated with the
above adjustments (5)
(5,707
)
(5,639
)
(16,142
)
(10,329
)
Non-GAAP net income
$
10,312
$
13,345
$
38,277
$
18,461
Non-GAAP net income per share
Basic
$
0.11
$
0.15
$
0.42
$
0.21
Diluted
$
0.10
$
0.15
$
0.41
$
0.20
Non-GAAP weighted average outstanding
shares
Basic
91,083
89,403
90,512
88,907
Diluted
99,867
91,022
94,136
90,840
(1) Stock-based compensation expense
includes employer related payroll tax expense.
(2) Amortization of debt discount and
issuance costs includes approximately $17.6 million and $4.6
million of debt discount related to the issuance and sale of the
convertible senior notes for the years ended December 31, 2020 and
2019, respectively.
(3) Acquisition related costs are
transaction costs, which include legal, accounting and consulting
professional service fees.
(4) Severance expense of certain key
executives includes employer related payroll tax expense.
(5) The GAAP effective tax rates were
31.4% and 35.1% for the years ended December 31, 2020 and 2019,
respectively, compared to non-GAAP effective tax rate for the years
ended December 31, 2020 and 2019 of 23.0% and 23.7%,
respectively.
RECONCILIATION OF NON-GAAP
WEIGHTED AVERAGE OUTSTANDING SHARES
Three Months Ended
Year Ended
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2019
(In thousands)
Weighted average outstanding shares used
to compute net income (loss) per share, basic and diluted, on a
GAAP basis
Basic
91,083
89,403
90,512
88,907
Diluted
91,083
91,022
90,512
88,907
Non-GAAP weighted average outstanding
shares
Basic
91,083
89,403
90,512
88,907
Effect of potentially dilutive
securities
8,784
1,619
3,624
1,933
Diluted
99,867
91,022
94,136
90,840
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210225006142/en/
Investor Relations Brian Denyeau ICR for SailPoint
investor@sailpoint.com 512-664-8916
Media Relations Jessica Sutera
Jessica.Sutera@sailpoint.com 978-278-5411
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