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MobileIron (MOBL) Q4 Loss Narrower than Expected, Guides Low
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MobileIron, Inc. reported a loss (including stock based compensation) of 12 cents per share in fourth-quarter 2016, which was narrower than the Zacks Consensus Estimate by 2 cents.
Excluding stock based compensation, the company reported a loss of 3 cents per share, narrower than loss of 7 cents reported in the year-ago quarter. The improved result reflects a lower-than-expected increase in operating expenses.
Total revenue increased 5.6% year over year to $45.5 million. Notably, revenues beat the Zacks Consensus Estimate of $45 million by a small margin.
MobileIron, Inc. Price, Consensus and EPS Surprise
MobileIron has three reportable segments namely, Perpetual License, Subscriptionand Software Support, and Services.
In the fourth quarter, Perpetual License revenues of $14.3 million declined 7.4% on a year-over-year basis, primarily due to a behavioral shift on part of new customers from perpetual to subscription-based solutions with a higher lifetime value.
Subscription revenues of $16.4 million increased 13.5% on a year-over-year basis as more and more customers showed preference for term subscription so as to achieve cost savings.
Software Support and Services revenues of $14.8 million increased 12.4% on a year-over-year basis on the back of higher renewal rates.
Non-GAAP gross margin was 84.2%, which expanded 120 basis points (bps) on a year-over-year basis.
Reported R&D expenses as a percentage of revenue decreased 270 basis points (bps) while reported sales and marketing expenses as a percentage of revenue decreased 300 bps. On the other hand, general and administrative expenses as a percentage of revenues decreased 350 bps.
Non-GAAP operating loss was $8.3 million compared with a loss of $13.6 million in the year-ago quarter.
Balance Sheet
MobileIron exited the fourth quarter with cash and cash equivalent balance of $54.0 million, up $6.8 million on a year-over-year basis.
Guidance
MobileIron’s management expects first-quarter 2017 revenues to remain in a range of $41 million to $43 million.
Gross billings are projected in a range of $44 million to $46 million, registering growth of 16% to 21% on a year-over-year basis.
Non-GAAP gross margin is expected in a range of 81% to 83%. Moreover, MobileIron’s management expects non-GAAP operating expenses to remain in a range of $41 million to $43 million.
Our Take
Although MobileIron posted a loss in terms of the bottom line, the fourth quarter was the strongest ever in the company’s history.
We believe that strong renewal rates in the Software Support and Services segment augur well for MobileIron going ahead.
Given the fact that mobile threats are on the rise, MobileIron’s Enterprise Mobile Management (EMM) platforms that enable a company to detect whether a device or an app is being compromised and enables them to take the required corrective action bodes well going ahead.
Also, MobileIron Access, the facilitator between the mobile app and cloud services could see greater adoption, given the growing demand for cloud.
We note that MobileIron’s shares have underperformed the Zacks Internet Software industry over the last one year. While the industry gained 28.5%, MobileIron was up 20.8%. However we believe that the aforesaid positive factors will help the stock rebound in fiscal 2017.
Notably, the consensus estimate for Applied Optoelectronics’ current year has improved to 94 cents from 80 cents over the last 30 days.
Similarly, the consensus estimate for Carbonite’s current quarter has improved to 2 cents from 1 cent over the last seven days.
Last but not the least, the consensus estimate for ARRIS’ current year has improved to $2.56 from $2.51 over the last seven days.
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MobileIron (MOBL) Q4 Loss Narrower than Expected, Guides Low
MobileIron, Inc. reported a loss (including stock based compensation) of 12 cents per share in fourth-quarter 2016, which was narrower than the Zacks Consensus Estimate by 2 cents.
Excluding stock based compensation, the company reported a loss of 3 cents per share, narrower than loss of 7 cents reported in the year-ago quarter. The improved result reflects a lower-than-expected increase in operating expenses.
Total revenue increased 5.6% year over year to $45.5 million. Notably, revenues beat the Zacks Consensus Estimate of $45 million by a small margin.
MobileIron, Inc. Price, Consensus and EPS Surprise
MobileIron, Inc. Price, Consensus and EPS Surprise | MobileIron, Inc. Quote
Quarter Details
MobileIron has three reportable segments namely, Perpetual License, Subscription and Software Support, and Services.
In the fourth quarter, Perpetual License revenues of $14.3 million declined 7.4% on a year-over-year basis, primarily due to a behavioral shift on part of new customers from perpetual to subscription-based solutions with a higher lifetime value.
Subscription revenues of $16.4 million increased 13.5% on a year-over-year basis as more and more customers showed preference for term subscription so as to achieve cost savings.
Software Support and Services revenues of $14.8 million increased 12.4% on a year-over-year basis on the back of higher renewal rates.
Non-GAAP gross margin was 84.2%, which expanded 120 basis points (bps) on a year-over-year basis.
Reported R&D expenses as a percentage of revenue decreased 270 basis points (bps) while reported sales and marketing expenses as a percentage of revenue decreased 300 bps. On the other hand, general and administrative expenses as a percentage of revenues decreased 350 bps.
Non-GAAP operating loss was $8.3 million compared with a loss of $13.6 million in the year-ago quarter.
Balance Sheet
MobileIron exited the fourth quarter with cash and cash equivalent balance of $54.0 million, up $6.8 million on a year-over-year basis.
Guidance
MobileIron’s management expects first-quarter 2017 revenues to remain in a range of $41 million to $43 million.
Gross billings are projected in a range of $44 million to $46 million, registering growth of 16% to 21% on a year-over-year basis.
Non-GAAP gross margin is expected in a range of 81% to 83%. Moreover, MobileIron’s management expects non-GAAP operating expenses to remain in a range of $41 million to $43 million.
Our Take
Although MobileIron posted a loss in terms of the bottom line, the fourth quarter was the strongest ever in the company’s history.
We believe that strong renewal rates in the Software Support and Services segment augur well for MobileIron going ahead.
Given the fact that mobile threats are on the rise, MobileIron’s Enterprise Mobile Management (EMM) platforms that enable a company to detect whether a device or an app is being compromised and enables them to take the required corrective action bodes well going ahead.
Also, MobileIron Access, the facilitator between the mobile app and cloud services could see greater adoption, given the growing demand for cloud.
We note that MobileIron’s shares have underperformed the Zacks Internet Software industry over the last one year. While the industry gained 28.5%, MobileIron was up 20.8%. However we believe that the aforesaid positive factors will help the stock rebound in fiscal 2017.
Zacks Rank
MobileIron has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space include Applied Optoelectronics, (AAOI - Free Report) , Carbonite, Inc. and ARRIS International plc , each sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the consensus estimate for Applied Optoelectronics’ current year has improved to 94 cents from 80 cents over the last 30 days.
Similarly, the consensus estimate for Carbonite’s current quarter has improved to 2 cents from 1 cent over the last seven days.
Last but not the least, the consensus estimate for ARRIS’ current year has improved to $2.56 from $2.51 over the last seven days.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>