SailPoint Technologies Inc., a cybersecurity company, saw its shares jump more than 14% following a strong first-quarter earnings report that beat expectations. The company also raised its full-year financial forecast.
This is SailPoint’s second earnings report since its February public offering. The IPO raised $1.18 billion and valued the company at $12.8 billion. Private equity firm Thoma Bravo took SailPoint public after acquiring it for $6.9 billion three years ago.
Based in Austin, SailPoint offers a platform that helps businesses control who can access their applications. It lets administrators decide which employees can log in, how, and when. The software also automates tasks like managing developers’ access to cloud services.
The platform also manages service accounts, which are used by applications to communicate with each other. For example, a demand forecasting tool might use a service account to access a database with sales data.
In the quarter ending April 30, SailPoint’s revenue rose 23% to $230 million, about $5 million more than analysts expected. Subscription sales, which make up most of the revenue, grew 27% to $215 million.
The company’s software-as-a-service (SaaS) offerings led growth, with annualized SaaS revenue up 39% year-over-year. This segment now generates over $500 million annually.
SailPoint’s success was helped by existing customers spending more. Its dollar-based net retention rate was 115% as of April 30. Demand also increased among large companies, with the number spending over $1 million annually on SailPoint’s software rising 62% to 170.
Founder and CEO Mark McClain said, “We delivered another strong quarter, driven by continued expansion across our customer base and strong adoption among Fortune 500 and Forbes Global 2000 companies.”
Adjusted operating income was $24 million, resulting in an adjusted profit of one cent per share, beating analyst expectations of a one-cent loss.
SailPoint expects this positive trend to continue. It raised its adjusted profit forecast to 16–20 cents per share, up from 14–18 cents. Revenue guidance was also increased to $1.034 billion to $1.044 billion.
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