Latest news with #MarkMcClain
Forbes
10-07-2025
- Business
- Forbes
20 Ways GenAI Will Support Stronger Cybersecurity
Already supporting a variety of business functions ranging from content creation to customer support, generative AI tools are poised to transform how organizations detect and defend against cyberthreats. By processing vast datasets, simulating attack scenarios and automating detection and response, GenAI can help security teams identify threats faster and address vulnerabilities that might otherwise go unnoticed. From real-time threat detection to advanced security automation, GenAI could become an invaluable tool in defending against today's rapidly evolving cyberthreats. Below, members of Forbes Technology Council highlight specific ways GenAI is expected to shape the future of cyber defense, offering insights into both the opportunities and challenges that lie ahead. 1. Enabling Intelligent, Autonomous Agents GenAI will reshape cyber defense by enabling intelligent, autonomous agents that detect and respond to threats in real time. These agents can adapt to evolving attack patterns, making security proactive rather than reactive—ushering in a new era of autonomous, identity-aware cyber resilience. - Mark McClain, SailPoint Technologies, Inc. 2. Streamlining Incident Management By spotting risks sooner, automating responses and predicting assaults before they start, GenAI changes cybersecurity. It streamlines incident handling—turning hours into minutes for defense—reduces analyst workload, enhances training and simplifies defense. It's a real power amplifier. - Eric Almond, Gearco - True Extended Stay Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify? 3. Providing Enhanced, Adaptive Cyber Resilience GenAI will enhance organizations' cyber resilience strategies. GenAI improves cyber defense by rapidly detecting threats through advanced analytics and automating response and recovery, reducing downtime and risk. It also adapts in real time to new threats, enhancing resilience and enabling organizations to better protect sensitive data and mitigate attacks. - Justin Giardina, 11:11 SYSTEMS 4. Accelerating Security Training And Awareness Generative AI is exceptionally good at accelerating the training of security professionals and enhancing cyberthreat awareness. The bigger shift comes with agentic AI—autonomous systems that detect, anticipate and respond to threats in real time. It's a force multiplier, revolutionizing cyber defense and helping organizations stay ahead of increasingly sophisticated adversaries. - Hatem Naguib, Barracuda Networks 5. Establishing Dynamic Baselines For Threat Behavior Traditional cybersecurity tools often rely on known threat signatures or static rules, making them less effective. GenAI will shift cybersecurity paradigms from human-paced reactions to continuous, GenAI/agent-based operations by analyzing historical and real-time data and signals to establish new dynamic baselines for the behavior of threat actors and uncover anomalies that indicate new threats. - Shyam Ravindranathan, SAP 6. Providing Information, Summaries And Simulations Generative AI is useful for tasks like querying tools, summarizing reports and simulating phishing attacks. For deeper threat detection and decision-making, however, other forms of AI—like behavioral models and autonomous agents—are better suited to help security teams respond faster and more effectively. - Marcus Fowler, Darktrace 7. Providing Personalized Security Training And Support GenAI has the potential to reimagine security awareness training. It could enable real-time conversations between employees and an 'AI security analyst'—for example, when a user reports a suspicious email, the AI analyst can explain whether it's malicious or not. GenAI could also be used to create hyper-relevant phishing simulations based on each employee's role, behavior and risk profile. - Michael DeCesare, Abnormal AI 8. Simulating Threat Scenarios GenAI will reshape cyber defense by empowering both attackers and defenders. Threat actors will generate diverse, adaptive attack scenarios at scale, while red and blue teams will use GenAI to simulate attacks, detections and responses. In 2025, adopting an AI-native security partner won't be optional; it will be essential for resilience. - Rajat Sharma, CWS 9. Supporting CISO Functions The chief information security officer plays a key role in defending organizations against cyberattacks. GenAI is emerging as a key enabler of CISO functions—from strategy and compliance to threat monitoring and incident response. It also assists with policy definition and budgeting. The effectiveness of an AI-enabled co-CISO may soon rival or surpass that of a human CISO. - Alex Pinaev, Mobix 10. Providing Contextual Information On Trending Vulnerabilities GenAI is great at providing additional context to information about vulnerabilities, such as whether they are being used to exploit organizations, whether code is available, or whether the vulnerability is being discussed on various cybercriminal forums. How will the vulnerability affect my compliance? GenAI can also provide trend analysis to help teams focus on areas of recurring exposure and developer training suggestions. - Eoin Keary, Edgescan 11. Scaling Real-Time Analysis Across Systems GenAI will allow organizations to analyze exponentially more data across an infinite number of systems in near-real time, a task almost impossible without GenAI. This will unlock massive improvements in controls and automated response capabilities for defense across the industry. - Charlie Gautreaux, IRALOGIX 12. Strengthening Pen Testing GenAI could research all existing and zero-day forms of attack to enable more thorough pen testing. Combined with fit-for-purpose agentic AI, it could not only detect attacks, but also either prevent them or immediately isolate them and aid in recovery. - Tsvi Gal, Memorial Sloan Kettering Cancer Center 13. Powering Faster Detection And Response At Scale While AI adoption is growing, most security teams are still manually approaching security—triaging alerts, chasing false positives and piecing together context across tools. GenAI will act as a force multiplier for defenders by powering faster detection, smarter decision-making and scaled response to match AI-enabled threats. - Grayson Milbourne, OpenText 14. Accelerating Detection, Analysis And Mitigation GenAI will radically accelerate how fast defenders can respond—automating threat detection, analyzing logs and even writing mitigation playbooks in seconds, not hours. However, AI is only as good as the IT processes it's embedded in—without disciplined IT hygiene and change and configuration controls, you're just giving a faster tool to a messy system. - Scott Alldridge, IP Services 15. Detecting Leaked Credentials And Suggesting Remediation Steps GenAI will help security engineers and developers by accurately detecting hardcoded or leaked credentials across code, logs and config files. It also auto-suggests remediation steps, reducing response time and easing manual effort. The MCP Servers Framework will enable LLMs to not only curate security evidence from multiple vendors, but also provide a holistic prevention story. - Siranjeevi Dheenadhayalan 16. Rapidly Correlating, Analyzing And Acting On Threat Data Faster data analysis, correlation of information from different event sources, and the ability to consume large-scale external threat feeds will on their own have a significant impact. Once these improvements are paired with knowledge of an organization's vulnerabilities and an ability to act upon its infrastructure, GenAI will have the capacity to mitigate threats nearly immediately or with minimal human involvement. - Nolan Garrett, TorchLight 17. Predicting And Neutralizing Threats GenAI will transform cyber defense by enabling intelligent, real-time threat detection and response. Instead of waiting for events to occur, AI agents will autonomously monitor, predict and neutralize threats so that cybersecurity is now a proactive and dynamic defense shielding an organization from known and unknown risks. - Mike Walker, Microsoft 18. Generating Dynamic Attack Scenarios One transformative way GenAI will impact cybersecurity is through real-time threat simulation and adaptive defense strategies. Instead of relying solely on static rules or historical threat databases, GenAI can generate dynamic attack scenarios based on emerging patterns, allowing security teams to proactively test and reinforce system defenses before real threats materialize. - Pratik Badri, JPMorgan Chase & Co. 19. Shining A Light On Access Issues GenAI will raise big questions around access and who can see what, when and how. Most threats aren't external breaches but accidental leaks due to improper permissions. AI heightens the risk of internal access issues and makes it even easier to surface sensitive data, so tightening permissions and understanding AI's reach will become essential. - Benjamin Niaulin, ShareGate by Workleap 20. Combating Voice Deepfakes GenAI will intensify threats like voice deepfakes for phishing and impersonation, directly impacting voice-controlled systems and communications. Organizations will use GenAI to develop sophisticated real-time voice authentication and anomaly detection systems to defend against these advanced attacks and secure sensitive audio data. - Harshal Shah
Yahoo
11-06-2025
- Business
- Yahoo
SailPoint Announces Fiscal First Quarter 2026 Results
Grew ARR 30% year-over-year to $925 million Increased SaaS ARR 39% year-over-year to $574 million Expanded the number of customers with more than $1 million of ARR by 62% year-over-year AUSTIN, Texas, June 11, 2025 (GLOBE NEWSWIRE) -- SailPoint, Inc. (Nasdaq: SAIL), a leader in enterprise identity security, today announced financial results for its fiscal first quarter ended April 30, 2025. 'We delivered another strong quarter, driven by continued expansion across our customer base and strong adoption among Fortune 500 and Forbes Global 2000 companies,' said Mark McClain, CEO and Founder, SailPoint. 'Enterprises are turning to SailPoint to manage both human and digital identities at the scale and speed required to stay ahead. Our ability to deliver both breadth and depth of identity security—on a platform that's AI and data-driven and built for extensibility—combined with disciplined execution, fuel our consistent performance.' 'As identity becomes the hub of modern digital security strategy, SailPoint continues to lead with innovation and deliver real results,' McClain continued. 'Our growth this quarter underscores the market's demand for a next-gen identity platform built for resilience, intelligence, and impact.' Fiscal 2026 First Quarter Financial Highlights Annual Recurring Revenue (ARR): Total ARR was $925 million, an increase of 30% year-over-year. SaaS ARR was $574 million, an increase of 39% year-over-year. Revenue: Total revenue was $230 million, an increase of 23% year-over-year. Subscription revenue was $215 million, an increase of 27% year-over-year. Operating Income (Loss): GAAP operating loss was $(185) million, or (80)% of revenue, compared to $(68) million, or (36)% of revenue in fiscal Q1 2025. Adjusted income from operations was $24 million, or 10% of revenue, compared to $19 million, or 10% of revenue in fiscal Q1 2025. Financial Outlook For the second quarter and full year of fiscal 2026, SailPoint expects (in millions, except per share amounts and percentages): Q2'26 Guidance FY'26 Guidance Prior FY'26 Guidance Total ARR $963 to $967 $1,095 to $1,105 $1,075 to $1,085 Total ARR YoY growth % 26% 25% to 26% 23% to 24% Total revenue $242 to $244 $1,034 to $1,044 $1,025 to $1,035 Total revenue YoY growth % 22% to 23% 20% to 21% 19% to 20% Adjusted income from operations $29 to $30 $161 to $166 $151 to $156 Adjusted operating margin % 11.9% to 12.4% 15.4% to 16.1% 14.6% to 15.2% Adjusted earnings per share (Adjusted EPS) $0.04 to $0.05 $0.16 to $0.20 $0.14 to $0.18 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 SailPoint's 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, payroll taxes related to restricted stock units (RSUs), and amortization of acquired intangibles as well as acquisition-related costs and severance of certain key executives, if applicable. SailPoint has not reconciled its expectations as to adjusted income (loss) from operations and adjusted EPS to their most directly comparable GAAP measure due to the high variability and difficulty in making accurate forecasts and projections of certain items that impact these non-GAAP measures, particularly 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 adjusted income (loss) from operations and adjusted EPS to their most directly comparable GAAP measures are not available without unreasonable effort. Investor Conference Call and Webcast SailPoint will host a conference call today at 8:30 a.m. Eastern Time to discuss the results and outlook. A live webcast of the conference call and a presentation regarding SailPoint's fiscal first quarter 2026 financial results and outlook will be available on SailPoint's website at An audio replay of the conference call will be available on the investor relations website for one year. About SailPoint At SailPoint, we believe enterprise security must start with identity at the foundation. Today's enterprise runs on a diverse workforce of not just human but also digital identities—and securing them all is critical. Through the lens of identity, SailPoint empowers organizations to seamlessly manage and secure access to applications and data at speed and scale. Our unified, intelligent, and extensible platform delivers identity-first security, helping enterprises defend against dynamic threats while driving productivity and transformation. Trusted by many of the world's most complex organizations, SailPoint secures the modern enterprise. Non-GAAP Financial Measures In addition to our financial information presented in accordance with GAAP, we use certain non-GAAP financial measures to clarify and enhance our understanding of past performance, including the following: , which we define as income (loss) from operations excluding equity-based compensation expense, payroll taxes related to awards that were accelerated upon the closing of our initial public offering (the IPO) and payroll taxes related to RSUs, all of which were issued after the closing of the IPO, amortization of acquired intangible assets which includes impairment charges, impairment of intangible assets, acquisition-related expenses, benefit from amortization related to acquired contract acquisition costs, Thoma Bravo monitoring fees (which were annual service fees for consultation and advice related to corporate strategy, budgeting of future corporate investments, acquisition and divestiture strategies, and debt and equity financings pursuant to an advisory services agreement that was terminated upon the closing of the IPO), and restructuring expenses. , which we define as adjusted income from operations as a percentage of revenue. (or non-GAAP net income (loss) available to common stockholders per diluted share), which we define as adjusted net income (loss) divided by the diluted weighted average shares outstanding, except that solely for the fiscal year ending January 31, 2026 (and all periods therein), we calculate adjusted EPS based on the number of diluted shares outstanding as of the end of such period rather than the diluted weighted average shares outstanding for such period. We believe that using such a denominator will provide a more meaningful comparison with future periods due to the IPO closing after the beginning of fiscal year 2026. We calculate adjusted net income (loss) as net income (loss) on a GAAP basis excluding equity-based compensation expense, payroll taxes related to awards that were accelerated upon the closing of the IPO (IPO-accelerated awards) and payroll taxes related to RSUs, all of which were issued after the closing of the IPO, amortization of acquired intangible assets which includes impairment charges, impairment of intangible assets, acquisition-related expenses, benefit from amortization related to acquired contract acquisition costs, Thoma Bravo monitoring fees and restructuring expenses, and adjusted for the income tax effects related to those adjustments. We currently apply a fixed projected tax rate of 24.5% when calculating or estimating adjusted net income for the fiscal year ending January 31, 2026 and all periods therein for consistency across interim reporting periods within such fiscal year. This rate may be adjusted during the year if significant events that have a material impact on the rate occur, such as significant changes in our geographic mix of revenue and expenses, tax law changes, and acquisitions. Our non-GAAP financial measures exclude items that do not reflect our ongoing, core operating or business performance, such as equity-based compensation, payroll taxes related to IPO-accelerated awards and payroll taxes related to RSUs, amortization of acquired intangible assets, and acquisition-related expenses. We believe these adjustments enable management and investors to compare our underlying business performance from period-to-period and provide investors with additional means to evaluate cost and expense trends. We also believe these adjustments enhance comparability of our financial performance against those of other technology companies. Accordingly, our management believes the presentation of our non-GAAP financial measures provides useful information to investors regarding our financial condition and results of operations. In addition, SailPoint's management uses adjusted income (loss) from operations for budgeting and planning purposes, including with respect to its corporate bonus plan. Our non-GAAP financial measures are adjusted for the following factors, among others: Equity-based compensation expense. We believe that the exclusion of equity-based compensation expense is appropriate because it eliminates the impact of equity-based compensation costs that are based upon valuation methodologies and assumptions that vary over time, and the amount of the expense can vary significantly due to factors that are unrelated to our core operating performance and that can be outside of our control. Although we exclude equity-based compensation expense from our non-GAAP measures, equity compensation has been, and will continue to be, an important part of our future compensation strategy and a significant component of our future expenses and may increase in future periods. Payroll taxes related to IPO-accelerated awards and payroll taxes related to RSUs. We believe that the exclusion of payroll taxes related to IPO-accelerated awards is appropriate as the acceleration was a one-time, non-recurring event. We believe that the exclusion of payroll taxes related to RSUs is appropriate as they are dependent on SailPoint's stock price and the vesting of such awards and therefore can vary significantly due to factors that are unrelated to our core operating performance and that can be outside of our control. Because the amount of such payroll taxes is highly variable due to factors outside of our control and is unrelated to our core operating performance, our management does not consider them when evaluating the performance of our business or making operating plans (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution than the accounting charges associated with such grants). Accordingly, we believe this adjustment in arriving at our non-GAAP measures provides investors with a better understanding of the performance of our core business in a manner that is consistent with management's view of the business. As with equity-based compensation expense, although we exclude payroll taxes related to post-IPO RSUs from our non-GAAP measures, such payroll taxes are, and will continue to be, a component of our future expenses and may increase in future periods. We note that, unlike equity-based compensation expense, payroll taxes are a cash expense. Amortization of acquired intangible assets and impairment of intangible assets. We exclude amortization charges for our acquisition-related intangible assets and impairment of intangible assets for purposes of calculating certain non-GAAP measures to eliminate the impact of these non-cash charges and provide for a more meaningful comparison between operating results from period to period as the intangible assets are valued at the time of acquisition and are amortized over the useful life, which can be several years after the acquisition. Acquisition-related costs. We believe that the exclusion of acquisition-related expenses is appropriate as they represent items that management believes are not indicative of our ongoing operating performance. These expenses are primarily composed of legal, accounting, and professional fees incurred that are not capitalizable and that are included within general and administrative expenses. Amortization related to acquired contract acquisition costs. On August 16, 2022, our predecessor was acquired in an all-cash take-private transaction by Thoma Bravo (the 'Take-Private Transaction'). In accordance with GAAP reporting requirements, we wrote off our contract acquisition costs at the time of the Take-Private Transaction. Therefore, GAAP commissions expense related to contract acquisition costs after the Take-Private Transaction do not reflect the commissions expense that would have been reported if the contract acquisition costs had not been written off. Accordingly, we believe that presenting the approximate amount of acquisition-related commission expenses (so that the full amount of commission expense is included) provides a more appropriate representation of commission expense in a given period and, therefore, provides readers of our financial statements with a more consistent basis for comparison across accounting periods. 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 in 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. Definitions of Certain Key Business and Other Metrics We define ARR as the annualized value of SaaS, maintenance, term subscription, and other subscription contracts as of the measurement date. To the extent that we are actively negotiating a renewal or new agreement with a customer after the expiration of a contract, we continue to include that contract's annualized value in ARR until the customer notifies us that it is not renewing its contract. We calculate ARR by dividing the active contract value by the number of days of the contract and then multiplying by 365. ARR should be viewed independently of revenue, as ARR is an operating metric and is not intended to be combined with or to replace revenue. ARR is not a forecast of future revenue, which can be impacted by ASC 606 allocations, and ARR does not consider other sources of revenue that are not recurring in nature. ARR does not have a standardized meaning and is not necessarily comparable to similarly titled measures presented by other companies. We define SaaS ARR as the annualized value of SaaS contracts as of the measurement date. To the extent that we are actively negotiating a renewal or new agreement with a customer after the expiration of a contract, we continue to include that contract's annualized value in SaaS ARR until the customer notifies us that it is not renewing its contract. We calculate SaaS ARR by dividing the active SaaS contract value by the number of days of the contract and then multiplying by 365. SaaS ARR should be viewed independently of subscription revenue as SaaS ARR is an operating metric and is not intended to be combined with or to replace subscription revenue. SaaS ARR is not a forecast of future subscription revenue, which can be impacted by ASC 606 allocations and renewal rates, and does not consider other sources of revenue that are not recurring in nature. SaaS ARR does not have a standardized meaning and is not necessarily comparable to similarly titled measures presented by other companies. . The majority of our revenue relates to subscription revenue which consists of (i) fees for access to, and related support for, the SaaS offerings, (ii) fees for term subscriptions, (iii) fees for ongoing maintenance and support of perpetual license solutions, and (iv) other subscription services such as cloud managed services, and certain professional services. Term subscriptions include the term licenses and ongoing maintenance and support. Maintenance and support agreements consist of fees for providing software updates on a when and if available basis and for providing technical support for software products for a specified term. Subscription revenue, including support for term licenses, is recognized ratably over the term of the applicable agreement. Revenue related to term subscription performance obligations, excluding support for term subscriptions, is recognized upfront at the point in time when the customer has taken control of the software license. Explanatory Note Regarding Our Corporate Conversion Prior to February 12, 2025, we were a Delaware limited partnership named SailPoint Parent, LP. On February 12, 2025, in connection with our IPO, SailPoint Parent, LP converted into a Delaware corporation pursuant to a statutory conversion (the Corporate Conversion) and changed its name to SailPoint, Inc. References to 'SailPoint,' 'we,' and 'our' (i) for periods prior to such corporate conversion are to SailPoint Parent, LP and, where appropriate, its consolidated subsidiaries and (ii) for periods after such corporate conversion are to SailPoint, Inc. and, where appropriate, its consolidated subsidiaries. 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 statements regarding our strategy, future operations, financial position, prospects, plans and objectives of management, growth rate and our 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. 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: our ability to sustain historical growth rates; our ability to attract and retain customers; our ability to deepen our relationships with existing customers; the growth in the market for identity security solutions; our ability to maintain successful relationships with each of our partners; the length and unpredictable nature of our sales cycle; our ability to compete successfully against current and future competitors; the increasing complexity of our operations; our ability to maintain and enhance our brand or reputation as an industry leader and innovator; unfavorable conditions in our industry or the global economy; our estimated market opportunity and forecasts of our market and market growth may prove to be inaccurate; our ability to hire, train, and motivate our personnel; our ability to maintain our corporate culture; our ability to successfully introduce, use, and integrate artificial intelligence (AI) with our solutions; breaches in our security, cyber attacks, or other cyber risks; interruptions, outages, or other disruptions affecting the delivery of our SaaS solution or any of the third-party cloud-based systems that we use in our operations; our ability to adapt and respond to rapidly changing technology, industry standards, regulations, or customer needs, requirements, or preferences; real or perceived errors, failures, or disruptions in our platform or solutions; the ability of our platform and solutions to effectively interoperate with our customers' existing or future IT infrastructures; and our ability to comply with our privacy policy or related legal or regulatory requirements. 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 Annual Report on Form 10-K for the year ended January 31, 2025 and subsequent Quarterly Reports on Form 10-Q and other filings. 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 or made during the above referenced conference call. 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 made in this press release or during the above referenced conference call 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. Investor Relations ContactScott Schmitz, SVP IRir@ Media Relations ContactSamantha Person, Senior Manager, Corporate SAILPOINT, CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share and per unit amounts)(Unaudited) Three Months Ended April 30, 2025 2024 Revenue Subscription $ 215,323 $ 170,092 Perpetual licenses 5 69 Services and other 15,140 17,495 Total revenue 230,468 187,656 Cost of revenue Subscription 75,491 55,120 Perpetual licenses 3 60 Services and other 27,319 16,986 Total cost of revenue 102,813 72,166 Gross profit 127,655 115,490 Operating expenses Research and development 67,270 41,917 Sales and marketing 164,530 114,887 General and administrative 80,820 26,879 Total operating expenses 312,620 183,683 Loss from operations (184,965 ) (68,193 ) Other income (expense), net Interest income 3,226 1,975 Interest expense (22,389 ) (46,239 ) Other income (expense), net (191 ) (1,190 ) Total other income (expense), net (19,354 ) (45,454 ) Loss before income taxes (204,319 ) (113,647 ) Income tax benefit (expense) 17,007 24,471 Net loss $ (187,312 ) $ (89,176 ) Class A yield (23,786 ) (51,367 ) Net loss attributable to common stockholders and Class B unit holders (211,098 ) (140,543 ) Net loss per share attributable to common stockholders and Class B unit holders, basic and diluted(1) $ (0.42 ) $ (0.77 ) Weighted average shares and Class B units outstanding, basic and diluted(1) 500,029 182,383 ____________(1) Amounts for the period during February 2025 prior to the Corporate Conversion have been retrospectively adjusted to give effect to the Corporate Conversion. These amounts do not consider the shares of common stock sold in the Company's IPO or the Class A Units considered preferred shares that were converted into common stock due to the Corporate Conversion. The Company did not retrospectively adjust for the effect of the Corporate Conversion for periods prior to fiscal 2026. SAILPOINT, CONSOLIDATED BALANCE SHEETS(In thousands, except share, per share and unit amounts)(Unaudited) April 30, 2025 January 31, 2025 Assets Current assets Cash and cash equivalents $ 228,117 $ 121,293 Accounts receivable, net of allowance 190,452 254,050 Contract acquisition costs 34,606 32,834 Contract assets, net of allowance 54,154 58,335 Prepayments and other current assets 49,223 45,870 Total current assets 556,552 512,382 Property and equipment, net 24,850 22,879 Contract acquisition costs, non-current 93,797 94,270 Contract assets, non-current, net of allowance 41,786 33,788 Other non-current assets 35,014 36,206 Goodwill 5,151,668 5,151,668 Intangible assets, net 1,510,811 1,560,723 Total assets $ 7,414,478 $ 7,411,916 Liabilities, redeemable convertible units, and stockholders' equity / partners' deficit Current liabilities Accounts payable $ 3,848 $ 3,515 Accrued expenses and other liabilities 66,539 158,135 Deferred revenue 404,557 413,043 Total current liabilities 474,944 574,693 Deferred tax liabilities, non-current 111,334 136,528 Other long-term liabilities 16,656 32,128 Deferred revenue, non-current 33,761 36,399 Long-term debt, net — 1,024,467 Total liabilities 636,695 1,804,215 Commitments and contingencies Redeemable convertible units, no par value, unlimited units authorized, 499,052,847 units issued and outstanding as of January 31, 2025; aggregate liquidation preference of $8,100,352 as of January 31, 2025 — 11,196,141 Stockholders' equity / partners' deficit Preferred stock, par value of $0.0001 per share, 50,000,000 shares authorized and no shares issued or outstanding as of April 30, 2025 — — Common stock, par value of $0.0001 per share; 1,750,000,000 authorized as of April 30, 2025; 556,580,175 shares issued and outstanding as of April 30, 2025 56 — Additional paid in capital 6,945,784 — Accumulated deficit (168,057 ) (5,588,440 ) Total stockholders' equity / partners' deficit 6,777,783 (5,588,440 ) Total liabilities, redeemable convertible units, and stockholders' equity / partners' deficit $ 7,414,478 $ 7,411,916 SAILPOINT, CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited) Three Months Ended April 30, 2025 2024 Cash flows from operating activities Net loss $ (187,312 ) $ (89,176 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization expense 52,065 65,987 Amortization and write-off of debt discount and issuance costs 15,641 1,072 Amortization of contract acquisition costs 8,167 4,849 Loss (gain) on disposal of property and equipment — (11 ) Provision for credit losses 3,562 402 Equity-based compensation expense, net of amounts capitalized 105,712 7,974 Deferred taxes (25,325 ) (27,929 ) Net changes in operating assets and liabilities, net of business acquisitions Accounts receivable 60,036 47,790 Contract acquisition costs (9,466 ) (11,036 ) Contract assets (3,817 ) (1,425 ) Prepayments and other current assets (14,990 ) (2,767 ) Other non-current assets 82 (2,081 ) Operating leases, net 255 5 Accounts payable 333 (5,271 ) Accrued expenses and other liabilities (90,626 ) (32,998 ) Deferred revenue (11,124 ) (10,771 ) Net cash used in operating activities (96,807 ) (55,386 ) Cash flows from investing activities Purchase of property and equipment (2,191 ) (587 ) Proceeds from sale of property and equipment — 11 Capitalized software development costs (1,706 ) (2,514 ) Business acquisitions, net of cash acquired — (4,594 ) Net cash used in investing activities (3,897 ) (7,684 ) Cash flows from financing activities Proceeds from IPO, net of underwriting discounts and commissions 1,259,681 — Repayment of Term Loans (1,040,000 ) — Payments of deferred offering costs, net (8,357 ) — Payments related to holdback consideration (675 ) — Repurchase of units — (1,810 ) Net cash provided by financing activities 210,649 (1,810 ) Net change in cash, cash equivalents and restricted cash 109,945 (64,880 ) Cash, cash equivalents and restricted cash, beginning of period 124,390 218,468 Cash, cash equivalents and restricted cash, end of period $ 234,335 $ 153,588 SAILPOINT, SCHEDULES(Amounts in thousands, except percentages)(Unaudited) Three Months Ended April 30, 2025 2024 variance % Revenue Subscription SaaS $ 131,815 $ 97,067 36 % Maintenance and support 37,389 38,269 (2 )% Term subscriptions 40,040 30,685 30 % Other subscription services 6,079 4,071 49 % Total subscription 215,323 170,092 27 % Perpetual licenses 5 69 (93 )% Services and other 15,140 17,495 (13 )% Total revenue $ 230,468 $ 187,656 23 % SAILPOINT, OF GAAP TO NON-GAAP FINANCIAL MEASURES(Amounts in thousands, except percentages and per share amounts)(Unaudited) Three Months Ended April 30, 2025 2024 GAAP gross profit $ 127,655 $ 115,490 GAAP gross profit margin 55.4 % 61.5 % Equity-based compensation expense 21,592 3,338 Payroll taxes for IPO-accelerated awards and RSUs 634 — Amortization of acquired intangible assets 26,060 25,818 Adjusted gross profit $ 175,941 $ 144,646 Adjusted gross profit margin 76.3 % 77.1 % Three Months Ended April 30, 2025 2024 GAAP subscription gross profit $ 139,832 $ 114,972 GAAP subscription gross profit margin 64.9 % 67.6 % Equity-based compensation expense 11,264 1,702 Payroll taxes for IPO-accelerated awards and RSUs 332 — Amortization of acquired intangible assets 26,058 25,758 Adjusted subscription gross profit $ 177,486 $ 142,432 Adjusted subscription gross profit margin 82.4 % 83.7 % Three Months Ended April 30, 2025 2024 GAAP income (loss) from operations $ (184,965 ) $ (68,193 ) GAAP income (loss) from operations margin (80.3 )% (36.3 )% Equity-based compensation expense 160,459 25,857 Payroll taxes for IPO-accelerated awards and RSUs 3,399 — Amortization of acquired intangible assets 49,912 64,407 Amortization of acquired contract acquisition costs (5,764 ) (6,745 ) Acquisition-related expenses and Thoma Bravo monitoring fees 580 3,866 Adjusted income (loss) from operations $ 23,621 $ 19,192 Adjusted operating margin 10.2 % 10.2 % Three Months Ended April 30, 2025 2024 GAAP sales and marketing expense $ 164,530 $ 114,887 Equity-based compensation expense (53,503 ) (9,201 ) Payroll taxes for IPO-accelerated awards and RSUs (1,684 ) — Amortization of acquired intangible assets (23,757 ) (38,494 ) Amortization related to acquired contract acquisition costs 5,764 6,745 Adjusted sales and marketing expense $ 91,350 $ 73,937 Three Months Ended April 30, 2025 2024 GAAP research and development expense $ 67,270 $ 41,917 Equity-based compensation expense (27,839 ) (6,857 ) Payroll taxes for IPO-accelerated awards and RSUs (686 ) — Amortization of acquired intangible assets (95 ) (95 ) Adjusted research and development expense $ 38,650 $ 34,965 Three Months Ended April 30, 2025 2024 GAAP general and administrative expense $ 80,820 $ 26,879 Equity-based compensation expense (57,525 ) (6,461 ) Payroll taxes for IPO-accelerated awards and RSUs (394 ) — Acquisition-related expenses and Thoma Bravo monitoring fees (580 ) (3,866 ) Adjusted general and administrative expense $ 22,321 $ 16,552 Three Months Ended April 30, 2025 GAAP net loss $ (187,312 ) Equity-based compensation expense 160,459 Payroll taxes for IPO-accelerated awards and RSUs 3,399 Amortization of acquired intangible assets 49,912 Amortization of acquired contract acquisition costs (5,764 ) Acquisition-related expenses and Thoma Bravo monitoring fees 580 Tax effect of adjustments (18,052 ) Adjusted net income $ 3,222 GAAP net loss per share, basic and diluted $ (0.42 ) Adjusted EPS, diluted $ 0.01 Weighted average shares used in computing GAAP net loss per share, basic and diluted 500,029 Shares used in computing adjusted EPS, diluted 555,940 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-03-2025
- Business
- Yahoo
SailPoint stock drop 'hard to explain' after post-IPO earnings, CEO says
SailPoint (SAIL) is charting the course for a potentially big year, even if the market sees it otherwise today. SailPoint stock was volatile during Wednesday trading as investors digested the cybersecurity company's first earnings report since going public in early February. Shares fell as much as 4% to $20.94 in afternoon trading. "We're scratching our heads a little [on the market reaction]. We're hopeful that by the end of the day, we see something different here," SailPoint founder and CEO Mark McClain told Yahoo Finance over the phone. "But ... we learned a while ago in these markets you've got to do what you can do, control what you can control, build the right products, sell them well, support your customers. And when you do that, and the business grows — and grows with a nice profile of profitability — ultimately, these things do sort themselves out. Today is hard to explain. Honestly, we beat every, every number." Watch: How Okta CEO blew away investors The cybersecurity company posted $240 million in sales, an 18% year-over-year increase. Adjusted operating profits rose to $46 million from $28 million a year earlier. For the full year, SailPoint guided to sales of $1.025 billion to $1.035 billion. The Street was modeled for $1.02 billion. Adjusted earnings per share are pegged in a range of $0.14 to $0.18, ahead of estimates for $0.09. McClain said there has been no slowdown in demand. "This is the gift that keeps on giving," McClain added. "Because when you're in the world of cyber, ... at one level, it's good guys versus the bad guys. And the bad guys aren't going away, they're getting stronger." SailPoint began trading on Feb. 13 at the Nasdaq. The company priced its initial public offering (IPO) at the top end of its targeted range of $21 to $23, raising $1.38 billion in proceeds. The company's valuation ahead of its IPO stood at $12.6 billion. The stock closed its first day of trading at $22 per share, and the stock hit a closing high of $25.70 on Feb. 16. Today, after the earnings day slide, SailPoint's market cap stands at $11.9 billion. The identity management tech firm is no stranger to public markets. Private equity firm Thoma Bravo took SailPoint public on Nov. 18, 2017, around the same time as the debut of SailPoint's quasi-competitor, Okta (OKTA). Thoma Bravo then took the company private in 2022 for $6.9 billion, or $65.25 a share. SailPoint was the first big test of the tech IPO market in 2025. The strong market reception despite the volatile backdrop for stocks in the first quarter has sent many other private companies to file for IPOs this month, including eToro ( StubHub, and CoreWeave ( Podcast: Inside the future of tech with Microsoft's Bill Gates CoreWeave is expected to debut on the Nasdaq exchange this Friday. Yahoo Finance private company data shows CoreWeave's valuation at $24 billion ahead of its listing, making it one of the top 10 highest-valued private companies in the world. Renaissance Macro expects a "banner" year for IPOs this year, estimating 155 to 195 companies will come to market. They could collectively raise $40 billion to $55 billion in funding. The number of IPOs jumped by 38% last year, and proceeds rose 48%, according to EY. The 2024 IPO aftermarket performance on US exchanges showed strength, with average gains tallying 30% for deals that raised $50 million and above. In total, 176 US IPOs raised $33 billion in 2024. Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Sign in to access your portfolio
