UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM 8-K


CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 12, 2020


Graphic

PING IDENTITY HOLDING CORP.

(Exact name of registrant as specified in its charter)


Delaware

   

001-39056

   

81-2933383

(State or other jurisdiction

(Commission File Number)

(IRS Employer

of incorporation)

Identification No.)

1001 17th Street, Suite 100,

Denver, CO

80202

(Address of principal executive offices)

(Zip Code)

(303) 468-2900

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

   

Trading Symbol(s):

   

Name of each exchange on which registered:

Common Stock, Graphic

PING IDENTITY HOLDING CORP.

(Exact name of registrant as specified in its charter)


Delaware

   

001-39056

   

81-2933383

(State or other jurisdiction

(Commission File Number)

(IRS Employer

of incorporation)

Identification No.)

1001 17th Street, Suite 100,

Denver, CO

80202

(Address of principal executive offices)

(Zip Code)

(303) 468-2900

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

   

Trading Symbol(s):

   

Name of each exchange on which registered:

Common Stock, $0.001 par value

PING

New York Stock Exchange


2.02. Results of Operations and Financial Condition.

On August 12, 2020, Ping Identity Holding Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2020. In the press release, the Company also announced that it will hold a conference call on August 12, 2020 to discuss its financial results for the quarter ended June 30, 2020. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

This information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number

Exhibit Description

99.1

Press Release dated August 12, 2020


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PING IDENTITY HOLDING CORP.

Date: August 12, 2020

By:

/s/ Lauren Romer

Name:

Lauren Romer

Title:

Chief Legal Officer


PING

New York Stock Exchange


2.02. Results of Operations and Financial Condition.

On August 12, 2020, Ping Identity Holding Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2020. In the press release, the Company also announced that it will hold a conference call on August 12, 2020 to discuss its financial results for the quarter ended June 30, 2020. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

This information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number

Exhibit Description

99.1

Press Release dated August 12, 2020


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PING IDENTITY HOLDING CORP.

Date: August 12, 2020

By:

/s/ Lauren Romer

Name:

Lauren Romer

Title:

Chief Legal Officer


file://C:\Docs\paycom.html

Exhibit 99.1

Ping Identity Reports Second Quarter 2020 Results, Provides Outlook for Third Quarter

ARR was $235.2 million, up 19% from the prior year period
Total revenue was $59.0 million, of which 92% was subscription revenue
Announced the appointment of Candace Worley as Chief Product Officer

DENVER – August 12, 2020 – Ping Identity Holding Corp. (“Ping Identity,” or the “Company”) (NYSE: PING), the Intelligent Identity solution for the enterprise, today announced its financial results for the quarter ended June 30, 2020.

“Ping closed the quarter with great momentum, exceeding our expectations across all key metrics. Our customers are leveraging Ping’s offerings to provide comprehensive and advanced hybrid cloud identity solutions for their digital transformation strategies,” said Andre Durand, Ping Identity’s Chief Executive Officer.  

"Identity-based security has become a critical capability for enterprises in this new business environment. Remote work for employees brings with it increased security threats and consumers are demanding contact-less, digital means of transacting for goods and services. Ping is well positioned for continued growth and leadership in this new business climate," Durand concluded.

Financial Highlights for the Second Quarter of 2020

ARR: Ending ARR at June 30, 2020 was $235.2 million and represented a 19% increase compared to the same period last year. Ping Identity defines ARR as the annualized value of all subscription contracts as of the end of the period.

Revenue: Total revenue for the second quarter of 2020 was $59.0 million. Subscription revenue was $54.3 million.

Cash Flow: Net cash provided by operating activities was $21.2 million in the six months ended June 30, 2020 compared to $8.1 million in the six months ended June 30, 2019. Unlevered Free Cash Flow was $14.3 million for the six months ended June 30, 2020 compared to $9.0 million for the six months ended June 30, 2019.

Dollar-Based Net Retention Rate: For the period ended June 30, 2020, Ping Identity’s dollar-based net retention rate was 111%.

Please refer to the section titled “Use of Non-GAAP Financial Information” and the tables within this press release which contain explanations and reconciliations of the Company’s non-GAAP financial measures.

Recent Business Highlights

Delivered our annual industry conference, Identiverse, in a fully remote and virtual format
Expanded our available cloud offerings on the AWS marketplace
Ended the quarter with 242 customers over $250,000 in ARR, representing a 13% year-over-year growth rate in that cohort of customers.

“Our second quarter performance demonstrates the resiliency of identity security and our ability to balance growth and profitability amidst a difficult economic backdrop,” stated Raj Dani, Chief Financial Officer of Ping Identity. “Total ARR grew 19% versus the prior year period, which we believe provides the best representation of the underlying health of the business. Our Unlevered Free Cash Flow margin was 8% and Adjusted EBITDA margin was 13% for the quarter.”


“The hybrid nature of our platform continues to differentiate Ping in the market as large enterprise customers seek flexibility, customization, and control of their identity infrastructure. As we start to normalize operations in this new environment, we look forward to leaning into investments that will expand our platform and address our massive market opportunity.”

Financial Outlook

Ping Identity provides the following expected financial guidance for the quarter ending September 30, 2020:

Quarter Ending September 30, 2020:

Total ARR of $240.2 million to $242.2 million

Total Revenue of $54.0 million to $57.0 million

Unlevered Free Cash Flow of ($10.0) million to ($8.0) million

Year Ending December 31, 2020:

Given prevailing macro uncertainties related to the COVID-19 pandemic, Ping Identity is not providing a full year outlook

Conference Call Details

In conjunction with this announcement, Ping Identity will host a conference call today, August 12, 2020, at 5:00 p.m. Eastern Time to discuss its financial results. Investors and participants can register for the call in advance by visiting http://www.directeventreg.com/registration/event/7836808. After registering, instructions will be shared on how to join the call including dial-in information as well as a unique passcode and registrant ID. At the time of the call, registered participants will dial in using the numbers from the confirmation email, and upon entering their unique passcode and ID, will be entered directly into the conference.

Following the conference call, a replay will be available until 11:59 p.m. Eastern time on August 19, 2020. The replay dial-in number will be (800) 585-8367 or for international (416) 621-4642, using the replay number pin: 7836808. An archived webcast of the call will also be available at https://investor.pingidentity.com.

Use of Non-GAAP Financial Information

In addition to Ping Identity’s results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company believes the following non-GAAP measures presented in this press release and discussed on the related teleconference call are useful in evaluating its operating performance: Non-GAAP Gross Profit, Non-GAAP Gross Profit Margin, Non-GAAP Operating Expenses, Non-GAAP Net Income, Non-GAAP Net Income Per Share, Levered Free Cash Flow, Unlevered Free Cash Flow, Adjusted EBITDA, and Adjusted EBITDA margin. Certain of these non-GAAP measures exclude stock-based compensation, depreciation and amortization expense, loss on extinguishment of debt and acquisition-related expenses. Ping Identity believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. A reconciliation is provided herein for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.


Forward-Looking Statements

In addition to historical consolidated financial information, certain statements in this press release and on the related teleconference call may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical fact included in this press release and on the related teleconference call are forward-looking statements. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. For example, all statements Ping Identity makes relating to its estimated and projected costs, expenditures, cash flows, growth rates and financial results or its plans and objectives for future operations, growth initiatives, or strategies are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that the Company expected. Specific factors that could cause such a difference include, but are not limited to, those disclosed previously in the Company’s other filings with the SEC which include, but are not limited to: the impact of the COVID-19 outbreak; our ability to adapt to rapid technological change, evolving industry standards and changing customer needs, requirements or preferences; our ability to enhance and deploy our cloud-based offerings while continuing to effectively offer our on-premise offerings; our ability to maintain or improve our competitive position; the impact on our business of a network or data security incident or unauthorized access to our network or data or our customers’ data; the effects on our business if we are unable to acquire new customers, if our customers do not renew their arrangements with us, or if we are unable to expand sales to our existing customers or develop new solutions or solution packages that achieve market acceptance; our ability to manage our growth effectively, execute our business plan, maintain high levels of service and customer satisfaction or adequately address competitive challenges; our dependence on our senior management team and other key employees; our ability to enhance and expand our sales and marketing capabilities; our ability to attract and retain highly qualified personnel to execute our growth plan; the risks associated with interruptions or performance problems of our technology, infrastructure and service providers; our dependence on Amazon Web Services cloud infrastructure services; the impact of data privacy concerns, evolving regulations of cloud computing, cross-border data transfer restrictions and other domestic and foreign laws and regulations; the impact of volatility in quarterly operating results; the risks associated with our revenue recognition policy and other factors may distort our financial results in any given period; the effects on our customer base and business if we are unable to enhance our brand cost-effectively; our ability to comply with anti-corruption, anti-bribery and similar laws; our ability to comply with governmental export and import controls and economic sanctions laws; our ability to comply with HIPAA; the potential adverse impact of legal proceedings; the impact of our frequently long and unpredictable sales cycle; our ability to identify suitable acquisition targets or otherwise successfully implement our growth strategy; the impact of a change in our pricing model; our ability to meet service level commitments under our customer contracts; the impact on our business and reputation if we are unable to provide high-quality customer support; our dependence on strategic relationships with third parties; the impact of adverse general and industry-specific economic and market conditions and reductions in IT and identity spending; the ability of our platform, solutions and solution packages to interoperate with our customers’ existing or future IT infrastructures; our dependence on adequate research and development resources and our ability to successfully complete acquisitions; our dependence on the integrity and scalability of our systems and infrastructures; our reliance on software and services from other parties; the impact of real or perceived errors, failures, vulnerabilities or bugs in our solutions; our ability to protect our proprietary rights; the impact on our business if we are subject to infringement claim or a claim that results in   a significant damage award; the risks associated with our use of open source software in our solutions, solution packages and subscriptions; our reliance on SaaS vendors to operate certain functions of our business; the risks associated with indemnity provisions in our agreements; the risks associated with liability claims if we breach our contracts; the impact of the failure by our customers to pay us in accordance with the terms of their agreements; our ability to expand the sales of our solutions and solution packages to customers located outside of the United States; the risks associated with exposure to foreign currency fluctuations; the impact of Brexit; the impact of potentially adverse tax consequences associated with our international operations; the impact of changes in tax laws or regulations; the impact of the Tax Act; our ability to maintain our corporate culture; our ability to develop and maintain proper and effective internal control over financial reporting; our management team’s limited experience managing a public company; the risks associated with having operations and employees located in Israel; the risks associated with doing business with governmental entities; and the impact of catastrophic events on our business. Given these factors, as well as other variables that may affect Ping Identity’s operating results,


you should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, or use historical trends to anticipate results or trends in future periods. The forward-looking statements included in this press release and on the related teleconference call relate only to events as of the date hereof. The Company undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

About Ping Identity

Ping Identity is the Intelligent Identity solution for the enterprise. We enable companies to achieve Zero Trust identity-defined security and more personalized, streamlined user experiences. The Ping Intelligent Identity™ platform provides customers, workforce, and partners with access to cloud, mobile, SaaS and on-premises applications across the hybrid enterprise. Over half of the Fortune 100 choose us for our identity expertise, open standards, and partnerships with companies including Microsoft and Amazon. We provide flexible identity solutions that accelerate digital business initiatives, delight customers, and secure the enterprise through multi-factor authentication, single sign-on, access management, intelligent API security, directory, and data governance capabilities. For more information, visit www.pingidentity.com.


PING IDENTITY HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(unaudited)

Three Months Ended

June 30, 

Six Months Ended

June 30, 

    

2020

    

2019

    

2020

    

2019

Revenue:

 

  

 

  

  

 

  

Subscription

$

54,268

$

56,272

$

111,086

$

103,892

Professional services and other

 

4,713

 

6,188

 

9,307

 

9,006

Total revenue

 

58,981

 

62,460

 

120,393

 

112,898

Cost of revenue:

 

  

 

  

 

  

 

  

Subscription (exclusive of amortization shown below)(1)

 

7,509

 

5,652

 

14,618

 

10,833

Professional services and other (exclusive of amortization shown below)(1)

 

4,226

 

3,675

 

8,239

 

6,916

Amortization expense

 

4,944

 

3,956

 

9,546

 

7,822

Total cost of revenue

 

16,679

 

13,283

 

32,403

 

25,571

Gross profit

 

42,302

 

49,177

 

87,990

 

87,327

Operating expenses:

 

  

 

  

 

  

 

  

Sales and marketing(1)

 

20,751

 

20,026

 

42,941

 

37,334

Research and development(1)

 

11,411

 

10,857

 

23,625

 

22,311

General and administrative(1)

 

11,726

 

8,664

 

23,115

 

15,748

Depreciation and amortization

 

4,233

 

4,153

 

8,482

 

8,274

Total operating expenses

 

48,121

 

43,700

 

98,163

 

83,667

Income (loss) from operations

 

(5,819)

 

5,477

 

(10,173)

 

3,660

Other income (expense):

 

  

 

  

 

  

 

  

Interest expense

 

(724)

 

(4,133)

 

(1,230)

 

(8,249)

Other income (expense), net

 

695

 

234

 

(555)

 

225

Total other income (expense)

 

(29)

 

(3,899)

 

(1,785)

 

(8,024)

Income (loss) before income taxes

 

(5,848)

 

1,578

 

(11,958)

 

(4,364)

Benefit for income taxes

 

2,932

 

178

 

4,876

 

1,241

Net income (loss)

$

(2,916)

$

1,756

$

(7,082)

$

(3,123)

Net income (loss) per share:

Basic

$

(0.04)

$

0.03

$

(0.09)

$

(0.05)

Diluted

$

(0.04)

$

0.03

$

(0.09)

$

(0.05)

Weighted-average shares used in computing net income (loss) per share:

Basic

80,169

65,018

79,956

65,012

Diluted

80,169

66,451

79,956

65,012

______________________________________

(1) Includes stock-based compensation as follows:

Three Months Ended

June 30, 

Six Months Ended

June 30, 

    

2020

2019

    

2020

2019

Subscription cost of revenue

$

174

$

$

320

$

Professional services and other cost of revenue

99

183

Sales and marketing

1,243

188

2,040

410

Research and development

 

1,298

 

218

 

2,186

 

433

General and administrative

 

1,731

 

634

 

2,673

 

1,256

Total

$

4,545

$

1,040

$

7,402

$

2,099


PING IDENTITY HOLDING CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

June 30, 

December 31, 

    

2020

    

2019

Assets

Current assets:

Cash and cash equivalents

$

177,102

$

67,637

Accounts receivable, net of allowances of $978 and $873

 

58,728

 

67,642

Contract assets, current

69,301

70,031

Deferred commissions, current

5,355

5,814

Prepaid expenses

7,478

12,768

Other current assets

 

1,028

 

3,774

Total current assets

 

318,992

 

227,666

Noncurrent assets:

Property and equipment, net

 

10,342

 

11,183

Goodwill

 

418,660

 

417,696

Intangible assets, net

 

182,623

 

187,868

Contract assets, noncurrent

15,400

 

15,979

Deferred commissions, noncurrent

7,740

 

7,856

Deferred income taxes, net

 

2,628

 

2,755

Operating lease right-of-use assets

13,789

Other noncurrent assets

 

1,583

 

1,808

Total noncurrent assets

 

652,765

 

645,145

Total assets

$

971,757

$

872,811

Liabilities and stockholders' equity

 

  

 

Current liabilities:

 

  

 

Accounts payable

$

5,038

$

1,118

Accrued expenses and other current liabilities

 

9,251

 

9,302

Accrued compensation

 

9,854

 

18,126

Deferred revenue, current

37,374

45,446

Operating lease liabilities, current

3,311

Total current liabilities

 

64,828

 

73,992

Noncurrent liabilities:

 

  

 

Deferred revenue, noncurrent

 

2,590

 

2,061

Long-term debt, net of current portion

 

148,889

 

50,941

Deferred income taxes, net

 

24,347

 

30,571

Operating lease liabilities, noncurrent

16,083

Other liabilities, noncurrent

 

1,139

 

4,775

Total noncurrent liabilities

 

193,048

 

88,348

Total liabilities

 

257,876

 

162,340

Commitments and contingencies

 

  

 

Stockholders' equity:

 

  

 

Preferred stock

 

Common stock

80

 

80

Additional paid-in capital

 

729,602

 

718,446

Accumulated other comprehensive loss

 

(1,063)

 

(399)

Accumulated deficit

 

(14,738)

 

(7,656)

Total stockholders' equity

 

713,881

 

710,471

Total liabilities and stockholders' equity

$

971,757

$

872,811


PING IDENTITY HOLDING CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(unaudited)

Six Months Ended

June 30, 

    

2020

    

2019

Cash flows from operating activities

 

  

  

Net loss

$

(7,082)

$

(3,123)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

Depreciation and amortization

 

18,028

 

16,096

Stock-based compensation expense

 

7,402

 

2,099

Amortization of deferred commissions

3,761

2,760

Amortization of deferred debt issuance costs

124

424

Operating leases, net

(21)

Deferred taxes

 

(5,280)

 

(1,471)

Other

 

186

 

69

Changes in operating assets and liabilities:

 

 

Accounts receivable

 

8,727

 

6,044

Contract assets

 

1,309

 

(8,169)

Deferred commissions

 

(3,186)

 

(3,629)

Prepaid expenses and other current assets

 

7,186

 

3,087

Other assets

 

220

 

225

Accounts payable

 

3,894

 

(376)

Accrued compensation

(8,724)

(4,611)

Accrued expenses and other

 

2,243

 

(1,484)

Deferred revenue

 

(7,543)

 

123

Net cash provided by operating activities

 

21,244

 

8,064

Cash flows from investing activities

 

  

 

  

Purchases of property and equipment and other

 

(1,420)

 

(2,330)

Capitalized software development costs

 

(6,749)

 

(4,492)

Acquisition of ShoCard, net of cash acquired of $0

(4,703)

Net cash used in investing activities

 

(12,872)

 

(6,822)

Cash flows from financing activities

 

 

Payment of Elastic Beam contingent consideration

 

(424)

 

(1,136)

Payment of deferred offering costs

 

(295)

 

(543)

Proceeds from stock option exercises

 

6,046

 

978

Payment for tax withholding on equity awards

(1,653)

Proceeds from long-term debt

 

97,823

 

Payment of long-term debt

 

 

(1,250)

Net cash provided by (used in) financing activities

 

101,497

 

(1,951)

Effect of exchange rates on cash and cash equivalents and restricted cash

 

(406)

 

220

Net increase (decrease) in cash and cash equivalents and restricted cash

 

109,463

 

(489)

Cash and cash equivalents and restricted cash

 

  

 

  

Beginning of period

 

68,386

 

84,143

End of period

$

177,849

$

83,654


PING IDENTITY HOLDING CORP.

SUPPLEMENTAL FINANCIAL INFORMATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL DATA

(In thousands, except per share amounts)

(unaudited)

Three Months Ended

June 30, 

Six Months Ended

June 30, 

    

2020

2019

    

2020

2019

Gross profit

$

42,302

$

49,177

$

87,990

$

87,327

Amortization expense

 

4,944

 

3,956

 

9,546

 

7,822

Stock-based compensation

273

503

Non-GAAP Gross Profit

$

47,519

$

53,133

$

98,039

$

95,149

Non-GAAP Gross Profit Margin

81%

85%

81%

84%

Three Months Ended

June 30, 

Six Months Ended

June 30, 

    

2020

2019

    

2020

2019

Total operating expenses

$

48,121

$

43,700

$

98,163

$

83,667

Stock-based compensation

(4,272)

(1,040)

(6,899)

(2,099)

Acquisition related expenses

(30)

(545)

(1,099)

(2,277)

Amortization expense

(3,345)

(3,475)

(6,689)

(6,955)

Non-GAAP Operating Expenses

$

40,474

$

38,640

$

83,476

$

72,336

Three Months Ended

June 30, 

Six Months Ended

June 30, 

    

2020

2019

    

2020

2019

Net income (loss)

$

(2,916)

$

1,756

$

(7,082)

$

(3,123)

Stock-based compensation

4,545

1,040

7,402

2,099

Acquisition related expenses

30

545

1,099

2,277

Amortization expense

8,289

7,431

16,235

14,777

Provision for income taxes(1)

(3,216)

(2,344)

(6,184)

(4,980)

Non-GAAP Net Income

$

6,732

$

8,428

$

11,470

$

11,050

Net income (loss) per share:

Basic

$

(0.04)

$

0.03

$

(0.09)

$

(0.05)

Diluted

$

(0.04)

$

0.03

$

(0.09)

$

(0.05)

Weighted-average shares used in computing net income (loss) per share:

Basic

80,169

65,018

79,956

65,012

Diluted

80,169

66,451

79,956

65,012

Non-GAAP Net Income per Share:

Basic

$

0.08

$

0.13

$

0.14

$

0.17

Diluted

$

0.08

$

0.13

$

0.14

$

0.17

Weighted-average shares used in computing Non-GAAP Net Income per Share:

Basic

80,169

65,018

79,956

65,012

Diluted

83,002

66,451

82,590

66,195

_____________________________________

(1) The related tax effects of the adjustments to Non-GAAP Net Income were calculated using the respective statutory tax rates for applicable jurisdictions.


Three Months Ended

June 30, 

Six Months Ended

June 30, 

    

2020

2019

    

2020

2019

Net income (loss)

$

(2,916)

$

1,756

$

(7,082)

$

(3,123)

Interest expense(1)

724

4,133

1,230

8,249

(Benefit) provision for income taxes

(2,932)

(178)

(4,876)

(1,241)

Depreciation and amortization

9,177

8,109

18,028

16,096

Stock-based compensation expense

4,545

1,040

7,402

2,099

Acquisition related expense

 

30

 

545

 

1,099

 

2,277

Other (income) expense, net(2)

 

(695)

 

(234)

 

555

 

(225)

Adjusted EBITDA

$

7,933

$

15,171

$

16,356

$

24,132

Adjusted EBITDA Margin

13%

24%

14%

21%

______________________________________

(1) Includes amortization of debt issuance costs.

(2) Includes gains and losses from transactions denominated in a currency other than the functional currency, interest income and other income (expense).

Six Months Ended

June 30, 

    

2020

    

2019

Net cash provided by operating activities

$

21,244

$

8,064

Add:

Cash paid for interest

1,186

7,739

Less:

Purchases of property and equipment

(1,420)

(2,330)

Capitalized software development costs

(6,749)

(4,492)

Unlevered Free Cash Flow

$

14,261

$

8,981

Net cash used in investing activities

$

(12,872)

$

(6,822)

Net cash provided by (used in) financing activities

$

101,497

$

(1,951)

Cash paid for Elastic Beam compensation and bonus retention payments

$

4,173

$

4,868

Reconciliation of Unlevered Free Cash Flow Guidance for the Three Months Ended September 30, 2020:

Three Months Ended

September 30, 2020

    

Low

High

Net cash used in operating activities

$

(7,345)

$

(5,345)

Add:

Cash paid for interest

800

800

Less:

Purchases of property and equipment

(250)

(250)

Capitalized software development costs

(3,205)

(3,205)

Unlevered Free Cash Flow

$

(10,000)

$

(8,000)


PING IDENTITY HOLDING CORP.

SUPPLEMENTAL FINANCIAL INFORMATION

KEY BUSINESS METRICS

(In thousands)

June 30, 

Change

    

2020

    

2019

    

$

    

%

 

(dollars in thousands)

ARR

$

235,232

$

197,990

$

37,242

 

19

%


Contacts

Investor Relations Contact:

Nick Allen

Tel: 720.728.1007

investor@pingidentity.com

Media Contact:

Kristin Miller

press@pingidentity.com

Source: Ping Identity