Ping Identity, which delivers intelligent identity solutions for the enterprise, today announced its financial results for the quarter ended June 30, 2021.
“We had an active second quarter, where we announced several new solutions at Identiverse, acquired SecuredTouch, drove significant deal activity, and exceeded expectations across all of our key metrics,” said Andre Durand, Ping Identity’s Chief Executive Officer. “Results were bolstered by sustained improvement in the demand environment, which drove substantial growth in ARR and revenue that give us confidence for strong execution during the remainder of 2021.”
ARR: Ending ARR at June 30, 2021 was $279.6 million and represented a 19% increase compared with the same period last year. Additionally, SaaS ARR now exceeds 20% of total ARR. 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 2021 was $78.9 million. Subscription revenue was $73.2 million, or 93% of total revenue. SaaS revenue of $13.4 million grew 51% from $8.9 million in the second quarter of 2020. Additionally, in the six months ended June 30, 2021, SaaS revenue of $25.4 million grew 46% from $17.4 million in the six months ended June 30, 2020. Given the impact that deployment mix and contract duration have on GAAP revenue, management continues to believe that ARR is the key growth metric of a subscription business.
Cash Flow: Net cash provided by operating activities was $44.0 million in the six months ended June 30, 2021 compared with $21.2 million in the six months ended June 30, 2020. Unlevered Free Cash Flow* was $34.5 million in the six months ended June 30, 2021 compared with $14.3 million in the six months ended June 30, 2020.
Dollar-Based Net Retention Rate: Ping Identity’s dollar-based net retention rate on June 30, 2021 was 111%. The Company calculates dollar-based net retention rate as ending ARR for the current reporting period from customers with associated ending ARR for the same period last year, divided by ending ARR for the same period last year.
* 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
- Announced several new solutions, including PingOne for Individuals, which leverages the ShoCard acquisition to provide users superior privacy and control over their identity, reducing the burden of regulatory and compliance requirements by letting users manage their own personal data; and PingAuthorize, which enables enterprises to dynamically centralize authorization for better security and comply with privacy regulations.
- Acquired SecuredTouch, a leader in consumer fraud and bot detection, to mitigate risk with the customer use case in the PingOne Cloud Platform.
- Named Jason Wolf as Chief Revenue Officer. Wolf was a highly accomplished sales leader at SAP with in-depth experience with go-to-market strategy, sales performance, customer success and operations of global field organizations. He will oversee Ping Identity’s global team of worldwide sales and revenue, channels, customer success, operations and enablement.
- Hosted the 12th annual Identiverse conference – the identity industry conference founded by Ping Identity Chief Executive Officer, Andre Durand – to foster the adoption of identity security and unite professionals serving the industry.
- Ended the second quarter with 279 customers with more than $250,000 in ARR, representing a 15% year-over-year growth rate in that customer cohort.
- Recognized as the Best Identity Management Solution for the Ping Intelligent Identity® Platform by the 2021 SC Awards Europe.
Commenting on the Company’s financial results, Raj Dani, Ping Identity’s Chief Financial Officer, said, “We are pleased with our strong performance in the second quarter, resulting from the improving demand environment and increased adoption of PingOne in the enterprise, with SaaS ARR now representing more than 20% of our total ARR. Our 19% ARR growth once again accelerated on a sequential quarter basis, and our record $44.0 million of net cash provided by operating activities in the first half of 2021 was driven by stronger than expected sales activity and collections.
“These first half results give us confidence in our ability to continue to outperform in the second half of 2021. We plan to continue investing in our cloud and channel solutions to enable zero trust, seamless digital experiences, and passwordless authentication,” added Dani.