Ping Identity’s latest quarterly report places the company on a strong upward trajectory. The company brought in $76.2 million in total revenue during the three-month period that ended on September 30, a number that is up 27 percent from the company’s third quarter earnings in 2020.
The vast majority (94 percent, or $71.5 million) of that $76.2 million came from subscription revenue, which is why Ping believes that recurring revenue will be vital to the company’s prospects moving forward. The company’s Annual Recurring Revenue (ARR) now sits at $289.6 million, which represents growth of 19 percent over 2020. Ping defines ARR as the combined annual value of the subscription contracts that it held at the end of the third quarter.
Much of that growth can be attributed to the popularity of Ping’s Software-as-a-Service (SaaS) offerings. The company generated $9.9 million from its SaaS contracts in the third quarter of 2020, but that number has jumped 56 percent to $15.3 million for the most recent three month period. The company’s net cash flow now sits at $38.1 million for the first nine months of 2021, up considerably over its $20 million cash flow for the first nine months of the previous year. Unlevered Free Cash Flow is a robust $23.4 million.
According to Ping, its net retention rate is 112 percent, which bodes well for the company’s ongoing subscription prospects. As it stands, Ping has 288 customers with a recurring contract that is valued at more than $250,000 annually.
Ping highlighted its acquisition of the no-code specialist Singular Key as one of its top achievements of the quarter. It also leveraged technology acquired with SecuredTouch to add a PingOne Fraud utility to its flagship PingOne Cloud Platform for enterprise security. The company will launch a FedRAMP-approved PingOne for Government offering in 2022.
Ping brought in $78.9 million in revenue in the second quarter of the year. It expects its prospects to dip slightly in Q4, and predicts that its revenues will be between $67 million and $73 million for the final quarter. Total revenue for the year will be upwards of $290 million.
“The future of identity has never been more important and more personal,” said Ping Identity CEO Andre Durand. “We executed well financially, exceeding our guidance ranges for all key metrics, which gives us confidence and momentum to close out 2021 in a strong position.”
Ping Identity has benefited from the growing demand for secure identity verification technologies. The company announced the finalists for its annual Identity Excellence Awards at the tail end of September.
November 9, 2021 – by Eric Weiss