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Earnings Results: SailPoint stock rallies on surprise earnings beat

SailPoint Technologies Holdings Inc. shares surged in the extended session Monday after the cybersecurity company reported a surprise earnings beat with results that exceeded Wall Street expectations.

SailPoint
SAIL,
+1.82%

shares surged as much as 10% after hours, following a 1.8% rise in the regular session to close at $41.37.

The company reported a fourth-quarter loss of $9.7 million, or 10 cents a share, compared with a loss of $4.7 million, or 5 cents a share, in the year-ago period. Adjusted earnings were 9 cents a share, compared with 10 cents a share in the year-ago period.

Revenue rose to $135.6 million from $103.3 million in the year-ago quarter, with annual recurring revenue, or ARR, rising 48% from a year ago to $370.4 million. ARR is a metric often used by software-as-a-service, or SaaS, companies to show how much revenue the company can expect based on subscriptions. 

Analysts surveyed by FactSet had forecast an adjusted loss of 7 cents a share on revenue of $114.1 million, and ARR of $360.1 million.

“SailPoint’s fourth-quarter performance was a record-breaking finish to a terrific year,” said Mark McClain, SailPoint’s chief executive and founder, in a statement. “Revenue and ARR were well above our expectations, driven by strong demand for our SaaS identity security platform and excellent execution by the SailPoint team.”

SailPoint expects a loss of 11 cents to 10 cents a share on revenue of $110.5 million to $112.5 million, and ARR of  $393 million to $395 million for the first quarter. Analysts expect a loss of 5 cents a share on revenue of $108.2 million and ARR of $377.5 million.

For the year, however, the company estimates a loss of 29 cents to 23 cents a share on revenue of $513 million to $521 million and ARR of $516 million to $524 million. Analysts had forecast a loss of 7 cents a share on revenue of $486.7 million and ARR of $469.2 million.

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