MobileIron Confidential
Investor Presentation
February 2019
MobileIron ConfidentialMobileIron Confidential
Safe Harbor Slide
Safe Harbor Statement
This presentation contains forward-looking statements that involve risks and uncertainties, including statements regarding
MobileIron's revenue and other GAAP and non-GAAP financial metrics for the company's fourth quarter in 2018 and other
statements regarding trends in the company's business, including statements regarding MobileIron's GAAP and non-GAAP
revenue and operating expense targets, growth in our customer base, increased customer adoption, and expected benefits
from new product offerings and MobileIron’s partner ecosystem. There are a significant number of factors that could cause
actual results to differ materially from statements made in this presentation, including MobileIron's limited operating history,
quarterly fluctuations in MobileIron's operating results, MobileIron's need to develop new solutions and enhancements to
compete in rapidly evolving markets, product defects, competitive pressures, customer adoption, changes by operating
system providers and mobile device manufacturers, MobileIron's inability to manage growth, the quality of MobileIron
support, MobileIron's reliance on channel partners and development of partner ecosystem.
Additional information on potential factors that could affect MobileIron's financial results is included in the company's SEC
filings, including its most recent Form 10-K and Form 10-Q. MobileIron does not assume any obligation to update the
forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they
were made.
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COMPANY SNAPSHOT
Foundation for modern workBest-of-breed platform for cloud and on-premises
Leadership positionTop independent vendor
Gartner Leaders Quadrant for EMM seven years in a row +
Leaders Quadrant in Unified Endpoint Management in 2018
75+ modern EMM patents, including enterprise app store
Full security certification (Common Criteria, FedRAMP, SOC 2)
Blue-chip customer base 17,000+ cumulative customers
Deep footprint in regulated and high-security industries
Only EMM vendor with SCP Customer Support certification
Broad ecosystem350+ ISV technology integrations
No conflict of interest with Apple or Google
Strong business model20% Recurring Revenue growth rate
High renewal rate (~90%)
Strong cash position
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Mobile Security
Security foundation
for modern devices and apps
Cloud Security
Control the
new perimeter
Threat Defense
Detect and remediate
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Data used to be here
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Mobile Cloud
Modern work is powered by…
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Now data is scattered everywhere
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If your workforce has these… And they use these …
Then your data is at risk every day!
And they’re probably
connecting to these…
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Two clicks and your data is gone …
Download app to
unmanaged device
Sign in to access
and sync data
Can you:
Delete app if device is lost?
Prevent data sharing to Dropbox?
Comply with regulations such as GDPR?
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Threats are real, sophisticated and escalating
2014 2015 2016 2017
Masque7.x, 8.x
Wirelurker 2014-4487<8.1.3
Used in jailbreak
ICMP Double
Direct
xCode
Ghost
YiSpectoriOS 8.4 and below
Pegasus
Remote iOS exploit, in use for
2+ years
Stagefright
for iOSCVE-2016-4637
zIVA Mach
portal
DoubleDirectTowelRoot200M devices
impacted
Heartbleed800K devices
impacted
Stagefright95% of Android
impacted
Wormhole
(Moplus SDK)
Oxygen
SwiftKey
Triada Zygote
System exploit
HummingBad
Hummer
malware
QuadRooter Godless Blueborne
HummingWhale(HummingBad variant)
DirtyCow
Drammer
PokeMon Go
Guide
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Modern work requires a new security model
Decisions move to the edge
Security is invisible
Choice is paramount
Security is cross-stack Security is contextual
Trust is fluid
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Only MobileIron establishes the
Modern Data
Perimeter
Protects data across endpoints, apps & clouds
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MobileIron Data PerimeterProtect business data from the endpoint to the cloud
Detect and remediate threats
Provision business workspace
Protect data and privacy
Block untrusted endpoints and apps
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Only MobileIron secures all 3 Mobile Imperatives Unified Endpoint Mgt.
Cloud
Security
New in Q4’16
Mobile Threat
Defense
New in Q4’17
Sold to 17,000+
customers
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The Forrester Wave™: Enterprise
Mobility Management, Q4 2017
Reprint available from MobileIron
“The Forrester Wave™: Enterprise Mobility Management, Q4 2017,” David K. Johnson and Andrew Hewitt, 30 November 2017. The Forrester Wave™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave™ are trademarks of Forrester
Research, Inc. The Forrester Wave™ is a graphical representation of Forrester's call on a market and is plotted using a detai led spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service
depicted in the Forrester Wave™. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
“MobileIron is a strong solution for customers with
stringent security and compliance requirements”
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Financial Overview
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Product Revenue Shifting Towards Subscription
See earnings press release for non-GAAP reconciliation
Shift from
Product to
Subscription
Steady base of
support revenue
with high
renewals
Increased
Predictability
Cloud Services up 37% in Q4 FY18
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Annualized Recurring Revenue Growth
103.3
110.4116.8
119.7 121.3125.7
133.1 134.5 135.4
147.6
158.8163.2
60%
65%
70%
75%
80%
85%
90%
$50
$70
$90
$110
$130
$150
$170
Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18
Re
ve
nu
e $
MM
Annualized Recurring Revenue Recurring Revenue % of Total
17% Recurring Revenue CAGR
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TTM Operating
Cash Flow & N-G
Operating Margin
Cash &
InvestmentsTarget model * Target
Gross Margin 80% – 82%
Sales & Marketing 32% - 35%
Research &
Development17% – 19%
General & Admin 6% - 8%
Operating Income 20% - 25%
Continuing Improvement to Target Model
* Non-GAAP
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Financial Results & Guidance – Quarterly
* Non-GAAP
$ Millions Q4 ResultsY/Y Improvement/
DeclineQ1 19 Guide Y/Y Change
Revenue $54.1 10% $46 - $49 + 5% - 12%
Billings $69.5 15% - -
Non-GAAP Gross Margin 82.9% (4.5) % points ~ 83% ~ (2) % points
Non-GAAP Operating Expenses $42.5 (0.5) % point $45 - $46 (5%) - (7%)
Non-GAAP Operating Margin 4.4% 3 % points - -
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Financial Results & Guidance – Yearly
* Non-GAAP
$ Millions FY 18 ResultsY/Y Improvement/
DeclineFY 19 Guide Y/Y Change
Revenue $193.2 7% $205 - $215 + 6% - 11%
Billings $223.3 11% - -
Non-GAAP Gross Margin 84.6% (1) % point - -
Non-GAAP Operating Expenses $167.7 1.5% - -
Non-GAAP Operating Profit ($4.3) 74%Expect to generate
profit-
Non-GAAP Operating Margin (2.2%) 7 % points - -
ARR $162.6 20% $190 - $200 + 17% - 23%
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GAAP to Non-GAAP Reconciliation
(in USD $000s, except for percentages) Q118 Q218 Q318 Q418 FY2018
Non-GAAP Revenue 43,689 46,129 49,251 54,122 193,191
GAAP Gross Profit 35,712 38,219 40,777 43,558 158,266
Amortization of intangibles 100 - - - 100
Stock based compensation charges 1,381 1,067 1,223 1,334 5,005
Restructuring charge - - - - -
Non-GAAP Gross Profit 37,193 39,286 42,000 44,892 163,371
Non-GAAP gross margin(non-GAAP gross profit over non-GAAP revenue)
85.1% 85.2% 85.3% 82.9% 84.6%
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GAAP to Non-GAAP Reconciliation(in USD $000s, except for percentages) Q118 Q218 Q318 Q418 FY2018
Research & development - GAAP 21,335 18,273 18,465 19,976 78,049
Stock based compensation charges (4,767) (3,343) (3,670) (4,201) (15,981)
Restructuring charge - - - - -
Research & development - non-GAAP 16,568 14,930 14,796 15,774 62,068
Research & development - non-GAAP;
as %age of non-GAAP revenue38% 32% 30% 29% 32%
Sales & marketing - GAAP 23,681 24,320 22,867 23,335 94,203
Stock based compensation charges (2,529) (2,159) (2,653) (2,123) (9,464)
Restructuring charge - - - - -
Sales & marketing - non-GAAP 21,153 22,161 20,213 21,212 84,739
Sales & marketing - non-GAAP;
as %age of non-GAAP revenue48% 48% 41% 39% 44%
General & administrative - GAAP 7,223 7,051 6,804 7,801 28,879
Stock based compensation charges (2,014) (1,851) (1,834) (2,286) (7,985)
Restructuring charge - - - - -
General & administrative - non-GAAP 5,208 5,200 4,970 5,515 20,893
General & administrative - non-GAAP;
as %age of non-GAAP revenue12% 11% 10% 10% 11%
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GAAP to Non-GAAP Reconciliation
(in USD $000s, except for percentages) Q118 Q218 Q318 Q418 FY2018
Operating loss - GAAP (16,527) (11,425) (7,359) (7,554) (42,865)
Amortization of intangibles 100 - - - 100
Stock based compensation charges 10,692 8,420 9,380 9,944 38,436
Restructuring charge - - - - -
Litigation settlement charge - - - - -
Impairment of IPR&D - - - - -
Operating loss - non-GAAP (5,735) (3,005) 2,021 2,390 (4,329)
Operating Margin - non-GAAP;(non-GAAP operating loss over non-GAAP revenue)
(13.1%) (6.5%) 4.1% 4.4% (2.2%)
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GAAP to Non-GAAP Reconciliation(in USD $000s, except for percentages) Q118 Q218 Q318 Q418 FY2018
GAAP Revenue 43,689 46,129 49,251 54,122 193,191
Total unearned revenue, end of period 80,925 82,934 92,974 105,837 105,837
Less: Total unearned revenue,
beginning of period(77,022) (80,925) (82,934) (92,974) (77,022)
Total customer arrangements with
termination rights, end of period17,187 19,512 16,506 19,367 19,367
Less: Total customer arrangements with
termination rights, beginning of period(19,546) (17,187) (19,512) (16,506) (19,546)
Total unbilled accounts receivable, end
of period(2,663) (2,521) (1,608) (1,974) (1,974)
Less: Total unbilled accounts
receivable, beginning of period3,435 2,663 2,521 1,608 3,435
Gross Billings 46,005 50,605 57,198 69,480 223,288
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Explanation of Non-GAAP Measures
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude stock-based compensation, the amortization of intangible assets, and perpetual revenue recognized from licenses delivered prior to 2013, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items:
Perpetual license revenue recognized from licenses delivered prior to 2013 We have excluded the effect of perpetual license revenue recognized from licenses delivered prior to 2013 from revenue gross profit, gross margin, operating loss, and operating margin. Because we had not established vendor specific objective evidence, or VSOE, of fair value of software support and services prior to January 1, 2013, we recognized perpetual license revenue ratably over the term of the related software support agreement. Upon establishing VSOE on January 1, 2013, we began to recognize perpetual license revenue upon delivery assuming all other revenue recognition criteria are met. As a result, our perpetual license revenue includes amounts related to licenses delivered in previous years. Revenue from these perpetual licenses delivered prior to 2013 has declined over each quarter since the quarter ended March 31, 2013 and will continue to decline sequentially until it is fully amortized. We evaluate our business performance excluding revenue from these perpetual licenses delivered prior to 2013 as we believe that the inclusion of this revenue makes it difficult to compare periods and understand growth in our business.
Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP cost of revenue, operating expenses and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.
Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP cost of revenue, operating expenses and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.
Restructuring Charges: In our non-GAAP financial measures, we have excluded the effect of the severance and other expenses related to our reduction in workforce. Restructuring charges may recur in the future; however, the timing and amounts are difficult to predict.
GAAP to Non-GAAP Reconciliation