·

Revenue was $42.7 million, up 10% year-over-year.

·

Recurring revenue was $31.9 million, up 15% year-over-year.

·

Gross billings were $44.9 million, up 9% year-over-year.

·

Recurring billings, which represented 75% of gross billings, were $33.7 million, up 11% year-over-year.

·

GAAP net loss per share was $0.20; non-GAAP net loss per share was $0.08.

·

Cash flow used from operations was $3.8 million.

·

Cash and cash equivalents plus short term investments ended the quarter at $89.2 million.

·

Surpassed 15,000 cumulative customers.

·

Added MobileIron Access integrations with Dropbox Business and with identity providers OneLogin, Okta, Ping, and Microsoft.  

·

Announced new professional service offering General Data Protection Regulation (GDPR) Mobile Readiness Service.

·

Announced integration with US Department of Defense derived credentials architecture.

·

Released new versions of MobileIron Cloud, Core, Access, AppConnect, Apps@Work, Email+, Monitor, PIV-D Derived Credentials, Sentry, Tunnel, and Web@Work.

·

Liona Enterprises extended its partnership with MobileIron to offer a comprehensive list of GSA-approved MobileIron products for the US Government.

·

Our largest reseller, AT&T, represented approximately 14% of revenue for the quarter.

·

Named by Gartner as a Leader for seventh consecutive year in the Magic Quadrant for Enterprise Mobility Management Suites.*

·

Awarded seven additional US patents for mobile security, bringing the total to 53.

·

Named to the 2017 San Jose Mercury News’ list of Silicon Valley's top 150 public companies.

·

Revenue is expected to be between $44 million and $46 million, which represents growth of 6% to 11% year-over-year.

·

Gross billings are expected to be between $48 million and $52 million, growth between 2% and 10% over last year.

·

Non-GAAP gross margin is expected to be between 82% and 84%.

·

Non-GAAP operating expenses are expected to be between $41 million and $43 million.

·

Revenue is expected to be between $175 million and $185 million, growth between 7% and 13% year-over-year (reducing the high end of the range by $5 million).

·

Gross billings are expected to be between $195 million and $205 million, growth between 7% and 13% over last year (reducing the high end of the range by $5 million).

·

Exit the year with a fourth quarter non-GAAP operating margin between -2% to 2%.

·

Generate positive cash flow from operations for the full year 2017.

MOBILEIRON, INC.

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2016 AND JUNE 30, 2017

(Amounts in thousands)

(Unaudited)

December 31, 2016

June 30, 2017

Assets

Current assets:

 Cash and cash equivalents (1)

$

54,043

$

85,871

 Short-term investments  (1)

36,184

3,302

 Accounts receivable - net

43,755

41,342

 Prepaid expenses and other current assets

6,131

11,377

          Total current assets

140,113

141,892

Property and equipment - net

5,503

7,486

Intangible assets - net

645

336

Goodwill

5,475

5,475

Other assets

1,370

1,784

Total Assets

$

153,106

$

156,973

Liabilities and stockholders' equity

Current liabilities:

 Accounts payable

$

701

$

4,553

 Accrued expenses

21,674

26,210

 Deferred revenue - current

68,153

72,525

          Total current liabilities

90,528

103,288

Deferred revenue - noncurrent

19,923

20,851

Other long-term liabilities

1,838

1,896

          Total liabilities

112,289

126,035

Stockholders’ equity:

 Common stock

 9

 9

 Additional paid-in capital

383,193

404,691

 Accumulated deficit

(342,385)

(373,762)

          Total stockholders’ equity

40,817

30,938

Total liabilities and stockholders' equity

$

153,106

$

156,973

(1) Total cash and cash equivalents and short-term investments

$

90,227

$

89,173

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2016 AND 2017

(Amounts in thousands, except for per share data)

(Unaudited)

Three Months Ended

June 30, 2016

June 30, 2017

Revenue:

Perpetual license

$

9,783

$

9,704

Subscription

14,803

17,248

Software support and services

14,295

15,700

Total revenue

38,881

42,652

Cost of revenue:

Perpetual license (2)

629

453

Subscription (1)

2,199

2,182

Software support and services (1)

5,289

5,396

Total cost of revenue

8,117

8,031

Gross profit

30,764

34,621

Operating expenses:

 Research and development (1)

18,019

19,666

 Sales and marketing (1)

27,246

25,674

 General and administrative (1)

8,265

7,840

          Total operating expenses

53,530

53,180

Operating loss

(22,766)

(18,559)

Other income (expense) - net

30

339

Loss before income taxes

(22,736)

(18,220)

Income tax expense

198

324

Net loss

$

(22,934)

$

(18,544)

Net loss per share, basic and diluted

$

(0.27)

$

(0.20)

Weighted-average shares used to compute net loss per share, basic and diluted

85,317

92,963

(1)  Includes stock-based compensation expense as follows:

Cost of revenue

Subscription

$

233

$

235

Software support and services

822

991

Research and development

3,812

4,366

Sales and marketing

2,992

2,582

General and administrative

2,686

2,450

$

10,545

$

10,624

(2)  Includes amortization of intangible assets as follows:

Cost of revenue

Perpetual license

$

154

$

154

$

154

$

154

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2016 AND 2017

(Amounts in thousands, except for per share data)

(Unaudited)

Six Months Ended

June 30, 2016

June 30, 2017

Revenue:

Perpetual license

$

20,151

$

19,586

Subscription

29,426

34,155

Software support and services

27,311

31,199

Total revenue

76,888

84,940

Cost of revenue:

Perpetual license (2)

1,488

852

Subscription (1)

3,982

4,075

Software support and services (1)

9,917

10,374

Total cost of revenue

15,387

15,301

Gross profit

61,501

69,639

Operating expenses:

 Research and development (1)

34,946

36,859

 Sales and marketing (1)

52,914

48,976

 General and administrative (1)

15,813

14,028

 Litigation settlement charge

 -

1,143

          Total operating expenses

103,673

101,006

Operating loss

(42,172)

(31,367)

Other income (expense) - net

165

513

Loss before income taxes

(42,007)

(30,854)

Income tax expense

374

523

Net loss

$

(42,381)

$

(31,377)

Net loss per share, basic and diluted

$

(0.50)

$

(0.34)

Weighted-average shares used to compute net loss per share, basic and diluted

84,151

91,708

(1)  Includes stock-based compensation expense as follows:

Cost of revenue

Subscription

323

300

Software support and services

1,122

1,627

Research and development

6,413

7,132

Sales and marketing

6,111

4,354

General and administrative

4,825

3,758

$

18,794

$

17,171

(2)  Includes amortization of intangible assets as follows:

Cost of revenue

Perpetual license

$

308

$

308

$

308

$

308

MOBILEIRON, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2016 AND 2017

(Amounts in thousands)

(Unaudited)

Six Months Ended

June 30, 2016

June 30, 2017

Cash flows from operating activities:

Net loss

$

(42,381)

$

(31,377)

Adjustments to reconcile net loss to net cash used in operating activities:

Stock-based compensation expense

18,794

17,171

Depreciation

1,681

1,533

Amortization of intangible assets

308

308

Provision for doubtful accounts

 -

50

Amortization (accretion) of premium on investment securities

53

(32)

Changes in operating assets and liabilities:

Accounts receivable

7,441

2,363

Other current and noncurrent assets

(2,188)

(6,476)

Accounts payable

453

1,562

Accrued expenses and other long-term liabilities

(445)

6,482

Deferred revenue

2,612

5,300

Net cash used in operating activities

(13,672)

(3,116)

Cash flows from investing activities:

Purchase of property and equipment

(2,052)

(922)

Maturities of investment securities

49,256

32,915

Purchases of investment securities

(42,016)

 -

Net cash provided by investing activities

5,188

31,993

Cash flows from financing activities:

Proceeds from employee stock purchase plan

2,342

2,391

Taxes paid for net settlement of stock-settled bonus

 -

(3,149)

Proceeds from exercise of stock options

443

3,709

Net cash provided by financing activities

2,785

2,951

Net change in cash and cash equivalents

(5,699)

31,828

Cash and cash equivalents at beginning of period

47,234

54,043

Cash and cash equivalents at end of period

$

41,535

$

85,871

MOBILEIRON, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except for per share data and percentages)

(Unaudited)

Three Months Ended

June 30, 2016

June 30, 2017

Non-GAAP gross profit reconciliation:

GAAP gross profit

$

30,764

$

34,621

Stock-based compensation expenses

1,055

1,226

Amortization of intangible assets

154

154

Non-GAAP gross profit

$

31,973

$

36,001

Non-GAAP gross margin reconciliation:

GAAP gross margin: GAAP gross profit over GAAP total revenue

79.1

%

81.2

%

GAAP to non-GAAP gross margin adjustments

3.1

%

3.2

%

Non-GAAP gross margin: non-GAAP gross profit over non-GAAP total revenue

82.2

%

84.4

%

Non-GAAP operating loss reconciliation:

GAAP operating loss

$

(22,766)

$

(18,559)

Stock-based compensation expenses

10,545

10,624

Amortization of intangible assets

154

154

Non-GAAP operating loss

$

(12,067)

$

(7,781)

Non-GAAP operating margin reconciliation:

GAAP operating margin: GAAP operating loss over GAAP total revenue

(58.6)

%

(43.5)

%

GAAP to non-GAAP operating margin adjustments

27.6

%

25.3

%

Non-GAAP operating margin: non-GAAP operating loss over non-GAAP total revenue

(31.0)

%

(18.2)

%

Non-GAAP net loss reconciliation:

GAAP net loss

$

(22,934)

$

(18,544)

Stock-based compensation expenses

10,545

10,624

Amortization of intangible assets

154

154

Non-GAAP net loss

$

(12,235)

$

(7,766)

MOBILEIRON, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except for per share data and percentages)

(Unaudited)

Three Months Ended

June 30, 2016

June 30, 2017

Non-GAAP net loss per share reconciliation:

GAAP net loss per share

$

(0.27)

$

(0.20)

Stock-based compensation expenses per share

0.12

0.12

Amortization of intangible assets

0.01

 -

Non-GAAP net loss per share

$

(0.14)

$

(0.08)

Gross billings reconciliation:

Total revenue

$

38,881

$

42,652

Total deferred revenue, end of period

72,487

93,376

Less: Total deferred revenue, beginning of period

(70,156)

(91,162)

Total change in deferred revenue

2,331

2,214

Gross billings

$

41,212

$

44,866

Recurring billings reconciliation:

Total revenue

$

38,881

$

42,652

Less: Perpetual license revenue

(9,783)

(9,704)

Less: Professional services revenue

(1,023)

(607)

Subscription and software support deferred revenue, end of period

70,286

90,647

Less: Subscription and software support deferred revenue, beginning of period

(67,579)

(88,617)

Total change in subscription and software support deferred revenue

2,707

2,030

Less: Adjustments

(343)

(654)

Recurring billings

$

30,439

$

33,717

Recurring revenue reconciliation

Total revenue

$

38,881

$

42,652

Less: Perpetual license revenue

(9,783)

(9,704)

Less: Professional services revenue

(1,023)

(607)

Less: Perpetual license amount recorded over the term of subscription or software support (1)

(466)

(489)

Recurring revenue

$

27,609

$

31,852

Free cash flow reconciliation:

Cash used in operating activities

$

(10,126)

$

(3,840)

Purchase of property and equipment

(463)

(529)

Free cash flow

$

(10,589)

$

(4,369)

(1) Perpetual amounts recorded as subscription or software support revenue in multiple elements arrangements, where undelivered elements do not have VSOE

MOBILEIRON, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except for per share data and percentages)

(Unaudited)

Six Months Ended

June 30, 2016

June 30, 2017

Non-GAAP gross profit reconciliation:

GAAP gross profit

$

61,501

$

69,639

Stock-based compensation expenses

1,445

1,927

Amortization of intangible assets

308

308

Non-GAAP gross profit

$

63,254

$

71,874

Non-GAAP gross margin reconciliation:

GAAP gross margin: GAAP gross profit over GAAP total revenue

80.0

%

82.0

%

GAAP to non-GAAP gross margin adjustments

2.3

%

2.6

%

Non-GAAP gross margin: non-GAAP gross profit over non-GAAP total revenue

82.3

%

84.6

%

Non-GAAP operating loss reconciliation:

GAAP operating loss

$

(42,172)

$

(31,367)

Stock-based compensation expenses

18,794

17,171

Amortization of intangible assets

308

308

Litigation settlement charge

 -

1,143

Non-GAAP operating loss

$

(23,070)

$

(12,745)

Non-GAAP operating margin reconciliation:

GAAP operating margin: GAAP operating loss over GAAP total revenue

(54.8)

%

(36.9)

%

GAAP to non-GAAP operating margin adjustments

24.8

%

21.9

%

Non-GAAP operating margin: non-GAAP operating loss over non-GAAP total revenue

(30.0)

%

(15.0)

%

Non-GAAP net loss reconciliation:

GAAP net loss

$

(42,381)

$

(31,377)

Amortization of intangible assets

308

308

Stock-based compensation expenses

18,794

17,171

Litigation settlement charge

 -

1,143

Non-GAAP net loss

$

(23,279)

$

(12,755)

MOBILEIRON, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except for per share data and percentages)

(Unaudited)

Six Months Ended

June 30, 2016

June 30, 2017

Non-GAAP net loss per share reconciliation:

GAAP net loss per share

$

(0.50)

$

(0.34)

Stock-based compensation expenses per share

0.22

0.19

Amortization of intangible assets

 -

 -

Litigation settlement charge

 -

0.01

Non-GAAP net loss per share

$

(0.28)

$

(0.14)

Gross billings reconciliation:

Total revenue

$

76,888

$

84,940

Total deferred revenue, end of period

72,487

93,376

Less: Total deferred revenue, beginning of period

(69,875)

(88,076)

Total change in deferred revenue

2,612

5,300

Gross billings

$

79,500

$

90,240

Recurring billings reconciliation:

Total revenue

$

76,888

$

84,940

Less: Perpetual license revenue

(20,151)

(19,586)

Less: Professional services revenue

(1,593)

(1,306)

Subscription and software support deferred revenue, end of period

70,286

90,647

Less: Subscription and software support deferred revenue, beginning of period

(67,267)

(85,612)

Total change in subscription and software support deferred revenue

3,019

5,035

Less: Adjustments

(955)

(1,382)

Recurring billings

$

57,208

$

67,701

Recurring revenue reconciliation

Total revenue

$

76,888

$

84,940

Less: Perpetual license revenue

(20,151)

(19,586)

Less: Professional services revenue

(1,593)

(1,306)

Less: Perpetual license amount recorded over the term of subscription or software support (1)

(897)

(972)

Recurring revenue

$

54,247

$

63,076

Free cash flow reconciliation:

Cash used in operating activities

$

(13,672)

$

(3,116)

Purchase of property and equipment

(2,052)

(922)

Free cash flow

$

(15,724)

$

(4,038)

(1) Perpetual amounts recorded as subscription or software support revenue in multiple elements arrangements, where undelivered elements do not have VSOE

MOBILEIRON, INC.

SUPPLEMENTAL INFORMATION

(Amounts in thousands)

(Unaudited)

30-Jun-16

30-Sep-16

31-Dec-16

31-Mar-17

30-Jun-17

GAAP revenue

United States

$

18,890

$

20,292

$

19,452

$

20,091

$

19,764

International

19,991

21,274

26,020

22,197

22,888

Total

$

38,881

$

41,566

$

45,472

$

42,288

$

42,652

Gross billings

$

41,212

$

47,251

$

55,376

$

45,374

$

44,866

Recurring billings

30,439

34,915

39,652

33,984

33,717

Recurring revenue

27,609

28,957