Shares of MobileIron (MOBL) have tanked today, down by 25% as of 11:35 a.m. EDT, after the company reported third-quarter earnings results. The mobile cybersecurity specialist missed Wall Street's profit forecasts and offered cautious commentary while guiding the next quarter below expectations.
Revenue in the third quarter rose 6% to $52.2 million, with annual recurring revenue (ARR) increasing 14% to $174.3 million. MobileIron broke even on the bottom line on an adjusted basis, down from earnings of $0.02 per share a year ago. Analysts were expecting the company to post $0.01 per share in adjusted profits.
"While we experienced softness in Q3 primarily related to macroeconomic factors in Europe, we remain confident that MobileIron's solutions are ideally suited to meet the evolving needs of our customers in a Zero Trust world," CEO Simon Biddiscombe said in a statement. "Our mobile-centric innovation will continue to differentiate us in the market."
In terms of guidance, MobileIron said it expects revenue in the fourth quarter to be in the range of $53 million to $56 million, which represents a 2% decline to 3% growth compared to the prior year. Analysts were expecting $57.9 million in sales next quarter.
That also means the company may struggle to meet the full-year outlook it had provided in August, which called for 2019 revenue of $205 million to $215 million. MobileIron generated $151.1 million in revenue through the first three quarters, and the midpoint of its fourth-quarter forecast would put full-year sales at $205.6 million.
MobileIron also cut its ARR guidance. The company previously expected ARR to grow 20% for the full year, but now expects that crucial metric to only grow 10% to 12% by year-end to a range of $179 million to $182 million.