Shares of Ping Identity (NYSE:PING) are plunging today, down by 16% as of 12:10 p.m. EST, after the company reported third-quarter earnings. The results topped expectations and its outlook was mostly in line with analyst estimates.
Revenue in the third quarter declined by 3% to $59.9 million, ahead of the $55.8 million in sales that Wall Street was looking for. That resulted in adjusted earnings per share of $0.11, compared to the consensus estimate of $0.02 per share in adjusted profits. The enterprise identity technology company finished the quarter with annual recurring revenue (ARR) of $242.6 million and reported a dollar-based net retention rate of 110%. Ping now has 252 customers that generate over $250,000 in ARR.
"Identity remains at the nexus of both digital and security transformations," CEO Andre Durand said in a statement. "As we establish a new working norm, Ping Identity continues to partner closely with enterprises along their hybrid and multi-cloud journey."
After the quarter closed, the company acquired Symphonic, a leader in dynamic authorization technology.
Ping issued outlook for the fourth quarter that calls for revenue of $67 million to $70 million, the midpoint of which is just slightly below the $68.75 million in sales that analysts are currently modeling for. ARR in the fourth quarter is forecast at $255 million to $257 million, while unlevered free cash flow should be negative $3 million to negative $5 million. Wall Street is expecting Ping to report adjusted earnings per share of $0.09 in the fourth quarter.