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Why Ping Stock Got Demolished Today

By Evan Niu, CFA - Feb 25, 2021 at 11:46AM

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The enterprise identity specialist reports disappointing fourth-quarter results.

What happened

Shares of Ping Identity (PING 0.99%) have gotten demolished today, down by 23% as of 11:05 a.m. EST, after the company reported fourth-quarter earnings. The results missed expectations, and Ping's guidance was also lacking.

So what

Revenue in the fourth quarter came in at $63.3 million, below the consensus estimate of $68.9 million in sales. That resulted in adjusted earnings per share of $0.09, which was on target with what analysts were looking for. The technology company, which provides identity access management services to enterprise customers, said annual recurring revenue (ARR) increased 15% to $259.1 million.

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Image source: Getty Images.

"We exceeded our expectations in the quarter related to our Annual Recurring Revenue -- the key measure of our growth," CEO Andre Durand said in a statement. "With the growth and rising demand for our cloud offerings, we now have more than half of our customers accessing our solutions in the cloud and a rapidly growing portion of our ARR from SaaS" (software as a service).

Now what

Guidance also came in below Wall Street's forecasts. Revenue in the first quarter is expected to be in the range of $61.5 million to $63.5 million, meaningfully below the $67.2 million in sales that analysts are modeling for. That should result in free cash flow of $12 million to $14 million and ARR of $263 million to $264 million. For full year 2021, Ping's outlook calls for revenue of $255 million to $265 million, compared with the market's expectations of $287.6 million.

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Ping Identity Holding Corp. Stock Quote
Ping Identity Holding Corp.
$18.38 (0.99%) $0.18

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