SailPoint, Inc. Q1 FY2021 earnings call

• Mark McClain noted the company comfortably exceeded internal sales goals in Q1 2021, with ARR growth of 43% to $270.2 million. Quarterly total revenue was $90.8 million, with SaaS revenue up 55% year-over-year. - The shift towards SaaS and subscription was faster than expected. - Jason Ream highlighted strong new bookings, faster mix shift towards SaaS, and ARR growth of $19 million in the quarter. The company outperformed new bookings expectations and saw strong execution across the business.

Total ARR at quarter-end was $270.2 million, with a year-over-year growth of 43%. Quarterly total revenue was $90.8 million, including SaaS revenue of $21.2 million, which was up 20% and 55% year-over-year respectively. Subscription represented over 70% of new software bookings in the quarter, and SaaS as a percentage of the mix was almost 10 points higher than the plan going into the quarter.

• Jason Ream mentioned license revenue is expected to trend down for the year due to faster mix shift towards SaaS and subscription. - ARR guidance was strong, with the company outperforming plan. - The acquisition of ERP Maestro and Intello added about $1 million of ARR, with ERP Maestro having a $5 million impact on full-year profitability.

Q: Matt Hedberg asked about license revenue trend and Okta's entry into the market.

A: Jason Ream said license revenue is expected to decline, and Mark McClain noted Okta's entry hasn't fundamentally changed the selling dynamic.

Q: Rob Owens asked about ARR strength and acquisitions.

A: Jason Ream said ARR was boosted by deals converting from perp to term, shifting to SaaS, and outperforming plan; acquisitions added ~$1M ARR.

Q: Hamza Fodderwala asked about ARR growth and acquisitions.

A: Jason Ream said acquisitions added a little over a point to growth rate, with minimal ARR in Q1.

Q: Brian Essex asked about channel expansion and budget visibility.

A: Mark McClain discussed strong channel relationships globally, especially in Europe, and noted budget visibility is a concern but demand for identity security remains high.

Q: Daniel Ives asked about subscription model impact.

A: Jason Ream and Mark McClain said subscription model removes friction but doesn't drastically change sales dynamic.

Q: Alex Henderson asked about acquisition costs and selling cycle.

A: Jason Ream said ERP Maestro had a $5M impact on profitability, and deal sizes are getting bigger, cycles shorter due to execution.

Q: Hannah Baade asked about SaaS margins.

A: Jason Ream said SaaS gross margins are strong but not broken out.

Q: Yun Kim asked about machine identities and SaaS deals.

A: Mark McClain discussed machine identities being common in deals, varying pricing, and potential for expansion; Jason Ream said SaaS deals are typically 3-year terms, billed annually.