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MobileIron Announces Fiscal Third Quarter 2015 Financial Results

MOUNTAIN VIEW, Calif., Oct. 29, 2015 (GLOBE NEWSWIRE) -- MobileIron (NASDAQ:MOBL), the leader in mobile enterprise security, today announced results for its third fiscal quarter ended September 30, 2015.

Third Quarter 2015 Financial Highlights

  • Gross billings were $41.1 million, up 7% year-over-year
  • Recurring billings were $27.3 million, up 35% year-over-year, and represented 66% of gross billings
  • GAAP revenue was $38.0 million, up 9% year-over-year
  • Non-GAAP revenue was $37.7 million, up 12% year-over-year
  • Recurring revenues were $23.3 million, up 45% year-over-year
  • GAAP net loss per share was $0.30; non-GAAP net loss per share was $0.17

“We achieved our financial targets, executed on our platform innovation strategy, and reduced expenses to demonstrate improved operating leverage," said Bob Tinker, CEO, MobileIron. "Billings and revenues from recurring sources continued to shine, with both growing in excess of 35% over the third quarter of 2014. Our platform strategy drives competitive advantage and increases customer value, with a majority of our new deals buying our higher value Gold and Platinum product packages."

Third Quarter 2015 Business Highlights

Platform

  • Released software enhancements to MobileIron Core, Cloud, Sentry, Tunnel, AppConnect, and Web@Work, including same day support for iOS 9 and expanded support for Windows 10.
  • Released the second phase of our integration with ServiceNow to allow service desk technicians to view MobileIron asset data and take common security actions from their ServiceNow console.
  • Expanded technology partner ecosystem with 13 new AppConnect-enabled applications in the third quarter, and three new ServiceConnect infrastructure integrations.
  • Released enhanced integration with Splunk to provide visualizations that can be used for Payment Card Industry (PCI), Criminal Justice Information Services (CJIS), and Sarbanes-Oxley (SOX) compliance programs.


Channels

  • Grew our global channel distribution with new partners Atos (Global), Centre (US), Cloudplus (Hong Kong), Fritz & Macziol (Germany), GuidePoint (US), Megafon (Russia), and Procuri (US).
  • Our largest reseller AT&T, represented approximately 16% of GAAP revenue for the quarter.


Milestones and Recognition

  • Granted our 22nd patent 9,122,887: User interface for secure virtual document management system.
  • Surpassed 7,500 customer and partner MobileIron University accreditations.
  • Named Simon Biddiscombe Chief Financial Officer and Damian Artt SVP of Worldwide Sales
  • Won a very favorable jury verdict in patent case with Good Technology.


Financial Outlook

The company is providing the following outlook for its fiscal fourth quarter 2015 (ending December 31, 2015):

  • Total billings are expected to be between $46 million and $49 million, growth of 9% to 16% year-over-year.
  • Total non-GAAP revenue is expected to be between $41 million and $42 million, growth of 12% to 15% year-over-year, and GAAP revenue is expected to be between $41.1 million and $42.1 million.
  • Non-GAAP operating expenses are expected to be between $44 million and $46 million.

All forward-looking non-GAAP financial measures contained in this section "Financial Outlook" exclude estimates for stock-based compensation expenses, amortization of intangible assets, and perpetual license revenue recognized from licenses delivered prior to 2013.

While a reconciliation of non-GAAP guidance measures to corresponding GAAP measures, except for non-GAAP total revenue, is not available on a forward-looking basis, the company has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for its fiscal third quarter of 2014 and 2015, and the nine months ended September 30, 2015 and 2014, included in this press release.

Conference Call and Webcast
MobileIron will host a conference call and live webcast at 1:30 p.m. Pacific Daylight Time (4:30 p.m. EDT) to discuss the company’s financial results and business highlights. Interested parties may access the call by dialing 1-855-327-6837 in the U.S. or 1-778-327-3988 from international locations. The live webcast will be available on the MobileIron Investor Relations website at http://investors.mobileiron.com/. A replay will be available through the same link or by dialing (858) 384-5517 and referencing conference ID#116592 through December 29, 2015.

Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding MobileIron’s revenue and other GAAP and non-GAAP financial metrics and other statements regarding trends in the company's business, including statements regarding MobileIron’s GAAP and non-GAAP revenue and operating expense targets, growth in our customer base, increasing customer adoption, and expected benefits from new product offerings. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including MobileIron's limited operating history, quarterly fluctuations in MobileIron’s operating results, MobileIron’s need to develop new solutions and enhancements to compete in rapidly evolving markets, product defects, competitive pressures, product mix shift, customer adoption, changes by operating system providers and mobile device manufacturers, MobileIron’s inability to manage growth, the quality of MobileIron support, and MobileIron’s reliance on channel partners.

Additional information on potential factors that could affect MobileIron's financial results is included in our SEC filings, including our reports on Forms 10-K, 10-Q and 8-K and other filings that we make with the SEC from time to time. MobileIron does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

About MobileIron
MobileIron provides the secure foundation for companies around the world to transform into Mobile First organizations. For more information, please visit www.mobileiron.com.

“MobileIron” and the MobileIron Planet M logo are registered trademarks of MobileIron, Inc. in the United States and other countries. Trade names, trademarks, and service marks of other companies that are used in this press release belong to their respective owners.

Financial Results

MOBILEIRON, INC.
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2014 AND SEPTEMBER 30, 2015
(Amounts in thousands)
(Unaudited)
December 31, 2014 September 30, 2015
Assets
Current Assets:
Cash and cash equivalents $ 104,287 $ 44,616
Short-term investments 13,869 53,464
Accounts receivable - net 34,676 34,083
Prepaid expenses and other current assets 4,018 5,578
Total current assets 156,850 137,741
Long-term investments 22,220 7,141
Property and equipment - net 3,978 4,487
Intangible assets - net 2,132 1,462
Goodwill 5,475 5,475
Other assets 1,187 1,524
Total Assets $ 191,842 $ 157,830
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 1,137 $ 3,007
Accrued expenses 21,169 15,983
Deferred revenue - current 44,096 52,032
Total current liabilities 66,402 71,022
Deferred revenue - noncurrent 10,078 12,300
Other long-term liabilities 268 288
Total liabilities 76,748 83,610
Stockholders’ Equity:
Common stock 8 8
Additional paid-in capital 305,809 335,003
Accumulated deficit (190,723) (260,791)
Total stockholders’ equity 115,094 74,220
Total Liabilities and Stockholders' Equity $ 191,842 $ 157,830




MOBILEIRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2015
(Amounts in thousands, except for per share data)
(Unaudited)
Three Months Ended
September 30, September 30,
2014 2015
Revenue:
Perpetual license $ 17,550 $ 13,644
Subscription 8,031 12,253
Software support and services 9,336 12,104
Total revenue 34,917 38,001
Cost of revenue:
Perpetual license (2) 1,268 745
Subscription (1) 1,439 1,939
Software support and services (1) 3,742 4,889
Total cost of revenue 6,449 7,573
Gross profit 28,468 30,428
Operating expenses:
Research and development (1) 11,565 16,968
Sales and marketing (1) 25,618 25,856
General and administrative (1) 6,232 10,469
Restructuring charge - 1,049
Amortization of intangible assets (2) 365 -
Total operating expenses 43,780 54,342
Operating loss (15,312) (23,914)
Other (income) expense - net 66 (2)
Loss before income taxes (15,378) (23,912)
Income tax expense 135 183
Net loss $ (15,513) $ (24,095)
Net loss per share, basic and diluted $ (0.20) $ (0.30)
Weighted-average shares used to compute net loss per share, basic and diluted 75,871 79,373
(1) Includes stock-based compensation expense as follows:
Cost of revenue
Subscription 37 190
Software support and services 431 865
Research and development 1,439 3,832
Sales and marketing 1,957 2,586
General and administrative 1,015 1,812
$ 4,879 $ 9,285
Stock-based compensation expense in the three months ended September 30, 2015 includes $3,151 related to a stock settled bonus
(2) Includes amortization of intangible assets as follows:
Cost of revenue
Perpetual license $ 169 $ 223
Operating expenses 365 -
$ 534 $ 223



MOBILEIRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2015
(Amounts in thousands, except for per share data)
(Unaudited)
Nine Months Ended
September 30, September 30,
2014 2015
Revenue:
Perpetual license $ 48,158 $ 38,050
Subscription 21,101 33,667
Software support and services 25,338 34,535
Total revenue (1) 94,597 106,252
Cost of revenue:
Perpetual license (2) 3,392 1,971
Subscription (1) 4,145 5,366
Software support and services (1) 10,057 13,300
Total cost of revenue 17,594 20,637
Gross profit 77,003 85,615
Operating expenses:
Research and development (1) 33,783 45,368
Sales and marketing (1) 72,445 80,698
General and administrative (1) 15,957 27,972
Restructuring charge - 1,049
Amortization of intangible assets (2) 782 -
Total operating expenses 122,967 155,087
Operating loss (45,964) (69,472)
Other (income) expense - net 258 136
Loss before income taxes (46,222) (69,608)
Income tax expense 364 460
Net loss $ (46,586) $ (70,068)
Net loss per share, basic and diluted $ (1.23) $ (0.90)
Weighted-average shares used to compute net loss per share, basic and diluted 37,879 78,196
(1) Includes stock-based compensation expense as follows:
Contra-revenue $ 123 $ -
Cost of revenue
Subscription 95 361
Software support and services 802 1,567
Research and development 4,374 7,709
Sales and marketing 4,071 6,614
General and administrative 2,346 4,122
$ 11,811 $ 20,373
Stock-based compensation expense in the nine months ended September 30, 2015 includes $3,151 related to a stock settled bonus
(2) Includes amortization of intangible assets as follows:
Cost of revenue
Perpetual license $ 407 $ 670
Operating expenses 782 -
$ 1,189 $ 670



MOBILEIRON, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 and 2015
(Amounts in thousands)
(Unaudited)
Nine Months Ended
September 30, 2014 September 30, 2015
Cash flows from operating activities:
Net loss $ (46,586) $ (70,068)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense 11,811 20,373
Depreciation 1,629 1,938
Amortization of intangible assets 1,189 670
Loss on disposal of equipment 21
Amortization of premium on investment securities 282
Provision for doubtful accounts 166 150
Changes in operating assets and liabilities:
Accounts receivable (9,635) 443
Other current and noncurrent assets (1,116) (1,894)
Accounts payable 2,287 1,870
Accrued expenses and other long-term liabilities 1,939 (4,707)
Deferred revenue 8,881 10,158
Net cash used in operating activities (29,414) (40,785)
Cash flows from investing activities:
Purchase of property and equipment (1,925) (2,447)
Maturities of investment securities 21,895
Purchases of investment securities (46,694)
Net cash used in investing activities (1,925) (27,246)
Cash flows from financing activities:
Amount drawn from revolving line of credit 3,300
Repayments of revolving line of credit (7,600)
Net proceeds from issuance of preferred stock 1,994
Proceeds from initial public offering 106,950
Payments of offering costs related to initial public offering (4,049)
Proceeds from employee stock purchase plan 2,518 3,969
Proceeds from exercise of stock options 2,071 4,391
Net cash provided by financing activities 105,184 8,360
Net change in cash and cash equivalents 73,845 (59,671)
Cash and cash equivalents at beginning of period 73,573 104,287
Cash and cash equivalents at end of period $ 147,418 $ 44,616


Non-GAAP financial measures and reconciliations

To supplement our financial results presented on a GAAP basis, we provide investors with certain non-GAAP financial measures, including gross billings, recurring billings, non-GAAP revenue, recurring revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, and non-GAAP net loss per share. These non-GAAP financial measures exclude stock-based compensation, restructuring charges, amortization of intangible assets, and perpetual license revenue recognized from licenses delivered prior to 2013:

Perpetual license revenue recognized from licenses delivered prior to 2013: We have excluded the effect of perpetual license revenue recognized from licenses delivered prior to 2013 from revenue, gross profit, gross margin, operating loss, operating margin, net loss, and net loss per share. Because we had not established vendor specific objective evidence, or VSOE, of fair value of software support and services prior to January 1, 2013, we recognized perpetual license revenue ratably over the term of the related software support agreement. Upon establishing VSOE on January 1, 2013, we began to recognize perpetual license revenue upon delivery assuming all other revenue recognition criteria are met. As a result, our perpetual license revenue includes amounts related to licenses delivered prior to 2013. Revenue from these perpetual licenses delivered prior to 2013 has declined over each quarter since the quarter ended March 31, 2013 and will continue to decline sequentially until it is fully amortized.

Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our gross profit, gross margin, operating loss, operating margin, net loss, and net loss per share. Stock-based compensation expenses will recur in future periods.

Restructuring charges: In our non-GAAP financial measures, we have excluded the effect of the severance and other expenses related to our reduction in workforce. Restructuring charges may recur in the future; however, the timing and amounts are difficult to predict.

Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our gross profit, gross margin, operating loss, operating margin, net loss, and net loss per share. Amortization of intangible assets is significantly affected by the timing and size of our acquisitions. Amortization of intangible assets will recur in future periods.

Non-GAAP revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, and non-GAAP net loss per share: We believe that the exclusion of perpetual license revenue recognized from licenses delivered prior to 2013, stock-based compensation expense, restructuring charges and amortization of intangible assets, from revenue, gross profit, gross margin, operating loss, operating margin, net loss, and net loss per share provides useful measures for management and investors because revenue recognized from licenses delivered prior to 2013 has and will continue to significantly decline over time until it is fully amortized. Stock-based compensation, amortization of intangible assets and restructuring charges have been and can continue to be inconsistent in amount from period to period. We believe the inclusion of these items makes it difficult to compare periods and understand the growth and performance of our business. In addition, we evaluate our business performance and compensate management based in part on these non-GAAP measures. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by our competitors and exclude expenses that may have a material impact on our reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in our business and an important part of the compensation provided to our employees. Similarly, amortization of intangible assets has been and will continue to be a recurring expense.

Gross and recurring billings, recurring revenue and free cash flow: Our non-GAAP financial measures also include: gross billings, which we define as total revenue plus the change in deferred revenue in a period; recurring billings, which we define as total revenue less perpetual license, hardware, and professional services revenue plus the change in deferred revenue for subscription and software support arrangements in a period, adjusted for nonrecurring perpetual license billings; recurring revenue, which we define as total revenue less perpetual license, hardware, professional services and perpetual amounts recorded as subscription or software support revenue in multiple elements arrangements; and free cash flow, which we define as cash used in operating activities less the amount of property and equipment purchased. We consider gross billings to be a useful metric for management and investors because subscription billings, excluding MRC, and software support and services billings drive deferred revenue, which is an important indicator of future revenue. Similarly, we consider recurring billings and recurring revenue to be useful metrics because they are important indicators of the portion of our business that we would expect to recur each year. There are a number of limitations related to the use of gross, recurring billings and recurring revenue. First, gross and recurring billings include amounts that have not yet been recognized as revenue. Second, our calculation of gross and recurring billings may be different from other companies that report similar financial measures. Third, recurring revenue excludes perpetual license amounts recognized from multiple elements arrangements that we record as subscription or software support revenue in our GAAP statements of operations and that perpetual license amount is based on invoice value, not fair value, although, we believe invoice value approximates the fair value of the element. Fourth, in the MRC model, revenue and billings are based on active devices or users of the service provider’s customer and are billed to us by the service provider on a monthly basis over time and one month in arrears. Thus, under the MRC model, we receive no billings or revenue for MRC at the time the deal is booked, but instead the MRC is billed and revenue is recognized each month based on active usage. Unlike term subscriptions, MRC is not reflected in deferred revenue. This important difference between MRC billings and perpetual and term subscription billings can lead to significant variability of billings in a given quarter depending on the type of billing model that the customer chooses and the overall mix of billing types for all customers within a quarter. We compensate for these limitations by providing specific information regarding GAAP revenue and evaluating gross and recurring billings and recurring revenue together with revenue calculated in accordance with GAAP. Management believes that information regarding free cash flow provides investors with an important perspective on the cash available to invest in our business and fund ongoing operations. However, our calculation of free cash flow may not be comparable to similar measures used by other companies.

We believe these non-GAAP financial measures are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on certain of these non-GAAP measures.



MOBILEIRON, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Amounts in thousands, except for per share data and percentages)
(Unaudited)
Three Months Ended
September 30, 2014 September 30, 2015
Non-GAAP total revenue reconciliation:
GAAP total revenue $ 34,917 $ 38,001
Perpetual license revenue recognized from licenses delivered prior to 2013 (1,212) (326)
Non-GAAP total revenue $ 33,705 $ 37,675
Non-GAAP gross profit reconciliation:
GAAP gross profit $ 28,468 $ 30,428
Perpetual license revenue recognized from licenses delivered prior to 2013 (1,212) (326)
Stock-based compensation expenses 468 1,055
Amortization of intangible assets 169 223
Non-GAAP gross profit $ 27,893 $ 31,380
Non-GAAP gross margin reconciliation:
GAAP gross margin: GAAP gross profit over GAAP total revenue 81.5% 80.1%
GAAP to non-GAAP gross margin adjustments 1.3% 3.2%
Non-GAAP gross margin: non-GAAP gross profit over non-GAAP total revenue 82.8% 83.3%
Non-GAAP operating loss reconciliation:
GAAP operating loss $ (15,312) $ (23,914)
Perpetual license revenue recognized from licenses delivered prior to 2013 (1,212) (326)
Stock-based compensation expenses 4,879 9,285
Restructuring Charges - 1,049
Amortization of intangible assets 534 223
Non-GAAP operating loss $ (11,111) $ (13,683)
Non-GAAP operating margin reconciliation:
GAAP operating margin: GAAP operating loss over GAAP total revenue (43.9)% (62.9)%
GAAP to non-GAAP operating margin adjustments 10.9% 26.6%
Non-GAAP operating margin: non-GAAP operating loss over non-GAAP total revenue (33.0)% (36.3)%
Non-GAAP net loss reconciliation:
GAAP net loss $ (15,513) $ (24,095)
Perpetual license revenue recognized from licenses delivered prior to 2013 (1,212) (326)
Stock-based compensation expenses 4,879 9,285
Restructuring Charges - 1,049
Amortization of intangible assets 534 223
Non-GAAP net loss $ (11,312) $ (13,864)




MOBILEIRON, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Amounts in thousands, except for per share data and percentages)
(Unaudited)
Three Months Ended
September 30, 2014 September 30, 2015
Non-GAAP net loss per share reconciliation:
GAAP net loss per share $ (0.20) $ (0.30)
Perpetual license revenue recognized from licenses delivered prior to 2013 per share (0.02) (0.00)
Stock-based compensation expenses per share 0.06 0.12
Restructuring charges per share - 0.01
Amortization of intangible assets 0.01 0.00
Non-GAAP net loss per share $ (0.15) $ (0.17)
Gross billings reconciliation:
Total revenue $ 34,917 $ 38,001
Total deferred revenue, end of period 49,633 64,332
Less: Total deferred revenue, beginning of period (46,310) (61,241)
Total change in deferred revenue 3,323 3,091
Gross billings $ 38,240 $ 41,092
Recurring billings reconciliation:
Total revenue $ 34,917 $ 38,001
Less: Perpetual license revenue (17,550) (13,644)
Less: Professional services revenue (793) (515)
Subscription and software support deferred revenue, end of period 42,535 61,120
Less: Subscription and software support deferred revenue, beginning of period (38,226) (57,529)
Total change in subscription and software support deferred revenue 4,309 3,591
Less: Adjustments (713) (174)
Recurring billings $ 20,170 $ 27,259
Recurring revenue reconciliation
Total revenue $ 34,917 $ 38,001
Less: Perpetual license revenue (17,550) (13,644)
Less: Professional services revenue (793) (515)
Less: Perpetual license amount recorded over the term of subscription or software support (1) (545) (526)
Recurring revenue $ 16,029 $ 23,316
Free cash flow reconciliation:
Cash used in operating activities $ (9,318) $ (13,182)
Purchase of property and equipment (510) (420)
Free cash flow $ (9,828) $ (13,602)
(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)
Nine Months Ended
September 30, 2014 September 30, 2015
Non-GAAP total revenue reconciliation:
GAAP total revenue $ 94,597 $ 106,252
Perpetual license revenue recognized from licenses delivered prior to 2013 (4,198) (1,713)
Non-GAAP total revenue $ 90,399 $ 104,539
Non-GAAP gross profit reconciliation:
GAAP gross profit $ 77,003 $ 85,615
Perpetual license revenue recognized from licenses delivered prior to 2013 (4,198) (1,713)
Stock-based compensation expenses 897 1,928
Amortization of intangible assets 407 670
Non-GAAP gross profit $ 74,109 $ 86,500
Non-GAAP gross margin reconciliation:
GAAP gross margin: GAAP gross profit over GAAP total revenue 81.4% 80.6%
GAAP to non-GAAP gross margin adjustments 0.6% 2.1%
Non-GAAP gross margin: non-GAAP gross profit over non-GAAP total revenue 82.0% 82.7%
Non-GAAP operating loss reconciliation:
GAAP operating loss $ (45,964) $ (69,472)
Perpetual license revenue recognized from licenses delivered prior to 2013 (4,198) (1,713)
Stock-based compensation expenses 11,688 20,373
Restructuring charges - 1,049
Amortization of intangible assets 1,189 670
Non-GAAP operating loss $ (37,285) $ (49,093)
Non-GAAP operating margin reconciliation:
GAAP operating margin: GAAP operating loss over GAAP total revenue (48.6)% (65.4)%
GAAP to non-GAAP operating margin adjustments 7.4% 18.4%
Non-GAAP operating margin: non-GAAP operating loss over non-GAAP total revenue (41.2)% (47.0)%
Non-GAAP net loss reconciliation:
GAAP net loss $ (46,586) $ (70,068)
Perpetual license revenue recognized from licenses delivered prior to 2013 (4,198) (1,713)
Stock-based compensation expenses 11,688 20,373
Restructuring charges - 1,049
Amortization of intangible assets 1,189 670
Non-GAAP net loss $ (37,907) $ (49,689)




MOBILEIRON, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Amounts in thousands, except for per share data and percentages)
(Unaudited)
Nine Months Ended
September 30, 2014 September 30, 2015
Non-GAAP net loss per share reconciliation:
GAAP net loss per share $ (1.23) $ (0.90)
Perpetual license revenue recognized from licenses delivered prior to 2013 per share (0.11) (0.02)
Stock-based compensation expenses per share 0.31 0.26
Restructuring charges per share - 0.01
Amortization of intangible assets 0.03 0.01
Non-GAAP net loss per share $ (1.00) $ (0.64)
Gross billings reconciliation:
Total revenue $ 94,597 $ 106,252
Total deferred revenue, end of period 49,633 64,332
Less: Total deferred revenue, beginning of period (40,751) (54,174)
Total change in deferred revenue 8,882 10,158
Gross billings $ 103,479 $ 116,410
Recurring billings reconciliation:
Total revenue $ 94,597 $ 106,252
Less: Perpetual license revenue (48,158) (38,050)
Less: Professional services revenue (2,010) (2,218)
Subscription and software support deferred revenue, end of period 42,535 61,120
Less: Subscription and software support deferred revenue, beginning of period (30,468) (49,194)
Total change in subscription and software support deferred revenue 12,067 11,926
Less: Adjustments (2,059) (1,912)
Recurring billings $ 54,437 $ 75,998
Recurring revenue reconciliation
Total revenue $ 94,597 $ 106,252
Less: Perpetual license revenue (48,158) (38,050)
Less: Professional services revenue (2,010) (2,218)
Less: Perpetual license amount recorded over the term of subscription or software support (1) (1,634) (1,442)
Recurring revenue $ 42,795 $ 64,542
Free cash flow reconciliation:
Cash used in operating activities $ (29,414) $ (40,785)
Purchase of property and equipment (1,925) (2,447)
Free cash flow $ (31,339) $ (43,232)
(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 Revenue Guidance
(Amounts in thousands)
(Unaudited)
Three Months Ending December 31, 2015
Non-GAAP total guidance revenue reconciliation:
GAAP total guidance revenue $ 41,126 - $ 42,126
Perpetual license revenue recognized from licenses delivered prior to 2013 (126) - (126)
Non-GAAP total guidance revenue $ 41,000 - $ 42,000


MOBILEIRON, INC.
SUPPLEMENTAL INFORMATION
(Amounts in thousands)
(Unaudited)
Three Months Ended
30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 30-Sep-15
GAAP Revenue
United States $ 20,457 $ 17,683 $ 17,826 $ 17,055 $ 18,774
International 14,460 20,015 15,668 17,702 19,227
Total 34,917 37,698 33,494 34,757 38,001
Gross billings $ 38,240 $ 42,239 $ 36,414 $ 38,904 $ 41,092
Recurring billings 20,170 24,164 23,611 25,128 27,259
Recurring revenue 16,029 17,982 19,652 21,574 23,316
Non-GAAP gross profit 27,893 30,938 26,881 28,238 31,380
Non-GAAP operating loss (11,111) (10,943) (16,117) (19,294) (13,683)
Free cash flow (9,828) (8,349) (11,581) (18,049) (13,602)
Components of Deferred Revenue
Software support $ 25,322 $ 29,213 $ 30,981 $ 34,645 $ 36,564
Subscription 17,213 19,981 22,134 22,884 24,556
Other deferred revenue 7,098 4,980 3,979 3,712 3,212
Total $ 49,633 $ 54,174 $ 57,094 $ 61,241 $ 64,332




Investor Contact: Samuel Wilson MobileIron ir@mobileiron.com 650-282-7555 Media Contact: Clarissa Horowitz MobileIron clarissa@mobileiron.com 415-608-6825

Source:MobileIron