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How Will SailPoint Grow?

Sramana Mitra profile picture
Sramana Mitra
7.31K Followers

Summary

  • The integration that SailPoint announced with Okta is an indicator of the trend of consolidation in the market.
  • SailPoint also has an unprecedented opportunity in the SaaS space.
  • Is SailPoint looking to go the similar way by adding other "rough diamonds" to its portfolio?

According to a market report by Zion Market research, the global identity and access management market is estimated to grow at 12.5% annually over the next few years to $15.92 billion by 2022. The industry was valued at $7.85 billion in 2016.

SailPoint's Financials

Austin-based SailPoint Technologies (NYSE:SAIL) is a newly listed company in the identity governance space. It was founded in 2005 by Mark McClain and Kevin Cunningham to provide innovative solutions to business problems concerning identity access management. The company was set up to empower customers to efficiently and securely govern the digital identities of employees, contractors, business partners, and other users, and manage their constantly changing access rights to enterprise applications and data. SailPoint operates an open identity platform that provides organizations with visibility into who currently has access to which resources, who should have access to those resources, and how that access is being used. Its solutions are both on-premise and cloud-based solutions.

The company's products have seen strong adoption in the market. Revenues have grown 41% annually over the period 2011 through 2016. Revenues grew from $95.4 million for fiscal 2015 to $132.4 million for fiscal 2016. During the same period, net loss has reduced from $10.8 million to $3.2 million.

More recently, SailPoint announced its fiscal 2017 results. Fourth-quarter revenues grew 53% over the year to $67.8 million. It ended the quarter with an operating income of $10.5 million and an EPS of $0.11. The market was looking for revenues of $55.75 million with an EPS of $0.09 for the quarter. By segment, license revenues grew 65% to $36.7 million and subscription revenues grew 50% to $21.23 million. Revenues from other services grew 23% to $9.9 million.

Its fiscal 2017 revenues grew 41% to $186.1 million. During the year, operating expenses also grew 42%, driven by a 37% growth in

This article was written by

Sramana Mitra profile picture
7.31K Followers
Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual accelerator that aims to help one million entrepreneurs globally to reach $1 million in revenue and beyond. She is a Silicon Valley entrepreneur and strategy consultant, she writes the blog Sramana Mitra On Strategy, and is author of the Entrepreneur Journeys book series and Vision India 2020. From 2008 to 2010, Mitra was a columnist for Forbes. As an entrepreneur CEO, she ran three companies: DAIS, Intarka, and Uuma. Sramana has a master’s degree in electrical engineering and computer science from the Massachusetts Institute of Technology. Full bio can be found at http://www.sramanamitra.com/bio/

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Comments (4)

IdentityManagementExpert profile picture
Avatier, a privately held company, is going to disrupt the identity market space using similar technology to what NetFlix uses to get their video player to run and receive new updates on so many different supported hardware platforms.

Our soon to be released technology call Identity Anywhere is going to make Identity Management much less expensive for corporations to deploy, administer, maintain, scale and secure.

Invest wisely in SAIL or OKTA or better buy some pre-IPO common shares in Avatier.
D
I'm looking to make an entry at $20. It had a nice recent run up in price, but starting to settle.
D
Got in @ $19.93 during the drop today. Patience pays off.
d
so would you buy at $ 22 are sell
I'm not sure what to make of it's valuation right now, rev multiple seems high, but then it has good cash flow and earnings, and high gross margin,
and what is your 12 months target
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