SailPoint (SAIL) Q1 Earnings: What To Expect

Kayode Omotosho /
2022/05/04 7:49 am EDT

Identity governance software company SailPoint (NYSE:SAIL) will be reporting earnings tomorrow after market close. Here's what investors should know.

Last quarter SailPoint reported revenues of $135.5 million, up 31.2% year on year, beating analyst revenue expectations by 19.1%. It was an exceptional quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates.

Is SailPoint buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting SailPoint's revenue to grow 23.2% year on year to $111.8 million, improving on the 20.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 per share.

SailPoint Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing one upward and two downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 11.5%.

Looking at SailPoint's peers in the cybersecurity segment, only Tenable has so far reported results, delivering top-line growth of 29.3% year on year, and beating analyst estimates by 3.82%. The stock traded slightly down on the results. Read our full analysis of Tenable's earnings results here.

There has been a stampede out of high valuation technology stocks and software stocks have not been spared, with share price down on average 16.6% over the last month. SailPoint is up 22.1% during the same time, partly on the announcement that it has entered into a definitive agreement to be acquired by Thoma Bravo, and is heading into the earnings with analyst price target of $65.5, compared to share price of $64.74.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.