Shares of cybersecurity firm SailPoint Technologies (SAIL) fell Tuesday after the company reported adjusted second-quarter earnings that were down from a year earlier but topped estimates. SailPoint stock tumbled nearly 9% after the company announced the departure of its chief financial officer.
Amid a shift to a subscription-based business model, Austin, Texas-based SailPoint reported earnings late Monday. SailPoint said it broke even in the quarter ended June 30 versus a 15-cent profit in the year-earlier period.
Revenue, including acquisitions, rose 11% to $102.5 million. Subscription revenue rose 40% to $64.4 million, topping estimates of $61.7 million.
Analysts expected SailPoint to report an adjusted loss of 6 cents a share on sales of $99.2 million for the period ended June 30.
For the June quarter, SailPoint said it expects revenue of $103 million at the midpoint of its guidance vs. estimates of $103.7 million. The cybersecurity firm forecast a loss in a range of 4 cents to 8 cents a share. Analysts had projected a 3-cent loss.
SailPoint Stock: Chief Financial Officer Leaving
The company announced that Chief Financial Officer Jason Ream will leave the company on Aug. 31. Board member Cam McMartin, who previously served as CFO and chief operating officer, will fill the role until a replacement is found.
SailPoint stock sank 8.9% to 45.11 on the stock market today. SAIL stock holds a Relative Strength Rating of 49 out of a best possible 99, according to IBD Stock Checkup.
SailPoint sells identity management software that helps companies prevent security breaches. The company has been shifting from licensing revenue to a cloud-based, software-as-a-service, or SaaS, business model. Also, SAIL stock is finding success moving upmarket by selling to larger companies, analysts say.
In addition, the IBD Computer-Software Security group is ranked No. 82 out of 197 industry groups. Also, A spate of ransomware attacks has boosted some cybersecurity stocks.
Moreover, Okta (OKTA) is a new rival of SailPoint stock, analysts say.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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