MobileIron Inc: Mobile Cybersecurity Firm Bullish With Triple Digit Upside Potential

MobileIron Inc Bullish on Strong Results

MobileIron Inc (NASDAQ:MOBL) is a mobile cyber security stock that has been outpacing the broader market in 2019. In February, the company reported strong fourth quarter and year end results with recurring revenue up 21% and 18% respectively. In April, it announced solid first quarter results, with revenue up 10% and recurring revenue up 18%. It also provided strong guidance for the second quarter and fiscal 2019.

MOBL Overview

A mobile device management software company, MobileIron Inc is notable for its security and user identification tools. The company looks to stand out by providing platforms that do not require passwords.

Not only does the average person has approximately 90 accounts that require passwords, but forgotten passwords are responsible for roughly one-third of all online purchases being abandoned. Not needing to input a password also helps prevent stolen credentials, which were the leading cause of enterprise data breaches in 2018. (Source: “Simple and smart security for the enterprise cloud,” MobileIron Inc, last accessed June 19, 2019.)

Over 17,000 customers rely on MobileIron to protect their mobile data, including The Blackstone Group, Nasdaq Inc (NASDAQ:NDAQ), the United States Department of Agriculture, J B Hunt Transport Services Inc (NASDAQ:JBHT), and Standard Life Aberdeen PLC.

(Source: “MOBL Key Statistics,” Yahoo! Finance, last accessed June 20, 2019.)

MobileIron stock has been trending steadily higher in 2019, popping to a new 52-week high in April after posting solid first quarter results. That momentum hit a brick wall in May, when the broader markets sold off as fears of a ramped up trade war with China boiled over. It didn’t help that President Donald Trump threatened to hit Mexico with tariffs later in the month, either. The markets have rebounded in June and MOBL stock is on the move.

Chart courtesy of StockCharts.com

Q1 Revenue Up 10%, Annual Recurring Revenue Increased 18%

On April 25, MobileIron announced that revenue for the first quarter, ended March 31, 2018, increased 10% year-over-year to $48.1 million. This represents the second quarter in a row in which the company has announced double-digit revenue growth. Annual recurring revenue (ARR) was up 18% year-over-year at $167.2 million. (Source: “MobileIron Announces Solid First Quarter 2019 Results,” MobileIron Inc, April 25, 2019.)

MobileIron reported a first quarter net loss of $17.1 million, or $0.16 per share, compared to a net loss of $16.3 million, or $0.17 per share, in the same period last year.

The company generated $7.8 million from its operating activities. During the first three months of 2018, MobileIron announced that $9.1 million had been generated from its operating activities.

“MobileIron began 2019 with a solid first quarter, delivering revenue growth of 10% and robust ARR growth of 18%,” said Simon Biddiscombe, CEO. “I am confident that our focus on market-leading innovation and customer satisfaction will continue to propel us on our upward growth trajectory.” (Source: Ibid.)

Financial Guidance

For the second quarter ending June 30, 2019, MobileIron expects revenue in a range of $49.0 million to $52 million for year-over-year growth of six percent to 13%.

The company also reaffirmed its full-year 2019 guidance of revenue in the range of $205.0 million to $215.0 million, representing year-over-year growth of six percent to 11%.

Analyst Take

MobileIron Inc continues to be a great mobile cybersecurity stock with tremendous upside potential. While the company’s share price hasn’t experienced huge unsustainable gains in 2019, up 30% year-to-date, it does continue to reward buy-and-hold investors.

Thanks to the launch of new products and customers, it has been able to report consistently strong revenue and recurring revenue growth.  Strong guidance for 2019 should help propel MOBL stock higher in the second half of the year, with momentum carrying into 2020.