Highs and lows in MobileIron’s financial results, but a changing strategy is afoot

Highs and lows in MobileIron’s financial results, but a changing strategy is afoot

Highs and lows in MobileIron’s financial results, but a changing strategy is afoot

2 comments 📅04 January 2016, 02:45


Highs and lows in MobileIron’s financial results, but a changing strategy is afoot

Enterprise mobility management provider MobileIron has announced financial results for the fiscal quarter ended March 31, with GAAP revenue up 19% but billings of $36.4m, lower than expected guidance of $40m-$42m despite a 20% uptick.

CEO Bob Tinker, speaking to analysts in a conference call, said: “I am personally disappointed in how the company performed during the quarter, and as CEO, I take full responsibility.” He added: “I am not happy that we missed expectations. We understand the seriousness of this event, and we’ve identified a number of things that we can do better, and I am committed to put those into place.”

Tinker cited a couple of primary reasons for the lower-than-expected figures: big deals that were expected to close in Q1 which were pushed out and expected to complete in Q2; and a greater shift towards monthly subscription models (MRC), particularly cloud-based.

The MobileIron chief executive explained that MRC deals won in March, because of the company’s financial reporting model, generated zero billings in revenues for the quarter passed. In Q2, MobileIron expects MRC billings to be in the $5m region, up from $4.3m in Q1 and $3.7m in Q414.

MobileIron has had a busy quarter, partnering with Google for its Android for Work enterprise play, as well as pushing out its Content Security Services (CSS) product in February, which summed up a change in strategy for the Mountain View-based firm, starting last year, to “secure the personal cloud.” Tinker explained the importance of CSS in the conference call, citing a survey last year where it emerged more law firms, with their stringent security requirements, use MobileIron than any other MDM vendor.

The crux of MobileIron’s strategic play in securing personal cloud services involves convincing CIOs to enable shadow IT, a viewpoint frequently examined by this publication. This shift comes with the territory of a “generation mobile” workforce, which MobileIron analysed in recent survey data. 61% of ‘Gen M’ workers suffer from “mobile guilt” when receiving work communications during personal hours.

Flexible employees are productive employees; if they use personal devices and software for greater ease of use, and if they’re ‘always on’ for work communications no matter what the contracted hours are, then allowing them a quick break for personal tasks should be acceptable, and all relates to the shifting mindset of the CIO. As Tinker said at the time of the research – to recruit the best employees, companies need to establish policies that are more on the employees’ terms.

Tinker also confirmed the company has started the search for a new CFO following the departure of Todd Ford, announced earlier in the month.

2 Comments

  1. 
Jarrett Lennon Kaufman
    12 January 2016, 02:45 Jarrett Lennon Kaufman

    There’s nothing different between “nowadays” and before now. They’re as awful as ever. Yes, it’s nice that YouTube has added this support so ONE of the MANY devices on which we watch videos now has an alternate, less awful way to view them, but on computer monito1 and TVs that isn’t remotely helpful.

    Reply to this comment
  2. 
Amit_N
    14 January 2016, 02:45 Amit_N

    Thus , Moto E is premium ?

    Reply to this comment

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