SailPoint, Inc.

Greetings. Welcome to SailPoint Technologies Holdings' fourth quarter 2020 earnings conference call. At this time, all participants will be in listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note, this conference is being recorded. I'll now turn the conference over to Josh Harding, Vice President of Financial Planning, Analysis, and Investor Relations. Josh, you may now begin.

Good afternoon, and thank you for joining us today to discuss SailPoint's fourth quarter and full year 2020 financial results. Joining me today are SailPoint CEO and co-founder, Mark McClain, and our Chief Financial Officer, Jason Rehm. Please note that today's call will include forward-looking statements, and because these statements are based on the company's current intent, expectations, and projections, they are not guarantees of future performance. and a variety of factors could cause actual results to differ materially. Since this call will include references to non-GAAP results, which excludes special items, please reference this afternoon's press release in the investor section of SailPoint.com for further information regarding forward-looking statements and reconciliations of GAAP to non-GAAP results. And now, I'd like to turn the call over to Mark McClain.

Thanks, Josh, and thanks to each of you for joining the call today. I hope you and your families remain safe and healthy. I'm very pleased to share both our fourth quarter and fiscal year end 2020 results with you today. Our results in both periods were driven by solid execution across the business and strong demand for SailPoint's identity platform. For the full year 2020, Total revenue was approximately $365 million, representing 27% growth year on year. Total revenue for the fourth quarter was approximately $103 million, the largest quarter in our history and the first time we've exceeded $100 million in quarterly revenue. Our team and our partners executed extremely well around the globe throughout the year, and I'd like to thank each one for their contribution to our ongoing success. especially during such a tumultuous time. Now I'd like to spend a few minutes talking through some key business highlights from 2020 before shifting to our focus and strategy for 2021. SailPoint's business performed at a high level throughout 2020, despite the economic disruption related to the pandemic. We experienced significant demand and subsequent growth throughout the year as the relevancy and criticality of identity security became even more apparent. The SailPoint team responded well to this increased demand, delivering a high level of tight execution across all geographies. The events of 2020 reinforced many of the positive trends in our business, which we expect to continue going forward. For example, this past year, the rapid shift to working from anywhere drew significant attention to an issue that many companies simply hadn't fully seen before – We helped numerous companies understand the extent of risk exposure in their business due to loosely managed and largely ungoverned access. Providing access for remote workers proved to be a light bulb moment as more organizations realized they were operating under a false sense of security if they were only focused on connecting their people to technology without properly securing their access. With SailPoint serving as the foundation for securing all of their digital identities, including both human and non-human, our customers can confidently enable access to critical systems and data while eliminating business risk. As a result, throughout 2020, we saw increased demand for our solutions as more and more companies sought to dramatically improve their identity security program. This included a strong and growing interest in our SaaS solution from larger enterprises, as many of them have become increasingly comfortable shifting their identity security infrastructure into the cloud. For example, a large media and information services conglomerate chose SailPoint to help them securely enable their digital transformation. Their goal is to achieve a 360-degree view of access needs across the 25,000-plus employees and contractors that make up their workforces. This visibility into all their organization's access capabilities across every application, data, and cloud infrastructure is critical to both securing and enabling their expansive business. With SailPoint at the center of their transformation, they have the multi-tenant SaaS identity platform needed to quickly deliver on their vision for comprehensive identity security across their business. Our product leadership team leveraged a strong vision and SaaS expertise to help us accelerate our ability to innovate at scale, delivering a high volume of new identity security solutions to market this year. These investments benefit all customers and have helped us to extend our industry-leading platform to be the most comprehensive SaaS identity platform in the market. A few of these recent capabilities include new SaaS-delivered AI services like access modeling, role insights, and access request recommendations. Deeper integration into critical business applications that enable remote work and the sensitive data housed within, including applications like Slack, Microsoft Teams, Zoom, and JIRA. And finally, the ability to govern and secure access to cloud infrastructure like AWS, Azure, and the Google Cloud Platform within the SailPoint Identity Platform. Turning to 2021, We believe we are well positioned to continue to build upon the strong market momentum established in 2020. Let me highlight a few of the ways we're executing against the attractive opportunity in front of us. First, we're investing to meet the growing market demand at the upper end of the market. I mentioned earlier that we expect to see more large enterprises embrace a SAS delivered approach to identity. To address this increased interest, we're laser-focused on building innovation into our SaaS platform that address the needs of global enterprise customers. This requires us to take a sophisticated yet intuitive approach to identity that supports the complexity and velocity of our customers' business environment. Second, we're reorienting our business to focus on subscription-based pricing, regardless of how a customer chooses to deploy with us. Obviously, our SaaS solutions have always been subscription-based, but we have also seen increasing demand for this pricing approach from customers deploying our software, whether on-prem or in the cloud. This decision is primarily a reflection of our customer's choice, but it will also simplify our selling, contracting, and renewals process across the company. In addition, this simplified pricing model will lead to lower upfront investment for customers and higher customer lifetime value and more predictable revenue for SailPoint. And third, We're expanding upon our market opportunity by pivoting to address adjacent market needs for customers. For example, we recently announced the acquisition of Intello, a SaaS management platform. This acquisition helps us to address an emerging need for companies who lack visibility into the entirety of their SaaS app landscape due to a sharp rise in shadow IT happening across most businesses today. This additional capability will help our customers to see and understand the full extent of their SaaS application landscape and then put the right identity security controls around who should have access and how that access is being used. This acquisition will allow our customers to securely achieve their SaaS adoption goals by ensuring they understand the risks associated with new SaaS applications, even those in the realm of shadow IT. And this new functionality will fit neatly into what companies are already doing to govern the rest of their critical business applications in SailPoint's identity platform. Taken together, we believe these strategic moves will drive incremental value for both our customers and SailPoint in 2021, and will continue to strengthen our competitive position. We will be discussing in greater depth our 2021 focus, our business strategy, and our long-term financial goals during our first-ever Analyst Day, which takes place tomorrow, February 26, 2021, beginning at 11 a.m. Eastern Time. We hope you can join us. In closing, we're very pleased with the strong performance of the business over the course of 2020 and believe that we're well-positioned for continued success in 2021. We believe our differentiated platform and an increased appreciation for the criticality of identity security's role in securing the modern enterprise will continue to drive interest and demand. We have the right team, technology, and vision to continue to grow our global footprint throughout 2021. With that, I'd like to hand it over to Jason, who will cover our financial performance in greater detail.