SailPoint, Inc.

Greetings and welcome to the SailPoint Technologies Holdings Inc. first quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Josh Harding, Senior Vice President of Financial Planning, Analysis, and Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us today to discuss SailPoint's first quarter 2021 financial results. Joining me today are SailPoint's CEO and co-founder, Mark McLean, 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 exclude 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'm very pleased to share our first quarter fiscal year 2021 results with you. In a very strong first quarter, we comfortably exceeded our internal sales goals, and at the same time, our mix shifted towards SaaS faster than we had been expecting. resulting in $270.2 million of total ARR at quarter end and a year-over-year growth of 43%. We reported quarterly total revenue of $90.8 million, including SAS revenue of $21.2 million, up 20% and 55% year-over-year, respectively. Our excellent results this quarter were driven by a high level of execution across the business and continued demand for SailPoint's identity platform. We established strong momentum in 2020 and continue to build on that this year, seeing both our average deal size and number of new logos increase notably as compared to Q1 2020. We believe the results this quarter are a testament to increased appreciation of identity security as organizations strive to balance the fine line between enabling and securing their largely remote or hybrid workforce today. As we indicated during our Financial Analyst Day in February, identity security has become a critical area of focus among enterprises. This is driving growing interest and commitment from the upper end of the enterprise market in our SaaS identity platform. We believe this trend will continue throughout 2021 and beyond as more and more enterprises recognize that their legacy on-prem identity solutions are not capable of providing the level of visibility and protection they require. Importantly, enterprises of all sizes are recognizing that taking a SaaS-first approach will give them the simplified yet sophisticated identity security program that only we provide to fully address the complexity of their enterprise needs and at scale. I'd like to spend a few moments sharing some examples from the quarter of large, marquee enterprise customers who selected SailPoint's SAS Identity Platform to fuel their identity security program. First, a large US-based American multinational technology and services company selected SailPoint's SAS Identity Platform to help them transform their identity program from legacy to next gen. With more than 200,000 human identities plus 200,000 machine identities to manage, they required a platform that could expertly scale, keeping pace with the complexities of their business. They added SailPoint's AI services, including cloud access management, as the company requires both the autonomous intelligence needed to identify access trends that need remediation and very clear visibility into access to cloud infrastructure environments on which a large portion of their business is built. With SailPoint, they can securely and at scale embrace the company's aggressive digital transformation efforts without introducing unnecessary access risk. Second, a large tire manufacturer chose SailPoint's SaaS identity platform to help them securely enable their nearly 50,000 identities. As they make the pivot towards SaaS first as part of the company's accelerated digital transformation efforts, they needed an identity solution that was time-tested, flexible, and scalable. They required a better way to manage and secure their workers' access needs, including granting and certifying access to business-critical information housed in their SAP systems. SailPoint delivered across the board as their trusted identity partner, providing them with an identity security platform that will help reduce risk, improve and streamline compliance efforts, and support their transformation to the cloud. And finally, a large APAC public health system and hospitals network, chose SailPoint's SaaS platform to help them quickly bring under governance their more than 100,000 identities. The decision was driven by the CIO, who did not want to spend time and money on constant upgrade cycles, a huge pain point with their existing on-prem approach to identity. With SailPoint, They have an identity solution that has already delivered quick value to them and will resolve a major pain point and security concern of overprivileged access. As these customer anecdotes indicate, larger enterprises are embracing our SaaS-delivered identity platform, which not only meets the current complexity of their business, but can scale with them over time. With years of investment in our SaaS platform and an ongoing commitment to driving continued innovation, we're confident that we're in the best position to meet the identity security and governance needs of today's enterprise. In addition, we're continuing to expand the scope of our identity platform to encompass new enterprise use cases, including addressing deeper enterprise security needs or adjacent market needs. We're addressing this in three ways. First, I'd like to talk for a moment about extensibility of our SaaS platform. We introduced several of these new extensibility innovations in Q1, which are all about helping customers embed SailPoint into the fabric of their business. These new capabilities include a refreshed set of APIs, which enable customers to integrate our platform functionality within their systems. We also launched new no-code integrations with Zapier and Workato, which makes it easier for our customers using these workflow automation platforms to build SailPoint into their workflow. We also introduced our new apps for Slack and Microsoft Teams, which lets end users access SailPoint capabilities in plain English from within these systems. And finally, within this category of extensibility, we introduced a new developer relations hub and team, which helps our customers and partners learn how to build on top of SailPoint. You'll see that the common thread among these initiatives is meeting our customers where they are, whether they are experts who want to code to our APIs, or they want to use existing enterprise workflow platforms, or they just want to use SailPoint from within Slack or Teams with no coding effort. Customer response to all of these initiatives has been very positive. Second, we expanded the scope by addressing deeper enterprise security and governance needs with the acquisition of ERP Maestro. With the new separation of duties access control capabilities that ERP Maestro brings, we're helping companies better address the need for deep visibility of access to critical business systems like SAP, eliminating conflicts in access that could result in fraud or compliance concerns. Once fully integrated into the SailPoint Identity Platform, customers will soon have a unified view and real-time business-focused intelligence needed to analyze logical access to critical business systems and then to identify potential areas of access conflict before access is ever granted. And the third expansion to highlight is that we are addressing an emerging adjacent market need with the acquisition of Intello. With the SaaS management technology and expertise that Intello brings, we're addressing the massive explosion in SaaS apps across the enterprise today, many of which live outside of IT's purview. Combined with our existing identity platform, Intello's capabilities will help companies discover where all of their SaaS apps exist across the business and then quickly put the right identity security controls in place to protect access to these apps and the sensitive data within. With each of these added capabilities, we're delivering increased value to our customers around the world and are already seeing strong interest from both new and existing customers in broadening and deepening their identity program with us. In closing, as we come off of a very strong start to 2021, I'd like to thank the entire SailPoint team for their contributions. We are well positioned this year and will continue to execute and to innovate to the benefit of our customers around the world. With that, I'd like to hand it off to Jason, who will cover our financial performance in greater detail.