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

MobileIron, Inc. 30% Gains in 2019 with Triple-Digital Upside Potential
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MobileIron Inc Bullish on Strong Results

MobileIron Inc (NASDAQ:MOBL) is a mobile cybersecurity 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 and recurring revenue both up. The company 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 have approximately 90 accounts that require passwords, but forgotten passwords are responsible for roughly one-third of all online purchases being abandoned. (Source: “Simple and smart security for the enterprise cloud,” MobileIron Inc, last accessed June 19, 2019.)

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Not needing to input a password also helps prevent stolen credentials, which were the leading cause of enterprise data breaches in 2018.

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

MOBL Stock Information
Market Cap $647.7 Million
52-Week Change 17.1%
52-Week High $6.58
52-Week Low $3.98
Shares Outstanding 108.7 Million
Float 59.4 Million
50-Day Moving Average $5.60
200-Day Moving Average $5.15

(Source: “MobileIron, Inc. (MOBL),” 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.

Since then, 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 Up 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. (Source: “MobileIron Announces Solid First Quarter 2019 Results,” MobileIron Inc, April 25, 2019.)

Annual recurring revenue (ARR) was up 18% year-over-year at $167.2 million.

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 in the prior year.

In the first three months of 2019, the company generated $7.8 million from its operating activities. In the first three months of 2018, it generated $9.1 million 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 the range of $49.0 to $52.0 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 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. Up 30% year-to-date, MOBL stock hasn’t experienced huge unsustainable gains in 2019, and it continues to reward buy-and-hold investors.

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