Corrected Transcript 05-May-2021 Ping Identity Holding Corp. (PING) Q1 2021 Earnings Call Total Pages: 20 1-877-FACTSET www.callstreet.com Copyright © 2001-2021 FactSet CallStreet, LLC Ping Identity Holding Corp. (PING) Corrected Transcript Q1 2021 Earnings Call 05-May-2021 CORPORATE PARTICIPANTS David Banks Raj Dani Vice President-Investor Relations, Ping Identity Holding Corp. Chief Financial Officer, Ping Identity Holding Corp. Andre Durand Founder, Chief Executive Officer & Director, Ping Identity Holding Corp. ...................................................................................................................................................................................................................................................... OTHER PARTICIPANTS Saket Kalia Patrick Colville Analyst, Barclays Capital, Inc. Analyst, Deutsche Bank Jonathan Ho Adam Tindle Analyst, William Blair & Co. LLC Analyst, Raymond James & Associates, Inc. Matthew Hedberg Rob D. Owens Analyst, RBC Capital Markets LLC Analyst, Piper Sandler & Co. Brian Essex Tal Liani Analyst, Goldman Sachs & Co. LLC Analyst, BofA Securities, Inc. Gray Powell Gregg Moskowitz Analyst, BTIG LLC Analyst, Mizuho Securities USA LLC ...................................................................................................................................................................................................................................................... MANAGEMENT DISCUSSION SECTION Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Ping Identity First Quarter 2021 Earnings Call. At this time, all participants' lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would like to hand the conference over to your speaker today, David Banks, VP of Investor Relations. Thank you. Please go ahead. ...................................................................................................................................................................................................................................................... David Banks Vice President-Investor Relations, Ping Identity Holding Corp. Thanks, everyone, for joining us today and welcome to the Ping Identity conference call, where we'll discuss results for the first quarter, provide outlook for the second quarter and update our outlook for the full year 2021. Shortly after the market close today, we issued a press release announcing our first quarter 2021 financial results. In addition to those results we'll be presenting a live supplemental set of slides through the webcast portal. These will be published to our website following the call. You may access the press release and presentation on the investor relations section of pingidentity.com. With me today is Andre Durand, our CEO; and Raj Dani, our CFO. Today's discussion may include forward- looking statements. Please refer to our Annual Report on Form 10-K for 2020 and our quarterly report on Form 2 1-877-FACTSET www.callstreet.com Copyright © 2001-2021 FactSet CallStreet, LLC Ping Identity Holding Corp. (PING) Corrected Transcript Q1 2021 Earnings Call 05-May-2021 10-Q for the quarter ending March 31, 2021 filed with the Securities and Exchange Commission. There you will see a discussion of factors that could cause the company's actual results to differ materially from these statements. I would also like to remind you that during the call, we will discuss some non-GAAP measures related to Ping Identity's performance. You can find the reconciliation of those measures to the nearest comparable GAAP measures in our first quarter press release and the slides we're posting on our website. To ensure we can address as many analyst questions as possible during the call, we ask that you please limit your questions to one plus a follow-up. We will end the call after 60 minutes. With that I'll turn the call over to Andre. ...................................................................................................................................................................................................................................................... Andre Durand Founder, Chief Executive Officer & Director, Ping Identity Holding Corp. Thank you, David. We had a strong start to the year with a solid performance against all our key financial metrics. Annual recurring revenue grew 16%, a growth uptick from Q4 to $266.3 million. Revenue of $68.9 million grew 12% year-over-year. Our dollar base net retention rate improved to a 109% from Q4 and we generated $19.5 million of unlevered free cash flow, our best quarterly performance ever. In short, we feel good about these improving metrics, which Raj will get into in more detail later in the call. This performance was underpinned by a strengthening demand environment and a noticeable return of optimism among enterprises. Our pipeline has improved. And with it, we've improved our outlook. As I shared in prior quarters identity has become the new perimeter and is now recognized as the heart of security. As a result we see companies beginning their journeys to Zero Trust with identity at the core. We're also seeing an acceleration of all things digital, cloud and a desire to achieve frictionless and password less user experiences. Having spoken to hundreds of our largest enterprises in the past few quarters, we have increased conviction that our vision and platform strategy are the right focus to fulfill the growing requirements for enterprises looking to secure access through identity. To deliver on our vision, you'll recall we're focused on four core themes. Number one, delivering our entire platform in the cloud; for our customers, this allows them to deploy Ping in the public or private cloud or consume the entire Ping platform-as-a-service from our PingOne SaaS offering. Number two, delivering frictionless identity solutions for the customer identity use case. Number three, enabling the migration of legacy identity systems to Ping and lastly, embracing our partner network to help us deliver our solutions at scale. Today I'd like to focus on our unified cloud platform and provide a progress update on our partner network. We recently held Ping Universe, our conference for customers and partners. During this event we laid out our vision for the Ping Intelligent Identity platform and how we will help companies achieve their cloud, Zero Trust customer use case and passwordless aspirations. I hope some of you were able to listen in and if you missed it, please reach out to our IR team for a link to the replay. Our message was simple, Ping's platform and vision has never been stronger and we're now in a position to transform the way people view security and identity through our unified cloud platform. We're helping companies make the journey to the cloud in a way that allows them to transform their workforce and customer experiences while staying true to the Zero Trust mandate. With over $3.5 billion connected individuals and more than $350 billion digital identities connected to millions of applications, the challenge for enterprises to connect the right users to the right applications with speed and ease has never been greater. Today Ping secures over 2 billion identities through our platform and we're pushing the 3 1-877-FACTSET www.callstreet.com Copyright © 2001-2021 FactSet CallStreet, LLC Ping Identity Holding Corp. (PING) Corrected Transcript Q1 2021 Earnings Call 05-May-2021 boundaries of what's possible to secure the most complex enterprises wall-to-wall across their hybrid and multi- cloud environments. As our platform and capabilities have grown, we're more focused than ever on our mission to be the very best provider of real-time access management, from initial verification, through log in, to log off and everything in between. We believe this is the largest and fastest growing segment of the identity landscape. And it's critical we meet the growing demands of our enterprise customers as their challenges continue to grow. To achieve our mission, we're delivering our platform with more speed, automation and flexibility than ever before, allowing companies to run Ping in their cloud of choice or consume Ping as SaaS through PingOne and our newly available Advanced Services, which now provide 100% feature parity with our core software capabilities. To continue our commitment to being the most mission-critical provider of identity, we also recently announced that our PingOne SaaS offering is now available with four 9s of availability. A major milestone as our services have deployed active-active around the globe. Another announcement we made at Ping Universe was the trend we're seeing towards a converged platform to solve both the customer and workforce use cases. Companies are looking for leverage in their strategic vendor relationships. They're looking to simplify their vendor and technology landscape and are seeing identity as a core to both workforce security but also digital customer experiences. As a result, while our business has been roughly split between workforce and customer use case since our inception, we're seeing a growing number of customers leverage Ping for both use cases. And we expect this trend to continue. In pursuit of frictionless identity solutions, we continue to invest in our SaaS offerings to make it easier for those with cloud