According to a market report by Zion Market research, the global identity and access management market is estimated to grow at 12.5% annually over the next few years to $15.92 billion by 2022. The industry was valued at $7.85 billion in 2016.

SailPoint’s Financials

Austin-based SailPoint Technologies (NYSE: SAIL) is a newly listed company in the identity governance space. It was founded in 2005 by Mark McClain and Kevin Cunningham to provide innovative solutions to business problems concerning identity access management. The company was set up to empower customers to efficiently and securely govern the digital identities of employees, contractors, business partners, and other users, and manage their constantly changing access rights to enterprise applications and data. SailPoint operates an open identity platform that provides organizations with visibility into who currently has access to which resources, who should have access to those resources, and how that access is being used. Its solutions are both on-premise-based and cloud-based solutions.

Its products have seen strong adoption in the market. Revenues have grown 41% annually over the period 2011 through 2016. Revenues grew from $95.4 million for fiscal 2015 to $132.4 million for fiscal 2016. During the same period, net loss has reduced from $10.8 million to $3.2 million.

More recently, SailPoint announced its fiscal 2017 results. Fourth quarter revenues grew 53% over the year to $67.8 million. It ended the quarter with an operating income of $10.5 million and an EPS of $0.11. The market was looking for revenues of $55.75 million with an EPS of $0.09 for the quarter. By segment, license revenues grew 65% to $36.7 million and subscription revenues grew 50% to $21.23 million. Revenues from other services grew 23% to $9.9 million.

Its fiscal 2017 revenues grew 41% to $186.1 million. During the year, operating expenses also grew 42% driven by a 37% growth in research and development to $33.3 million and 83% growth in general and administrative costs to $17.7 million. Net income grew from $3.3 million a year ago to $5.4 million.