Ping Identity Stock Jumps 15% on Solid Q2 Results

Shares of Ping Identity Holding (PING) surged 15% in the extended trading hours on Wednesday after the company reported better-than-expected Q2 results. Also, the identity solutions software company provided upbeat guidance for Q3 and full-year 2021.

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Adjusted earnings increased 37.5% year-over-year to $0.11 per share, ahead of the Street’s estimates of $0.04. Revenues of $78.9 million climbed 34% year-over-year and surpassed analysts’ expectations of $66.1 million.

As of June 30, 2021, annual recurring revenue (ARR) stood at $279.6 million and witnessed 19% growth from the same period last year. Also, subscription revenues, which account for 93% of the total revenues, came in at $73.2 million and were up 34.8% on a year-over-year basis. (See Ping Identity stock charts on TipRanks).

The CFO of Ping Identity, Raj Dani, said, “These first-half results give us confidence in our ability to continue to outperform in the second half of 2021. We plan to continue investing in our cloud and channel solutions to enable zero trust, seamless digital experiences, and passwordless authentication.”

As for Q3, the company expects revenues in the range of $65 million to $70 million. ARR is projected in the range of $286 million to $288 million. As for Fiscal Year 2021, revenues are expected to be in the range of $278 million to $285 million. Also, the company expects to post an ARR of $304 million to $306 million.

Following the release, Stephens analyst Brian Colley assigned a Buy rating to the stock with a price target of $35 (upside potential of 56.5%).

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus based on 5 Buys and 5 Holds. The average Ping Identity price target of $31.17 implies 39.4% upside potential.