SailPoint Technologies (NYSE:SAIL) shares are booming since its Initial Public Offering (IPO) in the final quarter last year. Sail shares rose 70% year to date, up almost 90% since its IPO. SailPoint is a US-based company engaged in providing enterprise identity governance solutions. The company’s stock price currently hovers around $23 a share, just shy of its all-time high of $26 a share.
The technology company has the market cap of $2 billion, and its average trading volume stands at around 12.3 million shares a day. Market analysts; however see further upside potential for SAIL stock.
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Six out of eight analysts issued a “buy” rating – with a median price target of $28 a share. They have set a high price target at $36.
SailPoint Technologies Financial Numbers Strengthen Sentiments
The company’s financial numbers and growth plans indicate a continuation of this current bullish trend. Its first-quarter revenue rose 36% year over year to $49 million. It’s all three business segments exceeded analysts’ sales expectations and past year numbers.
SailPoint Technologies subscription segment revenue surged 54% Y/Y, while License revenue rose 39% and Services & other revenue jumped 17% Y/Y. The total number of customers also increased to 35% over the past year period.
Management Presents an Upbeat Outlook
The management anticipates substantial demand for its solutions all around the globe. The company expects full-year sales in the range of $230 million, which indicates robust sales in the following three quarters of this year.
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With $14 million in free cash flows at the end of the first quarter, the company appears in a stable position to invest in product innovation.
Its CEO says, “As the amount of data created and shared by business users explodes and regulations like the European General Data Protection Act elevate the discussion around identity controls over that data, organizations realize that identity governance must include managing access to data stored in files.”
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