• Brett Schafer

Deep Dive: Ping Identity

Listen On:

  1. Spotify

  2. Apple Podcasts

  3. What do they do? Ping Identity is a security and identity software company built for large enterprises. It has single-sign-on (SSO) and other security products that it sells through its subscription products.

  4. History? Ping was founded in 2002 by Andre Durand and went public in 2019.

  5. Industry? Within the identity industry, Ping competes with cloud competitors like Okta, and on-premise competitors like IBM and Oracle. Okta actually just acquired another competitor called Auth0, so it is really Ping vs. Okta at this point.

  6. Management? Andre Durand is still the CEO. Terry Crews (yes, that one) is their “Chief Identity Champion.” Vista Equity owns 47% of the company.

  7. Valuation? (from time of recording) P/S of 7.6, P/GP of 10.5, and they are unprofitable.

  8. Earnings? $259 million in ARR, up 15%, and generating less than $9 million in free cash flow.

  9. Balance Sheet? LT debt of $150 million, around $145 million in cash.

  10. Potential Competitive Advantages? The flexibility to go hybrid/on-prem/cloud, lock-in with enterprises, and reduction in interest expenses.

  11. Potential Future Growth Opportunities? PingOne Verify, API intelligence, and the overall security market tailwinds.

  12. Highlights? Founder-led CEO seems good, strong market tailwind, high switching costs.

  13. Lowlights? Competitive industry, continuous high R&D spend, the potential for Crowdstrike to move in as a major competitor with the new acquisition.

*Chit Chat Money is sponsored by 7investing. Use our link or enter promo code “CCM” at check-out to get $10 off your first month of the service.

Disclosure: The authors and podcast guests are not financial advisors. Brett Schafer and Ryan Henderson are portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this podcast.

#PING #PingIdentity

0 views0 comments

Recent Posts

See All