Investor Presentation · Ghost YiSpector iOS 8.4 and below Pegasus Remote iOS exploit, in use for...

MobileIron Confidential

Investor Presentation

August 2018

MobileIron ConfidentialMobileIron Confidential

Safe Harbor Slide

Safe Harbor Statement

This presentation contains forward-looking statements that involve risks and uncertainties, including statements regarding

MobileIron's revenue and other GAAP and non-GAAP financial metrics for the company's second quarter in 2018 and other

statements regarding trends in the company's business, including statements regarding MobileIron's GAAP and non-GAAP

revenue and operating expense targets, growth in our customer base, increased customer adoption, and expected benefits

from new product offerings and MobileIron’s partner ecosystem. There are a significant number of factors that could cause

actual results to differ materially from statements made in this presentation, including MobileIron's limited operating history,

quarterly fluctuations in MobileIron's operating results, MobileIron's need to develop new solutions and enhancements to

compete in rapidly evolving markets, product defects, competitive pressures, customer adoption, changes by operating

system providers and mobile device manufacturers, MobileIron's inability to manage growth, the quality of MobileIron

support, MobileIron's reliance on channel partners and development of partner ecosystem.

Additional information on potential factors that could affect MobileIron's financial results is included in the company's SEC

filings, including its most recent Form 10-K and Form 10-Q. MobileIron does not assume any obligation to update the

forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they

were made.


COMPANY SNAPSHOT

Foundation for modern workBest-of-breed platform for cloud and on-premises

Leadership positionTop independent vendor

Gartner Leaders Quadrant for EMM seven years in a row +

Leaders Quadrant in Unified Endpoint Management in 2018

70+ modern EMM patents, including enterprise app store

Full security certification (Common Criteria, FedRAMP, SOC 2)

Blue-chip customer base 17,000+ cumulative customers

Deep footprint in regulated and high-security industries

Only EMM vendor with SCP Customer Support certification

Broad ecosystem350+ ISV technology integrations

No conflict of interest with Apple or Google

Strong business modelHigh renewal rate (~90%)

Strong cash position


Mobile Security

Security foundation

for modern devices and apps

Cloud Security

Control the

new perimeter

Threat Defense

Detect and remediate


Data used to be here


Mobile Cloud

Modern work is powered by…


Now data is scattered everywhere


If your workforce has these… And they use these …

Then your data is at risk every day!

And they’re probably

connecting to these…


Two clicks and your data is gone …

Download app to

unmanaged device

Sign in to access

and sync data

Can you:

Delete app if device is lost?

Prevent data sharing to Dropbox?

Comply with regulations such as GDPR?


Threats are real, sophisticated and escalating

2014 2015 2016 2017

Masque7.x, 8.x

Wirelurker 2014-4487<8.1.3

Used in jailbreak

ICMP Double

Direct

xCode

Ghost

YiSpectoriOS 8.4 and below

Pegasus

Remote iOS exploit, in use for

2+ years

Stagefright

for iOSCVE-2016-4637

zIVA Mach

portal

DoubleDirectTowelRoot200M devices

impacted

Heartbleed800K devices

impacted

Stagefright95% of Android

impacted

Wormhole

(Moplus SDK)

Oxygen

SwiftKey

Triada Zygote

System exploit

HummingBad

Hummer

malware

QuadRooter Godless Blueborne

HummingWhale(HummingBad variant)

DirtyCow

Drammer

PokeMon Go

Guide


Modern work requires a new security model

Decisions move to the edge

Security is invisible

Choice is paramount

Security is cross-stack Security is contextual

Trust is fluid


Only MobileIron establishes the

Modern Data

Perimeter

Protects data across endpoints, apps & clouds


MobileIron Data PerimeterProtect business data from the endpoint to the cloud

Detect and remediate threats

Provision business workspace

Protect data and privacy

Block untrusted endpoints and apps


Only MobileIron secures all 3 Mobile Imperatives Unified Endpoint Mgt.

Cloud

Security

New in Q4’16

Mobile Threat

Defense

New in Q4’17

Sold to 17,000+

customers


The Forrester Wave™: Enterprise

Mobility Management, Q4 2017

Reprint available from MobileIron

“The Forrester Wave™: Enterprise Mobility Management, Q4 2017,” David K. Johnson and Andrew Hewitt, 30 November 2017. The Forrester Wave™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave™ are trademarks of Forrester

Research, Inc. The Forrester Wave™ is a graphical representation of Forrester's call on a market and is plotted using a detai led spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service

depicted in the Forrester Wave™. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

“MobileIron is a strong solution for customers with

stringent security and compliance requirements”

https://www.mobileiron.com/en/analyst-report/forrester-wave-enterprise-mobility-management-q4-2017


Financial Overview


Product Revenue Shifting Towards Subscription

See earnings press release for non-GAAP reconciliation

Shift from

Product to

Subscription

Steady base of

support revenue

with high

renewals

Increased

Predictability

Cloud Services up 24% in Q2 FY18

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

Re

ve

nu

e $

MM

Software Support and Services Cloud Services Product

14.7

39%

18%

15.1

40% 19.5

42%

14.4

34%14.8

34%16.5

36%

37%

18.312.4

19%

7.2

17.3

44% 42%

19%

39%

8.5 8.9

22%

9.5 9.5

21%21%

10.511.1

16.1

42%

7.0

38%

17.8

19%

18.1 18.8

45% 44%

18.843%

19.5

41%

20.3

46%

28%

25%

20.2

17.0

8.0

21%

$38.0M$39.3M

$42.8M

$46.1M

$42.1M$43.1M

$45.5M

$49.1M

$43.7M

13.9

11.8

44%

30%

26%

20.4

$46.1M


Annualized Recurring Revenue Growth

103.3

110.4

116.8119.7 121.3

125.7

133.1 134.5 135.4

147.6

60%

65%

70%

75%

80%

85%

90%

$50

$75

$100

$125

$150

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

Re

ve

nu

e $

MM

Annualized Recurring Revenue Recurring Revenue % of Total

17% Recurring Revenue CAGR


TTM Operating

Cash Flow & N-G

Operating Margin

Cash &

InvestmentsTarget model * Target

Gross Margin 85% – 87%

Sales & Marketing 33% - 36%

Research & Development 18% – 20%

General & Admin 7% - 9%

Operating Income 20% - 25%

Continuing Improvement to Target Model

* Non-GAAP


Financial Results & Guidance

* Non-GAAP

$ Millions Q2 ResultsY/Y

ImprovementQ3 18 Guide

Y/Y

ImprovementFY 18 Guide

Y/Y

Improvement

Revenue $46.1 7% $47 - $50 3% - 10% $190 - $200 6% - 11%

Billings $50.6 13% $52 - $55 3% - 9% $210 - $220 5% - 10%

Non-GAAP Gross Margin 85.2% 0.6 % points ~ 85% - 0.4 % points - -

Non-GAAP Operating

Expenses$42.3 4% $42 - $43 (1%) - 1% - -

Non-GAAP Operating

Margin(6.5%) 11.7 % points - - (5%) - 0% 4 - 9 % points

MobileIron Confidential


Revenue Categories Under ASC606

(in USD $000s, except for percentages) Q1 FY2016 Q2 FY2016 Q3 FY2016 Q4 FY2016 FY2016 Q1 FY2017 Q2 FY2017 Q3 FY2017 Q4 FY2017 FY2017 Q1 FY2018 Q2 FY2018

Perpetual license 11,549 10,845 12,760 15,579 50,733 11,138 10,957 11,393 14,552 48,040 8,904 8,422

Professional Services 760 905 821 583 3,069 685 709 844 902 3,140 965 816

Non-recurring revenue 12,310 11,750 13,581 16,162 53,802 11,823 11,666 12,237 15,454 51,180 9,869 9,238

Upfront on-premise subscription 3,228 4,218 4,282 3,886 15,613 3,282 3,821 5,137 3,754 15,994 3,537 5,458

Ratable on-premise subscription 3,450 3,625 3,548 3,677 14,300 3,735 3,593 3,583 3,868 14,779 3,886 3,949

Cloud services 7,327 7,106 8,043 8,617 31,093 9,023 9,549 9,539 10,617 38,727 11,150 11,832

Software support on perpetual licenses 11,730 12,631 13,305 13,707 51,373 14,246 14,451 15,011 15,370 59,078 15,247 15,652

Recurring 25,735 27,579 29,177 29,888 112,380 30,286 31,413 33,269 33,609 128,578 33,820 36,891

Total revenue 38,045 39,329 42,758 46,050 166,182 42,109 43,079 45,507 49,063 179,758 43,689 46,129


GAAP to Non-GAAP Reconciliation



Non-GAAP Revenue 38,045 39,329 42,758 46,050 166,182 42,109 43,079 45,507 49,063 179,758 43,689 46,128

GAAP Gross Profit 30,775 31,212 34,948 38,698 135,633 34,839 35,048 37,488 41,845 149,221 35,712 38,218

Amortization of intangibles 154 154 154 154 617 154 154 136 100 545 100 -

Stock based compensation charges 390 1,055 747 851 3,043 700 1,226 932 913 3,771 1,381 1,067

Restructuring charge - - 181 - 181 - - 311 - 311 - -

Non-GAAP Gross Profit 31,319 32,422 36,031 39,703 139,474 35,693 36,428 38,867 42,858 153,847 37,193 39,285

Non-GAAP gross margin(non-GAAP gross profit over non-GAAP revenue)

82.3% 82.4% 84.3% 86.2% 83.9% 84.8% 84.6% 85.4% 87.4% 85.6% 85.1% 85.2%


GAAP to Non-GAAP Reconciliation(in USD $000s, except for percentages) Q1 FY2016 Q2 FY2016 Q3 FY2016 Q4 FY2016 FY2016 Q1 FY2017 Q2 FY2017 Q3 FY2017 Q4 FY2017 FY2017 Q1 FY2018 Q2 FY2018

Research & development - GAAP 16,927 18,019 16,587 16,214 67,747 17,193 19,666 19,654 18,910 75,423 21,335 18,273

Stock based compensation charges (2,601) (3,812) (2,709) (2,606) (11,729) (2,766) (4,366) (3,914) (3,474) (14,520) (4,767) (3,343)

Restructuring charge - - (349) - (349) - - (73) - (73) - -

Research & development - non-GAAP 14,326 14,207 13,529 13,608 55,669 14,427 15,300 15,666 15,436 60,829 16,568 14,930

Research & development - non-GAAP;

as %age of non-GAAP revenue38% 36% 32% 30% 33% 34% 36% 34% 31% 34% 38% 32%

Sales & marketing - GAAP 26,284 27,871 24,175 24,403 102,732 23,664 26,146 24,225 23,306 97,341 23,681 24,320


Restructuring charge - - (404) - (404) - - (305) (228) (533) - -

Sales & marketing - non-GAAP 23,165 24,879 21,464 22,347 91,855 21,891 23,565 21,662 21,032 88,150 21,153 22,161

Sales & marketing - non-GAAP;


General & administrative - GAAP 7,548 8,265 7,080 6,921 29,814 7,331 7,840 7,321 7,174 29,666 7,223 7,051


Restructuring charge - - (119) - (119) - - (111) (321) (432) - -

General & administrative - non-GAAP 5,409 5,580 4,852 4,711 20,553 6,023 5,389 5,236 5,805 22,453 5,208 5,200

General & administrative - non-GAAP;





Operating loss - GAAP (19,984) (22,942) (12,893) (8,840) (64,659) (13,348) (18,605) (13,711) (7,546) (53,210) (16,527) (11,425)

Amortization of intangibles 154 154 154 154 617 154 154 136 100 545 100 -

Stock based compensation charges 8,248 10,545 7,872 7,723 34,388 6,546 10,624 9,078 7,482 33,731 10,692 8,420

Restructuring charge - - 1,052 - 1,052 - - 801 549 1,349 - -

Litigation settlement charge - - - - - 1,143 - - - 1,143 - -

Impairment of IPR&D - - - - - - - - - - - -

Operating loss - non-GAAP (11,582) (12,243) (3,815) (963) (28,602) (5,504) (7,826) (3,697) 585 (16,442) (5,735) (3,005)

Operating Margin - non-GAAP;(non-GAAP operating loss over non-GAAP revenue)

(30.4%) (31.1%) (8.9%) (2.1%) (17.2%) (13.1%) (18.2%) (8.1%) 1.2% (9.1%) (13.1%) (6.5%)



(in USD $000s, except for percentages) Q1 FY2016 Q2 FY2016 Q3 FY2016 Q4 FY2016 FY 2016 Q1 FY2017 Q2 FY2017 Q3 FY2017 Q4 FY2017 FY 2017 Q1 FY2018 Q2 FY2018

GAAP Revenue 38,045 39,329 42,758 46,050 166,182 42,109 43,079 45,507 49,063 179,758 43,689 46,128

Total unearned revenue, end of

period50,831 50,892 53,959 60,588 60,588 64,043 63,714 66,934 77,022 77,022 80,925 82,934

Less: Total unearned revenue,

beginning of period(50,014) (50,831) (50,892) (53,959) (50,014) (60,588) (64,043) (63,714) (66,934) (60,588) (77,022) (80,925)

Total customer arrangements with

termination rights, end of period7,838 9,664 11,586 14,198 14,198 14,210 16,323 18,581 19,546 19,546 17,187 19,512

Less: Total customer arrangements

with termination rights, beginning of

period

(7,678) (7,838) (9,664) (11,586) (7,678) (14,198) (14,210) (16,323) (18,581) (14,198) (19,546) (17,187)

Total unbilled accounts receivable,

end of period(2,396) (2,400) (2,896) (2,811) (2,811) (3,013) (3,008) (3,636) (3,435) (3,435) (2,663) (2,521)

Less: Total unbilled accounts

receivable, beginning of period1,662 2,396 2,400 2,896 1,662 2,811 3,013 3,008 3,636 2,811 3,435 2,663

Gross Billings 38,288 41,212 47,251 55,376 182,127 45,374 44,868 50,357 60,317 200,916 46,005 50,604


Explanation of Non-GAAP Measures

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude stock-based compensation, the amortization of intangible assets, and perpetual revenue recognized from licenses delivered prior to 2013, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items:

Perpetual license revenue recognized from licenses delivered prior to 2013 We have excluded the effect of perpetual license revenue recognized from licenses delivered prior to 2013 from revenue gross profit, gross margin, operating loss, and operating margin. Because we had not established vendor specific objective evidence, or VSOE, of fair value of software support and services prior to January 1, 2013, we recognized perpetual license revenue ratably over the term of the related software support agreement. Upon establishing VSOE on January 1, 2013, we began to recognize perpetual license revenue upon delivery assuming all other revenue recognition criteria are met. As a result, our perpetual license revenue includes amounts related to licenses delivered in previous years. Revenue from these perpetual licenses delivered prior to 2013 has declined over each quarter since the quarter ended March 31, 2013 and will continue to decline sequentially until it is fully amortized. We evaluate our business performance excluding revenue from these perpetual licenses delivered prior to 2013 as we believe that the inclusion of this revenue makes it difficult to compare periods and understand growth in our business.

Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP cost of revenue, operating expenses and net income measures. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.

Amortization of intangible assets: We have excluded the effect of amortization of intangible assets from our non-GAAP cost of revenue, operating expenses and net income measures. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.

Restructuring Charges: In our non-GAAP financial measures, we have excluded the effect of the severance and other expenses related to our reduction in workforce. Restructuring charges may recur in the future; however, the timing and amounts are difficult to predict.


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