Mobileiron Inc (NASDAQ:MOBL) has released preliminary results for 3Q2016 but actual results for the quarter will be reported on October 27, followed by a conference call with investors and analysts.
The preliminary results show Mobileiron is headed to beating its own internal gross billings, revenue and expenses guidance for the quarter.
What’s in the preliminary results?
Mobileiron said it now sees actual 3Q2016 gross billings coming in the band of $46.5 to $47.5 million. The company earlier guided gross billings in the band of $43 to $45 million.
As for the revenue, Mobileiron now expects a figure in the range of $41 to $42 million for 3Q2016. Internal guidance called for revenue in the range of $39 to $41 million. For background, Mobileiron reported revenue of $38.9 million in 2Q2016, which rose from $38 million in the prior quarter and $34 million in the year-ago quarter.
Is Mobileiron winning war on cost?
Mobileiron seems to be succeeding in its efforts to cut operating costs so that it can operate more efficiently. The company said it now sees operating expenses in 3Q2016 coming at the low end of its guidance of $41 to $43 million. Falling costs should result in improved earnings at Mobileiron.
Will cash burn subside?
Mobileiron didn’t say what it expects to report for the bottom line. However, the company is still burning more cash than it makes so the management said cash and equivalents will decline by about $6 million sequentially to about $80 million in 3Q2016. However, the management remains optimistic that Mobileiron has a bright future.
“We’re very pleased with Q3 and we believe we’re on track to be cash flow positive in the fourth quarter,” said Barry Mainz, CEO of Mobileiron.
Mobileiron said that the preliminary results it has shared are based on initial review of operations by its management. Therefore, audited financial results might differ from the preliminary results.
Mobileiron stock rose more than 32.7% to close at $3.57 after it released bullish preliminary results for 3Q2016.
