SAIL - Sailpoint: Reasonably Priced Secular Growth Story That Is Executing Well

• Despite up 24% since we recommended it in August, we remain bullish and expect Sailpoint to gain share from incumbents since it is designed for hybrid cloud deployments.
• Sailpoint reported solid F3Q20 results with revenue and EPS beating estimates. The company also guided 4Q ahead of estimates and expressed confidence in its business even after the pandemic ends.
• Revenue beat was driven by a higher than expected number of deal closings due to strength in large and midsize customers and all geographies, especially in Europe.
• Subscriptions up 36% and Licenses up 15%. Enterprises continue to buy licenses using subscriptions to preserve cash.
• IGA spending continues to be healthy, as Identity is becoming the pillar around which IT security is being built by enterprises, as firewalls cease to be effective.

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