Shares in SailPoint Technologies Holdings Inc. rose in late trading after the identity management company reported stronger-than-expected results in its latest quarterly earnings report.

For the quarter ended Dec. 31, SailPoint reported a profit before costs such as stock compensation income of $10 million, or nine cents per share, compared with $10.3 million or 10 cents a year in the same quarter of last year. Revenue rose 31% year-over-year, to $135.6 million. Analysts had been expecting an adjusted loss of six cents a share on revenue of $114.3 million.

There were positives all around, with SailPoint’s subscription revenue in the quarter rising 41% from a year ago, to $78.8 million, licensing revenue rising 27%, to $43.2 million, and services and other revenue edging up 3%, to $13.6 million.

For the full year 2021, the company reported an adjusted profit of $10 million, or 10 cents per share, down significantly from $38.3 million or 41 cents per share in 2020. Revenue for the year rose 20%, to $439 million. Annual recurring revenue as of Dec. 31 was reported at $370.4 million, up 48% from the previous year.

SailPoint is predicting an adjusted loss of 10 to 11 cents per share in the first quarter on revenue of $110.5 million to $112.5 million. Analysts had been predicting an adjusted loss of five cents per share on revenue of $107.78 million for the quarter.

For the full year 2022, SailPoint predicts an adjusted loss of 23 to 29 cents a share on revenue of $513 million to $521 million. As with the quarterly outlook, the earnings figure missed on estimates but was well ahead on revenue, with analysts having predicted an adjusted loss of six cents per share on revenue of $486.81 million.

“Our performance throughout 2021 has reinforced our belief that SaaS-based identity security is a top investment priority for enterprises that is growing even faster than we anticipated,” Mark McClain, founder and chief executive of SailPoint, said in a statement. “We expect another strong year of growth in 2022 and will be investing in our product development and go-to-market teams to enable us to fully capitalize on our market opportunity over the long-term.”

Investors liked the numbers. SailPoint shares rose more than 9% after the bell.

Image: Sailpoint