1Q Wrap: Modest Beat Flowed Through to Updated Guide as Agentic Pipeline Builds

Research evidence excerpt

1Q Wrap: Modest Beat Flowed Through to Updated Guide as Agentic Pipeline Builds

ging products are gaining more traction, representing 20% of NNARR in 1Q, 52-Week High / Low US$24.95 / US$10.30

up 100%+ y/y again. Non-human identities (NHIs) are also helping drive growth, with Shares Out (mil) 564.7

management noting 40% of 1Q SaaS identity growth was driven by NHIs (vs. 25% LQ) and Market Cap. (mil) US$9,989.9

the agentic pipeline doubling in 1Q (14% of total governed SaaS identities are now NHIs). Avg Daily Vol (000) 3,534

2. NRR held steady from LQ at 113% despite a 1pt FX headwind. +$1M ARR customers Div (ann) US$0.00

grew +32% y/y (10 net adds vs. 10 last year). Total net customer adds of 15 was down Fiscal Year End Jan

from 65 LY.

3. The F'27 ARR guide flowed through the $8M 1Q beat, now calling for +21.5% y/y growth Price Performance - 1 Year

(vs. +21% y/y prev.). The $5M revenue beat vs. the guided midpoint was also flowed USD

through to F'27 rev. expectations, now calling for +18.5% (vs. ~18% y/y prev.). Op. margin 26

expectations were raised to ~19% (vs. ~18.6% LQ). The 2Q ARR guide came in $7M ahead 24

of Street expectations, while revenue and op. margin guidance was inline. 22

Our take. Another modest ARR beat and a FY guide that only flowed through the 1Q 16

outperformance will likely drive disappointment as many await AI inflection. That said, SAIL 14

remains one of the few software companies sustaining ARR growth at 25%+ and early 12

traction with the NHI / agentic security offerings (agentic pipeline doubled in 1Q) represents 10

a promising incremental growth vector in our view. We view the guidance philosophy as Jun-25 Aug-25 Oct-25 Dec-25 Feb-26 Apr-26 Jun-26

conservative, with the next catalyst for shares the analyst day on 6/16. Remain OW.