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Ping Identity Stock Soars as Analysts Praise Revenue Growth

Ping Identity sees 'substantial growth' in annual recurring revenue.

Ping Identity  (PING) - Get Ping Identity Holding Corp. Report climbed Thursday after the digital identification company said it saw "substantial growth" in annual recurring revenue, sparking praise from analysts.

Shares of the Denver company rose 10.5% to $24.70 on Thursday.

Ping reported second-quarter earnings of 11 cents a share, compared with 8 cents a share a year ago, while analysts called for earnings of 4 cents a share.

Revenue totaled $78.9 million, up from $58.9 million a year ago and higher than Wall Street's call for $66.1 million.

Ending annual recurring revenue at June 30, totaled $279.6 million, up 19% from a year ago. Software as a Service, or SaaS ARR now exceeds 20% of total ARR, the company said.

CEO Andre Durand said the “results were bolstered by sustained improvement in the demand environment, which drove substantial growth in ARR and revenue that give us confidence for strong execution during the remainder of 2021."

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Stephens analyst Brian Colley raised his price target to $35 from $33, while keeping an overweight rating on the shares and naming the stock as his Best Idea.

Ping is seeing accelerating top-line growth as it benefits from improving traction with its SaaS offering and a strengthening demand environment for identity security, Colley said.

He sees the company becoming "increasingly well-positioned to benefit from secular tailwinds in the identity space."

Adam Tindle, an analyst with Raymond James, said the second quarter continued a pattern of incremental acceleration in new ARR growth and net dollar retention.

He said that new ARR reached record levels as large, long-term strategic deals are accelerating. 

Tindle has a strong buy rating with a price target to a new Street-high $42 from $40.

RBC analyst Matthew Hedberg, who has an outperform rating and a $38 price target, said the acceleration in ARR growth was encouraging and sees an opportunity for “re-acceleration back to +20% ARR growth as the environment stabilizes”, according to Bloomberg.