MobileIron Shares Slide as Sales Trail Estimates, CFO QuitsMeenal Vamburkar
MobileIron Inc. hit its lowest price since its June debut after the software company reported sales short of analysts’ estimates and said that its chief financial officer is leaving.
First-quarter revenue was between $32 million and $33 million, the company said in a regulatory filing Wednesday. Analysts on average had estimated sales of $36.4 million, according to data compiled by Bloomberg. MobileIron is scheduled to report its full results next week.
Finance chief Todd Ford will leave to join another company no later than May 4, MobileIron said in a statement. It didn’t disclose his new employer.
“The departure is not based on any disagreement with the company’s accounting principles or practices or financial statement disclosures,” the Mountain View, California-based company said.
The stock fell 25 percent to close at $7.11 on Thursday.
MobileIron creates software for mobile devices, including tools to track intelligence and protect data accessed by employees on smartphones.
The company’s filing indicates that rivals Microsoft Corp., VMware Inc. and SAP SE may be pressuring sales, Anurag Rana, an analyst at Bloomberg Intelligence, wrote in a report.
“Management linked the weaker-than-expected performance to large deals from North American customers that didn’t close as expected and a shift to monthly subscription offerings, a model that yields lower billings and sales in the near term,” he wrote.
MobileIron raised about $100 million in its initial public offering.
(An earlier version of this story corrected the day of MobileIron’s filing.)