Investing.com -- SailPoint reported earnings for the first quarter of fiscal 2027 that missed analyst expectations, sending its shares tumbling more than 15% in premarket trading Tuesday.

The cybersecurity firm posted a loss per share (EPS) of $0.13, well below the $0.04 earnings per share expected by analysts. Total revenue increased 22% to $280 million, above the consensus expectations of $276 million, with subscription revenue up 23% to $266 million.

Annual recurring revenue (ARR) rose 26% year-over-year to $1.16 billion in the quarter ended April 30, while Software-as-a-Service (SaaS) ARR grew 36% to $781 million.

The company posted an adjusted operating income of $38 million, or a 14% margin, up from $24 million and a 10% margin a year earlier. On a GAAP basis, the operating loss narrowed sharply to $80 million from $185 million in the same period last year.

Free cash flow swung to $33 million from negative $101 million a year ago.

"Our strong start to fiscal 2027, marked by robust top- and bottom-line growth, underscores the critical market demand for comprehensive identity security,” said SailPoint CEO Mark McClain.

For the second quarter, the company guided for EPS of $0.07-$0.08, versus the consensus of $0.08. Total ARR is projected from $1.218 to $1.222 billion, implying 24% year-over-year growth, and revenue of $308 to $312 million, compared with the consensus estimate of $309.7 million.

For the full fiscal year, SailPoint expects ARR of $1.364 to $1.374 billion, and total revenue of $1.265 to $1.275 billion, broadly in line with the 1.27 billion expected by analysts.

An adjusted operating margin for the year is forecasted between 18.7% and 19.3%.