Mimecast Limited : Mimecast Announces First Quarter 2017 Financial Results
(Thomson Reuters ONE) -
* Total revenue of $41.5 million grew 24% yoy on a GAAP basis and 32% in
constant currency
* Added 1,900 new customers. Total customers 19,900 globally
* Revenue retention rate of 110%
* Gross profit percentage of 73%
* GAAP EPS of $0.00 per basic and diluted share, Non-GAAP EPS of $0.04
* Increasing FY 2017 constant currency revenue growth guidance and
establishing a FY 2017 guidance range for Adjusted EBITDA
WATERTOWN, Mass., Aug. 08, 2016 (GLOBE NEWSWIRE) -- Mimecast Limited
(NASDAQ:MIME), a leading email and data security company, today announced
financial results for the first quarter ended June 30, 2016.
"We are very pleased with our first quarter results," stated Peter Bauer, CEO of
Mimecast. "Organizations of all sizes across the globe are turning to Mimecast
to fortify their cyber resilience, protecting employees, data and operations."
"Mimecast performed well across our key metrics and delivered strong growth in
the quarter," said Peter Campbell, CFO of Mimecast. "We are especially pleased
with new customer growth which outpaced our expectations. Our strong customer
retention, track record of upselling and over 95% recurring revenue model,
combined with the strength we are seeing in new customer additions will benefit
our full year revenue growth."
First Quarter 2017 Financial Highlights
* Revenue: Revenue on a constant currency basis increased 32% compared to the
first quarter of 2016. GAAP Revenue for the first quarter of 2017 was $41.5
million, an increase of 24% compared to the $33.3 million of revenue
recognized in the first quarter of 2016.
* Customers: Added 1,900 net new customers in the first quarter of 2017. We
now serve over 19,900 organizations globally.
* Revenue Retention Rate: Revenue retention rate was 110% in the first quarter
of 2017, an increase from the 109% recognized in the prior quarter and up
from the 108% in the first quarter of 2016.
* Gross Profit Percentage: Gross profit percentage was 73% for the first
quarter of 2017, an increase over the 70% realized in the first quarter of
2016.
* Adjusted EBITDA: Adjusted EBITDA was $1.9 million, representing an Adjusted
EBITDA margin of 4.5% up from 1% in the prior quarter.
* GAAP Net Income: GAAP net income was $0.2 million or $0.00 per basic and
diluted share based on 54.3 million and 57.7 million weighted-average shares
outstanding, respectively.
* Non-GAAP Net Income: Non-GAAP net income was $2.3 million or $0.04 per
share.
* Cash and Free Cash Flow: Mimecast generated $3.7 million of free cash flow
in the first quarter of 2017. Cash and cash equivalents as of June
30, 2016 were $108.7 million.
Reconciliations of the non-GAAP financial measures provided in this press
release to their most directly comparable GAAP financial measures are provided
in the financial tables included at the end of this press release. An
explanation of these measures and how they are calculated is also included below
under the heading "Non-GAAP Financial Measures."
First Quarter Business Highlights
* Mimecast added 1,900 customers in the first quarter, the majority of which
were in the United States, our fastest growing region.
* Sales of Targeted Threat Protection increased during the first quarter, with
more than 1,200 new customers purchasing the service. A total of 23% of our
customers are now using Targeted Threat Protection.
* A total of 16% of customers are using Mimecast in conjunction with
Microsoft® Office 365(TM) during the first quarter compared to 14% in the
fourth quarter of fiscal 2016. Office 365(TM) continues to be a growth
driver for the Company. More than 660 new and existing customers of all
sizes chose Mimecast to enhance the security, the archive, or to provide
uptime assurance for their Office 365 subscriptions.
* We launched Mimecast Administrative Console V4.0, a significant upgrade that
provides IT professionals an enhanced unified view across all Mimecast
services.
* Mimecast joined the Coalition for Cybersecurity Policy, bringing deep email
security and cyber resilience expertise. Launched in February 2016, the
Coalition has led a call-to-arms for fighting against an increasingly
pervasive cyberattack landscape.
Business Outlook
Mimecast is providing guidance for the second quarter and full year 2017.
Second Quarter 2017 Guidance:
For the second quarter of 2017 constant currency revenue growth is expected to
be in the range of 30% and 32% and revenue in the range of $41.5 million and
$41.9 million. Exchange rates have weakened in the period, primarily due to the
strengthening of the US dollar compared to British Pound in the same period in
the prior year. Fluctuations in these rates have impacted our revenue guidance
by $2.8 million. Approximately $0.5 million of this impact relates to the
translation of South African Rand based revenue and $2.3 million relates to
British Pound based revenue. We believe that constant currency revenue growth is
a useful way to measure the underlying strength of our business as it excludes
these short term fluctuations. Adjusted EBITDA is expected to be in the range
of $1.6 to $2.4 million.
Full Year 2017 Guidance:
For the full year 2017 constant currency revenue growth is expected to be in the
range of 29% to 31% and revenue to be in the range of $172.0 million to $175.6
million. Foreign exchange rate fluctuations are impacting this guidance by $7.8
million of which $0.9 million relates to the South African Rand and $6.9 million
relates to the British Pound. Adjusted EBITDA is expected to be in the range of
$9.0 to $11.0 million.
GAAP net income (loss) is the most comparable GAAP measure to Adjusted EBITDA.
Adjusted EBITDA differs from GAAP net income (loss) in that it excludes
depreciation and amortization, share-based compensation expense, interest income
and interest expense, the provision for income taxes and foreign exchange income
(expense). Mimecast is unable to predict with reasonable certainty the ultimate
outcome of these exclusions without unreasonable effort. Therefore, Mimecast
has not provided guidance for GAAP net income (loss) or a reconciliation of the
foregoing forward-looking Adjusted EBITDA guidance to GAAP net income (loss).
Conference Call and Webcast Information
Mimecast will host a conference call to discuss these financial results for
investors and analysts at 5:00 pm EDT (UTC-05:00) on August 8, 2016. To access
the conference call, dial (844) 815-2878 for the U.S. and Canada and (615)
800-6885 for international callers and enter conference ID #46077901. The call
will also be webcast live on the investor relations section of the Company's
website at http://investors.mimecast.com. An audio replay of the call will be
available two hours after the live call ends by dialing (855) 859-2056 for U.S.
and Canada or (404) 537-3406 for international callers, and entering
passcode #46077901. In addition, an archive of the webcast will be available on
the investor relations section of the company's website
at http://investors.mimecast.com.
About Mimecast Limited
Mimecast Limited (NASDAQ:MIME) makes business email and data safer for more than
19,900 customers and millions of employees worldwide. Founded in 2003, the
Company's next-generation cloud-based security, archiving and continuity
services protect email, and deliver comprehensive email risk management in a
single, fully-integrated subscription service. Mimecast reduces email risk and
the complexity and cost of managing the array of point solutions traditionally
used to protect email and its data. For customers that have migrated to cloud
services like Microsoft® Office 365(TM), Mimecast mitigates single vendor
exposure by strengthening security coverage, combating downtime and improving
archiving.
Safe Harbor for Forward-Looking Statements
Statements in this press release regarding management's future expectations,
beliefs, intentions, goals, strategies, plans or prospects, including, without
limitation, the statements relating to Mimecast's future financial performance
on both a GAAP and non-GAAP basis under the heading "Business Outlook" above,
may constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and other federal securities laws. All
statements, other than statements of historical fact, are statements that could
be deemed forward-looking statements, including statements containing the words
"predicts," "plan," "expects," "anticipates," "believes," "goal," "target,"
"estimate," "potential," "may," "might," "could," "see," "seek," "forecast," and
similar words. Mimecast intends all such forward-looking statements to be
covered by the safe harbor provisions for forward-looking statements contained
in Section 21E of the Exchange Act and the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors including those risks, uncertainties and factors
detailed in Mimecast's filings with the Securities and Exchange Commission. As a
result of such risks, uncertainties and factors, Mimecast's actual results may
differ materially from any future results, performance or achievements discussed
in or implied by the forward-looking statements contained herein. Mimecast is
providing the information in this press release as of this date and assumes no
obligations to update the information included in this press release or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.
Non-GAAP Financial Measures
We have provided in this release financial information that has not been
prepared in accordance with GAAP. We use these non-GAAP financial measures
internally in analyzing our financial results and believe they are useful to
investors, as a supplement to GAAP measures, in evaluating our ongoing
operational performance. We believe that the use of these non-GAAP financial
measures provides an additional tool for investors to use in evaluating ongoing
operating results and trends and in comparing our financial results with other
companies in our industry, many of which present similar non-GAAP financial
measures to investors.
Non-GAAP financial measures should not be considered in isolation from, or as a
substitute for, financial information prepared in accordance with GAAP.
Investors are encouraged to review the reconciliation of these non-GAAP
financial measures to their most directly comparable GAAP financial measures
provided in the financial statement tables included below in this press release
Revenue Constant Currency Growth Rate. We believe revenue constant currency
growth rate is a key indicator of our operating results. We calculate revenue
constant currency growth rate by translating revenue from entities reporting in
foreign currencies into U.S. dollars using the comparable foreign currency
exchange rates from the prior fiscal period. To determine projected revenue
growth rates on a constant currency basis for first quarter and full year 2017,
expected revenue from entities reporting in foreign currencies was translated
into U.S. dollars using the comparable prior year period's monthly average
foreign currency exchange rates.
Adjusted EBITDA and Adjusted EBITDA margin. We believe that Adjusted EBITDA and
Adjusted EBITDA margin are key indicators of our operating results. We define
Adjusted EBITDA as net income (loss), adjusted to exclude: depreciation and
amortization, share-based compensation expense, interest income and interest
expense, the provision for income taxes and foreign exchange income (expense)
predominantly related to the elimination of intercompany balances. We define
Adjusted EBITDA margin as Adjusted EBITDA over revenue in the period.
Non-GAAP net income (loss). We define non-GAAP net income (loss) as net income
(loss) less share-based compensation expense. We consider this non-GAAP
financial measure to be a useful metric for management and investors because it
excludes the effect of share-based compensation expense so that our management
and investors can compare our recurring core business net results over multiple
periods. There are a number of limitations related to the use of non-GAAP net
income (loss) versus net income (loss) calculated in accordance with GAAP. For
example, as noted above, non-GAAP net income (loss) excludes share-based
compensation expense. In addition, the components of the costs that we exclude
in our calculation of non-GAAP net income (loss) may differ from the components
that our peer companies exclude when they report their non-GAAP results of
operations. Management compensates for these limitations by providing specific
information regarding the GAAP amounts excluded from non-GAAP net income (loss)
and evaluating non-GAAP net income (loss) together with net income (loss)
calculated in accordance with GAAP.
Free cash flow. We define free cash flow as net cash provided by operating
activities minus capital expenditures. We consider free cash flow to be a
liquidity measure that provides useful information to management and investors
about the amount of cash generated by the business that, after the acquisition
of property and equipment, can be used for strategic opportunities, including
investing in our business, and strengthening the balance sheet. Analysis of free
cash flow facilitates management's comparisons of our operating results to
competitors' operating results. A limitation of using free cash flow versus the
GAAP measure of net cash provided by operating activities as a means for
evaluating our company is that free cash flow does not represent the total
increase or decrease in the cash balance from operations for the period because
it excludes cash used for capital expenditures during the period. Management
compensates for this limitation by providing information about our capital
expenditures on the face of the cash flow statement and in the "Management's
Discussion and Analysis of Financial Condition and Results of Operations -
Liquidity and Capital Resources" section of our reports filed with the SEC.
MIMECAST LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended
June 30,
2016 2015
Revenue $ 41,460 $ 33,328
Cost of revenue 11,339 9,876
Gross profit 30,121 23,452
Operating expenses
Research and development 5,149 3,530
Sales and marketing 21,463 13,121
General and administrative 6,456 4,691
Total operating expenses 33,068 21,342
(Loss) income from operations (2,947 ) 2,110
Other income (expense)
Interest income 67 17
Interest expense (107 ) (177 )
Foreign exchange income (expense) 4,096 (3,841 )
Total other income (expense), net 4,056 (4,001 )
Income (loss) before income taxes 1,109 (1,891 )
Provision for income taxes 865 358
Net income (loss) $ 244 $ (2,249 )
Net income (loss) available to ordinary shareholders $ 244 $ (2,249 )
- basic and diluted
Net income (loss) per ordinary share:
Basic $ 0.00 $ (0.07 )
Diluted $ 0.00 $ (0.07 )
Weighted-average number of ordinary shares
outstanding:
Basic 54,287 33,066
Diluted 57,655 33,066
MIMECAST LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)
At June At March
30, 31,
2016 2016
Assets
Current assets
Cash and cash equivalents $ 108,658 $ 106,140
Accounts receivable, net 30,708 33,738
Prepaid expenses and other current assets 5,976 7,362
Total current assets 145,342 147,240
Property and equipment, net 28,971 24,806
Other assets 2,547 3,081
Total assets $ 176,860 $ 175,127
Liabilities and shareholders' equity
Current liabilities
Accounts payable $ 6,234 $ 2,891
Accrued expenses and other current liabilities 15,067 15,110
Deferred revenue 60,433 60,889
Current portion of long-term debt 3,966 4,910
Total current liabilities 85,700 83,800
Deferred revenue, net of current portion 9,443 9,151
Long-term debt 1,296 1,981
Other non-current liabilities 2,047 2,121
Total liabilities 98,486 97,053
Contingencies
Shareholders' equity
Ordinary shares, $0.012 par value, 300,000,000
shares authorized;
54,476,620 and 54,216,738 shares issued and 654 651
outstanding at
June 30, 2016 and March 31, 2016, respectively
Additional paid-in capital 172,553 169,037
Accumulated deficit (88,332 ) (88,576 )
Accumulated other comprehensive loss (6,501 ) (3,038 )
Total shareholders' equity 78,374 78,074
Total liabilities and shareholders' equity $ 176,860 $ 175,127
MIMECAST LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three months ended
June 30,
2016 2015
Operating activities
Net income (loss) $ 244 $ (2,249 )
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 2,764 2,536
Share-based compensation expense 2,043 843
Provision for doubtful accounts 20 25
Loss on disposal of fixed assets 2 3
Non-cash interest expense 25 27
Excess tax benefits related to exercise of share (466 ) (289 )
options
Unrealized currency (gain) loss on foreign (3,817 ) 3,367
denominated intercompany transactions
Changes in assets and liabilities:
Accounts receivable 2,128 1,949
Prepaid expenses and other current assets 1,496 1,524
Other assets - 192
Accounts payable 1,993 (548 )
Deferred revenue 2,450 1,152
Accrued expenses and other liabilities 425 (721 )
Net cash provided by operating activities 9,307 7,811
Investing activities
Purchases of property and equipment (5,586 ) (4,769 )
Net cash used in investing activities (5,586 ) (4,769 )
Financing activities
Proceeds from exercises of share options 1,014 414
Excess tax benefits related to exercise of share 466 289
options
Payments on debt (1,293 ) (1,373 )
Net cash provided by (used in) financing activities 187 (670 )
Effect of foreign exchange rates on cash (1,390 ) 1,248
Net increase in cash and cash equivalents 2,518 3,620
Cash and cash equivalents at beginning of period 106,140 32,890
Cash and cash equivalents at end of period $ 108,658 $ 36,510
Key Performance Indicators
In addition to traditional financial metrics, such as revenue and revenue growth
trends, we monitor several other non-GAAP financial measures and non-financial
metrics to help us evaluate growth trends, establish budgets, measure the
effectiveness of our sales and marketing efforts and assess operational
efficiencies. The key performance indicators that we monitor are as follows:
Three months ended
June 30,
2016 2015
(dollars in
thousands)
Gross profit percentage 73 % 70 %
Revenue constant currency growth rate (1) 32 % 32 %
Revenue retention rate (2) 110 % 108 %
Total customers (3) 19,900 14,500
Adjusted EBITDA (1) $ 1,860 $ 5,489
(1) Adjusted EBITDA and revenue constant currency growth rates are non-GAAP
measures. For a reconciliation of Adjusted EBITDA and revenue constant
currency growth rates to the nearest comparable GAAP measures, see
"Reconciliation of Non-GAAP Financial Measures" below.
(2) We calculate our revenue retention rate by annualizing constant currency
revenue recorded on the last day of the measurement period for only those
customers in place throughout the entire measurement period. We include add-
on, or upsell, revenue from additional employees and services purchased by
existing customers. We divide the result by revenue on a constant currency
basis on the first day of the measurement period for all customers in place
at the beginning of the measurement period. The measurement period is the
trailing twelve months. The revenue on a constant currency basis is based on
the average exchange rates in effect during the respective period.
(3) Reflects the customer count on the last day of the period rounded to the
nearest hundred customers. We define a customer as an entity with an active
subscription contract as of the measurement date. A customer is typically a
parent company or, in a few cases, a significant subsidiary that works with
us directly.
Reconciliation of Non-GAAP Financial Measures
Three months ended
June 30,
2016 2015
(dollars in
thousands)
Reconciliation of Revenue Constant Currency Growth
Rate:
Revenue, as reported $ 41,460 $ 33,328
Revenue year-over-year growth rate, as reported 24 % 24 %
Estimated impact of foreign currency fluctuations 8 % 8 %
Revenue constant currency growth rate 32 % 32 %
The following table presents a reconciliation of net income (loss) to Adjusted
EBITDA:
Three months ended June 30,
2016 2015
(in thousands)
Reconciliation of Adjusted EBITDA:
Net income (loss) $ 244 $ (2,249 )
Depreciation and amortization 2,764 2,536
Interest expense, net 40 160
Provision for income taxes 865 358
Share-based compensation expense 2,043 843
Foreign exchange (income) expense (4,096 ) 3,841
Adjusted EBITDA $ 1,860 $ 5,489
The following table presents a reconciliation of Net income (loss) to Non-GAAP
net income (loss) (in thousands, except per share amounts):
Three months ended
June 30,
2016 2015
Reconciliation of Non-GAAP Net Income (Loss):
Net income (loss) $ 244 $ (2,249 )
Share-based compensation expense 2,043 843
Non-GAAP net income (loss) $ 2,287 $ (1,406 )
Non-GAAP net income (loss) per ordinary share - $ 0.04 $ (0.04 )
basic
Weighted-average number of ordinary shares used in
computing 54,287 33,066
Non-GAAP net income (loss) per ordinary share -
basic
The following table presents a reconciliation of Net cash provided by operating
activities to Free Cash Flow (in thousands):
Three months ended
June 30,
2016 2015
Reconciliation of Free Cash Flow:
Net cash provided by operating activities $ 9,307 $ 7,811
Purchases of property and equipment (5,586 ) (4,769 )
Free Cash Flow $ 3,721 $ 3,042
Share-based compensation expense for three months ended June 30, 2016 and 2015
(in thousands):
Three months ended June 30,
2016 2015
Cost of revenue $ 170 $ 22
Research and development 372 29
Sales and marketing 973 83
General and administrative 528 709
Total share-based compensation expense $ 2,043 $ 843
Revenue Constant Currency Growth Rate reconciliation (dollars in millions):
Three months ended June 30,
2016A 2015A %
Change
Total revenue as reported $ 41.5 $ 33.3 24 %
Estimated impact of foreign currency 8 %
fluctuations
Total revenue constant currency growth rate 32 %
Exchange rate for period
USD 1.000 1.000
ZAR 0.067 0.083
GBP 1.434 1.532
AUD 0.746 0.778
Media Contact:
Lona Therrien / Mimecast Limited / (781) 996-5340 / press(at)mimecast.com
Investor Contact:
Robert Sanders / Mimecast Limited / (781) 996-5340 / investors(at)mimecast.com
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Mimecast Limited via GlobeNewswire
[HUG#2033623]
Datum: 08.08.2016 - 22:13 Uhr
Sprache: Deutsch
News-ID 487881
Anzahl Zeichen: 33535
contact information:
Town:
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Kategorie:
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