Mimecast Announces Fourth Quarter and Full Year 2017 Financial Results

  • Total revenue of $52.4 million grew 42% yoy on a GAAP basis and 45% in constant currency
  • Added 1,500 new customers. Total customers 26,400 globally
  • Revenue retention rate of 111%
  • Gross profit percentage of 74%
  • GAAP EPS of $(0.05) per basic and diluted share, Non-GAAP EPS of $(0.00) per basic and diluted share

Watertown, MA – May 9, 2017 (GLOBE NEWSWIRE) Mimecast Limited (NASDAQ: MIME), a leading email and data security company, today announced financial results for the fourth quarter and full year ended March 31, 2017.

“2017 was a year of outperformance for Mimecast.  We exceeded our expectations for both top and bottom line growth.  We hired aggressively and acquired industry leading talent across the organization. We expanded our ecosystem with channel and marketing partners.  Importantly, we launched new products, like Internal Email Protect, to support our future success.” stated Peter Bauer, CEO of Mimecast.

 

Mimecast’s CFO Peter Campbell noted, “We are very pleased that our revenue growth accelerated to 42% as reported and 45% on a constant currency basis in the fourth quarter. We are also pleased that we signed on more mid and large customers this quarter, driving higher average order values.”

Fourth Quarter 2017 Financial Highlights

  • Revenue: GAAP revenue for the fourth quarter of 2017 was $52.4 million, an increase of 42% compared to $36.9 million of GAAP revenue in the fourth quarter of 2016. Revenue on a constant currency basis increased 45% compared to the fourth quarter of 2016.
  • Customers: Added 1,500 net new customers in the fourth quarter of 2017. We now serve over 26,400 organizations globally.
  • Revenue Retention Rate: Revenue retention rate was 111% in the fourth quarter of 2017, up from 109% in the fourth quarter of 2016.
  • Gross Profit Percentage: Gross profit percentage was 74% in the fourth quarter of 2017, up from 70% in the fourth quarter of 2016.
  • GAAP Net Loss: GAAP net loss was $2.6 million, or $(0.05) per basic and diluted share, based on 55.4 million weighted-average shares outstanding.
  • Adjusted EBITDA: Adjusted EBITDA was $3.6 million, representing an Adjusted EBITDA margin of 6.8% up from 1.3% in the fourth quarter of 2016.
  • Non-GAAP Net Loss: Non-GAAP net loss was $0.2 million, or $(0.00) per share, based on 55.4 million diluted shares outstanding.
  • Free Cash Flow and Cash: Mimecast generated $4.8 million of free cash flow in the fourth quarter of 2017. Cash and short-term investments as of March 31, 2017 were $111.7 million.

Full Year 2017 Financial Highlights

  • Revenue: GAAP revenue for 2017 was $186.6 million, an increase of 32% compared to the $141.8 million of GAAP revenue in 2016. Revenue on a constant currency basis grew 39% compared to 2016.
  • Customers: Added 8,400 net new customers in 2017.
  • Revenue Retention Rate: Revenue retention rate was 111% for 2017.
  • Gross Profit Percentage: Gross profit percentage was 73% in 2017, up from 71% in 2016.
  • GAAP Net Loss: GAAP net loss was $5.4 million, or $(0.10) per basic and diluted share, based on 54.8 million weighted-average shares outstanding.
  • Adjusted EBITDA: Adjusted EBITDA was $11.8 million, representing an Adjusted EBITDA margin of 6.3% down from 11.2% in 2016.
  • Non-GAAP Net Income: Non-GAAP net income was $4.6 million, or $0.08 per share, based on 59.0 million diluted shares outstanding.
  • Cash and Free Cash Flow: Mimecast generated $14.0 million of free cash flow in 2017.

 

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.”

Fourth Quarter 2017 Business Highlights

  • Sales of Targeted Threat Protection increased during the fourth quarter, with more than 1,400 new customers and over 600 existing customers purchasing the service. Organizations continue to be challenged by advanced threats and increasingly are turning to Mimecast for protection. A total of 38% of our customers are now using Targeted Threat Protection.
  • A total of 21% of customers used Mimecast in conjunction with Microsoft® Office 365™ during the fourth quarter compared to 19% in the third quarter of 2017. More than 5,600 customers of all sizes have selected Mimecast to enhance their security, archive their data, and to provide uptime assurance for their Office 365 investments.
  • Mimecast launched, Internal Email Protect a new component of our Target Treat Protection suite of services.  We are now providing customers the ability to analyze and remediate email traffic that originates and is delivered inside an organization, protecting against threats that operate behind the corporate firewall.   This first-to-market service is unique in that it can be deployed to any email environment weather on premise, in the cloud or hybrid.
  • Mimecast introduced, Email Security Risk Assessor (ESRA).  This tool has uncovered millions of email attacks that have gotten through incumbent email systems.  Prospective customers now have the ability to identify security threats that Mimecast can block but pass through their current email gateways. 

Business Outlook

Mimecast is providing guidance for the first quarter and fiscal year 2018.

First Quarter 2018 Guidance:

For the first quarter of 2018, constant currency revenue growth is expected to be in the range of 35% to 36% and revenue is expected to be in the range of $54.7 million to $55.3 million. Our guidance is based on exchange rates as of April 30, 2017 and includes an estimated negative impact of $1.0 million resulting from the strengthening of the U.S. dollar compared to the prior year. This resulted from a negative impact related to the British Pound of $2.0 million but was offset by positive impacts from the South African Rand of $1.0 million.  Adjusted EBITDA for the first quarter is expected to be in the range of $3.3 million to $4.3 million. 

Full Year 2018 Guidance:

For the full year 2018, revenue is expected to be the range of $239.4 million to $247.6 million or 28% to 32% revenue growth in constant currency.  Foreign exchange rate fluctuations are positively impacting this guidance by an estimated $0.9 million. Adjusted EBITDA is expected to be in the range of $18.7 million to $20.7 million.

GAAP net loss is the most comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA differs from GAAP net 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. 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 loss or a reconciliation of forward-looking Adjusted EBITDA guidance to GAAP net loss.

Conference Call and Webcast Information

Mimecast will host a conference call to discuss these financial results for investors and analysts at 4:30 pm EDT (UTC-05:00) on May 9, 2017.  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# 4843836.  The call will also be webcast live on the investor relations section of the Company’s website 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 ID# 4843836.  In addition, an archive of the webcast will be available on the investor relations section of the company’s website http://investors.mimecast.com.

About Mimecast Limited

Mimecast Limited (NASDAQ: MIME) makes business email and data safer for more than 26,400 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™, Mimecast mitigates single vendor exposure by strengthening security coverage, combating downtime and improving archiving.

 

Mimecast and the Mimecast logo are registered trademarks of Mimecast. All other third party marks and logos contained in this press release are the property of their respective owners.

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 the future success of new products, including Internal Email Protect, the expected continued momentum of Mimecast in the marketplace and 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 the first quarter and full year 2018, expected revenue from entities reporting in foreign currencies will be 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 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 predominantly related to the elimination of intercompany balances. We define Adjusted EBITDA margin as Adjusted EBITDA over revenue in the period.

Non-GAAP net (loss) income. We define non-GAAP net (loss) income as net loss less share-based compensation expense and the related income tax effects of excluding 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 and related income tax effects 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 (loss) income versus net loss calculated in accordance with GAAP. For example, as noted above, non-GAAP net (loss) income excludes share-based compensation expense and related income tax effects. In addition, the components of the costs that we exclude in our calculation of non-GAAP net (loss) income 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 (loss) income and evaluating non-GAAP net (loss) income together with net 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 liquidity and capital resources discussion included in our annual and quarterly reports filed with the Securities and Exchange Commission.

 

MIMECAST LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

 

Three months ended March 31,

 

 

Year Ended March 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenue

 

$

52,409

 

 

$

36,876

 

 

$

186,563

 

 

$

141,841

 

Cost of revenue

 

 

13,454

 

 

 

11,089

 

 

 

50,314

 

 

 

41,809

 

Gross profit

 

 

38,955

 

 

 

25,787

 

 

 

136,249

 

 

 

100,032

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

6,607

 

 

 

4,736

 

 

 

22,593

 

 

 

17,663

 

Sales and marketing

 

 

26,489

 

 

 

19,603

 

 

 

96,154

 

 

 

65,187

 

General and administrative

 

 

7,828

 

 

 

5,497

 

 

 

27,875

 

 

 

19,756

 

Total operating expenses

 

 

40,924

 

 

 

29,836

 

 

 

146,622

 

 

 

102,606

 

Loss from operations

 

 

(1,969

)

 

 

(4,049

)

 

 

(10,373

)

 

 

(2,574

)

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

203

 

 

 

32

 

 

 

510

 

 

 

74

 

Interest expense

 

 

(24

)

 

 

(118

)

 

 

(268

)

 

 

(690

)

Foreign exchange income

 

 

158

 

 

 

2,707

 

 

 

6,892

 

 

 

811

 

Total other income (expense), net

 

 

337

 

 

 

2,621

 

 

 

7,134

 

 

 

195

 

Loss before income taxes

 

 

(1,632

)

 

 

(1,428

)

 

 

(3,239

)

 

 

(2,379

)

Provision for income taxes

 

 

986

 

 

 

536

 

 

 

2,202

 

 

 

865

 

Net loss

 

$

(2,618

)

 

$

(1,964

)

 

$

(5,441

)

 

$

(3,244

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per ordinary share - basic and diluted

 

$

(0.05

)

 

$

(0.04

)

 

$

(0.10

)

 

$

(0.08

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of ordinary shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

55,375

 

 

 

54,172

 

 

 

54,810

 

 

 

40,826

 

MIMECAST LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

At March 31,

 

 

 

2017

 

 

2016

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

51,319

 

 

$

106,140

 

Short-term investments

 

 

60,347

 

 

 

 

Accounts receivable, net

 

 

44,358

 

 

 

33,738

 

Prepaid expenses and other current assets

 

 

10,054

 

 

 

7,362

 

Total current assets

 

 

166,078

 

 

 

147,240

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

32,009

 

 

 

24,806

 

Intangible assets, net

 

 

1,590

 

 

 

 

Goodwill

 

 

5,363

 

 

 

254

 

Other assets

 

 

312

 

 

 

2,827

 

Total assets

 

$

205,352

 

 

$

175,127

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,558

 

 

$

2,891

 

Accrued expenses and other current liabilities

 

 

20,713

 

 

 

15,110

 

Deferred revenue

 

 

84,159

 

 

 

60,889

 

Current portion of capital lease obligations

 

 

233

 

 

 

 

Current portion of long-term debt

 

 

1,725

 

 

 

4,910

 

Total current liabilities

 

 

110,388

 

 

 

83,800

 

 

 

 

 

 

 

 

 

 

Deferred revenue, net of current portion

 

 

11,189

 

 

 

9,151

 

Long-term capital lease obligations

 

 

245

 

 

 

 

Long-term debt

 

 

 

 

 

1,981

 

Other non-current liabilities

 

 

1,538

 

 

 

2,121

 

Total liabilities

 

 

123,360

 

 

 

97,053

 

 

 

 

 

 

 

 

 

 

Contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

 

Ordinary shares, $0.012 par value, 300,000,000 shares authorized; 55,901,996

   and 54,216,738 shares issued and outstanding at March 31, 2017 and 2016,

   respectively

 

 

671

 

 

 

651

 

Additional paid-in capital

 

 

183,752

 

 

 

169,037

 

Accumulated deficit

 

 

(94,017

)

 

 

(88,576

)

Accumulated other comprehensive loss

 

 

(8,414

)

 

 

(3,038

)

Total shareholders' equity

 

 

81,992

 

 

 

78,074

 

Total liabilities and shareholders' equity

 

$

205,352

 

 

$

175,127

 

MIMECAST LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Three months ended March 31,

 

 

Year ended March 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(2,618

)

 

$

(1,964

)

 

$

(5,441

)

 

$

(3,244

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

3,178

 

 

 

2,585

 

 

 

11,881

 

 

 

10,527

 

Share-based compensation expense

 

 

2,345

 

 

 

1,957

 

 

 

10,294

 

 

 

7,886

 

Provision for doubtful accounts

 

 

4

 

 

 

54

 

 

 

87

 

 

 

91

 

(Loss) gain on disposal of fixed assets

 

 

(1

)

 

 

15

 

 

 

(4

)

 

 

(5

)

Other non-cash items

 

 

66

 

 

 

25

 

 

 

132

 

 

 

106

 

Excess tax benefit related to exercise of share options

 

 

 

 

 

76

 

 

 

 

 

 

 

Unrealized currency gain on foreign denominated transactions

 

 

(203

)

 

 

(2,580

)

 

 

(6,496

)

 

 

(988

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(5,712

)

 

 

(4,295

)

 

 

(11,750

)

 

 

(9,820

)

Prepaid expenses and other current assets

 

 

(3,261

)

 

 

(1,920

)

 

 

(2,752

)

 

 

(2,191

)

Other assets

 

 

1,899

 

 

 

(421

)

 

 

1,861

 

 

 

(437

)

Accounts payable

 

 

(1,693

)

 

 

(282

)

 

 

758

 

 

 

(542

)

Deferred revenue

 

 

13,868

 

 

 

8,629

 

 

 

29,072

 

 

 

18,588

 

Accrued expenses and other liabilities

 

 

2,025

 

 

 

3,520

 

 

 

4,872

 

 

 

4,672

 

Net cash provided by operating activities

 

 

9,897

 

 

 

5,399

 

 

 

32,514

 

 

 

24,643

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of investments

 

 

(10,036

)

 

 

 

 

 

(67,550

)

 

 

 

Maturities of investments

 

 

7,000

 

 

 

 

 

 

7,000

 

 

 

 

Purchases of property and equipment

 

 

(5,134

)

 

 

(3,459

)

 

 

(18,491

)

 

 

(14,234

)

Payments for acquisitions

 

 

 

 

 

 

 

 

(5,574

)

 

 

 

Net cash used in investing activities

 

 

(8,170

)

 

 

(3,459

)

 

 

(84,615

)

 

 

(14,234

)

Financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from exercises of share options

 

 

2,513

 

 

 

247

 

 

 

4,476

 

 

 

885

 

Excess tax benefit related to exercise of share options

 

 

 

 

 

(76

)

 

 

 

 

 

 

Payments on debt

 

 

(930

)

 

 

(1,292

)

 

 

(4,559

)

 

 

(5,412

)

Payments on capital lease obligations

 

 

(249

)

 

 

 

 

 

(249

)

 

 

 

(Payments) proceeds from initial public offering, net of issuance costs

 

 

 

 

 

(104

)

 

 

 

 

 

68,328

 

Net cash provided by (used in) financing activities

 

 

1,334

 

 

 

(1,225

)

 

 

(332

)

 

 

63,801

 

Effect of foreign exchange rates on cash

 

 

396

 

 

 

(546

)

 

 

(2,388

)

 

 

(960

)

Net increase (decrease) in cash and cash equivalents

 

 

3,457

 

 

 

169

 

 

 

(54,821

)

 

 

73,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

47,862

 

 

 

105,971

 

 

 

106,140

 

 

 

32,890

 

Cash and cash equivalents at end of period

 

$

51,319

 

 

$

106,140

 

 

$

51,319

 

 

$

106,140

 

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 March 31,

 

 

Year Ended March 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(dollars in thousands)

 

Gross profit percentage

 

 

74

%

 

 

70

%

 

 

73

%

 

 

71

%

Revenue constant currency growth rate (1)

 

 

45

%

 

 

29

%

 

 

39

%

 

 

30

%

Revenue retention rate (2)

 

 

111

%

 

 

109

%

 

 

111

%

 

 

109

%

Total customers (3)

 

 

26,400

 

 

 

18,000

 

 

 

26,400

 

 

 

18,000

 

Adjusted EBITDA (1)

 

$

3,554

 

 

$

493

 

 

$

11,802

 

 

$

15,839

 

 

(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

The following table presents a reconciliation of revenue growth rate, as reported to revenue constant currency growth rate:

 

 

 

Three months ended March 31,

 

 

Year Ended March 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(dollars in thousands)

 

Reconciliation of Revenue Constant Currency Growth Rate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, as reported

 

$

52,409

 

 

$

36,876

 

 

$

186,563

 

 

$

141,841

 

Revenue year-over-year growth rate, as reported

 

 

42

%

 

 

20

%

 

 

32

%

 

 

22

%

Estimated impact of foreign currency fluctuations

 

 

3

%

 

 

9

%

 

 

7

%

 

 

8

%

Revenue constant currency growth rate

 

 

45

%

 

 

29

%

 

 

39

%

 

 

30

%

The following table presents a reconciliation of net loss to Adjusted EBITDA:

 

 

 

Three months ended

March 31,

 

 

Year Ended March 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(in thousands)

 

Reconciliation of Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(2,618

)

 

$

(1,964

)

 

$

(5,441

)

 

$

(3,244

)

Depreciation and amortization

 

 

3,178

 

 

 

2,585

 

 

 

11,881

 

 

 

10,527

 

Interest (income) expense, net

 

 

(179

)

 

 

86

 

 

 

(242

)

 

 

616

 

Provision for income taxes

 

 

986

 

 

 

536

 

 

 

2,202

 

 

 

865

 

Share-based compensation expense

 

 

2,345

 

 

 

1,957

 

 

 

10,294

 

 

 

7,886

 

Foreign exchange income

 

 

(158

)

 

 

(2,707

)

 

 

(6,892

)

 

 

(811

)

Adjusted EBITDA

 

$

3,554

 

 

$

493

 

 

$

11,802

 

 

$

15,839

 

The following table presents a reconciliation of Net loss to Non-GAAP net (loss) income (in thousands, except per share amounts):

 

 

 

 

Three months ended March 31,

 

 

Year Ended March 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Reconciliation of Non-GAAP Net (Loss) Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(2,618

)

 

$

(1,964

)

 

$

(5,441

)

 

$

(3,244

)

Share-based compensation expense

 

 

2,345

 

 

 

1,957

 

 

 

10,294

 

 

 

7,886

 

Provision for income taxes

 

 

(123

)

 

 

(270

)

 

 

288

 

 

 

39

 

Non-GAAP net (loss) income

 

$

(150

)

 

$

263

 

 

$

4,565

 

 

$

4,603

 

Non-GAAP net (loss) income per ordinary share - basic

 

 

(0.00

)

 

 

0.00

 

 

 

0.08

 

 

 

0.11

 

Non-GAAP net (loss) income per ordinary share - diluted

 

 

(0.00

)

 

 

0.00

 

 

 

0.08

 

 

 

0.10

 

Weighted-average number of ordinary shares used in

   computing Non-GAAP net (loss) income per ordinary share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

55,375

 

 

 

54,172

 

 

 

54,810

 

 

 

40,826

 

Diluted

 

 

55,375

 

 

 

57,617

 

 

 

58,971

 

 

 

44,362

 

The following table presents a reconciliation of Net cash provided by operating activities to Free Cash Flow (in thousands):

 

 

 

 

Three months ended March 31,

 

 

Year Ended March 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Reconciliation of Free Cash Flow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

9,897

 

 

$

5,399

 

 

$

32,514

 

 

$

24,643

 

Purchases of property and equipment

 

 

(5,134

)

 

 

(3,459

)

 

$

(18,491

)

 

 

(14,234

)

Free Cash Flow

 

$

4,763

 

 

$

1,940

 

 

$

14,023

 

 

$

10,409

 

Share-based compensation expense for the three and twelve months ended March 31, 2017 and 2016 (in thousands):

 

 

 

Three months ended March 31,

 

 

Year Ended March 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Cost of revenue

 

$

152

 

 

$

154

 

 

$

1,353

 

 

$

633

 

Research and development

 

 

405

 

 

 

344

 

 

 

1,873

 

 

 

1,711

 

Sales and marketing

 

 

1,082

 

 

 

849

 

 

 

4,719

 

 

 

3,180

 

General and administrative

 

 

706

 

 

 

610

 

 

 

2,349

 

 

 

2,362

 

Total share-based compensation expense

 

$

2,345

 

 

$

1,957

 

 

$

10,294

 

 

$

7,886

 

Revenue Constant Currency Growth Rate reconciliation (dollars in millions):

 

 

 

 

Three months ended March 31,

 

 

Year Ended March 31,

 

 

 

2017

 

 

2016

 

 

% Change

 

 

2017

 

 

2016

 

 

% Change

 

Total revenue as reported

 

$

52.4

 

 

$

36.9

 

 

 

42

%

 

$

186.6

 

 

$

141.8

 

 

 

32

%

Estimated impact of foreign currency fluctuations

 

 

 

 

 

 

 

 

 

 

3

%

 

 

 

 

 

 

 

 

 

 

7

%

Total revenue constant currency growth rate

 

 

 

 

 

 

 

 

 

 

45

%

 

 

 

 

 

 

 

 

 

 

39

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange rate for period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD

 

 

1.000

 

 

 

1.000

 

 

 

 

 

 

 

1.000

 

 

 

1.000

 

 

 

 

 

ZAR

 

 

0.076

 

 

 

0.063

 

 

 

 

 

 

 

0.071

 

 

 

0.073

 

 

 

 

 

GBP

 

 

1.239

 

 

 

1.433

 

 

 

 

 

 

 

1.308

 

 

 

1.508

 

 

 

 

 

AUD

 

 

0.758

 

 

 

0.722

 

 

 

 

 

 

 

0.753

 

 

 

0.736

 

 

 

 

 

 

 

 

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Press Contact

Alison Raymond Walsh

Press@Mimecast.com

617-393-7126

 

Investor Contact

Robert Sanders

Investors@Mimecast.com

617-393-7074

 

Disclaimer: Press releases are provided for historical purposes only. The information contained in each is accurate only as of the date the press release was originally issued.