LEXINGTON, Mass., Feb. 03, 2021 (GLOBE NEWSWIRE) — Mimecast Limited (NASDAQ: MIME), a number one electronic mail and information safety firm, at the moment introduced monetary outcomes for the third fiscal quarter ended December 31, 2020.
General Highlights
- Whole income of $129.6 million grew 18% year-over-year on a GAAP foundation and 17% in fixed forex.
- Stable execution of multi-product technique drives common companies per buyer to three.5 from 3.3 in the identical quarter final yr.
- Added 500 internet new prospects. Whole prospects 39,600 globally.
- Vital wins in enterprise, together with 24 six-figure offers.
- Internet Income retention fee of 104%.
- GAAP gross revenue proportion of 76%, Non-GAAP gross revenue proportion of 77%.
- GAAP EPS of $0.16 per diluted share, Non-GAAP EPS of $0.33 per diluted share.
- Helene Auriol Potier joined the Board of Administrators. Ms. Auriol Potier brings vital experience and expertise to Mimecast’s Board together with her prior management roles at Orange Enterprise Companies, Microsoft, Dell Applied sciences and Nortel.
- Mimecast strengthens management crew with the appointment of Shahriar Rafimayeri as Chief Info Officer and Michael Paisley as Chief Safety and Resilience Officer.
- Mimecast SecOps 2021|digital convention displays buyer advantages of expanded Cyber Alliance API & Tech Partners.
- Awarded as 2021 Prime Office in USA with further recognition for Know-how Business management and innovation.
Peter Bauer, chief govt officer of Mimecast, stated, “We delivered stable progress and profitability this quarter, with key wins within the enterprise area and continued progress towards our multi-product technique. We’re delivering more and more sturdy money move and significant margin enlargement. We anticipate continued top-line progress, however delivering progress at our long-term targets will take further time and funding. We’re prioritizing assets to raised align with our technique, together with by implementing a discount in drive. We’re assured these actions will assist energy the subsequent evolution of our enterprise.”
Mr. Bauer continued, “We’re working shortly and thoughtfully to handle our lately disclosed cyber incident, and are proactively prioritizing our prospects’ safety and transparency. Whereas our investigation is ongoing, we imagine that the steps now we have taken as a part of our ongoing response have been efficient. We’ll proceed to look at and intently monitor the environment, collaborate intently with our prospects and take acceptable actions to fortify their protections and strengthen their resilience.”
Monetary and Working Highlights
- Income: Income for the third quarter of 2021 was $129.6 million, a rise of 18% in comparison with income of $110.2 million within the third quarter of 2020. Income on a relentless forex foundation elevated 17% in comparison with the third quarter of 2020.
- Clients: Added 500 internet new prospects within the third quarter of 2021, and now serve 39,600 organizations globally.
- Income Retention Fee: Income retention fee was 104% within the third quarter of 2021.
- Gross Revenue Proportion: Gross revenue proportion was 76% within the third quarter of 2021, in comparison with 74% within the third quarter of 2020.
- Non-GAAP Gross Revenue Proportion: Non-GAAP gross revenue proportion was 77% within the third quarter of 2021, in comparison with 76% within the third quarter of 2020.
- Internet Revenue: Internet revenue was $10.8 million, or $0.16 per diluted share, primarily based on 66.0 million diluted shares excellent within the third quarter of 2021, in comparison with internet revenue of $0.2 million, or $0.00 per diluted share, primarily based on 64.0 million diluted shares excellent within the third quarter of 2020.
- Non-GAAP Internet Revenue: Non-GAAP internet revenue was $21.5 million, or $0.33 per diluted share, primarily based on 66.0 million diluted shares excellent within the third quarter of 2021, in comparison with non-GAAP internet revenue of $8.8 million or $0.14 per diluted share, primarily based on 64.0 million diluted shares excellent within the third quarter of 2020.
- Adjusted EBITDA: Adjusted EBITDA was $34.6 million within the third quarter of 2021, representing an Adjusted EBITDA margin of 26.7%, up from 18.7% within the third quarter of 2020.
- Working Money Circulation: Working money move was $35.0 million within the third quarter of 2021, in comparison with $19.3 million within the third quarter of 2020.
- Free Money Circulation and Money: Free money move was $24.2 million within the third quarter of 2021, in comparison with $1.9 million within the third quarter of 2020. Money and money equivalents as of December 31, 2020 had been $270.9 million.
Reconciliations of the non-GAAP monetary measures offered on this press launch to their most immediately comparable GAAP monetary measures are offered within the monetary tables included on the finish of this press launch. An evidence of those measures and the way they’re calculated can also be included below the heading “Non-GAAP Monetary Measures.”
Restructuring
The Firm can also be asserting that its Board of Administrators accredited a restructuring plan designed to align the Firm’s assets with its technique. The restructuring plan, which features a discount of the Firm’s workforce by roughly 4%, will allow the Firm to extend funding in strategic progress areas. The Firm at the moment estimates that it’s going to acknowledge pre-tax fees to its GAAP monetary outcomes of roughly $3.7 million, consisting of severance and different one-time termination advantages, and different restructuring associated prices. These fees are primarily cash-based and are anticipated to be acknowledged within the fourth quarter of fiscal 2021. The actions related to the restructuring plan are anticipated to be accomplished by the top of the primary quarter of fiscal 2022.
Monetary Outlook
Mimecast is offering steerage for the fourth quarter 2021, fiscal yr 2021 and monetary yr 2022.
Fourth Quarter 2021 Steering:
- For the fourth quarter of 2021, income is predicted to be within the vary of $130.5 million to $131.5 million and fixed forex income progress is predicted to be within the vary of 11% to 12%.
- Adjusted EBITDA for the fourth quarter is predicted to be within the vary of $28.3 million to $29.3 million.
- Working money move for the fourth quarter is predicted to be roughly $28.0 million.
- Free money move for the fourth quarter is predicted to be roughly $22.0 million.
Our income steerage for the fourth quarter relies on alternate charges as of January 26, 2021, and contains an estimated constructive affect of $3.8 million ensuing from the weakening of the U.S. greenback in comparison with the prior yr.
Fiscal Yr 2021 Steering:
- For the complete yr 2021, income is predicted to be within the vary of $498.0 million to $499.0 million and fixed forex income progress is predicted to be roughly 17%.
- International alternate fee fluctuations are positively impacting this steerage by an estimated $0.4 million in comparison with the charges in impact within the prior yr.
- Full yr 2021 Adjusted EBITDA is predicted to be within the vary of $122.2 million to $123.2 million.
- Working money move for the complete yr 2021 is predicted to be within the vary of $123.0 million to $124.0 million.
- Free money move for the complete yr 2021 is predicted to be within the vary of $86.0 million to $87.0 million.
Fiscal Yr 2022 Steering:
- For the complete yr 2022, income is predicted to be within the vary of $558.0 million to $568.0 million and fixed forex income progress is predicted to be within the vary of 9% to 11%.
- International alternate fee fluctuations are positively impacting this steerage by an estimated $14 million in comparison with the charges in impact within the prior yr.
- Full yr 2022 Adjusted EBITDA is predicted to be roughly $146.0 million.
- Working money move for the complete yr 2022 is predicted to be roughly $158.0 million.
- Free money move for the complete yr 2022 is predicted to be roughly $121.0 million.
GAAP internet revenue (loss) is essentially the most comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA differs from GAAP internet revenue (loss) in that it excludes depreciation, amortization, disposals and impairment of long-lived belongings, acquisition-related positive factors and bills, litigation-related bills, share-based compensation expense, restructuring expense, curiosity revenue and curiosity expense, the availability for revenue taxes and international alternate revenue (expense). Mimecast is unable to foretell with affordable certainty the final word consequence of those exclusions with out unreasonable effort. Due to this fact, Mimecast has not offered steerage for GAAP internet revenue (loss) or a reconciliation of forward-looking Adjusted EBITDA steerage to GAAP internet revenue (loss).
The monetary steerage offered above contains forward-looking statements inside the that means of U.S. securities legal guidelines. Whereas the monetary steerage considers the anticipated affect of the Firm’s lately disclosed safety incident and the worldwide COVID-19 pandemic, the longer term impact of the safety incident and the pandemic on Mimecast’s monetary outcomes is extremely unsure. Mimecast’s precise outcomes might differ materially. See “Secure Harbor for Ahead-Wanting Statements” under.
Convention Name and Webcast Info
Mimecast will host a convention name to debate these monetary outcomes for buyers and analysts at 8:30 am EST (UTC-05:00) on February 3, 2021. To entry the convention name, dial (844) 402-0879 for the U.S. and Canada and +1 (478) 219-0767 for worldwide callers, convention ID# 4036414. The decision will even be webcast dwell on the investor relations part of the Firm’s web site https://investors.mimecast.com. An audio replay of the decision shall be obtainable two hours after the dwell name ends by dialing (855) 859-2056 for U.S. and Canada or +1 (404) 537-3406 for worldwide callers, convention ID# 4036414. An archive of the webcast shall be obtainable on the investor relations part of the Firm’s web site https://investors.mimecast.com.
About Mimecast
Mimecast (NASDAQ: MIME) was born in 2003 with a deal with delivering relentless safety. Every day, we tackle cyber disruption for our tens of hundreds of shoppers across the globe; all the time placing them first, and by no means giving up on tackling their largest safety challenges collectively. We’re the corporate that constructed an intentional and scalable design ideology that solves the primary cyberattack vector – electronic mail. We constantly make investments to thoughtfully combine model safety, safety consciousness coaching, internet safety, compliance and different important capabilities. Mimecast is right here to assist defend massive and small organizations from malicious exercise, human error and expertise failure; and to steer the motion towards constructing a extra resilient world. www.mimecast.com
Mimecast and the Mimecast brand are registered logos of Mimecast. All different third-party logos and logos contained on this press launch are the property of their respective homeowners.
Non-GAAP Monetary Measures
We now have offered on this press launch monetary data that has not been ready in accordance with GAAP. We use these non-GAAP monetary measures internally in analyzing our monetary outcomes and imagine they’re helpful to buyers, as a complement to GAAP measures, in evaluating our ongoing operational efficiency. We imagine that the usage of these non-GAAP monetary measures offers an extra software for buyers to make use of in evaluating ongoing working outcomes and developments and in evaluating our monetary outcomes with different firms in our trade, lots of which current related non-GAAP monetary measures to buyers.
Non-GAAP monetary measures shouldn’t be thought of in isolation from, or as an alternative choice to, monetary data ready in accordance with GAAP. Buyers are inspired to overview the reconciliation of those non-GAAP monetary measures to their most immediately comparable GAAP monetary measures offered within the monetary assertion tables included under on this press launch.
Income Fixed Foreign money Progress Fee. We imagine income fixed forex progress fee is a key indicator of our working outcomes. We calculate income fixed forex progress fee by translating income from entities reporting in foreign currency echange into U.S. {dollars} utilizing the comparable international forex alternate charges from the prior fiscal interval. To find out projected income progress charges on a relentless forex foundation for the fourth quarter and full yr 2021, anticipated income from entities reporting in foreign currency echange is translated into U.S. {dollars} utilizing the comparable prior yr interval’s month-to-month common international forex alternate charges.
Non-GAAP gross revenue and Non-GAAP gross revenue proportion. We outline non-GAAP gross revenue as gross revenue, adjusted to exclude: share-based compensation expense and amortization of acquired intangible belongings. We outline non-GAAP gross revenue proportion as non-GAAP gross revenue divided by GAAP income. We take into account these non-GAAP monetary measures to be helpful metrics for administration and buyers as a result of they exclude the impact of non-cash fees for share-based compensation expense and amortization of acquired intangible belongings in order that our administration and buyers can examine our recurring core enterprise internet outcomes over a number of intervals. There are a variety of limitations associated to the usage of non-GAAP gross revenue and non-GAAP gross revenue proportion versus gross revenue and gross revenue proportion calculated in accordance with GAAP. For instance, as famous above, non-GAAP gross revenue and gross revenue proportion excludes share-based compensation expense and amortization of acquired intangible belongings. Administration compensates for these limitations by offering particular data relating to the GAAP quantities excluded from non-GAAP gross revenue and non-GAAP gross revenue proportion and evaluates non-GAAP gross revenue and non-GAAP gross revenue proportion along with gross revenue and gross revenue proportion calculated in accordance with GAAP.
Non-GAAP working bills and Non-GAAP revenue from operations. We offer buyers with sure non-GAAP monetary measures, together with non-GAAP analysis and growth expense, non-GAAP gross sales and advertising expense, non-GAAP common and administrative expense and non-GAAP revenue from operations (collectively the “non-GAAP working monetary measures”). These non-GAAP working monetary measures exclude the next, as relevant (as mirrored within the reconciliation tables that observe): share-based compensation expense; amortization of acquired intangible belongings; impairment of long-lived belongings; restructuring expense; acquisition-related positive factors and bills; and litigation-related bills. We take into account these non-GAAP working monetary measures to be helpful metrics for administration and buyers as a result of it excludes the impact of share-based compensation expense and sure “one-time” fees in order that our administration and buyers can examine our recurring core enterprise internet outcomes over a number of intervals. There are a variety of limitations associated to the usage of these non-GAAP working monetary measures versus the relevant monetary measures calculated in accordance with GAAP. For instance, as famous above, the non-GAAP working monetary measures exclude share-based compensation expense and sure “one-time” fees. As well as, the parts of the prices that we exclude in our calculation of non-GAAP working monetary measures might differ from the parts that our peer firms exclude once they report their non-GAAP outcomes of operations. Administration compensates for these limitations by offering particular data relating to the GAAP quantities excluded from non-GAAP working monetary measures and evaluates non-GAAP working monetary measures along with the relevant monetary measures calculated in accordance with GAAP.
Non-GAAP internet revenue. We outline non-GAAP internet revenue as internet revenue (loss), adjusted to exclude: share-based compensation expense; amortization of acquired intangible belongings; impairment of long-lived belongings; restructuring expense; acquisition-related positive factors and bills; litigation-related bills; and the revenue tax impact of non-GAAP changes. We take into account this non-GAAP monetary measure to be a helpful metric for administration and buyers as a result of it excludes the impact of share-based compensation expense, sure “one-time” fees and associated revenue tax results in order that our administration and buyers can examine our recurring core enterprise internet outcomes over a number of intervals. There are a variety of limitations associated to the usage of non-GAAP internet revenue versus internet revenue (loss) calculated in accordance with GAAP. For instance, as famous above, non-GAAP internet revenue excludes share-based compensation expense, sure “one-time” fees and associated revenue tax results. As well as, the parts of the prices that we exclude in our calculation of non-GAAP internet revenue might differ from the parts that our peer firms exclude once they report their non-GAAP outcomes of operations. Administration compensates for these limitations by offering particular data relating to the GAAP quantities excluded from non-GAAP internet revenue and evaluating non-GAAP internet revenue along with internet revenue (loss) calculated in accordance with GAAP.
Adjusted EBITDA and Adjusted EBITDA margin. We imagine that Adjusted EBITDA and Adjusted EBITDA margin are key indicators of our working outcomes. We outline Adjusted EBITDA as internet revenue (loss), adjusted to exclude: depreciation; amortization; disposals and impairment of long-lived belongings; acquisition-related positive factors and bills; litigation-related bills; share-based compensation expense; restructuring expense; curiosity revenue and curiosity expense; the availability for revenue taxes; and international alternate revenue (expense). We outline Adjusted EBITDA margin as Adjusted EBITDA over GAAP income within the interval. We use Adjusted EBITDA as a part of our general evaluation of our efficiency, for planning functions, together with the preparation of our annual working funds, to judge the effectiveness of our enterprise methods, to speak with our board of administrators regarding our monetary efficiency and for establishing incentive compensation metrics for executives and different senior staff.
Free money move. We outline free money move as internet money offered by working actions minus capital expenditures. We take into account free money move to be a liquidity measure that gives helpful data to administration and buyers about the amount of money generated by the enterprise that, after the acquisition of property, gear and capitalized software program, can be utilized for strategic alternatives, together with investing in our enterprise, and strengthening the stability sheet. Evaluation of free money move facilitates administration’s comparisons of our working outcomes to rivals’ working outcomes. A limitation of utilizing free money move versus the GAAP measure of internet money offered by working actions as a way for evaluating our firm is that free money move doesn’t symbolize the overall improve or lower within the money stability from operations for the interval as a result of it excludes money used for capital expenditures throughout the interval. Administration compensates for this limitation by offering details about our capital expenditures on the face of the money move assertion and within the liquidity and capital assets dialogue included in our annual and quarterly studies filed with the Securities and Change Fee.
Secure Harbor for Ahead-Wanting Statements
Statements on this press launch relating to administration’s future expectations, beliefs, intentions, objectives, methods, plans or prospects, together with, with out limitation, the continuing investigation into the Firm’s lately disclosed safety incident, the scope and affect of the assault, the quantity and placement of impacted prospects, the effectiveness of any present or future isolation and remediation efforts, the affect of the worldwide COVID-19 pandemic on Mimecast’s operations and monetary efficiency, the affect of international alternate charges, Mimecast’s multi-product technique, future working efficiencies, future money move and margin enlargement, future income progress and timing of that progress, the persevering with evolution of the Firm’s enterprise, the timing and estimated quantity of the restructuring cost that the Firm expects to incur within the fourth quarter of FY 2021, and Mimecast’s future monetary efficiency on each a GAAP and non-GAAP foundation below the heading “Monetary Outlook” above, might represent forward-looking statements inside the that means of the Personal Securities Litigation Reform Act of 1995 and different federal securities legal guidelines. All statements, aside from statements of historic truth, are statements that may very well be deemed forward-looking statements, together with statements containing the phrases “predicts,” “plan,” “expects,” “anticipates,” “believes,” “aim,” “goal,” “estimate,” “potential,” “might,” “would possibly,” “may,” “see,” “search,” “forecast,” and related phrases. Mimecast intends all such forward-looking statements to be lined by the protected harbor provisions for forward-looking statements contained in Part 21E of the Securities Change Act of 1934, as amended, and the Personal Securities Litigation Reform Act of 1995. Such forward-looking statements contain recognized and unknown dangers, uncertainties and different components together with, however not restricted to, uncertainties and dangers regarding the uncovering of recent data in the midst of our investigation associated to the character, trigger and scope of the safety incident, the reputational, monetary, authorized and different dangers associated to potential antagonistic impacts to our prospects and companions on account of the safety incident, the affect of the worldwide COVID-19 pandemic on the Firm’s enterprise, operations, staff and monetary outcomes, the power to draw new prospects and retain current prospects, notably throughout difficult financial occasions, aggressive situations, information breaches associated to the current safety incident or in any other case, compliance with information privateness and information switch legal guidelines and rules associated to the current safety incident or in any other case, service disruptions, the impact of the withdrawal of the UK from the European Union, dangers related to failure to guard the Firm’s mental property or claims that the Firm infringes the mental property of others, the profitable integration of the Firm’s acquisitions, together with DMARC Analyzer B.V., Segasec Labs Restricted and MessageControl and different acquisitions the Firm might full, the worldwide nature of the Firm’s enterprise, together with international forex alternate fee fluctuations and the potential disparate financial affect of the worldwide COVID-19 pandemic on the jurisdictions by which the Firm operates, and the opposite dangers, uncertainties and components detailed in Mimecast’s filings with the Securities and Change Fee. Because of such dangers, uncertainties and components, Mimecast’s precise outcomes might differ materially from any future outcomes, efficiency or achievements mentioned in or implied by the forward-looking statements contained herein. Mimecast is offering the knowledge on this press launch as of this date and assumes no obligations to replace the knowledge included on this press launch or revise any forward-looking statements, whether or not on account of new data, future occasions or in any other case.
MIMECAST LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in hundreds, besides per share quantities)
(unaudited)
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Income | $ | 129,636 | $ | 110,158 | $ | 367,505 | $ | 312,746 | ||||||||
| Value of income | 31,572 | 28,455 | 89,783 | 80,056 | ||||||||||||
| Gross revenue | 98,064 | 81,703 | 277,722 | 232,690 | ||||||||||||
| Working bills | ||||||||||||||||
| Analysis and growth | 25,408 | 20,801 | 70,497 | 59,506 | ||||||||||||
| Gross sales and advertising | 45,187 | 42,753 | 133,224 | 127,288 | ||||||||||||
| Basic and administrative | 16,649 | 16,520 | 50,400 | 48,723 | ||||||||||||
| Whole working bills | 87,244 | 80,074 | 254,121 | 235,517 | ||||||||||||
| Revenue (loss) from operations | 10,820 | 1,629 | 23,601 | (2,827 | ) | |||||||||||
| Different revenue (expense) | ||||||||||||||||
| Curiosity revenue | 261 | 727 | 612 | 2,823 | ||||||||||||
| Curiosity expense | (578 | ) | (1,106 | ) | (2,251 | ) | (3,581 | ) | ||||||||
| International alternate revenue (expense) and different, internet | 1,441 | (93 | ) | 4,365 | 159 | |||||||||||
| Whole different revenue (expense), internet | 1,124 | (472 | ) | 2,726 | (599 | ) | ||||||||||
| Revenue (loss) earlier than revenue taxes | 11,944 | 1,157 | 26,327 | (3,426 | ) | |||||||||||
| Provision for revenue taxes | 1,155 | 951 | 2,350 | 1,299 | ||||||||||||
| Internet revenue (loss) | $ | 10,789 | $ | 206 | $ | 23,977 | $ | (4,725 | ) | |||||||
| Internet revenue (loss) per bizarre share | ||||||||||||||||
| Fundamental | $ | 0.17 | $ | 0.00 | $ | 0.38 | $ | (0.08 | ) | |||||||
| Diluted | $ | 0.16 | $ | 0.00 | $ | 0.37 | $ | (0.08 | ) | |||||||
| Weighted-average variety of bizarre shares excellent | ||||||||||||||||
| Fundamental | 63,987 | 62,189 | 63,509 | 61,822 | ||||||||||||
| Diluted | 66,023 | 63,996 | 65,419 | 61,822 | ||||||||||||
MIMECAST LIMITED
CONSOLIDATED BALANCE SHEETS
(in hundreds, besides share and per share quantities)
(unaudited)
| As of December 31, | As of March 31, | |||||||
| 2020 | 2020 | |||||||
| Property | ||||||||
| Present belongings | ||||||||
| Money and money equivalents | $ | 270,897 | $ | 173,958 | ||||
| Accounts receivable, internet | 97,640 | 97,659 | ||||||
| Deferred contract prices, internet | 14,771 | 11,133 | ||||||
| Pay as you go bills and different present belongings | 19,205 | 16,145 | ||||||
| Whole present belongings | 402,513 | 298,895 | ||||||
| Property and gear, internet | 94,099 | 85,178 | ||||||
| Working lease right-of-use belongings | 134,051 | 116,564 | ||||||
| Intangible belongings, internet | 45,829 | 38,394 | ||||||
| Goodwill | 178,645 | 150,525 | ||||||
| Deferred contract prices, internet of present portion | 46,236 | 36,664 | ||||||
| Different belongings | 3,513 | 3,614 | ||||||
| Whole belongings | $ | 904,886 | $ | 729,834 | ||||
| Liabilities and shareholders’ fairness | ||||||||
| Present liabilities | ||||||||
| Accounts payable | $ | 10,690 | $ | 14,907 | ||||
| Accrued bills and different present liabilities | 58,071 | 41,607 | ||||||
| Deferred income | 210,295 | 194,151 | ||||||
| Present portion of finance lease obligations | 589 | 1,058 | ||||||
| Present portion of working lease liabilities | 33,398 | 30,379 | ||||||
| Present portion of long-term debt | 8,459 | 6,573 | ||||||
| Whole present liabilities | 321,502 | 288,675 | ||||||
| Deferred income, internet of present portion | 12,462 | 12,816 | ||||||
| Lengthy-term finance lease obligations | 4 | 323 | ||||||
| Working lease liabilities | 118,522 | 105,321 | ||||||
| Lengthy-term debt | 97,104 | 86,258 | ||||||
| Different non-current liabilities | 9,373 | 4,386 | ||||||
| Whole liabilities | 558,967 | 497,779 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ fairness | ||||||||
| Unusual shares, $0.012 par worth, 300,000,000 shares licensed; 64,346,682 and 62,791,691 shares issued and excellent as of December 31, 2020 and March 31, 2020, respectively | 772 | 754 | ||||||
| Extra paid-in capital | 393,911 | 325,808 | ||||||
| Amassed deficit | (59,683 | ) | (83,660 | ) | ||||
| Amassed different complete revenue (loss) | 10,919 | (10,847 | ) | |||||
| Whole shareholders’ fairness | 345,919 | 232,055 | ||||||
| Whole liabilities and shareholders’ fairness | $ | 904,886 | $ | 729,834 | ||||
MIMECAST LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in hundreds)
(unaudited)
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Working actions | ||||||||||||||||
| Internet revenue (loss) | $ | 10,789 | $ | 206 | $ | 23,977 | $ | (4,725 | ) | |||||||
| Changes to reconcile internet revenue (loss) to internet money offered by working actions: | ||||||||||||||||
| Depreciation and amortization | 9,950 | 8,431 | 28,297 | 23,411 | ||||||||||||
| Share-based compensation expense | 13,792 | 9,701 | 41,064 | 29,673 | ||||||||||||
| Amortization of deferred contract prices | 3,427 | 2,502 | 9,471 | 6,878 | ||||||||||||
| Amortization of debt issuance prices | 115 | 115 | 344 | 386 | ||||||||||||
| Amortization of working lease right-of-use belongings | 7,713 | 8,381 | 22,328 | 24,108 | ||||||||||||
| Different non-cash objects | — | 65 | — | (6 | ) | |||||||||||
| Unrealized forex positive factors on international denominated transactions | (1,123 | ) | (633 | ) | (4,540 | ) | (496 | ) | ||||||||
| Modifications in belongings and liabilities: | ||||||||||||||||
| Accounts receivable | (13,074 | ) | (7,468 | ) | 6,224 | 1,287 | ||||||||||
| Pay as you go bills and different present belongings | 1,448 | 4,512 | (1,700 | ) | 10,603 | |||||||||||
| Deferred contract prices | (8,791 | ) | (6,284 | ) | (19,521 | ) | (16,524 | ) | ||||||||
| Different belongings | (106 | ) | (687 | ) | (452 | ) | (1,980 | ) | ||||||||
| Accounts payable | (1,129 | ) | (621 | ) | (3,630 | ) | 1,455 | |||||||||
| Deferred income | 14,215 | 13,040 | 2,537 | 15,688 | ||||||||||||
| Working lease liabilities | (9,849 | ) | (7,861 | ) | (25,024 | ) | (17,969 | ) | ||||||||
| Accrued bills and different liabilities | 7,601 | (4,116 | ) | 15,951 | (6,299 | ) | ||||||||||
| Internet money offered by working actions | 34,978 | 19,283 | 95,326 | 65,490 | ||||||||||||
| Investing actions | ||||||||||||||||
| Purchases of property, gear and capitalized software program | (10,761 | ) | (17,417 | ) | (30,931 | ) | (40,283 | ) | ||||||||
| Purchases of strategic investments | — | — | — | (3,025 | ) | |||||||||||
| Maturities of investments | — | 8,000 | — | 36,000 | ||||||||||||
| Funds for acquisitions, internet of money acquired | — | (21,130 | ) | (17,044 | ) | (21,130 | ) | |||||||||
| Internet money utilized in investing actions | (10,761 | ) | (30,547 | ) | (47,975 | ) | (28,438 | ) | ||||||||
| Financing actions | ||||||||||||||||
| Proceeds from issuance of bizarre shares | 12,138 | 9,006 | 31,113 | 20,105 | ||||||||||||
| Withholding taxes associated to internet share settlement of ESPP purchases and vesting of RSUs | (867 | ) | (115 | ) | (4,175 | ) | (1,941 | ) | ||||||||
| Funds on debt | (1,875 | ) | (1,250 | ) | (5,000 | ) | (3,125 | ) | ||||||||
| Funds on finance lease obligations | (178 | ) | (255 | ) | (789 | ) | (673 | ) | ||||||||
| Proceeds from long-term debt together with revolving credit score amenities | — | — | 17,500 | — | ||||||||||||
| Internet money offered by financing actions | 9,218 | 7,386 | 38,649 | 14,366 | ||||||||||||
| Impact of international alternate charges on money | 6,754 | 2,569 | 10,939 | 869 | ||||||||||||
| Internet improve (lower) in money and money equivalents | 40,189 | (1,309 | ) | 96,939 | 52,287 | |||||||||||
| Money and money equivalents at starting of interval | 230,708 | 191,172 | 173,958 | 137,576 | ||||||||||||
| Money and money equivalents at finish of interval | $ | 270,897 | $ | 189,863 | $ | 270,897 | $ | 189,863 | ||||||||
Key Efficiency Indicators
Along with conventional monetary metrics, resembling income and income progress developments, we monitor a number of different non-GAAP monetary measures and non-financial metrics to assist us consider progress developments, set up budgets, measure the effectiveness of our gross sales and advertising efforts and assess operational efficiencies. The important thing efficiency indicators that we monitor are as follows:
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| ({dollars} in hundreds) | ||||||||||||||||
| Income fixed forex progress fee (1) | 17 | % | 27 | % | 19 | % | 29 | % | ||||||||
| Income retention fee (2) | 104 | % | 109 | % | 104 | % | 109 | % | ||||||||
| Whole prospects (3) | 39,600 | 36,900 | 39,600 | 36,900 | ||||||||||||
| Gross revenue proportion | 76 | % | 74 | % | 76 | % | 74 | % | ||||||||
| Adjusted EBITDA (1) | $ | 34,595 | $ | 20,600 | $ | 93,865 | $ | 54,089 | ||||||||
________
| (1) | Adjusted EBITDA and income fixed forex progress charges are non-GAAP measures. For a reconciliation of Adjusted EBITDA and income fixed forex progress charges to the closest comparable GAAP measures, see “Reconciliation of Non-GAAP Monetary Measures” under. |
| (2) | We calculate our income retention fee by annualizing fixed forex income recorded on the final day of the measurement interval for less than these prospects in place all through the whole measurement interval. This income contains renewed income contracts in addition to further income derived from the sale of further seat licenses in addition to further companies offered to those current prospects. We divide the outcome by income on a relentless forex foundation on the primary day of the measurement interval for all prospects in place initially of the measurement interval. The measurement interval is the trailing twelve months. The income on a relentless forex foundation relies on the typical alternate charges in impact throughout the respective interval. |
| (3) | Displays the client depend on the final day of the interval rounded to the closest hundred prospects. We outline a buyer as an entity with an lively subscription contract as of the measurement date. A buyer is often a dad or mum firm or, in just a few circumstances, a major subsidiary that works with us immediately. In figuring out the variety of prospects, we don’t embrace prospects we acquired from DMARC Analyzer that transact with us on a bank card foundation. |
Reconciliation of Non-GAAP Monetary Measures
The next desk presents a reconciliation of income progress fee, as reported, to income fixed forex progress fee:
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| ({dollars} in hundreds) | ||||||||||||||||
| Reconciliation of Income Fixed Foreign money Progress Fee: | ||||||||||||||||
| Income, as reported | $ | 129,636 | $ | 110,158 | $ | 367,505 | $ | 312,746 | ||||||||
| Income year-over-year progress fee, as reported | 18 | % | 26 | % | 18 | % | 26 | % | ||||||||
| Estimated affect of international forex fluctuations | (1 | )% | 1 | % | 1 | % | 3 | % | ||||||||
| Income fixed forex progress fee | 17 | % | 27 | % | 19 | % | 29 | % | ||||||||
| Change fee for interval | ||||||||||||||||
| USD | 1.000 | 1.000 | 1.000 | 1.000 | ||||||||||||
| ZAR | 0.064 | 0.068 | 0.060 | 0.069 | ||||||||||||
| GBP | 1.320 | 1.288 | 1.284 | 1.269 | ||||||||||||
| AUD | 0.731 | 0.684 | 0.701 | 0.690 | ||||||||||||
The next tables current a reconciliation of chosen GAAP outcomes to Non-GAAP outcomes ({dollars} in hundreds):
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Reconciliation of Non-GAAP Gross Revenue: | ||||||||||||||||
| GAAP gross revenue | $ | 98,064 | $ | 81,703 | $ | 277,722 | $ | 232,690 | ||||||||
| GAAP gross revenue proportion | 76 | % | 74 | % | 76 | % | 74 | % | ||||||||
| Plus: | ||||||||||||||||
| Share-based compensation expense | 1,247 | 851 | 3,535 | 2,544 | ||||||||||||
| Amortization of acquired intangible belongings | 1,084 | 692 | 3,054 | 1,945 | ||||||||||||
| Non-GAAP gross revenue | $ | 100,395 | $ | 83,246 | $ | 284,311 | $ | 237,179 | ||||||||
| Non-GAAP gross revenue proportion | 77 | % | 76 | % | 77 | % | 76 | % | ||||||||
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| GAAP analysis and growth | $ | 25,408 | $ | 20,801 | $ | 70,497 | $ | 59,506 | ||||||||
| Much less: | ||||||||||||||||
| Share-based compensation expense | 3,791 | 2,788 | 11,570 | 8,030 | ||||||||||||
| Amortization of acquired intangible belongings | — | — | — | — | ||||||||||||
| Acquisition-related bills | — | — | — | — | ||||||||||||
| Litigation-related bills | — | — | — | — | ||||||||||||
| Non-GAAP analysis and growth | $ | 21,617 | $ | 18,013 | $ | 58,927 | $ | 51,476 | ||||||||
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| GAAP gross sales and advertising | $ | 45,187 | $ | 42,753 | $ | 133,224 | $ | 127,288 | ||||||||
| Much less: | ||||||||||||||||
| Share-based compensation expense | 4,718 | 2,856 | 13,606 | 10,169 | ||||||||||||
| Amortization of acquired intangible belongings | 35 | 25 | 95 | 79 | ||||||||||||
| Acquisition-related bills | — | — | — | — | ||||||||||||
| Litigation-related bills | — | — | — | — | ||||||||||||
| Non-GAAP gross sales and advertising | $ | 40,434 | $ | 39,872 | $ | 119,523 | $ | 117,040 | ||||||||
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| GAAP common and administrative | $ | 16,649 | $ | 16,520 | $ | 50,400 | $ | 48,723 | ||||||||
| Much less: | ||||||||||||||||
| Share-based compensation expense | 4,036 | 3,206 | 12,353 | 8,930 | ||||||||||||
| Amortization of acquired intangible belongings | — | — | — | — | ||||||||||||
| Acquisition-related bills | — | 670 | 667 | 741 | ||||||||||||
| Litigation-related bills | — | — | — | 2,700 | ||||||||||||
| Non-GAAP common and administrative | $ | 12,613 | $ | 12,644 | $ | 37,380 | $ | 36,352 | ||||||||
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| GAAP revenue (loss) from operations | $ | 10,820 | $ | 1,629 | $ | 23,601 | $ | (2,827 | ) | |||||||
| Plus: | ||||||||||||||||
| Share-based compensation expense | 13,792 | 9,701 | 41,064 | 29,673 | ||||||||||||
| Amortization of acquired intangible belongings | 1,119 | 717 | 3,149 | 2,024 | ||||||||||||
| Acquisition-related bills | — | 670 | 667 | 741 | ||||||||||||
| Litigation-related bills | — | — | — | 2,700 | ||||||||||||
| Non-GAAP revenue from operations | $ | 25,731 | $ | 12,717 | $ | 68,481 | $ | 32,311 | ||||||||
The next desk presents a reconciliation of Internet revenue (loss) to Non-GAAP internet revenue (in hundreds, besides per share quantities):
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Reconciliation of Non-GAAP Internet Revenue: | ||||||||||||||||
| Internet revenue (loss) | $ | 10,789 | $ | 206 | $ | 23,977 | $ | (4,725 | ) | |||||||
| Share-based compensation expense | 13,792 | 9,701 | 41,064 | 29,673 | ||||||||||||
| Amortization of acquired intangible belongings | 1,119 | 717 | 3,149 | 2,024 | ||||||||||||
| Acquisition-related bills (1) | — | 670 | 667 | 741 | ||||||||||||
| Litigation-related bills (2) | — | — | — | 2,700 | ||||||||||||
| Revenue tax impact of Non-GAAP changes | (4,157 | ) | (2,522 | ) | (12,447 | ) | (8,227 | ) | ||||||||
| Non-GAAP internet revenue | $ | 21,543 | $ | 8,772 | $ | 56,410 | $ | 22,186 | ||||||||
| Non-GAAP internet revenue per bizarre share – fundamental | $ | 0.34 | $ | 0.14 | $ | 0.89 | $ | 0.36 | ||||||||
| Non-GAAP internet revenue per bizarre share – diluted | $ | 0.33 | $ | 0.14 | $ | 0.86 | $ | 0.35 | ||||||||
| Weighted-average variety of bizarre shares utilized in computing Non-GAAP internet revenue per bizarre share: |
||||||||||||||||
| Fundamental | 63,987 | 62,189 | 63,509 | 61,822 | ||||||||||||
| Diluted | 66,023 | 63,996 | 65,419 | 63,894 | ||||||||||||
________
| (1) | Acquisition-related bills relate to prices incurred for acquisition exercise. See Notice 10 of the notes to our unaudited condensed consolidated monetary statements, included within the Firm’s Quarterly Report on Kind 10-Q for additional data. |
| (2) | Litigation-related bills relate to quantities incurred for litigation settlement. See Notice 13 of the notes to our unaudited condensed consolidated monetary statements, included within the Firm’s Quarterly Report on Kind 10-Q for additional data. |
The next desk presents a reconciliation of Internet revenue (loss) to Adjusted EBITDA (in hundreds):
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| (in hundreds) | ||||||||||||||||
| Reconciliation of Adjusted EBITDA: | ||||||||||||||||
| Internet revenue (loss) | $ | 10,789 | $ | 206 | $ | 23,977 | $ | (4,725 | ) | |||||||
| Depreciation, amortization and disposals of long-lived belongings | 9,950 | 8,500 | 28,298 | 23,493 | ||||||||||||
| Curiosity expense, internet | 317 | 379 | 1,639 | 758 | ||||||||||||
| Provision for revenue taxes | 1,155 | 951 | 2,350 | 1,299 | ||||||||||||
| Share-based compensation expense | 13,792 | 9,701 | 41,064 | 29,673 | ||||||||||||
| International alternate (revenue) expense | (1,408 | ) | 193 | (4,130 | ) | 150 | ||||||||||
| Acquisition-related bills (1) | — | 670 | 667 | 741 | ||||||||||||
| Litigation-related bills (2) | — | — | — | 2,700 | ||||||||||||
| Adjusted EBITDA | $ | 34,595 | $ | 20,600 | $ | 93,865 | $ | 54,089 | ||||||||
________
| (1) | Acquisition-related bills relate to prices incurred for acquisition exercise. See Notice 10 of the notes to our unaudited condensed consolidated monetary statements, included within the Firm’s Quarterly Report on Kind 10-Q for additional data. |
| (2) | Litigation-related bills relate to quantities incurred for litigation settlement. See Notice 13 of the notes to our unaudited condensed consolidated monetary statements, included within the Firm’s Quarterly Report on Kind 10-Q for additional data. |
The next desk presents a reconciliation of Internet money offered by working actions to Free Money Circulation (in hundreds):
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Reconciliation of Free Money Circulation: | ||||||||||||||||
| Internet money offered by working actions | $ | 34,978 | $ | 19,283 | $ | 95,326 | $ | 65,490 | ||||||||
| Purchases of property, gear and capitalized software program | (10,761 | ) | (17,417 | ) | (30,931 | ) | (40,283 | ) | ||||||||
| Free Money Circulation | $ | 24,217 | $ | 1,866 | $ | 64,395 | $ | 25,207 | ||||||||
Share-based compensation expense for the three and 9 months ended December 31, 2020 and 2019 (in hundreds):
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Value of income | $ | 1,247 | $ | 851 | $ | 3,535 | $ | 2,544 | ||||||||
| Analysis and growth | 3,791 | 2,788 | 11,570 | 8,030 | ||||||||||||
| Gross sales and advertising | 4,718 | 2,856 | 13,606 | 10,169 | ||||||||||||
| Basic and administrative | 4,036 | 3,206 | 12,353 | 8,930 | ||||||||||||
| Whole share-based compensation expense | $ | 13,792 | $ | 9,701 | $ | 41,064 | $ | 29,673 | ||||||||
Amortization of acquired intangible belongings for the three and 9 months ended December 31, 2020 and 2019 (in hundreds):
| Three months ended December 31, | 9 months ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Value of income | $ | 1,084 | $ | 692 | $ | 3,054 | $ | 1,945 | ||||||||
| Gross sales and advertising | 35 | 25 | 95 | 79 | ||||||||||||
| Whole amortization of acquired intangible belongings | $ | 1,119 | $ | 717 | $ | 3,149 | $ | 2,024 | ||||||||
The next desk presents a reconciliation of Internet money offered by working actions to guided Free Money Circulation (in hundreds of thousands):
| Three months ending March 31, | Yr ending March 31, | Yr ending March 31, | ||||||||||
| 2021 | 2021 | 2022 | ||||||||||
| Reconciliation of Free Money Circulation: | ||||||||||||
| Internet money offered by working actions | $ | 28 | $ 123 – 124 | $ | 158 | |||||||
| Purchases of property, gear and capitalized software program |
(6 | ) | (37 | ) | (37 | ) | ||||||
| Free Money Circulation | $ | 22 | $ 86 – 87 | $ | 121 | |||||||
Mimecast Social Media Sources
Press Contact
Timothy Hamilton
Press@Mimecast.com
617-393-7122
Investor Contact
Robert Sanders
Buyers@Mimecast.com
617-393-7074
