UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the period ending December 31, 2015
MIMECAST
LIMITED
CityPoint, One Ropemaker Street, Moorgate
London EC2Y 9AW
United
Kingdom
Tel: +44 0207 847 8700
(Address, Including ZIP Code, and Telephone Number,
Including Area Code, of Registrants Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x
Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Furnished as Exhibit 99.1 to this Report on Form 6-K is a press release of Mimecast Limited,
dated February 8, 2016, entitled Mimecast Announces Financial Results for the Third Quarter of Fiscal 2016, announcing the Companys financial results for the three and nine month periods ended December 31, 2015.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
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MIMECAST LIMITED |
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Date: February 8, 2016 |
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By: |
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/s/ Peter Campbell |
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Peter Campbell |
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Chief Financial Officer |
INDEX TO EXHIBITS
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Number |
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Description |
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99.1 |
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Press Release of Mimecast Limited dated February 8, 2016, entitled Mimecast Announces Financial Results for the Third Quarter of Fiscal 2016. |
Exhibit 99.1
February 8, 2016
Mimecast Announces Financial Results
for the Third Quarter of Fiscal 2016
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Constant currency revenue growth of 32% year-over-year |
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Added 1,000 new customers for total customers of 16,200 globally |
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Revenue retention rate increased to 109% |
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Gross profit percentage of 71% |
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Generated positive Adjusted EBITDA of $4.5 million |
WATERTOWN, MAFebruary 8, 2016 (GLOBE
NEWSWIRE)Mimecast Limited (NASDAQ: MIME), a leading provider of next generation cloud security and risk management services for corporate information and email, today announced financial results for its third quarter of fiscal 2016 ended
December 31, 2015.
Peter Bauer, chief executive officer and co-founder of Mimecast said, Im pleased to share our results from our first
quarter as a public company. Our strong growth was driven by demand for our next-generation cloud-based security, archiving and continuity services. The adoption of cloud-based email hosting services, like Microsoft® Office 365, is acting as catalyst for Mimecast with our pure cloud only architecture as companies move away from legacy on-premises hardware. Revenue also benefited from the adoption of our
Targeted Threat Protection service which protects customers from advanced threats such as spear phishing and weaponized attachments.
Fiscal
Third Quarter 2016 Financial Highlights
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Revenue: Revenue increased 32% compared to the third quarter of 2015 on a constant currency basis. Revenue for the third quarter of fiscal 2016 was $37.1 million, an increase of 24% compared to the $29.8 million
of revenue recognized in the third quarter of fiscal 2015. |
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Customers: Mimecast added 1,000 new customers in the third quarter of fiscal 2016. We now protect over 16,200 organizations globally. |
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Revenue Retention Rate: Revenue retention rate grew to 109% in the third quarter of fiscal 2016, up from 108% in the prior quarter and 106% in the third quarter of fiscal 2015. |
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Gross Profit Percentage: GAAP Gross profit percentage was 71% for the third quarter of fiscal 2016, compared to 68% in the third quarter of fiscal 2015. |
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Adjusted EBITDA: Adjusted EBITDA for the third quarter of fiscal 2016 was $4.5 million, representing an Adjusted EBITDA margin of 12%. |
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GAAP Net Loss: GAAP net loss was $1.2 million, or ($0.03) per ordinary share based on 42.5 million weighted average shares outstanding. |
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Non-GAAP Net Income: Non-GAAP net income was $2.8 million, or $0.06 per ordinary share. |
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Cash and Free Cash Flow: Mimecast generated $3.9 million of free cash flow in the fiscal third quarter of 2016. Cash and cash equivalents as of December 31, 2015 were $106 million. |
In our earnings release and the related conference call or webcast, we may use or discuss such items as: revenue growth on a constant currency basis, Adjusted
EBITDA, Adjusted EBITDA margin, non-GAAP net income and free cash flow, which are defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission, or SEC. Please refer to Non-GAAP Financial Measures section for
definitions of these non-GAAP financial measures as well as the financial schedules attached to this press release for reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure. We calculate our revenue
retention rate by annualizing revenue on a constant currency basis 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.
Recent Company Highlights
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Mimecast has been positioned by independent industry analyst firm Gartner in the Leaders section of the October 2015 Magic Quadrant for Enterprise Information Archiving. Mimecast has been positioned as
highest on ability to execute in the Leaders Quadrant. |
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Mimecast became one of the first independently verified cloud service providers to receive the ISO 27018:2014 certification for the protection of personally identifiable information in the cloud. |
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12% of customers are using Mimecast services in conjunction with Office 365. |
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13% of customers are using Targeted Threat Protection compared to 4% in the third quarter of 2015. |
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Mimecast commissioned two datacenters in Australia in the third quarter and won a cornerstone public sector client representing over eighty thousand seats in that region. |
Business Outlook
Mimecast is providing guidance for the
fourth quarter of fiscal 2016 and the full fiscal year 2016 as follows:
Fourth Quarter Fiscal 2016 Guidance:
For the fourth quarter of fiscal 2016, we expect constant currency revenue growth to be between 24% and 26% and revenue to be between $35.2
million to $35.8 million. Exchange rates in certain currencies we operate in have weakened in the period due to the strengthening of the US dollar compared to the same period in the prior year. Fluctuations in these rates over the last three months
have impacted our revenue guidance by $2.0 million. Approximately 75% of this impact relates to the translation of South African Rand based revenue and the remainder 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 $0.1 million to $1.0 million.
Full Year Fiscal 2016 Guidance:
For the full year fiscal 2016, we expect constant currency revenue growth to be between 28.5% and 29.5% and revenue to be between $140.2
million to $140.8 million. Adjusted EBITDA is expected to be in the range of $15.3 million to $16.2 million.
Conference Call and Webcast
Information
Mimecast will host a conference call to discuss these financial results for investors and analysts at 5:00 p.m. Eastern Time (UTC-05:00)
on February 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 #29979833. The call will also be webcast live on the investor
relations section of the Companys 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 #29979833. In addition, an archive of the webcast will be available on the investor relations section of the companys website at http://investors.mimecast.com.
About Mimecast
Mimecast Limited (NASDAQ: MIME) makes
business email and data safer for more than 16,200 customers and millions of employees worldwide. Founded in 2003, the Companys 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 Email Security protects against malware, spam, advanced phishing and other emerging attacks, while
preventing data leaks. Mimecast Mailbox Continuity enables employees to continue using email during planned and unplanned outages. Mimecast Enterprise Information Archiving unifies email, file and instant messaging data to support e-discovery and
give employees fast access to their personal archive via PC, Mac and mobile apps. More information is available at www.mimecast.com.
Safe
Harbor for Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, the guidance provided
under the heading Business Outlook above, statements regarding the value and effectiveness of Mimecasts products, the introduction of product enhancements or additional products and Mimecasts growth, expansion and market
leadership, that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause Mimecasts results to differ materially from those expressed or implied by such forward-looking
statements. 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. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: risks and uncertainties inherent in Mimecasts business; Mimecasts ability to attract new customers
and retain existing customers; Mimecasts ability to effectively sell, service and support its products; Mimecasts ability to adapt to changing licensing and go to market business models; Mimecasts ability to manage its
international operations; Mimecasts ability to compete effectively; Mimecasts ability to develop and introduce new products and add-ons or enhancements to existing products; Mimecasts ability to continue to promote and maintain its
brand in a cost-effective manner; Mimecasts ability to manage growth; Mimecasts ability to attract and retain key personnel; currency fluctuations that affect Mimecasts revenues and costs; the scope and validity of intellectual
property rights applicable to Mimecasts products; adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which Mimecasts operates; and other risks more fully described in
Mimecasts publicly available filings with the Securities and Exchange Commission. Any statements regarding Mimecasts products are intended to outline its general product direction and should not be relied on in making a purchase
decision, as the development, release, and timing of any features and functionality remains at Mimecasts sole discretion. Mimecasts anticipates that subsequent events and developments will cause its views to change. Mimecasts
undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Past performance is not necessarily indicative of future results. The forward-looking
statements included in this press release represent Mimecasts views as of the date of this press release.
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 in and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investor.
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 fourth quarter and full year 2016, expected revenue from entities reporting in foreign currencies was translated into U.S. dollars using the comparable prior year periods 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, restructuring expense, interest income and interest expense, the provision
for income taxes and foreign currency exchange (expense) 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 income. We define non-GAAP net income 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 versus net income calculated in accordance with GAAP. For example, as noted above, non-GAAP net income excludes share-based compensation expense. In addition, the components of the
costs that we exclude in our calculation of non-GAAP net 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 income and evaluating non-GAAP net income together with net income 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 managements 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 Managements Discussion and Analysis of Financial
Condition and Results of OperationsLiquidity 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)
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Three months ended December 31, |
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Nine months ended December 31, |
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2014 |
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2015 |
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2014 |
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2015 |
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Revenue |
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$ |
29,824 |
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$ |
37,130 |
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$ |
85,370 |
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$ |
104,965 |
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Cost of revenue |
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9,584 |
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10,651 |
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27,646 |
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30,720 |
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Gross profit |
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20,240 |
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26,479 |
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57,724 |
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74,245 |
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Operating expenses |
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Research and development |
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3,407 |
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5,464 |
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11,317 |
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12,927 |
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Sales and marketing |
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11,642 |
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17,607 |
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38,143 |
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45,584 |
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General and administrative |
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2,632 |
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5,546 |
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12,160 |
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14,259 |
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Restructuring |
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(60 |
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1,203 |
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Total operating expenses |
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17,621 |
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28,617 |
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62,823 |
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72,770 |
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Income (loss) from operations |
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2,619 |
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(2,138 |
) |
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(5,099 |
) |
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1,475 |
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Other income (expense) |
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Interest income |
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14 |
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13 |
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47 |
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42 |
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Interest expense |
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(207 |
) |
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(227 |
) |
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(518 |
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(572 |
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Foreign exchange income (expense) |
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1,676 |
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1,204 |
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2,316 |
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(1,896 |
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Total other income (expense), net |
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1,483 |
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990 |
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1,845 |
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(2,426 |
) |
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Income (loss) before income taxes |
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4,102 |
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(1,148 |
) |
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(3,254 |
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(951 |
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Provision for income taxes |
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38 |
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51 |
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114 |
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329 |
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Net income (loss) |
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$ |
4,064 |
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$ |
(1,199 |
) |
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$ |
(3,368 |
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$ |
(1,280 |
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Reconciliation of net income (loss) to net income (loss) applicable to ordinary shareholders |
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Net income (loss) |
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$ |
4,064 |
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$ |
(1,199 |
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$ |
(3,368 |
) |
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$ |
(1,280 |
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Net income (loss) applicable to participating securities |
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1,144 |
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Net income (loss) applicable to ordinary shareholdersbasic |
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$ |
2,920 |
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$ |
(1,199 |
) |
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$ |
(3,368 |
) |
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$ |
(1,280 |
) |
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Net income (loss) |
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$ |
4,064 |
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$ |
(1,199 |
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$ |
(3,368 |
) |
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$ |
(1,280 |
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Net income (loss) applicable to participating securities |
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1,061 |
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Net income (loss) applicable to ordinary shareholdersdiluted |
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$ |
3,003 |
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$ |
(1,199 |
) |
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$ |
(3,368 |
) |
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$ |
(1,280 |
) |
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Net income (loss) per share applicable to ordinary shareholders: |
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Basic |
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$ |
0.09 |
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$ |
(0.03 |
) |
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$ |
(0.10 |
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$ |
(0.04 |
) |
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Diluted |
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$ |
0.08 |
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$ |
(0.03 |
) |
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$ |
(0.10 |
) |
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$ |
(0.04 |
) |
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Weighted-average number of ordinary shares used in computing net income (loss) per share applicable to ordinary shareholders: |
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Basic |
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32,505 |
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42,514 |
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32,208 |
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36,409 |
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Diluted |
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36,146 |
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42,514 |
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|
32,208 |
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|
36,409 |
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MIMECAST LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)
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At March 31, 2015 |
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At December 31, 2015 |
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Assets |
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Current assets |
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Cash and cash equivalents |
|
$ |
32,890 |
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$ |
105,971 |
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Accounts receivable, net |
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|
25,267 |
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|
29,836 |
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Prepaid expenses and other current assets |
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|
4,982 |
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|
|
5,532 |
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Total current assets |
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63,139 |
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|
141,339 |
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Property and equipment, net |
|
|
23,159 |
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|
24,601 |
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Other assets |
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|
2,531 |
|
|
|
2,737 |
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Total assets |
|
$ |
88,829 |
|
|
$ |
168,677 |
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Liabilities, convertible preferred shares and shareholders (deficit) equity |
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Current liabilities |
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Accounts payable |
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$ |
4,674 |
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$ |
3,833 |
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Accrued expenses and other current liabilities |
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|
10,902 |
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|
|
11,938 |
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Deferred revenue |
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|
45,267 |
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|
|
53,637 |
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Current portion of long-term debt |
|
|
5,278 |
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|
|
5,295 |
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Total current liabilities |
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|
66,121 |
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|
|
74,703 |
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Deferred revenue, net of current portion |
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|
8,041 |
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|
|
8,771 |
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Long-term debt |
|
|
7,086 |
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|
|
3,138 |
|
Other non-current liabilities |
|
|
2,127 |
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|
|
2,178 |
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|
|
|
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Total liabilities |
|
|
83,375 |
|
|
|
88,790 |
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Contingencies |
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Convertible preferred shares |
|
|
59,305 |
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|
|
Shareholders (deficit) equity |
|
|
|
|
|
|
|
|
Ordinary shares, $0.012 par value, 118,657,039 and 300,000,000 shares authorized at March 31, 2015 and December 31, 2015,
respectively; 32,928,499 and 54,078,429 shares issued and outstanding at March 31, 2015 and December 31, 2015, respectively |
|
|
395 |
|
|
|
649 |
|
Additional paid-in capital |
|
|
32,417 |
|
|
|
166,864 |
|
Accumulated deficit |
|
|
(85,332 |
) |
|
|
(86,612 |
) |
Accumulated other comprehensive loss |
|
|
(1,331 |
) |
|
|
(1,014 |
) |
|
|
|
|
|
|
|
|
|
Total shareholders (deficit) equity |
|
|
(53,851 |
) |
|
|
79,887 |
|
|
|
|
|
|
|
|
|
|
Total liabilities, convertible preferred shares and shareholders (deficit) equity |
|
$ |
88,829 |
|
|
$ |
168,677 |
|
|
|
|
|
|
|
|
|
|
MIMECAST LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Nine months ended December 31, |
|
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
4,064 |
|
|
$ |
(1,199 |
) |
|
$ |
(3,368 |
) |
|
$ |
(1,280 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,811 |
|
|
|
2,735 |
|
|
|
8,400 |
|
|
|
7,942 |
|
Share-based compensation expense |
|
|
518 |
|
|
|
3,950 |
|
|
|
4,744 |
|
|
|
5,929 |
|
Provision for doubtful accounts |
|
|
2 |
|
|
|
12 |
|
|
|
45 |
|
|
|
37 |
|
Loss on disposal of fixed assets |
|
|
|
|
|
|
(15 |
) |
|
|
(5 |
) |
|
|
(20 |
) |
Non-cash interest expense |
|
|
28 |
|
|
|
27 |
|
|
|
80 |
|
|
|
81 |
|
Excess tax benefits related to exercise of share options |
|
|
|
|
|
|
150 |
|
|
|
|
|
|
|
(76 |
) |
Unrealized currency (gain) loss on foreign denominated intercompany transactions |
|
|
(1,574 |
) |
|
|
(1,165 |
) |
|
|
(2,300 |
) |
|
|
1,592 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(3,694 |
) |
|
|
(3,250 |
) |
|
|
(935 |
) |
|
|
(5,525 |
) |
Prepaid expenses and other current assets |
|
|
366 |
|
|
|
(1,054 |
) |
|
|
714 |
|
|
|
(271 |
) |
Other assets |
|
|
(187 |
) |
|
|
151 |
|
|
|
(179 |
) |
|
|
(16 |
) |
Accounts payable |
|
|
(147 |
) |
|
|
186 |
|
|
|
59 |
|
|
|
(260 |
) |
Deferred revenue |
|
|
4,447 |
|
|
|
6,098 |
|
|
|
5,327 |
|
|
|
9,959 |
|
Accrued expenses and other liabilities |
|
|
82 |
|
|
|
669 |
|
|
|
21 |
|
|
|
1,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
6,716 |
|
|
|
7,295 |
|
|
|
12,603 |
|
|
|
19,244 |
|
Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(2,957 |
) |
|
|
(3,373 |
) |
|
|
(11,369 |
) |
|
|
(10,775 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(2,957 |
) |
|
|
(3,373 |
) |
|
|
(11,369 |
) |
|
|
(10,775 |
) |
Financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercises of share options |
|
|
195 |
|
|
|
177 |
|
|
|
529 |
|
|
|
638 |
|
Excess tax benefits related to exercise of share options |
|
|
|
|
|
|
(150 |
) |
|
|
|
|
|
|
76 |
|
Payments on debt |
|
|
(754 |
) |
|
|
(1,361 |
) |
|
|
(2,335 |
) |
|
|
(4,120 |
) |
Proceeds from issuance of debt, net of issuance costs |
|
|
|
|
|
|
|
|
|
|
8,282 |
|
|
|
|
|
Proceeds from initial public offering, net of issuance costs |
|
|
|
|
|
|
70,014 |
|
|
|
|
|
|
|
68,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by financing activities |
|
|
(559 |
) |
|
|
68,680 |
|
|
|
6,476 |
|
|
|
65,026 |
|
Effect of foreign exchange rates on cash |
|
|
(730 |
) |
|
|
(682 |
) |
|
|
(1,271 |
) |
|
|
(414 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
2,470 |
|
|
|
71,920 |
|
|
|
6,439 |
|
|
|
73,081 |
|
Cash and cash equivalents at beginning of period |
|
|
23,127 |
|
|
|
34,051 |
|
|
|
19,158 |
|
|
|
32,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
25,597 |
|
|
$ |
105,971 |
|
|
$ |
25,597 |
|
|
$ |
105,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, |
|
|
Nine months ended December 31, |
|
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
|
(dollars in thousands) |
|
Gross profit percentage |
|
|
68 |
% |
|
|
71 |
% |
|
|
68 |
% |
|
|
71 |
% |
Constant currency revenue growth rate(1) |
|
|
32 |
% |
|
|
32 |
% |
|
|
34 |
% |
|
|
31 |
% |
Revenue retention rate(2) |
|
|
106 |
% |
|
|
109 |
% |
|
|
106 |
% |
|
|
109 |
% |
Total customers(3) |
|
|
12,900 |
|
|
|
16,200 |
|
|
|
12,900 |
|
|
|
16,200 |
|
Adjusted EBITDA(1) |
|
$ |
5,888 |
|
|
$ |
4,547 |
|
|
$ |
9,248 |
|
|
$ |
15,346 |
|
(1) |
Adjusted EBITDA and constant currency revenue growth rate are non-GAAP measures. For a reconciliation of Adjusted EBITDA and constant currency revenue growth rate 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 up 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 December 31, |
|
|
Nine months ended December 31, |
|
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
|
(dollars in thousands) |
|
Reconciliation of Revenue Constant Currency Growth Rate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue, as reported |
|
$ |
29,824 |
|
|
$ |
37,130 |
|
|
$ |
85,370 |
|
|
$ |
104,965 |
|
Revenue year-over-year growth rate, as reported |
|
|
28 |
% |
|
|
24 |
% |
|
|
34 |
% |
|
|
23 |
% |
Estimated impact of foreign currency fluctuations |
|
|
4 |
% |
|
|
8 |
% |
|
|
|
% |
|
|
8 |
% |
Revenue constant currency growth rate |
|
|
32 |
% |
|
|
32 |
% |
|
|
34 |
% |
|
|
31 |
% |
The following table presents a reconciliation of net income (loss) to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Nine months ended December 31, |
|
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
|
(in thousands) |
|
Reconciliation of Adjusted EBITDA: |
|
|
|
|
|
Net income (loss) |
|
$ |
4,064 |
|
|
$ |
(1,199 |
) |
|
$ |
(3,368 |
) |
|
$ |
(1,280 |
) |
Depreciation and amortization |
|
|
2,811 |
|
|
|
2,735 |
|
|
|
8,400 |
|
|
|
7,942 |
|
Interest expense, net |
|
|
193 |
|
|
|
214 |
|
|
|
471 |
|
|
|
530 |
|
Provision for income taxes |
|
|
38 |
|
|
|
51 |
|
|
|
114 |
|
|
|
329 |
|
Restructuring |
|
|
(60 |
) |
|
|
|
|
|
|
1,203 |
|
|
|
|
|
Share-based compensation expense |
|
|
518 |
|
|
|
3,950 |
|
|
|
4,744 |
|
|
|
5,929 |
|
Foreign exchange expense (income) |
|
|
(1,676 |
) |
|
|
(1,204 |
) |
|
|
(2,316 |
) |
|
|
1,896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
5,888 |
|
|
$ |
4,547 |
|
|
$ |
9,248 |
|
|
$ |
15,346 |
|
The following table presents a reconciliation of net income (loss) to Non-GAAP Net Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Nine months ended December 31, |
|
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
|
(in thousands) |
|
Reconciliation of Non-GAAP Net Income: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
4,064 |
|
|
$ |
(1,199 |
) |
|
$ |
(3,368 |
) |
|
$ |
(1,280 |
) |
Share-based compensation expense |
|
|
518 |
|
|
|
3,950 |
|
|
|
4,744 |
|
|
|
5,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income |
|
$ |
4,582 |
|
|
$ |
2,751 |
|
|
$ |
1,376 |
|
|
$ |
4,649 |
|
|
|
|
Non-GAAP Net Income per share applicable to ordinary shareholders: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.14 |
|
|
$ |
0.06 |
|
|
$ |
0.04 |
|
|
$ |
0.13 |
|
|
|
|
Weighted-average number of ordinary shares used in computing Non-GAAP net income per share applicable to ordinary
shareholders: |
|
|
|
|
|
|
|
|
Basic |
|
|
32,505 |
|
|
|
42,514 |
|
|
|
32,208 |
|
|
|
36,409 |
|
The following table presents a reconciliation of Net cash provided by operating activities to Free Cash Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Nine months ended December 31, |
|
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
|
(in thousands) |
|
Reconciliation of Free Cash Flow: |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
6,716 |
|
|
$ |
7,295 |
|
|
$ |
12,603 |
|
|
$ |
19,244 |
|
Purchases of property and equipment |
|
|
(2,957 |
) |
|
|
(3,373 |
) |
|
|
(11,369 |
) |
|
|
(10,775 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow |
|
$ |
3,759 |
|
|
$ |
3,922 |
|
|
$ |
1,234 |
|
|
$ |
8,469 |
|
Share-based compensation expense for three and nine months ended December 31, 2014 and 2015 (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Nine months ended December 31, |
|
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
Cost of revenue |
|
$ |
22 |
|
|
$ |
350 |
|
|
$ |
132 |
|
|
$ |
479 |
|
Research and development |
|
|
116 |
|
|
|
1,293 |
|
|
|
268 |
|
|
|
1,367 |
|
Sales and marketing |
|
|
151 |
|
|
|
1,481 |
|
|
|
1,568 |
|
|
|
2,331 |
|
General and administrative |
|
|
229 |
|
|
|
826 |
|
|
|
2,776 |
|
|
|
1,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total share-based compensation expense |
|
$ |
518 |
|
|
$ |
3,950 |
|
|
$ |
4,744 |
|
|
$ |
5,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue Constant Currency Growth Rate reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31 |
|
|
Nine Months Ended December 31 |
|
|
|
2016A |
|
|
2015A |
|
|
% change |
|
|
2016A |
|
|
2015A |
|
|
% change |
|
|
|
|
|
|
|
|
Total revenue as reported |
|
|
37.1 |
|
|
|
29.8 |
|
|
|
24 |
% |
|
|
105.0 |
|
|
|
85.4 |
|
|
|
23 |
% |
Estimated impact of foreign currency fluctuations |
|
|
|
|
|
|
|
|
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue constant currency growth rate |
|
|
|
|
|
|
|
|
|
|
32 |
% |
|
|
|
|
|
|
|
|
|
|
31 |
% |
|
|
|
|
|
|
|
Exchange Rate for Period |
|
2016A |
|
|
2015A |
|
|
|
|
|
2016A |
|
|
2015A |
|
|
|
|
|
|
|
|
|
|
|
USD |
|
|
1.0000 |
|
|
|
1.0000 |
|
|
|
|
|
|
|
1.0000 |
|
|
|
1.0000 |
|
|
|
|
|
ZAR |
|
|
0.0705 |
|
|
|
0.0891 |
|
|
|
|
|
|
|
0.0768 |
|
|
|
0.0923 |
|
|
|
|
|
GBP |
|
|
1.5177 |
|
|
|
1.5824 |
|
|
|
|
|
|
|
1.5331 |
|
|
|
1.6450 |
|
|
|
|
|
AUD |
|
|
0.7203 |
|
|
|
0.8553 |
|
|
|
|
|
|
|
0.7413 |
|
|
|
0.9045 |
|
|
|
|
|
Media Contact: Stuart Handley / Mimecast Limited / (+44) 207 847 8700 / shandley@mimecast.com
Investor Contact: Robert Sanders / Mimecast Limited / (+1) 781-996-5340 / rsanders@mimecast.com
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