0001564590-21-026278.txt : 20210511 0001564590-21-026278.hdr.sgml : 20210511 20210511070037 ACCESSION NUMBER: 0001564590-21-026278 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 13 CONFORMED PERIOD OF REPORT: 20210511 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210511 DATE AS OF CHANGE: 20210511 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Mimecast Ltd CENTRAL INDEX KEY: 0001644675 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 000000000 STATE OF INCORPORATION: X0 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-37637 FILM NUMBER: 21909567 BUSINESS ADDRESS: STREET 1: 1 FINSBURY AVENUE CITY: LONDON STATE: X0 ZIP: EC2M 2PF BUSINESS PHONE: 44(0)2078478700 MAIL ADDRESS: STREET 1: 1 FINSBURY AVENUE CITY: LONDON STATE: X0 ZIP: EC2M 2PF 8-K 1 mime-8k_20210511.htm 8-K mime-8k_20210511.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 11, 2021

 

MIMECAST LIMITED

(Exact name of Registrant as Specified in Its Charter)

 

 

Bailiwick of Jersey

001-37637

Not Applicable

(State or other jurisdiction of

incorporation or organization)

(Commission File Number)

(I.R.S. Employer
Identification No.)

1 Finsbury Avenue

London EC2M 2PF

United Kingdom

 

EC2M 2PF

(Address of principal executive offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (781) 996-5340

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

(Title of each class)

(Trading Symbol)

(Name of each exchange on which registered)

Ordinary Shares, nominal value $0.012 per share

MIME

The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 


 

 

Item 2.02 Results of Operations and Financial Condition.

On May 11, 2021, Mimecast Limited (the "Company") issued a press release announcing its financial results for the quarter and fiscal year ended March 31, 2021. In the press release, the Company also announced that it would be holding a conference call on May 11, 2021, to discuss its financial results for the quarter and fiscal year ended March 31, 2021. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

This information is intended to be furnished under Item 2.02 of Form 8-K, "Results of Operations and Financial Condition" and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

Number

 

Description

99.1*

 

Press Release of Mimecast Limited dated May 11, 2021, entitled “Mimecast Announces Fourth Quarter and Full Year 2021 Financial Results.”

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

*

Furnished herewith.

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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.

 

 

 

Mimecast Limited

 

 

 

 

Date: May 11, 2021

 

By:

/s/ Peter Bauer

 

 

 

Peter Bauer

 

 

 

Chief Executive Officer

 

2

 

EX-99.1 2 mime-ex991_6.htm EX-99.1 mime-ex991_6.htm

Exhibit 99.1

Mimecast Announces Fourth Quarter and Full Year 2021 Financial Results

Lexington, MA – May 11, 2021 (GLOBE NEWSWIRE) Mimecast Limited (NASDAQ: MIME), a leading global provider of next generation cloud security and risk management services for email and corporate information, today announced financial results for the fourth fiscal quarter and fiscal year ended March 31, 2021.

Fourth Quarter 2021 Highlights

 

Achieved total revenue of $133.9 million, up 17% year-over-year on a GAAP basis and 13% in constant currency.

 

Solid execution of multi-product strategy drove average services per customer to 3.5 from 3.3 in the same quarter last year.

 

Increased average order value per customer to $13,900, up approximately 9% year-over-year in constant currency.

 

Achieved a net revenue retention rate of 104% driven by upsell of 113%, with particular strength in Email Security 3.0 – Zone 2 solutions, with Internal Email Protection adding 900 customers, Awareness Training adding 800 customers and Web Security adding 300 customers.

 

Generated $31.7 million in operating cash flow and $24.0 million in free cash flow, representing an 18.0% free cash flow margin.

 

Generated GAAP gross profit percentage of 76.2%, Non-GAAP gross profit percentage of 77.8%.

 

Delivered GAAP EPS of $0.09 per diluted share, Non-GAAP EPS of $0.28 per diluted share.

Peter Bauer, chief executive officer of Mimecast, said, “We delivered solid results against what remains a challenging macro backdrop, which speaks to the durability of our business model, our differentiated platform, and our focused execution against our three-pronged strategy. We are staying close to our customers, continuing to strengthen our go-to-market teams and strategies, and innovating on and expanding our platform to anticipate the evolving threat landscape.”

Mr. Bauer continued, “Our targeted strategic growth initiatives are beginning to take hold. We believe that with continued focused execution, as economies in our markets rebound, we will reaccelerate top-line growth over time. At the same time, we continue to drive increasingly strong free cash flow and meaningful margin expansion.”

 

Fourth Quarter 2021 Financial and Operating Highlights

 

Revenue: Revenue for the fourth quarter of 2021 was $133.9 million, an increase of 17% compared to revenue of $114.2 million in the fourth quarter of 2020. Revenue on a constant currency basis increased 13% compared to the fourth quarter of 2020.

 

Customers: Added 300 net new customers in the fourth quarter of 2021, and now serve 39,900 organizations globally.

 

Revenue Retention Rate: Revenue retention rate was 104% in the fourth quarter of 2021.

 

Gross Profit Percentage: Gross profit percentage was 76.2% in the fourth quarter of 2021, compared to 74.3% in the fourth quarter of 2020.

 

Non-GAAP Gross Profit Percentage: Non-GAAP gross profit percentage was 77.8% in the fourth quarter of 2021, compared to 75.9% in the fourth quarter of 2020.

1

 


 

Net Income: Net income was $5.8 million, or $0.09 per diluted share, based on 66.3 million diluted shares outstanding in the fourth quarter of 2021, compared to net income of $2.5 million, or $0.04 per diluted share, based on 64.4 million diluted shares outstanding in the fourth quarter of 2020.

 

Non-GAAP Net Income: Non-GAAP net income was $18.5 million, or $0.28 per diluted share, based on 66.3 million diluted shares outstanding in the fourth quarter of 2021, compared to non-GAAP net income of $9.7 million or $0.15 per diluted share, based on 64.4 million diluted shares outstanding in the fourth quarter of 2020.

 

Adjusted EBITDA: Adjusted EBITDA was $33.3 million in the fourth quarter of 2021, representing an Adjusted EBITDA margin of 24.9%, up from 21.0% in the fourth quarter of 2020.

 

Operating Cash Flow: Operating cash flow was $31.7 million in the fourth quarter of 2021, compared to $25.0 million in the fourth quarter of 2020.

 

Free Cash Flow and Cash: Free cash flow was $24.0 million in the fourth quarter of 2021, compared to $12.1 million in the fourth quarter of 2020. Cash and cash equivalents as of March 31, 2021 were $292.9 million.

Full Year 2021 Financial and Operating Highlights

 

Revenue: Revenue for 2021 was $501.4 million, an increase of 17% compared to revenue of $427.0 million of revenue in 2020. Revenue on a constant currency basis increased 17% compared to 2020.

 

Customers: Added 1,900 net new customers in 2021.

 

Revenue Retention Rate: Revenue retention rate was 104% for 2021.

 

Gross Profit Percentage: Gross profit percentage was 75.7% in 2021, compared to 74.4% in 2020.

 

Non-GAAP Gross Profit Percentage: Non-GAAP gross profit percentage was 77.5% in 2021, compared to 75.9% in 2020.

 

Net Income (Loss): Net income was $29.7 million, or $0.45 per diluted share, based on 65.6 million diluted shares outstanding, compared to net loss of $2.2 million, or $(0.04) per diluted share, based on 62.0 million diluted shares outstanding in 2020.

 

Non-GAAP Net Income: Non-GAAP net income was $75.0 million, or $1.14 per diluted share, based on 65.6 million diluted shares outstanding, compared to non-GAAP net income of $31.9 million or $0.50 per diluted share, based on 64.0 million diluted shares outstanding in 2020.

 

Adjusted EBITDA: Adjusted EBITDA was $127.2 million, representing an Adjusted EBITDA margin of 25.4%, up from 18.3% in 2020.

 

Operating Cash Flow: Operating cash flow was $127.0 million for 2021, compared to $90.5 million for 2020.

 

Free Cash Flow and Cash: Free cash flow was $88.4 million for 2021, compared to $37.3 million for the full year 2020. 

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 under the heading “Non-GAAP Financial Measures.”

 


2

 


 

Financial Outlook

Mimecast is providing guidance for the first quarter 2022 and fiscal year 2022.  Our guidance is based on exchange rates as of May 3, 2021.

First Quarter 2022 Guidance:

 

For the first quarter of 2022, revenue is expected to be in the range of $137.2 million to $138.6 million and constant currency revenue growth is expected to be in the range of 12% to 13%.

 

Foreign exchange rate fluctuations are positively impacting this guidance by an estimated $8.6 million compared to the rates in effect in the prior year.

 

Adjusted EBITDA for the first quarter is expected to be in the range of $35.8 million to $36.8 million.

 

Operating cash flow for the first quarter is expected to be in the range of $37.1 million to $38.1 million.

 

Free cash flow for the first quarter is expected to be in the range of $27.0 million to $28.0 million.  

Fiscal Year 2022 Guidance:

 

For the full year 2022, revenue is expected to be in the range of $569.7 million to $579.7 million and constant currency revenue growth is expected to be in the range of 10% to 12%.

 

Foreign exchange rate fluctuations are positively impacting this guidance by an estimated $18.6 million compared to the rates in effect in the prior year.

 

Full year 2022 Adjusted EBITDA is expected to be between $148.5 million and $150.5 million.

 

Operating cash flow for the full year 2022 is expected to be in the range of $160.1 to $162.1 million.

 

Free cash flow for the full year 2022 is expected to be in the range of $122.7 million to $124.7 million.

 

GAAP net income (loss) is the most comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA differs from GAAP net income (loss) in that it excludes depreciation, amortization, disposals and impairment of long-lived assets, acquisition-related gains and expenses, litigation-related expenses, share-based compensation expense, restructuring expense, interest income and interest expense, the benefit from (provision for) income taxes and foreign exchange (expense) 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 income (loss) or a reconciliation of forward-looking Adjusted EBITDA guidance to GAAP net income (loss). The reconciliation between net cash provided by operating activities to guided free cash flow for the first quarter 2022 and fiscal year 2022 is provided in the financial tables included at the end of this press release.

The financial guidance provided above includes forward-looking statements within the meaning of U.S. securities laws. While the financial guidance considers the anticipated impact of the Company’s recent security incident and the global COVID-19 pandemic, the future effect of the security incident and the pandemic on Mimecast’s financial results is highly uncertain. Mimecast’s actual results may differ materially. See “Safe Harbor for Forward-Looking Statements” below.


3

 


 

Conference Call and Webcast Information

Mimecast will host a conference call to discuss these financial results for investors and analysts at 8:00 am EDT (UTC-05:00) on May 11, 2021. To access the conference call, dial (844) 293-0173 for the U.S. and Canada and +1 (661) 378-9976 for international callers, conference ID# 3694729. The call will also be webcast live on the investor relations section of the Company’s website https://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 +1 (404) 537-3406 for international callers, conference ID# 3694729.  An archive of the webcast will be available on the investor relations section of the Company’s website https://investors.mimecast.com.

Mimecast: Relentless protection. Resilient world.™

Mimecast (NASDAQ: MIME) was born in 2003 with a focus on delivering relentless protection. Each day, we take on cyber disruption for our tens of thousands of customers around the globe; always putting them first, and never giving up on tackling their biggest security challenges together. We are the company that built an intentional and scalable design ideology that solves the number one cyberattack vector – email. We continuously invest to thoughtfully integrate brand protection, security awareness training, web security, compliance and other essential capabilities. Mimecast is here to help protect large and small organizations from malicious activity, human error and technology failure; and to lead the movement toward building a more resilient world. www.mimecast.com

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

 

Non-GAAP Financial Measures

We have provided in this press 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 2022, expected revenue from entities reporting in foreign currencies is translated into U.S. dollars using the comparable prior year period’s monthly average foreign currency exchange rates.

Non-GAAP gross profit and Non-GAAP gross profit percentage. We define non-GAAP gross profit as gross profit, adjusted to exclude: share-based compensation expense and amortization of acquired intangible assets. We define non-GAAP gross profit percentage as non-GAAP gross profit divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of non-cash charges for share-based compensation expense and amortization of acquired intangible assets 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 gross profit and non-GAAP gross profit percentage versus gross profit and gross profit percentage calculated in accordance with GAAP. For example, as noted above, non-GAAP gross profit and gross profit percentage excludes share-based compensation expense and amortization of acquired intangible assets. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP gross profit and non-GAAP gross profit percentage and evaluates non-GAAP gross profit and non-GAAP gross profit percentage together with gross profit and gross profit percentage calculated in accordance with GAAP.

4

 


Non-GAAP operating expenses and Non-GAAP income from operations. We provide investors with certain non-GAAP financial measures, including non-GAAP research and development expense, non-GAAP sales and marketing expense, non-GAAP general and administrative expense and non-GAAP income from operations (collectively the “non-GAAP operating financial measures”). These non-GAAP operating financial measures exclude the following, as applicable (as reflected in the reconciliation tables that follow):  share-based compensation expense; amortization of acquired intangible assets; impairment of long-lived assets; restructuring expense; acquisition-related gains and expenses; and litigation-related expenses. We consider these non-GAAP operating financial measures to be useful metrics for management and investors because it excludes the effect of share-based compensation expense and certain “one-time” charges 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 these non-GAAP operating financial measures versus the applicable financial measures calculated in accordance with GAAP. For example, as noted above, the non-GAAP operating financial measures exclude share-based compensation expense and certain “one-time” charges. In addition, the components of the costs that we exclude in our calculation of non-GAAP operating financial measures 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 operating financial measures and evaluates non-GAAP operating financial measures together with the applicable financial measures calculated in accordance with GAAP.

Non-GAAP net income. We define non-GAAP net income as net income (loss), adjusted to exclude: share-based compensation expense; amortization of acquired intangible assets; impairment of long-lived assets; restructuring expense; acquisition-related gains and expenses; litigation-related expenses; and the income tax effect of non-GAAP adjustments. 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, certain “one-time” charges 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 income versus net income (loss) calculated in accordance with GAAP. For example, as noted above, non-GAAP net income excludes share-based compensation expense, certain “one-time” charges and related income tax effects. 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 (loss) calculated in accordance with GAAP.

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; amortization; disposals and impairment of long-lived assets; acquisition-related gains and expenses; litigation-related expenses; share-based compensation expense; restructuring expense; interest income and interest expense; the benefit from (provision for) income taxes; and foreign exchange (expense) income. We define Adjusted EBITDA margin as Adjusted EBITDA over GAAP revenue in the period. We use Adjusted EBITDA as part of our overall assessment of our performance, for planning purposes, including the preparation of our annual operating budget, to evaluate the effectiveness of our business strategies, to communicate with our board of directors concerning our financial performance and for establishing incentive compensation metrics for executives and other senior employees.

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, equipment and capitalized software, 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.


5

 


 

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 Company’s recent security incident, including the scope and impact of the attack, the number and location of impacted customers, and the effectiveness of any current or future isolation and remediation efforts, the impact of the global COVID-19 pandemic on Mimecast’s operations and financial performance, the impact of foreign exchange rates, the durability of Mimecast’s business model, Mimecast’s differentiated platform, management’s ability to execute, the potential to reaccelerate top line revenue growth, the likelihood of economic recovery, Mimecast’s strategic growth initiatives, product innovation and expansion, Mimecast’s investments in its go-to-market team, expanding cash flow, margin expansion, and Mimecast’s future financial performance on both a GAAP and non-GAAP basis under the heading “Financial 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 Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including, but not limited to, uncertainties and risks relating to the recent security incident, the reputational, financial, legal and other risks related to potential adverse impacts to our customers and partners as a result of the security incident, the impact of the global COVID-19 pandemic on the Company’s business, operations, employees and financial results, the ability to attract new customers and retain existing customers, particularly during challenging economic times, competitive conditions, data breaches related to the recent security incident or otherwise, compliance with data privacy and data transfer laws and regulations related to the recent security incident or otherwise, service disruptions, the effect of the withdrawal of the United Kingdom from the European Union, risks associated with failure to protect the Company’s intellectual property or claims that the Company infringes the intellectual property of others, the successful integration of the Company’s acquisitions, including DMARC Analyzer B.V., Segasec Labs Limited and MessageControl and other acquisitions the Company may complete, the global nature of the Company’s business, including foreign currency exchange rate fluctuations and the potential disparate economic impact of the global COVID-19 pandemic on the jurisdictions in which the Company operates, and the other 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.

 


6

 


 

MIMECAST LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

 

Three months ended March 31,

 

 

Year ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

 

$

133,894

 

 

$

114,217

 

 

$

501,399

 

 

$

426,963

 

Cost of revenue

 

 

31,926

 

 

 

29,326

 

 

 

121,709

 

 

 

109,382

 

Gross profit

 

 

101,968

 

 

 

84,891

 

 

 

379,690

 

 

 

317,581

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

27,001

 

 

 

21,284

 

 

 

97,498

 

 

 

80,790

 

Sales and marketing

 

 

46,091

 

 

 

41,891

 

 

 

179,315

 

 

 

169,179

 

General and administrative

 

 

17,954

 

 

 

16,591

 

 

 

68,354

 

 

 

65,314

 

Restructuring

 

 

3,264

 

 

 

 

 

 

3,264

 

 

 

 

Total operating expenses

 

 

94,310

 

 

 

79,766

 

 

 

348,431

 

 

 

315,283

 

Income from operations

 

 

7,658

 

 

 

5,125

 

 

 

31,259

 

 

 

2,298

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

148

 

 

 

623

 

 

 

760

 

 

 

3,446

 

Interest expense

 

 

(553

)

 

 

(926

)

 

 

(2,804

)

 

 

(4,507

)

Foreign exchange (expense) income and other, net

 

 

(2,139

)

 

 

(1,237

)

 

 

2,226

 

 

 

(1,078

)

Total other income (expense), net

 

 

(2,544

)

 

 

(1,540

)

 

 

182

 

 

 

(2,139

)

Income before income taxes

 

 

5,114

 

 

 

3,585

 

 

 

31,441

 

 

 

159

 

(Benefit from) provision for income taxes

 

 

(654

)

 

 

1,060

 

 

 

1,696

 

 

 

2,359

 

Net income (loss)

 

$

5,768

 

 

$

2,525

 

 

$

29,745

 

 

$

(2,200

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per ordinary share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

$

0.09

 

 

$

0.04

 

 

$

0.47

 

 

$

(0.04

)

   Diluted

 

$

0.09

 

 

$

0.04

 

 

$

0.45

 

 

$

(0.04

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of ordinary shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

 

64,441

 

 

 

62,636

 

 

 

63,739

 

 

 

62,024

 

   Diluted

 

 

66,277

 

 

 

64,382

 

 

 

65,631

 

 

 

62,024

 

7

 


 

MIMECAST LIMITED

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

As of March 31,

 

 

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

292,949

 

 

$

173,958

 

Accounts receivable, net

 

 

114,280

 

 

 

97,659

 

Deferred contract costs, net

 

 

16,165

 

 

 

11,133

 

Prepaid expenses and other current assets

 

 

20,031

 

 

 

16,145

 

Total current assets

 

 

443,425

 

 

 

298,895

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

92,891

 

 

 

85,178

 

Operating lease right-of-use asset

 

 

128,063

 

 

 

116,564

 

Intangible assets, net

 

 

43,193

 

 

 

38,394

 

Goodwill

 

 

173,952

 

 

 

150,525

 

Deferred contract costs, net of current portion

 

 

50,086

 

 

 

36,664

 

Other assets

 

 

3,097

 

 

 

3,614

 

Total assets

 

$

934,707

 

 

$

729,834

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

10,487

 

 

$

14,907

 

Accrued expenses and other current liabilities

 

 

54,676

 

 

 

41,607

 

Deferred revenue

 

 

237,749

 

 

 

194,151

 

Current portion of finance lease obligations

 

 

323

 

 

 

1,058

 

Current portion of operating lease liabilities

 

 

33,447

 

 

 

30,379

 

Current portion of long-term debt

 

 

9,090

 

 

 

6,573

 

Total current liabilities

 

 

345,772

 

 

 

288,675

 

 

 

 

 

 

 

 

 

 

Deferred revenue, net of current portion

 

 

12,936

 

 

 

12,816

 

Long-term finance lease obligations

 

 

 

 

 

323

 

Operating lease liabilities

 

 

112,316

 

 

 

105,321

 

Long-term debt

 

 

94,671

 

 

 

86,258

 

Other non-current liabilities

 

 

8,143

 

 

 

4,386

 

Total liabilities

 

 

573,838

 

 

 

497,779

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

 

Ordinary shares, $0.012 par value, 300,000,000 shares authorized;

   64,562,222 and 62,791,691 shares issued and outstanding as of

   March 31, 2021 and 2020, respectively

 

 

775

 

 

 

754

 

Additional paid-in capital

 

 

408,249

 

 

 

325,808

 

Accumulated deficit

 

 

(53,915

)

 

 

(83,660

)

Accumulated other comprehensive loss

 

 

5,760

 

 

 

(10,847

)

Total shareholders' equity

 

 

360,869

 

 

 

232,055

 

Total liabilities and shareholders' equity

 

$

934,707

 

 

$

729,834

 

8

 


 

MIMECAST LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Three months ended March 31,

 

 

Year ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

5,768

 

 

$

2,525

 

 

$

29,745

 

 

$

(2,200

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

9,801

 

 

 

8,834

 

 

 

38,098

 

 

 

32,245

 

Share-based compensation expense

 

 

12,584

 

 

 

9,871

 

 

 

53,648

 

 

 

39,544

 

Amortization of deferred contract costs

 

 

3,798

 

 

 

2,709

 

 

 

13,269

 

 

 

9,587

 

Amortization of debt issuance costs

 

 

111

 

 

 

115

 

 

 

455

 

 

 

501

 

Amortization of operating lease right-of-use assets

 

 

8,052

 

 

 

7,832

 

 

 

30,380

 

 

 

31,940

 

Other non-cash items

 

 

14

 

 

 

(48

)

 

 

14

 

 

 

(54

)

Unrealized currency losses (gains) on foreign denominated transactions

 

 

2,141

 

 

 

2,063

 

 

 

(2,399

)

 

 

1,567

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(16,762

)

 

 

(21,754

)

 

 

(10,538

)

 

 

(20,467

)

Prepaid expenses and other current assets

 

 

(867

)

 

 

(1,795

)

 

 

(2,567

)

 

 

8,808

 

Deferred contract costs

 

 

(9,209

)

 

 

(6,227

)

 

 

(28,730

)

 

 

(22,751

)

Other assets

 

 

380

 

 

 

819

 

 

 

(72

)

 

 

(1,161

)

Accounts payable

 

 

(39

)

 

 

2,760

 

 

 

(3,669

)

 

 

4,215

 

Deferred revenue

 

 

28,154

 

 

 

22,769

 

 

 

30,691

 

 

 

38,457

 

Operating lease liabilities

 

 

(8,250

)

 

 

(7,972

)

 

 

(33,274

)

 

 

(25,941

)

Accrued expenses and other liabilities

 

 

(3,968

)

 

 

2,547

 

 

 

11,983

 

 

 

(3,752

)

Net cash provided by operating activities

 

 

31,708

 

 

 

25,048

 

 

 

127,034

 

 

 

90,538

 

Investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property, equipment and capitalized software

 

 

(7,666

)

 

 

(12,951

)

 

 

(38,597

)

 

 

(53,234

)

Purchases of strategic investments

 

 

 

 

 

 

 

 

 

 

 

(3,025

)

Maturities of investments

 

 

 

 

 

 

 

 

 

 

 

36,000

 

Proceeds from (payments for) acquisitions, net of cash acquired

 

 

74

 

 

 

(24,150

)

 

 

(16,970

)

 

 

(45,280

)

Net cash used in investing activities

 

 

(7,592

)

 

 

(37,101

)

 

 

(55,567

)

 

 

(65,539

)

Financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of ordinary shares

 

 

2,932

 

 

 

5,324

 

 

 

34,045

 

 

 

25,428

 

Withholding taxes related to net share settlement of ESPP purchases and vesting of RSUs

 

 

(1,157

)

 

 

(536

)

 

 

(5,332

)

 

 

(2,476

)

Payments on debt

 

 

(1,875

)

 

 

(1,250

)

 

 

(6,875

)

 

 

(4,375

)

Payments on finance lease obligations

 

 

(268

)

 

 

(171

)

 

 

(1,057

)

 

 

(844

)

Proceeds from long-term debt including revolving credit facilities

 

 

 

 

 

 

 

 

17,500

 

 

 

 

Net cash (used in) provided by financing activities

 

 

(368

)

 

 

3,367

 

 

 

38,281

 

 

 

17,733

 

Effect of foreign exchange rates on cash

 

 

(1,696

)

 

 

(7,219

)

 

 

9,243

 

 

 

(6,350

)

Net increase (decrease) in cash and cash equivalents

 

 

22,052

 

 

 

(15,905

)

 

 

118,991

 

 

 

36,382

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

270,897

 

 

 

189,863

 

 

 

173,958

 

 

 

137,576

 

Cash and cash equivalents at end of period

 

$

292,949

 

 

$

173,958

 

 

$

292,949

 

 

$

173,958

 

9

 


 

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,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Revenue constant currency growth rate (1)

 

 

13

%

 

 

26

%

 

 

17

%

 

 

28

%

Gross profit percentage

 

 

76

%

 

 

74

%

 

 

76

%

 

 

74

%

Free cash flow (1)

 

$

24,042

 

 

$

12,097

 

 

$

88,437

 

 

$

37,304

 

Adjusted EBITDA (1)

 

$

33,322

 

 

$

23,999

 

 

$

127,187

 

 

$

78,088

 

 

 

 

As of March 31,

 

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Revenue retention rate (2)

 

 

104

%

 

 

107

%

Total customers (3)

 

 

39,900

 

 

 

38,100

 

 

(1)

Adjusted EBITDA, free cash flow, and revenue constant currency growth rates are non-GAAP measures. For a reconciliation of Adjusted EBITDA, free cash flow, 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. This revenue includes renewed revenue contracts as well as additional revenue derived from the sale of additional seat licenses as well as additional services sold to these 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. In determining the number of customers, we do not include customers we acquired from DMARC Analyzer that transact with us on a credit card basis.

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,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(dollars in thousands)

 

Reconciliation of Revenue Constant Currency Growth Rate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, as reported

 

$

133,894

 

 

$

114,217

 

 

$

501,399

 

 

$

426,963

 

Revenue year-over-year growth rate, as reported

 

 

17

%

 

 

24

%

 

 

17

%

 

 

25

%

Estimated impact of foreign currency fluctuations

 

 

(4

)%

 

 

2

%

 

 

%

 

 

3

%

Revenue constant currency growth rate

 

 

13

%

 

 

26

%

 

 

17

%

 

 

28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange rate for period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USD

 

 

1.000

 

 

 

1.000

 

 

 

1.000

 

 

 

1.000

 

ZAR

 

 

0.067

 

 

 

0.065

 

 

 

0.061

 

 

 

0.068

 

GBP

 

 

1.379

 

 

 

1.282

 

 

 

1.308

 

 

 

1.272

 

AUD

 

 

0.773

 

 

 

0.659

 

 

 

0.719

 

 

 

0.682

 

 


10

 


 

The following tables present a reconciliation of selected GAAP results to Non-GAAP results (dollars in thousands):

 

 

 

Three months ended March 31,

 

 

Year ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Reconciliation of Non-GAAP Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

101,968

 

 

$

84,891

 

 

$

379,690

 

 

$

317,581

 

GAAP gross profit percentage

 

 

76

%

 

 

74

%

 

 

76

%

 

 

74

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

1,084

 

 

 

901

 

 

 

4,619

 

 

 

3,445

 

Amortization of acquired intangible assets

 

 

1,104

 

 

 

943

 

 

 

4,158

 

 

 

2,888

 

Non-GAAP gross profit

 

$

104,156

 

 

$

86,735

 

 

$

388,467

 

 

$

323,914

 

Non-GAAP gross profit percentage

 

 

78

%

 

 

76

%

 

 

77

%

 

 

76

%

 

 

 

Three months ended March 31,

 

 

Year ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP research and development

 

$

27,001

 

 

$

21,284

 

 

$

97,498

 

 

$

80,790

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Share-based compensation expense

 

 

3,876

 

 

 

2,870

 

 

 

15,446

 

 

 

10,900

 

     Amortization of acquired intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

     Acquisition-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

     Litigation-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP research and development

 

$

23,125

 

 

$

18,414

 

 

$

82,052

 

 

$

69,890

 

 

 

 

Three months ended March 31,

 

 

Year ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP sales and marketing

 

$

46,091

 

 

$

41,891

 

 

$

179,315

 

 

$

169,179

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Share-based compensation expense

 

 

3,774

 

 

 

2,972

 

 

 

17,380

 

 

 

13,141

 

     Amortization of acquired intangible assets

 

 

36

 

 

 

31

 

 

 

131

 

 

 

110

 

     Acquisition-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

     Litigation-related expenses

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP sales and marketing

 

$

42,281

 

 

$

38,888

 

 

$

161,804

 

 

$

155,928

 

 

 

 

Three months ended March 31,

 

 

Year ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP general and administrative

 

$

17,954

 

 

$

16,591

 

 

$

68,354

 

 

$

65,314

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Share-based compensation expense

 

 

3,850

 

 

 

3,128

 

 

 

16,203

 

 

 

12,058

 

     Amortization of acquired intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

     Acquisition-related expenses

 

 

 

 

 

28

 

 

 

667

 

 

 

769

 

     Litigation-related expenses

 

 

 

 

 

 

 

 

 

 

 

2,700

 

Non-GAAP general and administrative

 

$

14,104

 

 

$

13,435

 

 

$

51,484

 

 

$

49,787

 

 

 

 

Three months ended March 31,

 

 

Year ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP income from operations

 

$

7,658

 

 

$

5,125

 

 

$

31,259

 

 

$

2,298

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Share-based compensation expense

 

 

12,584

 

 

 

9,871

 

 

 

53,648

 

 

 

39,544

 

     Amortization of acquired intangible assets

 

 

1,140

 

 

 

974

 

 

 

4,289

 

 

 

2,998

 

     Acquisition-related expenses

 

 

 

 

 

28

 

 

 

667

 

 

 

769

 

     Restructuring

 

 

3,264

 

 

 

 

 

 

3,264

 

 

 

 

     Litigation-related expenses

 

 

 

 

 

 

 

 

 

 

 

2,700

 

Non-GAAP income from operations

 

$

24,646

 

 

$

15,998

 

 

$

93,127

 

 

$

48,309

 

11

 


 

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

 

 

Three months ended March 31,

 

 

Year ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Reconciliation of Non-GAAP Net Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

5,768

 

 

$

2,525

 

 

$

29,745

 

 

$

(2,200

)

Share-based compensation expense

 

 

12,584

 

 

 

9,871

 

 

 

53,648

 

 

 

39,544

 

Amortization of acquired intangible assets

 

 

1,140

 

 

 

974

 

 

 

4,289

 

 

 

2,998

 

Acquisition-related expenses (1)

 

 

 

 

 

28

 

 

 

667

 

 

 

769

 

Litigation-related expenses (2)

 

 

 

 

 

 

 

 

 

 

 

2,700

 

Restructuring

 

 

3,264

 

 

 

 

 

 

3,264

 

 

 

 

Income tax effect of Non-GAAP adjustments

 

 

(4,209

)

 

 

(3,688

)

 

 

(16,656

)

 

 

(11,915

)

Non-GAAP net income

 

$

18,547

 

 

$

9,710

 

 

$

74,957

 

 

$

31,896

 

Non-GAAP net income per ordinary share - basic

 

$

0.29

 

 

$

0.16

 

 

$

1.18

 

 

$

0.51

 

Non-GAAP net income per ordinary share - diluted

 

$

0.28

 

 

$

0.15

 

 

$

1.14

 

 

$

0.50

 

Weighted-average number of ordinary shares used in

   computing Non-GAAP net income per ordinary share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

64,441

 

 

 

62,636

 

 

 

63,739

 

 

 

62,024

 

Diluted

 

 

66,277

 

 

 

64,382

 

 

 

65,631

 

 

 

64,019

 

 

 

(1)

Acquisition-related expenses relate to costs incurred for acquisition activity. See Note 6 of the notes to our consolidated financial statements, which will be included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2021, for further information.

 

(2)

Litigation-related expenses relate to amounts incurred for litigation settlement. See Note 14 of the notes to our consolidated financial statements, which will be included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2021, for further information.

 

The following table presents a reconciliation of Net income (loss) to Adjusted EBITDA (in thousands):

 

 

Three months ended March 31,

 

 

Year ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Reconciliation of Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

5,768

 

 

$

2,525

 

 

$

29,745

 

 

$

(2,200

)

Depreciation, amortization and disposals of long-lived assets

 

 

9,814

 

 

 

8,785

 

 

 

38,112

 

 

 

32,278

 

Interest expense, net

 

 

405

 

 

 

303

 

 

 

2,044

 

 

 

1,061

 

(Benefit from) provision for income taxes

 

 

(654

)

 

 

1,060

 

 

 

1,696

 

 

 

2,359

 

Share-based compensation expense

 

 

12,584

 

 

 

9,871

 

 

 

53,648

 

 

 

39,544

 

Restructuring

 

 

3,264

 

 

 

 

 

 

3,264

 

 

 

 

Foreign exchange expense (income)

 

 

2,141

 

 

 

1,427

 

 

 

(1,989

)

 

 

1,577

 

Acquisition-related expenses (1)

 

 

 

 

 

28

 

 

 

667

 

 

 

769

 

Litigation-related expenses (2)

 

 

 

 

 

 

 

 

 

 

 

2,700

 

Adjusted EBITDA

 

$

33,322

 

 

$

23,999

 

 

$

127,187

 

 

$

78,088

 

 

 

(1)

Acquisition-related expenses relate to costs incurred for acquisition activity. See Note 6 of the notes to our consolidated financial statements, which will be included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2021, for further information.

 

(2)

Litigation-related expenses relate to amounts incurred for litigation settlement. See Note 14 of the notes to our consolidated financial statements, which will be included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2021, for further information.


12

 


 

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,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Reconciliation of Free Cash Flow:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

31,708

 

 

$

25,048

 

 

$

127,034

 

 

$

90,538

 

Purchases of property, equipment and capitalized software

 

 

(7,666

)

 

 

(12,951

)

 

 

(38,597

)

 

 

(53,234

)

Free cash flow

 

$

24,042

 

 

$

12,097

 

 

$

88,437

 

 

$

37,304

 

Share-based compensation expense for the three and twelve months ended March 31, 2021 and 2020 (in thousands):

 

 

 

Three months ended March 31,

 

 

Year ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of revenue

 

$

1,084

 

 

$

901

 

 

$

4,619

 

 

$

3,445

 

Research and development

 

 

3,876

 

 

 

2,870

 

 

 

15,446

 

 

 

10,900

 

Sales and marketing

 

 

3,774

 

 

 

2,972

 

 

 

17,380

 

 

 

13,141

 

General and administrative

 

 

3,850

 

 

 

3,128

 

 

 

16,203

 

 

 

12,058

 

Total share-based compensation expense

 

$

12,584

 

 

$

9,871

 

 

$

53,648

 

 

$

39,544

 

Amortization of acquired intangible assets for the three and twelve months ended March 31, 2021 and 2020 (in thousands):

 

 

 

Three months ended March 31,

 

 

Year ended March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of revenue

 

$

1,104

 

 

$

943

 

 

$

4,158

 

 

$

2,888

 

Sales and marketing

 

 

36

 

 

 

31

 

 

 

131

 

 

 

110

 

Total amortization of acquired intangible assets

 

$

1,140

 

 

$

974

 

 

$

4,289

 

 

$

2,998

 

 

The following table presents a reconciliation of Net cash provided by operating activities to guided Free cash flow (in millions):

 

 

Three months ending June 30,

 

 

Year ending March 31,

 

 

 

2021

 

 

2022

 

Reconciliation of Free Cash Flow:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$                      37 - 38

 

 

$              160 - 162

 

Purchases of property, equipment and capitalized software

 

 

(10

)

 

 

(37

)

Free cash flow

 

$                      27 - 28

 

 

$              123 - 125

 

 


13

 


 

Mimecast Social Media Resources

 

-

LinkedIn: Mimecast

 

-

Facebook: Mimecast

 

-

Twitter: @Mimecast

 

-

Blog: Cyber Resilience Insights

 

 

Press Contact

Timothy Hamilton
Press@Mimecast.com
617-393-7122

 

Investor Contact

Robert Sanders

Investors@Mimecast.com

617-393-7074

 

 

 

14

 

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