Mimecast Limited (MIME) Tops Q1 EPS by 6c, Revenues Beat; Offers 2Q & FY20 Revenue Guidance Above Consensus

Mimecast Limited (NASDAQ: MIME) reported Q1 EPS of $0.22, $0.06 better than the analyst estimate of $0.16. Revenue for the quarter came in at $115.2 million versus the consensus estimate of $113.3 million.

First Quarter Highlights

• Total revenue of $115.2 million grew 16% year-over-year on a GAAP basis and 21% in constant currency
• Added 600 net new customers. Total customers 38,600 globally
• Revenue retention rate of 106%
• GAAP gross profit percentage of 75%, Non-GAAP gross profit percentage of 77%
• GAAP EPS of $0.05 per diluted share, Non-GAAP EPS of $0.22 per diluted share

“Email is seeing increased usage as employees work from home to combat the global COVID-19 pandemic. Mimecast Email Security 3.0 restores trust in email and enables business to safely rely on this core system while staying connected to customers and employees,” stated Peter Bauer, CEO of Mimecast.

Mimecast’s CFO, Rafe Brown, commented, “We exceeded the high end of our revenue guidance in the first quarter of our fiscal year and are pleased to be able to raise our revenue and cashflow outlook for full year 2021.”

GUIDANCE:

Mimecast Limited sees Q2 2021 revenue of $120.8-121.8 million, versus the consensus of $116.17 million.

Mimecast Limited sees FY2021 revenue of $488.1-493.1 million, versus the consensus of $479.85 million.

Second Quarter 2021 Guidance:

• For the second quarter of 2021, revenue is expected to be in the range of $120.8 million to $121.8 million and constant currency revenue growth is expected to be in the range of 17% to 18%. Adjusted EBITDA for the second quarter is expected to be in the range of $26.8 million to $27.8 million. Operating cash flow for the second quarter is expected to be approximately $20.0 million. Free Cash flow for the second quarter is expected to be approximately $13.0 million. Our revenue guidance for the second quarter is based on exchange rates as of July 23, 2020 and includes an estimated negative impact of $0.1 million resulting from the strengthening of the U.S. dollar compared to the prior year.

Fiscal Year 2021 Guidance:

• For the full year 2021, revenue is expected to be in the range of $488.1 million to $493.1 million and constant currency revenue growth is expected to be in the range of 16% to 17%. Foreign exchange rate fluctuations are negatively impacting this guidance by an estimated $6.7 million compared to the rates in effect in the prior year.
• Full year 2021 Adjusted EBITDA is expected to be in the range of $97.3 million to $99.3 million. Operating cash flow for the full year 2021 is expected to be in the range of $110.0 million to $113.0 million. Free Cash Flow for the full year 2021 is expected to be in the range of $77.0 million to $79.0 million.

For earnings history and earnings-related data on Mimecast Limited (MIME) click here.

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