Mimecast Limited (MIME) Tops Q2 EPS by 12c, Revenues Beat; Offers 3Q Revenue Outlook Above Consensus, Provides FY21 Revenue Guidance

Mimecast Limited (NASDAQ: MIME) reported Q2 EPS of $0.32, $0.12 better than the analyst estimate of $0.20. Revenue for the quarter came in at $122.7 million versus the consensus estimate of $121.13 million.

Overall Highlights

• Total revenue of $122.7 million grew 19% year-over-year on a GAAP and constant currency basis.
• Added 500 net new customers. Total customers 39,200 globally.
• Revenue retention rate of 105%.
• GAAP gross profit percentage of 76%, Non-GAAP gross profit percentage of 78%.
• GAAP EPS of $0.15 per diluted share, Non-GAAP EPS of $0.32 per diluted share.
• Named a leader in the Gartner Magic Quadrant for Enterprise Information Archiving.
• Achieved Federal Risk and Authorization Management Program (FedRAMP) ‘Ready’ status, a precursor to becoming FedRAMP fully authorized.
• Endorsed under Australia’s Information Security Registered Assessors Program.
• Hosted a virtual ribbon cutting commencing commercial operation of a Mimecast Data Center Pair in Canada.
• Mimecast and CrowdStrike Announce an Integration to Strengthen the Security Posture of Joint Customers

“We are pleased to deliver results that underscore the strength and durability of our business model, and our success in evolving our platform to anticipate customers’ needs and the changing nature of cyber threats,” said Peter Bauer, chief executive officer of Mimecast. “Amid a challenging operating environment, we are focusing on the elements we can control, winning new customers, strengthening our relationships with existing customers by expanding and innovating our platform, and running our business efficiently and profitably.”

Mimecast’s chief financial officer, Rafe Brown, commented, “The second quarter was marked by operational focus that led us to beat the high end of our revenue guidance while exceeding our profitability goals. We continue to build long-term efficiencies into our operating model to drive bottom-line margin expansion.”

GUIDANCE:

Mimecast Limited sees Q3 2021 revenue of $126-127 million, versus the consensus of $124.81 million.

Mimecast Limited sees FY2021 revenue of $490-493.5 million, versus the consensus of $490.87 million.

Mimecast is providing guidance for the third quarter and fiscal year 2021.

Third Quarter 2021 Guidance:

• For the third quarter of 2021, revenue is expected to be in the range of $126.0 million to $127.0 million and constant currency revenue growth is expected to be in the range of 15% to 16%.
• Adjusted EBITDA for the third quarter is expected to be in the range of $28.0 million to $29.0 million.
• Operating cash flow for the third quarter is expected to be approximately $24.0 million.
• Free Cash flow for the third quarter is expected to be approximately $16.0 million.

Our revenue guidance for the third quarter is based on exchange rates as of October 26, 2020 and includes an estimated negative impact of $0.5 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 $490.5 million to $493.5 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 $4.4 million compared to the rates in effect in the prior year.
• Full year 2021 Adjusted EBITDA is expected to be in the range of $109.0 million to $110.5 million.
• Operating cash flow for the full year 2021 is expected to be in the range of $116.5 million to $118.0 million.
• Free Cash Flow for the full year 2021 is expected to be in the range of $82.5 million to $84.0 million.

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

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