Mimecast Limited (MIME) Tops Q4 EPS by 5c, Revenues Beat; Offers 1Q & FY22 Revenues Guidance Above Consensus

Mimecast Limited (NASDAQ: MIME) reported Q4 EPS of $0.28, $0.05 better than the analyst estimate of $0.23. Revenue for the quarter came in at $133.9 million versus the consensus estimate of $131.17 million.

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.
• 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.

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.”

GUIDANCE:

Mimecast Limited sees Q1 2022 revenue of $137.2-138.6 million, versus the consensus of $131.66 million.

Mimecast Limited sees FY2022 revenue of $569.7-579.7 million, versus the consensus of $563.56 million.

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.

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

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