Forescout Technologies Inc(NASDAQ: FSCT) reported a Product revenue rise of 27% yoy to $39.2 million for the three months ended September 30, 2017. Maintenance and professional services revenue enhanced 40% yoy to $25.2 million for the September quarter. Gross profit reached $48.5 million, or 75% of total revenue, against $35.2 million, or 72% of total revenue in the three months ended September 30, 2016.
On the other hand, they delivered an operating loss of $6.6 million, or 10% of total revenue, against an operating loss of $17.0 million, or 35% of total revenue in the three months ended September 30, 2016. For the three months ended September 30, 2017, they reported a net loss of $7.2 million from a net loss of $18.3 million in three months ended September 30, 2016.
Net cash provided by operating activities reached $2.3 million for the three months ended September 30, 2017, from $20.4 million net cash used in operating activities in the three months ended September 30, 2016.
The group made major investments in their sales force to leverage the major enterprise opportunity coming from the rising unmanaged devices coming onto networks. As a result, the group almost tripled the size of their quota-bearing sales representatives from the beginning of 2015 to September 30, 2017. FSCT intends to continue to make investments in their sales force to enhance adoption within the Global 2000 and public sector.
ForeScout Technologies reported a net-recurring revenue retention rate on support and maintenance contracts of 123%, 127% , and 116% , respectively as of September 30, 2017, December 31, 2016, and December 31, 2015. Their net retention rate of more than 100% shows that their products are expanding within their end-customer base.
The firm sold to over 2,600 end-customers in 80 countries as of September 30, 2017, which comprises 17% of the Global 2000, since their inception. For the three months ended September 30, 2017 and 2016, the group sold to 6% and 5% of the Global 2000, respectively. They built clients from several industries, like public sector entities, financial services, healthcare, technology, manufacturing, services, energy, and retail.