Mimecast Ltd(NASDAQ: MIME) opened positive today and delivered over 5.1% on Feb 13th, 2018 (as of 10:15AM EST; Source: Google finance) post their positive third quarter of 2018 update. The group delivered a revenue rise of 39% yoy to 67.3 million, and 36% in constant currency against the third quarter of 2017. MIME stock rallied over 21.8% in this year to date leading to a total rise of over 73% in the last one year (as of 10:41AM EST on Feb 13th, 2018; Source: Google finance).
The group’s Adjusted EBITDA reached 6.7 million, which is an adjusted EBITDA margin of 10% from 7.6% in the third quarter of 2017. Strong customer retention and upsell coupled with new sales during the period drove the margins. The Net customer additions of one 1100 was an increase over the 900 customers added in the second quarter, leading to the overall customer count to 29,200. The group is closing several deals in the large enterprise segment. This coupled with strong upsell to their currently customer base drove their average order value, which rose $9900, from $9100 in the second quarter.
The group had 1700 new and existing customers buy this service in the third quarter. Over 90% of their new customers bought TTP and almost 700 current customers also bought it. TTP is currently deployed with 15,100 customers worldwide. Overall 52% of the customers are using targeted threat protection. The group has 500 customers using Internal Email Protect and 300 customers using Sync & Recover.
Average number of services per customer rose to 2.9 against the 2.8 services reported last quarter. Over 32% of the customers currently buy four or more services from MIME. The group acquired a technology called Ameyo which brought them with a further machine learning based threat detection capabilities and several talented software engineers. Their proprietary underlying architecture Mime|OS is pluggable, enabling new technologies like Ameyo to smoothly integrate into their platform. Ameyo technology is currently being integrated into their TTP offering and would further enhance the protection for customers