Mimecast Limited (NASDAQ:MIME) Q3 2019 Earnings Conference Call Transcript

Feb 11, 2019 • 04:30 pm ET

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Mimecast Limited (NASDAQ:MIME) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Robert Sanders

Good evening and welcome to Mimecast's Earnings Call for the Fiscal Third Quarter of 2019, Ended December 31, 2018. I'm Robert Sanders, Director of Investor Relations. With me on the call tonight are Peter Bauer, our Cofounder, Chairman and CEO, and Peter Campbell, our CFO.

On this call, we will make forward-looking statements regarding future events and the future financial performance of the company. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. We caution you to consider the important risk factors that could cause actual results to differ from those in the forward-looking statements contained in today's press release and this conference call. These risk factors are further defined in Mimecast's most recent Form 10-Q.

During this call, we will present both GAAP and non-GAAP financial measures. These non-GAAP measures are not intended to be considered in isolation from, a substitute for or superior to our GAAP results, and we encourage you to consider all measures when analyzing Mimecast's performance. A reconciliation of certain GAAP to non-GAAP measures is included in today's press release, which can be found in the investor relations section of our website. The date of this call is February 11, 2019. Any forward-looking statements we make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

Now I would like to turn the call over to Peter Bauer.

Executive
Peter Bauer

Good evening, and thank you all for joining our third quarter 2019 earnings call. I'll start today by reviewing our third quarter performance and then I'll discuss success we're seeing with newly introduced services and some industry validation. Next, I'll give some examples of where we're winning in the market and the types of problems we're helping customers to solve. Finally I'll cover in addition to our Board of Directors and growth in my leadership team. I'll hand over the call to Peter Campbell, our Chief Financial Officer to then cover our results in more detail.

Third quarter results exceeded our guidance on both the top and bottom lines. Revenue of $87.6 million grew 30% year-over-year as reported and 33% in constant currency. Now this performance was the result of high customer retention, sales to our base of subscribers and the addition of thousand net new customers to our platform. We were successful across all market segments with notable strength in larger accounts. Once again, we closed a record number of six figure transactions and additionally, we closed a seven figure deal that was the largest ever for the company.

We delivered strong execution across geographies with half of our revenue being generated outside of North America. A recent entry to the German market with the local services and data centers gained momentum while our core regions continued to deliver strong results. As we grow Mimecast threat research is monitoring an ever-growing