 First Quarter Highlights Total revenue of 115.2 million grew 16 year-over-year on a GAAP basis and 21 in constant currency Added 600 net new customers. Total customers 38,600 globally Revenue retention rate of 106 GAAP gross profit percentage of 75, Non-GAAP gross profit percentage of 77 GAAP EPS of 0.05 per diluted share, Non-GAAP EPS of 0.22 per diluted shareLEXINGTON, Mass., Aug. 03, 2020 GLOBE NEWSWIRE -- Mimecast Limited NASDAQ: MIME, a leading email and data security company, today announced financial results for the first quarter ended June 30, 2020.Email is seeing increased usage as employees work from home to combat the global COVID-19 pandemic. Mimecast Email Security 3.0 restores trust in email and enables business to safely rely on this core system while staying connected to customers and employees, stated Peter Bauer, CEO of Mimecast. Mimecasts CFO, Rafe Brown, commented, We exceeded the high end of our revenue guidance in the first quarter of our fiscal year and are pleased to be able to raise our revenue and cashflow outlook for full year 2021.First Quarter 2021 Financial Highlights Revenue: Revenue for the first quarter of 2021 was 115.2 million, an increase of 16 compared to revenue of 99.2 million in the first quarter of 2020. Revenue on a constant currency basis increased 21 compared to the first quarter of 2020. Customers: Added 600 net new customers in the first quarter of 2021, and now serve 38,600 organizations globally. Revenue Retention Rate: Revenue retention rate was 106 in the first quarter of 2021. Gross Profit Percentage: Gross profit percentage was 75 in the first quarter of 2021, compared to 74 in the first quarter of 2020. Non-GAAP Gross Profit Percentage: Non-GAAP gross profit percentage was 77 in the first quarter of 2021, compared to 76 in the first quarter of 2020. Net Income: Net income was 3.1 million, or 0.05 per diluted share, based on 64.7 million diluted shares outstanding, compared to net loss of 4.0 million, or 0.07 per diluted share, based on 61.4 million diluted shares outstanding in the first quarter of 2020. Non-GAAP Net Income: Non-GAAP net income was 14.2 million, or 0.22 per diluted share, based on 64.7 million diluted shares outstanding, compared to non-GAAP net income of 5.0 million or 0.08 per diluted share, based on 63.9 million diluted shares outstanding in the first quarter of 2020. Adjusted EBITDA: Adjusted EBITDA was 25.7 million, representing an Adjusted EBITDA margin of 22.3, up from 13.6 in the first quarter of 2020. Operating Cash Flow: Operating cash flow was 29.3 million in the first quarter of 2021, compared to 28.5 million in the first quarter of 2020. Free Cash Flow and Cash: Free cash flow was 18.5 million in the first quarter of 2021, compared to 19.4 million in the first quarter of 2020. Cash and cash equivalents as of June 30, 2020 were 198.5 million.Reconciliations of the non-GAAP financial measures provided in this press release to their most directly comparable GAAP financial measures are provided in the financial tables included at the end of this press release. An explanation of these measures and how they are calculated is also included under the heading Non-GAAP Financial Measures.Business Highlights Mimecast acquired MessageControl, a human-layer email and messaging security company that provides advanced impersonation protection with solutions designed to stop social engineering attacks using artificial intelligence, machine learning, and identity graph technology. MessageControl Founder, Paul Everton, and team will continue with Mimecast expanding our diverse ecosystem of engineering talents. Klaus Seidl joins Mimecast as Vice President of Sales for Germany, Austria and Switzerland. Formerly Klaus held senior roles at Loom Systems, Network Appliance, and Riverbed. Klaus brings over 30 years of industry experience to lead our growth in the DACH region. ICSA labs awarded Mimecast Targeted Threat Protection a perfect score for blocking 100 of threats in their July 2020 Email Advanced Threat Defense Test Report. Mimecast was named a leader in the Info-Tech Data Archiving Data Quadrant published through SoftwareReviews. Mimecast Threat Report, BlackHat Editions provides technical analysis of United States-based attacks launched in attempt to infiltrate the security environment of Mimecast customers. Mimecast Targeted Threat Protection added 800 new subscriptions in the first quarter. In total, 29,100 customers now use the service. Mimecast Web Security added 100 new subscriptions in the first quarter. In total 700 customers now use the service. On average, Mimecast customers used 3.4 services in the first quarter of 2021. This represents an increase from the average of 3.2 services used by customers in the first quarter of 2020.Business OutlookMimecast is providing guidance for the second quarter and fiscal year 2021.Second Quarter 2021 Guidance:For the second quarter of 2021, revenue is expected to be in the range of 120.8 million to 121.8 million and constant currency revenue growth is expected to be in the range of 17 to 18. Adjusted EBITDA for the second quarter is expected to be in the range of 26.8 million to 27.8 million. Operating cash flow for the second quarter is expected to be approximately 20.0 million. Free Cash flow for the second quarter is expected to be approximately 13.0 million. Our revenue guidance for the second quarter is based on exchange rates as of July 23, 2020 and includes an estimated negative impact of 0.1 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 488.1 million to 493.1 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 6.7 million compared to the rates in effect in the prior year.Full year 2021 Adjusted EBITDA is expected to be in the range of 97.3 million to 99.3 million. Operating cash flow for the full year 2021 is expected to be in the range of 110.0 million to 113.0 million. Free Cash Flow for the full year 2021 is expected to be in the range of 77.0 million to 79.0 million.GAAP net income loss is the most comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA differs from GAAP net income loss in that it excludes depreciation, amortization, disposals and impairment of long-lived assets, acquisition-related gains and expenses, litigation-related expenses, share-based compensation expense, restructuring expense, interest income and interest expense, the provision for income taxes and foreign exchange income. Mimecast is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Mimecast has not provided guidance for GAAP net income loss or a reconciliation of forward-looking Adjusted EBITDA guidance to GAAP net income loss.The financial guidance provided above includes forward-looking statements within the meaning of U.S. securities laws. While the financial guidance considers the anticipated impact of the global COVID-19 pandemic, the societal and economic impact of the pandemic is unprecedented and the future effect of the pandemic on the global economy and Mimecasts financial results is highly uncertain. Mimecasts actual results may differ materially. See Safe Harbor for Forward-Looking Statements below.Conference Call and Webcast Information Mimecast will host a conference call to discuss these financial results for investors and analysts at 4:30 pm EDT UTC-05:00 on August 3, 2020. To access the conference call, dial 844 402-0879 for the U.S. and Canada and 478 219-0767 for international callers and enter conference ID 6549588. The call will also be webcast live on the investor relations section of the Companys website An audio replay of the call will be available two hours after the live call ends by dialing 855 859-2056 for U.S. and Canada and 404 537-3406 for international callers and entering conference ID 6549588. In addition, an archive of the webcast will be available on the investor relations section of the Companys website MimecastMimecast NASDAQ: MIME was born in 2003 with a focus on delivering relentless protection. Each day, we take on cyber disruption for our tens of thousands of customers around the globe; always putting them first, and never giving up on tackling their biggest security challenges together. We are the company that built an intentional and scalable design ideology that solves the number one cyberattack vector email. We continuously invest to thoughtfully integrate brand protection, security awareness training, web security, compliance and other essential capabilities. Mimecast is here to help protect large and small organizations from malicious activity, human error and technology failure; and to lead the movement toward building a more resilient world. and the Mimecast logo are registered trademarks of Mimecast. All other third-party trademarks and logos contained in this press release are the property of their respective owners.Non-GAAP Financial MeasuresWe have provided in this press release financial information that has not been prepared in accordance with GAAP. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. 