Why Are Mimecast Shares Trading Higher Today?

Mimecast Ltd MIME reported first-quarter FY22 revenue growth of 24% year-on-year to $142.5 million, beating the analyst consensus of $138.1 million.
It added 600 net new customers and now serves 40,600 organizations globally.
Solid execution of multi-product strategy drove average services per customer to 3.6 from 3.4 in the same quarter last year.
It increased the average order value per customer to $14,000, up 9% Y/Y in constant currency.
The net revenue retention rate was 105%, driven by upselling of 113%, with strength across the Email Security 3.0 solution framework, including DMARC Analyzer, Awareness Training, and CyberGraph.
Non-GAAP gross margin expanded 120 bps to 78.3%, and adjusted EBITDA margin expanded 480 bps to 27.1%.
Non-GAAP EPS of $0.32 beat the analyst consensus of $0.29.
Mimecast generated $40.7 million in operating cash flow and held $338.4 million in cash and equivalents.
The Q1 results underscore the strength of its multi-product platform and continued improvement in its business in its most important geographies, CEO Peter Bauer stated. It delivered sequential improvement in net revenue retention rate, driven by improving upsell and reduced downsell and churn rates.
Outlook: Mimecast sees Q2 revenue of $141.8 million - $143.3 million versus the analyst consensus of $141.3 million. It expects an adjusted EBITDA of $39.8 million - $40.8 million.
Price action: MIME shares traded higher by 5.28% at $58.03 on the last check Tuesday.