Customer Additions Drive KnowBe4's Q3 Beat, Lifts FY21 Revenue Outlook

KnowBe4 KNBE reported third-quarter FY21 revenue growth of 42.6% year-on-year to $64.1 million, beating the consensus of $61.6 million.
Annual recurring revenue expanded 44.1% Y/Y to $262.2 million. The number of customers crossed 44,000.
The non-GAAP gross margin expanded by 50 bps to 85.4%. The non-GAAP operating margin expanded 390 bps to 4.6%.
The non-GAAP EPS of $0.01 beat the consensus of $0.00.
KnowBe4 generated $19.9 million in operating cash flow. The company held $272.3 million in cash and equivalents.
Outlook: KnowBe4 sees Q4 revenue of $66.8 million - $67.2 million, which is above the consensus of $64.7 million.
For full-year 2021, it raised revenue outlook to $243.8 million - $244.2 million (prior view $237.5 million - $239.5 million), above the consensus of $239 million.
Price Action: KNBE shares closed higher by 1.06% at $23.93 on Wednesday.