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Mimecast enjoys Office 365 service provider growth

Email security and management vendor Mimecast, which claims a growing service provider partner network, has posted a 33% increase in third quarter sales for the period ending 31 December 2018.

It is the email security and archiving supplier of choice for many organisations that have subscribed to Microsoft Office 365, a position that has helped to substantially increase growth, it says. Over 40% of Mimecast customers now use the platform in conjunction with Office 365, which is up from 29% in Q3 the previous year. This comes as IT departments look for a reliable method of protecting and archiving their cloud-hosted data.

Third quarter sales were $88m, with adjusted EBITDA reaching $16m. As a result, there was a modest $460,000 net profit for the quarter, compared to a $2.6m loss in the same quarter a year ago.

The company is predicting similar growth rates for Q419, with FY19 guidance anticipated at around $339m – equivalent to year-over-year growth of 31%.

Peter Bauer, CEO of Mimecast, said: “The strong execution from our global go to market, product and customer service teams resulted in another strong quarter of new customer acquisitions, increased adoption of our expanded offerings and record customer retention. Customers appreciate our ability to protect their businesses and continue to value the depth of capabilities available on our platform.”

The company added 1,000 net new customers in the quarter, with it now serving 33,300 organisations globally. “In total, more than 13,700 customers of all sizes have selected Mimecast to enhance their security, archive their data and to provide uptime assurance for their Office 365 investments,” said the vendor.