I recalled Saul asking about stocks in the Cyber-security space and many of us have an interest with SaaS companies with reoccurring revenue. Someone posted this stock on the board recently so I did some initial research and opened an initial 2% position yesterday. Here are some of some of my notes.
Stock: Mimecast Limited (MIME)
Mimecast is an international company specializing in cloud-based email management for Microsoft Exchange and Microsoft Office 365, including security, archiving, and continuity services to protect business mail. It has offices in London, Boston, Chicago, San Francisco, Dallas, Cape Town, Johannesburg and Melbourne
Founded: 2003 UK England
Business: Information Security, E-Mail and File Archiving, Business Continuity Access
Public: Nov-2015 $10 (Price as of 1/19/18: $32.74)
Employee Count: 1000 +
Earned the UK Deloitte Technology Fast 50 awards in 2012 & 2013
Auditors: Ernst & Young
Customers:
7,000 in 2007
14,500 in 2015 (around IPO)
28,200 last Q (Q2/2018 – 11/8/2017)
The sweet spot is business with 100-5000 employees (75%) but 15% of customers are 5000+ employees.
Revenue:
US (49%)
UK and Europe (32%)
Africa (15%)
Others (4%)
Gross Margin: Low to Mid 70+%
Retention Rate = 100% - Annual churn - down sell + Annual Up Sell
107% (FY2015)
109% (FY2016)
111% (FY2017)
On average customers have 2.8 services
Observations:
*Average Trading Volume Caution : 267K
*Revenue growing, last 8 Qtrs
37130
36876
41460
44361
48333
52409
58158
63006
-
EPS bumping around break-even
-
Customers addition slowing, data for last 8 quarters
New Total Customers
1000 16200
1800 18000
1900 19900
1900 21800
3100 24900
1500 26400
900 27300
900 28200
This is no SHOP, but it reminded me of PAYC and with its 99% Recurring Revenue and Mid 70% margin, I decided to open a small position.
Comments?
LegoAbs