According to a recent Markets and Markets report, the global email encryption market in the post-COVID-19 scenario is projected to grow at 24% CAGR from $3.4 billion this year to $9.9 billion by 2025. The growth in the industry is attributed to increasing phishing and spam emails, stricter industry regulations, and government mandate for data protection. Mimecast (Nasdaq: MIME) is one of the leading players within the email security market that recently announced its fiscal year results.

Mimecast’s Financials

For the fourth quarter of the year, Mimecast’s revenues grew 24% to $114.2 million, ahead of the market’s forecast by 1.5%. Adjusted EPS of $0.15 was also better than the market’s forecast of $0.13. A year ago, it had reported an EPS of $0.07.

Among key operating metrics, revenues on a constant currency basis grew 26% over the year. Mimecast added 1,200 net new customers in the quarter to end with over 38,100 organizations globally. Revenue retention rate came in at 107% for the quarter.

For the year, Mimecast saw revenues grow 25% to $427 million. Adjusted net income of $0.50 per share was nearly double that of $0.26 per share reported a year ago.

Mimecast expects to end the current quarter with revenues of $112.8-$113.8 million. It forecast revenues of $475-$485 million for the year. The market was looking for revenues of $117.1 million for the quarter with an EPS of $0.12 and revenues of $495.27 million for the year with an EPS of $0.62.

Mimecast’s Enterprise Focus

Mimecast is more than an email security provider. Traditional email security companies focus on providing a solution that either addresses security or archiving. Mimecast, on the other hand, built an infrastructure that does all of those things for thousands of companies. Its proprietary cloud architecture offers comprehensive email security, service continuity, and archiving in a single subscription service. It has differentiated its offerings from those of the rivals by providing a solution that is integrated and multi-tenanted.

It is now leveraging its architecture to focus on enterprise clients. During the last quarter, it saw significant success within the larger enterprise segment with several new wins across the UK, US, and Australia. Its multi-service offering has helped drive larger engagements as organizations are looking to purchase a suite of services that includes web and awareness training besides just email services. Despite the current crisis, the company is continuing with its expansion plans and is looking to open new offices, hiring additional talent, and deploying new data centers.

Mimecast boasts of a purpose-built, cloud-native platform – Mime|OS – that provides an extensible architecture for organizations to integrate Mimecast with their existing investments. Its pre-built integrations along with sample code and documentation help developers create their own solutions easily. Its open APIs were used by over 800 customers during the quarter.

Besides open APIs, Mimecast also published several new integrations. Recently, it launched a new integration with Microsoft Azure Sentinel to allow for sharing of Mimecast threat intelligence across the entire email estate and for validating E-mail Security 3.0. Earlier this year, it announced an integration with IBM Security Resilient solution. Through a pre-built API add-on the solution integrates email security data into the IBM Resilient Security Orchestration Automation and Response (SOAR) capabilities. The integration is designed to allow security teams to improve their reaction time to threats by making security alerts instantly actionable through real-time intelligence, incident context, and by enabling adaptive response to advanced threats. The new application is available for free to the security community through IBM Security App Exchange.

The current crisis of virtual workforce has resulted in a need to accelerate cybersecurity and email security across organizations. Mimecast is successfully tapping into this need through additional integrations. Its stock is currently trading at $44.65 with a market cap of $2.8 billion. It was trading at a 52-week high of $54.40 in February this year. The recent market turbulence had sent it to a 52-week low of $25.14 in March this year.