Sophos Group plc, a leading provider of cloud-enabled enduser and network cybersecurity solutions, today issues its audited results for the year-ended 31 March 2018 (“FY18”).
Billings1 grew by 22% to $769 million, an increase of 18% at constant currency
Revenue increased by 21% to $641 million, reflecting constant currency growth of 18%, driven by 26% growth in subscription revenue in the period
Cloud subscription billings continued to grow strongly, with Sophos Central up 112% to $186 million, from $88 million in FY17
Total subscription renewal base has now surpassed the $1 billion milestone
Net renewal rate, including cross-sell and upsell, improved to 140% from 129% in FY17
Adjusted operating profit2 increased by 20% to $46 million, from $38 million in the prior-year
Loss before taxation increased to $52 million, from $49 million, despite the increase in adjusted operating profit, after the negative impact of financing foreign exchange losses
Strong growth in new business with over 300,000 customers at the end of the year, from 260,000 in FY17
Final dividend of 3.5 cents per share, an increase of 6.1% over the prior year; total dividend for the year of 4.9 cents, an increase of 6.5%
FY19 and medium-term guidance
In the current year, we expect mid-teens per cent billings growth, including a c.200bps currency benefit, and growth in margin consistent with our medium term outlook. We remain confident in our goal of delivering annual billings of c.$1 billion, unlevered free cash flow of $220-240 million and adjusted operating profit greater than $100 million for FY20.
Chief Executive Officer, Kris Hagerman, mentioned “FY18 was a strong year for Sophos. Cybersecurity has never been more important for enterprises of all sizes, and the demand environment for our solutions has never been stronger. We continue to take share in the market, as we execute a differentiated strategy of delivering advanced and highly-effective cybersecurity solutions designed to be simple to use, managed in the cloud, and sold 100% through our channel partners. We have a massive market opportunity in front of us, and our strong and growing subscription base and growth in new customers, combined with our next-generation technology in endpoint and firewall and our Sophos Central cloud platform, position us well for FY19 and beyond.”