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Sophos reports double-digit sales growth in maiden FY results

Oxfordshire-based tech unicorn Sophos sees shares jump as it reveals stellar sales figures for its first financial year as a publicly traded company

Shares in Sophos shot up by 4% this morning, following its first set of financial results as a publicly traded company.

The security company, which floated on the London Stock Exchange last year, reported that like-for-like billings growth increased 19.7% to $534.9m in the 12 months ended March 31.

Cash earnings before interest, taxation, depreciation and amortisation were up 31.6%, to $120.9m.

“We are pleased with our strong performance during our first year as a public company,” commented Kris Hagerman, chief executive of Sophos. “The year has been marked by sustained strength across all major regions and product categories, with our financial and operational performance exceeding the Board’s expectations set at the start of the year and at the upper-end of our revised outlook. 

"Our leading product portfolio, innovation to drive our strategy of synchronised security, commitment to 'security made simple' and 'channel first' sales strategy enabled us to grow our billings and revenue across both new and existing customers," he added.

The Oxfordshire-based company was founded in 1985 and differentiates itself from the security crowd by focusing on mid-market businesses.

Sophos’ launch on the LSE last year was the largest ever for a UK software company. The firm is one of a select few successful tech companies to be headquarter on British soil, including ARM and Sage. Its valuation of £1.01bn at the time of public offering, propelled Sophos into the realm of tech unicorn, joining the likes of Zoopla, TransferWise, Just Eat and Asos. 

Earlier this month, the new darling of security world announced MSP Connect, its new partner programme, designed to enhance the capabilities of managed service providers.

Sophos sells exclusively through its channel of more than 15,000 resellers worldwide and is therefore incentivised to ensure that MSPs can easily access its range of solutions. The new programme offers favourably priced access to the Sophos’ portfolio of endpoint and network security products through a centralised management platform.

“MSPs benefit from aggregate licensing models, and with Sophos they will also benefit from more effective synchronised security,” Scott Barlow, vice president, global MSP, Sophos, explained at the launch. “The Sophos Central-Partner dashboard will enable MSPs to manage security for endpoint, mobile, network, email, web, wireless and data privacy solutions in a single pane of glass, which is absolutely essential when business owners and employees are working in and out of the office with multiple devices,”

Full steam ahead

Sophos said that it expects to deliver like-for-like billings percentage growth somewhere in the ‘mid-teens’ for the year ending 31 March 2017.

Hagerman commented: “The good momentum in our business is reflected in our optimism for FY17 where we expect to see strong growth in billings and revenue, modest cash EBITDA margin expansion and an approximate doubling in unlevered free cash flow.”

Shares stood at 230p at the time of publication.



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