Mimecast Analysis

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Mimecast - Company Overview

Peter Bauer is the chief executive officer of Mimecast while, Robert Nault is the senior vice president and general counsel, Mimecast.

Mimecast C-suite

Other Executives



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Mimecast - Revenue Sources

Mimecast's revenue sources are subscription revenues and professional services and other revenue. Subscription revenues accounted for over 95% of the company’s total revenues for FY2019. In FY2019, revenues from the United States contributed to 50% of Mimecast’s total revenues.

Subscription Revenues

  • For the year ended March 31, 2019, subscription revenues accounted for over 95% of Mimecast’s total revenues.
  • This revenue source includes basic subscription fees from customers accessing the company’s cloud services and extra purchases to receive additional support.
  • Mimecast typically licenses its services on a price per employee basis, and the subscription contracts usually last one year in duration.

Professional Services and Other Revenue

  • For the year ended March 31, 2019, professional services and other revenue accounted for less than 5% of Mimecast’s total revenues.
  • This revenue source includes “performance obligations related to set-up, ingestion, consulting, and training fees.”
  • The company’s contracts for professional services are recognized based on “out-put measures of performance.”

Geographic Sources

  • Mimecast’s customers are located in over 130 countries across the Americas, Europe, Africa, and Asia-Pacific.
  • For the year ended March 31, 2019, revenues from the United States accounted for 50% of Mimecast’s total revenues.
  • The company’s next largest markets for FY2019 were the United Kingdom (31% of the total revenues) and South Africa (14%).
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Mimecast - Product Pricing

Mimecast relies on a quote-based pricing structure in order to provide customized plans for the needs of individual clients. It appears that Mimecast offers a number of different types of products and solutions that are available for varying costs, ranging from $10-$5,000 at least. Research findings also suggest that Mimecast may be offering monthly subscriptions for its services. Some customers have noted monthly subscription costs ranging between $2 and $12 per month per user. However, it should be noted that the company's official website does not have any direct pricing information available. Prospective customers only have the option to contact the company for a quote. Any pricing information available is from third-party resources.

Pricing Structure of Mimecast

  • Mimecast relies on a quote-based pricing structure.
  • According to the Mimecast website, the company uses this pricing structure because "not every company is the same," therefore, they offer customized plans designed to fit the needs of the individual client. The company does not appear to have any other pricing information available on their website.
  • An article published in April 2019 states that Mimecast Secure Email Gateway starts at $3.50 per user, for up to 50 users and that there are four levels of packages available, Bronze, Silver, Gold, and Platinum.
  • A procurement marketplace, Insight, lists a range of products available for Mimecast with pricing, ranging from $10 to nearly $5,000. For example, a one-year subscription to Mimecast Secure Messaging Service is available for $10.99; one-year of Mimecast LCS Silver is priced at $1,418.99; Mimecast LCS Gold is available for $4,448.99. Additional prices can product information can be found here.
  • Further digging into the Insight platform revealed that the products available here can be leased on a monthly basis. For example, Mimecast LCS Gold has a monthly lease price of $229.97 per month.
  • A consumer form on Reddit shows that one customer paid $2 per month per inbox for Mimecast's email security service. The customer notes that they had 700 mailboxes on this plan with a 30-day continuity subscription. Another user notes that the prices can vary dramatically but are usually between $3 and $12 per month per user. It's important to note here that these statements were made three years ago.

Media Articles Discussing Mimecast Pricing Structure (from the past 12 months):

Research Strategy

An exhaustive media/news aggregation analysis was carried out to analyze any and all available media relating to Mimecast pricing/pricing structure published in the past 12 months. Overall, there were very few sources identified that directly discuss this. The majority are product reviews and paywalled reports. Sources that discuss price but are undated were not included. Sources that discussed stock prices were also excluded. Some of the same paywalled market reports were published across multiple outlets and were also excluded due to irrelevancy.
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Mimecast - Unique Features: Products

Mimecast offers a cyber resilience platform that is unique in that it allows complex routing scenarios, large file sharing, and perpetual retention, features sandboxing, and is built on a multi-product, multi-tenant, and cloud-native architecture that is capable of providing micro services. It has other newly launched unique features such as the Mimecast Threat Intelligence and the Mimecast Threat Center. These features are unique because they were described as such by Mimecast, third-party analysts, customers, and business software reviewers.

Complex Routing Scenarios

  • According to research platform Expert Insights, Mimecast's email security solution, unlike that of its key competitor Proofpoint, is capable of complex routing. This means that with Mimecast, customers with several mail servers distributed across the globe have the option to direct user messages to the user's local mail server.
  • Mimecast's complex routing feature makes it the better option for enterprises with multiple mail servers that are distributed across the globe. Expert Insights says Mimecast is clearly the best choice for enterprises, as it is capable of handling more granular filtering policies and more sophisticated routing scenarios.

Large File Sharing and Perpetual Retention

  • According to Expert Insights, Mimecast is unique because, unlike its rival Proofpoint, it offers large file sharing and perpetual email retention.
  • Expert Insights says large file sharing is one of the unique features of Mimecast.
  • It also reports that unlike Proofpoint, which offers email retention of at most ten years only, Mimecast gives customers the option of upgrading at a later date to perpetual email retention.


  • According to SC Media, a media company focusing on cybersecurity, Mimecast has a unique sandbox technology through which customers can run email attachments to verify if they are safe.
  • Business software discovery platform Crozdesk says Mimecast's sandboxing technology is Mimecast's flagship feature.
  • Mimecast's sandboxing technology creates a virtual environment where email messages are first opened and examined. In this virtual environment, email messages undergo full security examination. An email message is delivered to the intended recipient only when it is determined that the email message is absolutely clean and safe.

Cloud Architecture

  • Mimecast's cloud architecture is often described as unique. In Mimecast's earnings call for the fourth quarter of fiscal year 2019, Peter Bauer, chairman and chief executive officer of Mimecast, specifically said that its unique cloud-native, multi-tenant architecture enables Mimecast to deliver all its offerings "as part of a contiguous suite on a common underlying code base."
  • In an article published by Seeking Alpha, a content service provider for financial markets, it was highlighted that Mimecast's solutions are constructed on a unique architecture that enables Mimecast to provide better experiences than those offered by its competitors.
  • In Mimecast's earnings call for the second quarter of fiscal year 2020, Bauer highlighted Mimecast's unique architecture again. He said that Mimecast's unique cloud architecture is the reason Mimecast is able to protect its customers better than its competitors.
  • SC Media says the fact that Mimecast's cloud solution sits between email endpoints makes it easy to understand how Mimecast is able to maintain an outstanding success rate.
  • In explaining why organizations should choose Mimecast, Mimecast highlights on its website that it unifies the management and delivery of security, data protection, and continuity in a single, easy-to-use cloud platform.
  • Mimecast, in its latest investor presentation, notes that its architecture is unique because it is the only multi-product, multi-tenant, cloud-native platform in the market. This architecture enables Mimecast to offer an integrated, scalable solution for its customers.

Mimecast Threat Intelligence

  • This new community-based and tailored service, which was launched in August 2019 and comprises Threat Remediation, a Threat Dashboard, and Threat Feed with Threat Intelligence and Threat Remediation APIs, was designed to provide customers with a more granular perspective of the attacks Mimecast has detected and stopped.
  • The insights and increased visibility that the new service provides enables users to respond and react more easily to malicious files and threats.
  • Thomas Cronkright II, chief executive officer of wire fraud prevention platform provider CertifID, describes the new service as "a unique, incredibly easy to use value-added service."
  • The Threat Remediation feature, which can be accessed right from the Mimecast Administration Console, enables users to remove or restore messages as necessary.
  • The Threat Dashboard displays malware detections, malware forensics, malware origin via geo-location, the most at-risk end-users, and Indicators of Compromise (IoCs).
  • The Threat Feed, through the Threat Remediation API, allows users to integrate Mimecast Threat Intelligence into their respective security ecosystems, which may consist of security information and event management (SIEM) systems, security orchestration, automation, and response (SOAR) systems, end-point protection, and next-generation firewalls.
  • The Threat Feed, through the Threat Intelligence API, facilitates detection and remediation by offering users aggregated threat data from around 35,000 Mimecast accounts. The data provides benchmarks against which users can compare themselves.

Mimecast Threat Center

  • The Mimecast Threat Center, which was announced in March 2019, offers Mimecast customers a unique view of the email-based threat landscape and informs them of the latest email security tactics, procedures, and techniques.
  • Through the Threat Center, a team of cybersecurity experts led by Joshua Douglas, Mimecast's vice president for threat intelligence, provides customers actionable threat intelligence insights and reports to help them manage their email security better. Among the insights and reports the Threat Center provides are email security risk assessments (ESRAs), and research and analysis on vulnerabilities, targeted malware, targeted threats.
  • The insights that the center provides are unique because of the amount of data Mimecast has access to. Mimecast has access to billions of emails across the globe, and each day, Mimecast blocks over one billion malicious or suspicious emails, including spam, directory harvest attacks, phishing emails, and malware emails.
  • The Threat Center unveils new email-related bugs and vulnerabilities, and continuously researches attack methodologies and techniques.

Research Strategy

In identifying the unique features of Mimecast's products in the email security space, we utilized a number of strategies. First, we checked what Mimecast itself says is unique about its products and services. We did this by examining Mimecast's website, press releases, reports, and presentations, and by checking what Mimecast has to say about why organizations should choose Mimecast.

Second, we looked at what third parties say is unique about Mimecast. Articles about Mimecast that were published by Seeking Alpha, The Motley Fool, and SC Media were the sources we found helpful. Both Seeking Alpha and The Motley Fool offer investing advice, while SC Media focuses on providing insights about cybersecurity.

Third, we looked for comparisons of email security solutions with the hope that these comparisons highlight the unique features of each email security solution. In this regard, the comparisons offered by Expert Insights and Crozdesk proved useful. We learned through these comparisons that Proofpoint is Mimecast's key competitor.
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Mimecast - Press Scan for Valuation

We found seven articles published in 2019 that discussed Mimecast's valuation. We found four articles from 2018 that included information about Mimecast's valuation and one article from 2017. All those articles and descriptions of them are included below.

Mimecast's Valuation Press Scan

2019 Articles

  • The most-recent article we found about Mimecast's valuation is titled "Mimecast opens new London headquarters in Broadgate." The article was published by Mimecast on November 5, 2019. This article states that the company's recent valuation was $2.4 billion.
  • "Tech Stock To Watch: — Mimecast Limited, (NASDAQ: MIME)" is the title of the second 2019 article we found about the company's valuation. The article was published by News Planets on November 6, 2019. The article outlines the company's stock valuations and states the following valuations: "[S]hare price to . . . cash per share" (12.4); Price-to-book ratio (12.9); and price-to-sales ratio (6.76).
  • "Estimating the Fair Value of Mimecast Limited (NASDAQ:MIME)" is the third article from 2019 we found pertaining to the company's valuation. The article provides the following valuations for Mimecast: (1) "Present Value of 10-year Cash Flow" ($1 billion); (2) Terminal Value ($4.1 billion); and (3) "Present Value of Terminal Value" ($1.5 billion). Simply Wall St. published the article on October 8, 2019.
  • The fourth article we found about Mimecast's valuation from 2019 is titled "Mimecast Limited (MIME): Analysts Opinion Over Technical Valuation." The article addressed the valuation of Mimecast's stock in stating the following: "Investors are looking attentively on Mimecast Limited (MIME) as shares traded with reduction change of -0.48% at $39.2 on Monday session." The article was published on October 29, 2019, by Viral News Place.
  • "Is Mimecast Limited (NASDAQ:MIME) Potentially Undervalued?" is the title of the fifth 2019 article we found that addressed the valuation of the company. The article opined that the valuation of Mimecast's stock appeared to be valued fairly and further stated that if one thinks that $45.60 is the real value of a Mimecast share, "then there isn’t much room for the share price grow beyond what it’s currently trading [at]." The article was published by Simply Wall St. on October 22, 2019.
  • The sixth 2019 article we found about Mimecast's valuation is titled "Mimecast: Valuation Could Be Near Bottom Despite Strong Quarter." The article states that Mimecast's "[v]aluation remains at the low end of the peer group despite strong revenue growth and margin expansions." Seeking Alpha published the article on August 28, 2019.
  • "Mimecast: Solid Guidance Backed By Solid Valuation" was the seventh and final article we found about the company's valuation from 2019. The article states that Mimecast's "valuation is currently near recent highs and seems to have already priced in a very solid next 18-24 months of performance." The article was published on March 11, 2019, by Seeking Alpha.

2018 Articles

  • The first article from 2018 that we found about Mimecast's valuation is titled "Mimecast: Huge Rebound Opportunity." The article states that "Mimecast's valuation of just over 5x FY19 revenues grossly undervalued a fast-growing stock that is also producing positive cash flows." Seeking Alpha published the article on November 27, 2018.
  • "Mimecast: Pullback Provides Great Buying Opportunity Before Earnings" was the second 2018 article we found that addressed the company's valuation and was published on October 17, 2018, by Seeking Alpha. The article states that "Mimecast's valuation took a much greater hit compared to peers Proofpoint and CyberArk, despite business fundamentals remaining unchanged. Current discounted valuation provides investors a great opportunity to buy into one of the leading email security players."
  • "Goldman Sachs: Mimecast Shares Have 20% Upside Potential" was the third article from 2018 that we found pertaining to Mimecast's valuation. The article cites an analyst from Goldman Sachs who opined that "[d]espite the year-to-date outperformance by the SMID-cap SaaS space" . . . Mimecast had an attractive valuation in comparison to its peers and projected that Mimecast would "gain 250 bps [basis points] of share in 2018, up from 175 bps of share in 2017." Yahoo Finance published the article on June 20, 2018.
  • The fourth article we found about Mimecast's valuation from 2018 is titled "Mimecast (MIME:NAS) Fundamental Valuation Report." The article discusses the valuation of Mimecast's shares and says that they were "overvalued by 13.8%" based on the three different valuation models detailed therein, which yielded two different valuations ($36.79 and $29.02). The article was published on May 31, 2018, by Daily Stockcalc Valuation Reports.

2017 Article

  • The one article we found about Mimecast's valuation from 2017 (and within the past 24 months) is titled "Cramer lists his top cybersecurity stock picks, including struggling Palo Alto Networks." The article noted that shares of Mimecast had increased in value by 72% (as of November 2017) and that the company's "metrics still looked good and that investors might be getting a rare buying opportunity." CNBC published the article on November 9, 2017.

Research Strategy

We conducted a 24-month press scan for information about the valuation of Mimecast through wide-ranging searches for articles that provided insights about the company's valuation. Through those numerous and wide-ranging searches that we ran, we found articles that discussed the company's overall valuation and articles that discussed the valuation of the company's stock. Since both categories (overall valuation and stock valuation) applied to Mimecast's valuation, we included articles on both topics. The articles that we found and provided above were published by sources that included Mimecast, CNBC, Seeking Alpha, and Yahoo Finance, among others. The articles provided above represent the entirety of the articles we found about the company's valuation within the past 24 months.
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Mimecast - Executive Summary

Mimecast, which is led by Chief Executive Officer Peter Bauer and whose philosophy and values place great importance on customers, partners, and employees, derives most of its revenue from the subscription fees that customers pay for cloud services and additional support. The price per month per inbox of Mimecast's email security service appears to range from $2 to $12. Mimecast, which is currently valued at around $2.4 billion to $2.6 billion, has a platform that is built on a unique cloud architecture and has unique features such as sandboxing, complex routing, large file sharing, and perpetual retention.

Company Overview

  • Mimecast is led by the following C-suite executives: Chief Executive Officer Peter Bauer, Chief Human Resources Officer Karen Anderson, Chief Financial Officer Rafe Brown, Chief Strategy Officer Christina Van Houten, Chief Revenue Officer Dino DiMarino, and Chief Information Officer Janet Levesque. Next in line to these C-suite executives is Senior Vice President and General Counsel Robert Nault.
  • Mimecast's philosophy revolves around the company's focus on cloud technology, the company's mission of "making email safer for business," and the importance that the company places on its partners, customers, and employees.
  • Mimecast says it lives and breathes cloud technology, its relationships with partners run deep to its core, and its people are a vital part of its success. Company values center on creating long-lasting relationships with partners, creating top-notch experiences for customers, and maintaining a distinctive culture of continuous improvement and growth among employees.

Revenue Sources

  • Subscription services and 'professional and other' services are the sources of revenue of Mimecast.
  • Mimecast generates most of its revenue from subscription fees, which are the fees that customers pay for standard cloud services and additional support. More than 95% of Mimecast's revenue in fiscal year 2019 came from subscription fees.
  • The rest of Mimecast's revenue comes from fees paid by customers for professional and other services relating to consulting, training, ingestion, and setup. Less than 5% of Mimecast's revenue in fiscal year 2019 came from this revenue source.
  • Geographically, Mimecast's largest sources of revenue are the United States, the United Kingdom, and South Africa. These three countries accounted for 50%, 31%, and 14% of Mimecast's revenue in fiscal year 2019.

Product Pricing

  • Interested organizations can get pricing information from Mimecast by requesting for a quote. Mimecast recommends that interested organizations request for a quote because cybersecurity needs vary from one organization to another and solutions should be tailored to these needs.
  • The price of Mimecast Secure Email Gateway, for 50 users, begins at $3.50 per user per month, according to SC Media and Software Testing Help. SC Media also indicates that Mimecast offers four types of packages, namely, Bronze, Silver, Gold, and Platinum.
  • On Insight, a procurement marketplace, the prices of Mimecast products appear to range from around $10 to almost $5,000 per one-year subscription. To illustrate, a one-year subscription to Mimecast Secure Messaging Service costs $10.99, while a one-year subscription to Mimecast LCS Gold costs $4,448.99.
  • A post on Reddit a few years ago indicates that the price per month per inbox for Mimecast's email security service ranges from $2 to $12.
  • Press coverage of Mimecast's pricing structure is very limited. There were only a few articles in the past year that covered Mimecast's pricing structure, and they were published by SC Media and Software Testing Help. These articles only touched very briefly on Mimecast's pricing structure.

Unique Product Features

  • Mimecast's cyber resilience platform is different because it allows large file sharing, complex routing scenarios, and perpetual retention, according to Expert Insights. Mimecast's complex routing capability makes it the clear choice for enterprises with multiple mail servers that are spread across the globe.
  • SC Media and Crozdesk indicate that Mimecast has a unique and flagship sandboxing technology that creates a virtual environment where email messages are fully examined before they are delivered to the intended recipients.
  • Mimecast highlights that its cloud architecture is unique as it is the only multi-product, multi-tenant, cloud-native platform in the market. It is this unique cloud architecture that enables Mimecast to offer its customers a superior experience and an integrated and scalable solution.
  • Mimecast's newly launched services, Mimecast Threat Intelligence and Mimecast Threat Center, are both described as unique. Mimecast Threat Intelligence, which provides customers with a more granular view of blocked attacks, is described as "a unique, incredibly easy to use value-added service." Mimecast Threat Center, which leverages the billions of emails that Mimecast has access to, offers customers a unique and up-to-date view of the email-related threat landscape.


  • While several articles covering Mimecast's stock valuation have been published in the past 24 months, only a few articles covering the valuation of the company as a whole have been published.
  • Based on an article published by Seeking Alpha in November 2018, Mimecast was valued in late 2018 at slightly above five times its expected revenue in fiscal year 2019. Mimecast's actual revenue in fiscal year 2019 was $340.4 million, so the valuation is likely close to $1.8 billion or just over five times this revenue.
  • Articles published by Simply Wall St. and Mimecast indicate that Mimecast's most recent valuation stands at around $2.4 billion to $2.6 billion.

From Part 03