Financial and operational highlights
H1, FY17 like-for-like5 billings up 15.1 percent year-on-year to $282.3 million ("YOY") (15.6 percent reported)
- New customer billings6 up 19.9 percent YOY, driven by Unified Threat Management and Sophos Central platform (c. +150 percent YOY)
- Like-for-like subscription billings increased by 19.4 percent YOY (19.7 percent reported)
- Cross sell of UTM and Endpoint improved to 8.4 percent (H1, FY16: 6.4 percent)
- Renewal rate, including upsell, improved to 104.1 percent (H1, FY16: 100.5 percent)
Reported revenue grew 9.7 percent YOY and 10.4 percent on a constant currency basis, driven by subscription revenue which increased 12.7 percent YOY
Deferred revenue balance increased to $511.3 million (FY16: $498.7 million) driven by strong billings growth
Cash EBITDA margin 18.2 percent (H1, FY16: 18.8 percent), reflecting further investment in R&D; the company continues to expect modest YOY margin improvement for FY17
Operating loss increased as a consequence of increased R&D investment, a higher share-based payment expense and for the period a higher deferral of revenue from a shift in the mix of billings to recurring subscription contracts
Unlevered free cash flow of $62.2 million, a significant increase YOY due to improvements in operating performance and cash management and in part aided by first/second half phasing
Significant innovation during the period, with release of new next-generation endpoint protection product, Sophos Intercept X, further extension of Sophos Central cloud-based management platform, and the industry's first synchronized encryption product, Sophos SafeGuard
Proposed interim dividend of 1.3 US Cents per share(+86 %)
