5 Jul 2018 07:00
Sophos Group plc
Q1 FY19 Update
Oxford, 5th July 2018. Sophos Group plc (the "Group" / LSE: SOPH), a leading provider of cloud-enabled enduser and network cybersecurity solutions, provides the following update in advance of publishing its scheduled trading statement for the quarter ended 30th June 2018.
Trading Update
The Group expects to report Q1 billings growth of approximately 6% (2% at constant currency), with a strong performance in revenue and cash flow. We continued to see a strong demand environment and expect to report mid-teens growth in new customer and network security billings in the period.
The lower than anticipated billings growth in Q1 was primarily driven by our Enduser security business, which faced a particularly challenging comparable. Underlying Enduser billings growth in Q1 FY18 was in excess of 50% at constant currency, after adjusting for the previously disclosed material contract in FY17. The significant increase in demand for our Endpoint protection solutions in the first-half of FY18 was driven by high-profile global ransomware attacks such as WannaCry, with the additional contribution from Intercept X, our new next-generation endpoint solution, included in the H1 FY18 billings mix for the first time. These factors will also apply to the second quarter of the current fiscal year, albeit with a somewhat easier prior-year comparable. As the prior-year comparators normalise, we expect a return to mid-teens constant currency billings growth in the second half of the year. Our long-term outlook remains unchanged.
Sophos is scheduled to publish its full Q1 trading statement on 26th July 2018.
Contact
Sophos Group plc
Tel: +44 (0) 1235 559 933
Derek Brown, Vice President Investor Relations
Financial Public Relations
Tulchan Communications
Tel: +44 (0) 20 7353 4200