Good morning, and welcome to Mimecast's earnings call for the fiscal first quarter 2022. I'm Robert Sanders, Director of Investor Relations. With me on the call this morning are Peter Bauer, our Co-Founder, Chairman, and Chief Executive Officer, and Rafe Brown, our Chief Financial Officer. Today's conference call is being broadcast live. A replay of this call will be available after the live call has ended. We will make forward-looking statements regarding future events and the future financial performance of the company. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including risks and uncertainties related to our recent security incident and the ongoing impact of the global COVID-19 pandemic. We caution you to consider the important risk factors that could cause actual results to differ from those in the forward-looking statements contained in today's press release, and on this conference call. These risk factors are further defined in Mimecast's most recent Form 10-Q filed with the Securities and Exchange Commission. During this call, we will present both GAAP and non-GAAP financial measures. These non-GAAP measures are not intended to be considered in isolation from, or a substitute for, or superior to our GAAP results. A reconciliation of GAAP to non-GAAP measures and the reasons for our representation of the non-GAAP information is included in today's press release, which can be found in the investor relations section of our website. The date of this call is August 3rd, 2021. Any forward-looking statements we make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events. Now, I would like to turn the call over to Peter Bauer. Good morning, everyone, and thank you for joining us. I hope that you and your families are doing well. I'll begin with some key takeaways from the quarter, which underscore our continued progress and highlight the improving macro environment in some of our markets. I'll also address the threat landscape and touch on the appointments of our new Chief Marketing Officer and our new Chief Technology & Product Officer. Both bring great new capabilities and talents to our organization to help us execute on our strategy. Then Rafe will take us through detailed financial results. We are pleased to report results this quarter that exceed the high end of our guidance across all metrics. We generated $142.5 million in revenues, which is up 15% year-over-year in constant currency terms. We also drove an increase in average order value to $14,000, which is up approximately 9% over the prior year in constant currency. We increased the number of services per customer to 3.6, which is up from 3.4 last year. Importantly, we delivered a sequential improvement in our retention rate with net revenue retention of 105% in the quarter. As these results suggest, we had great success selling our multi-product portfolio to new and existing customers. We continue our growth across all segments, including the enterprise, where we have 19% of revenue coming from organizations with 5,000 seats or more. As a growing number of larger organizations place their trust in Mimecast, we continue to strengthen our brand reputation amongst this customer set, better positioning us to continue to win. In total, we brought 600 net new customers into the Mimecast family this quarter. We achieved an important milestone. Mimecast now serves over 40,000 customers. We saw particular strength in North America and the U.K., our two largest markets. In some of our international markets, recovery has lagged. Our growing customer base brings scale to our platform, and we generated $31.6 million in free cash flow, a 22% free cash flow margin, and we'll continue our bottom-line expansion as we grow. We continue to advance our three-pronged growth strategy as we expand our footprint in the enterprise market, we sell our multi-product platform, and we automate to create even stronger and easier-to-use engagements for our SMB customers and our channel partners. Let me share some highlights from the quarter. Our U.K. business showed signs of recovery, and let me share some anecdotes of new enterprise wins here. A U.K.-based animal wellness organization purchased our Zone 1 product for their 6,000 employees. A U.K.-based professional services firm, also with 6,000 employees, selected our Zone 1 protection and two of our more recent offerings in DMARC Analyzer, Zone 3, and Web Security. A global medical technology provider based in the EU purchased our Zone 1 product, added Awareness Training in Zone 2, and included Secure Messaging in their subscription for 11,000 employees. As noted earlier, we had significant success upselling to existing customers, too. We achieved our largest ever upsell this quarter, a $7-figure deal with a customer that's been with us for several years. This financial services company based in the U.K. added seats following an acquisition, and now relies on Mimecast to protect all 35,000 employees with services across all three zones of cyber defense and our data governance offering. A U.S. healthcare provider added services for their 75,000 employees, and they now use five Mimecast services across Zone 1 and 2, as well as our Secure Messaging service. A South African-based financial services firm chose to consolidate vendors onto Mimecast multi-service platform for their 50,000 employees, and they now deploy security services across Zones 1, 2, and 3, as well as our Continuity, Large File Send, and Secure Messaging services. We also had success selling bundled services to new customers. For example, a U.S. manufacturer of medical products with 4,500 employees purchased Zone 1, Internal Email Protect, Brand Exploit Protect, Continuity, and two of our newest offerings, Browser Isolation and CyberGraph, enabling us to provide comprehensive protection to this customer. We also had a few significant new customer wins in the U.S. public sector, including a U.S. municipal government, who purchased nearly our entire product suite, 10 products, for their 2,500 employees. The government of a large U.S. county purchased Zone 1 and Internal Email Protect for their 7,900 employees. Additionally, we achieved Criminal Justice Information Services certification, or CJIS, in Missouri and led to a new customer win in Q1 with over 4,000 employees. We believe CJIS certification is an important milestone that could lead to additional public sector customers selecting Mimecast in the future. As these examples highlight, our expanding footprint in the public sector supports both our enterprise and our multiproduct strategy. In terms of products, our DMARC Analyzer service continues to be popular among our customers, contributing to new subscription revenue in the quarter. We also saw particular strength in Awareness Training and Internal Email Protect, with 500 and 700 net new customers respectively. Underpinning all of our success is our continued focus on innovating and expanding our platform, consistent with our Email Security 3.0 and cyber resilience strategy for customers. In this quarter, we launched CyberGraph, a new product module which uses AI and machine learning to mitigate human error and counteract the most advanced email-based attacks. We have seen strong early engagement with CyberGraph and believe this will support our market-leading position. Our API and alliances program also continued to pioneer new integrations with security technology partners this quarter. These integrations allow organizations to incorporate Mimecast threat intelligence and automation capabilities into their broader security ecosystem, and they help us win new customers and deepen existing relationships. Among the partnerships we launched this quarter was with Humio, a CrowdStrike company that orchestrates alerts and actions across an organization's IT estate. The CrowdStrike partnership is one of our fastest-growing API partnerships, with over 300 joint customers already, and this integration is also supporting our enterprise growth strategy, some of our largest customers using it, including a 160,000-person global beverage company. Turning to the threat landscape. You may have heard me say that cyber resilience is more important than ever, and we blocked nearly 790 million malicious files from January through June 2021, and that's more than a 15% increase over 2020. In 2020, we saw more than a 65% increase from the year before as attackers capitalized on companies across the world moving to remote work. Emboldened attackers are targeting larger and more high-profile companies, as we saw from the ransomware attacks that disrupted the U.S. food and energy supply, transportation networks, and hospitals over the last several months. Importantly, more than 90% of all threats, including ransomware, originate via email. From April through June, approximately 35% of attacks were impersonation attacks, targeting employees with privileged access to systems and information, illustrating the targeted nature and high stakes of these campaigns. Our Email Security 3.0 from Mimecast is helping companies protect against the most determined attackers. Our multiproduct platform works together as an integrated system to provide companies with early detection and prevention to help them mitigate attackers' progress. We believe organizations with all of our products have the strongest cybersecurity and resilience available on the market today and at the lowest total cost of ownership. We believe that recent attacks have made companies take cyber risks even more seriously and reevaluate their security budgets and email security systems. We continue to expand and transform our platform, with our progress accelerated through the creation of an integrated product and engineering organization now led by our new Chief Product and Technology Officer, David Raissipour. We are confident that the actions we have taken over the last several quarters to strengthen our marketing teams, led by new Chief Marketing Officer, Bernd Leger, and our investments in go-to-market generally, will help us to continue our momentum. With that, I'll turn it over to Rafe. Thank you, Peter. I'm pleased to report that we exceeded the high end of our guidance for revenue, adjusted EBITDA, and free cash flow for the first quarter of fiscal 2022. As I begin, I would like to note that we are now seeing signs of economic recovery in both of our largest markets. North America continued to see an improving selling environment, and we were particularly pleased to see U.K. performance bounce back as they turned in a strong Q1. While the impact of COVID-19 remains dynamic, particularly in some of our smaller geographies, the continued improvement in North America and the first signs of recovery in the U.K. are encouraging, as these two regions comprise approximately 80% of our revenue. Let's now turn to our results. In the first quarter, we generated revenue of $142.5 million, which represents a 24% improvement over the prior year in absolute dollar terms. Adjusting for $9.7 million of currency tailwind, our constant currency growth rate over the prior year was 15% for the quarter. Note that since providing guidance in May, foreign currency fluctuations positively impacted our first quarter revenue results by $800,000. Our top-line results were helped by continued year-on-year increases in average order values, or AOV. Calculated at July 26 FX rates, AOV for all customers stands at $14,000, up approximately 9% over the prior year in constant currency terms, driven by the average number of services per customer across our customer base rising to 3.6 services per customer, compared to 3.4 services this time last year, as well as seat expansion within our base customers as they added new employees. We added 600 net new customers in the first quarter, bringing our total customer count to 40,600. The sequential net new customer improvement was seen in all segments, but in particular, we saw a noticeable improvement among our smaller customers, with a sequentially higher count of new customers and decreased churn. Net revenue retention stood at 105% for the four-quarter period ending June 30, building off stabilization of this metric that we noted last quarter. As a reminder, we calculate this metric on a trailing four-quarter basis and feel it is particularly important as it is dollar-based as opposed to purely customer count-based. Looking at its components, upsell totaled 113%, where we saw strength in both product-based upsell as well as seat and price-based upsell. On the product side, the first quarter saw strong interest in our DMARC and awareness training solutions, as well as good traction with our newly released CyberGraph solution. Downsell and churn totaled 9% for the four-quarter period. We are seeing continued signs of stabilization on downsell and churn rates and anticipate an improving macroeconomic environment will further this trend. It is worth noting that this is the first quarter since the pandemic began that we've seen an improvement in the net revenue retention metric, providing further evidence of the improving strength of our business. We continue to drive improvements in gross margins. In the quarter, we recognized a 78.3% non-GAAP gross margin, up 120 basis points from the first quarter the prior year, a good step towards our long-term goal of achieving an 80% non-GAAP gross margin. Adjusted EBITDA for the first quarter totaled $38.6 million, representing an adjusted EBITDA margin of 27.1%, compared to 22.3% in the same quarter the prior year, a 480-basis point improvement. Turning to the bottom line. Our non-GAAP operating profit for the first quarter was $29.9 million, or 20.9% of revenue, an improvement of 560 basis points from the prior year. We reported GAAP net income of $10.1 million for the first quarter, or a profit of $0.15 per diluted share based on 66.9 million fully diluted weighted average shares outstanding. Our GAAP tax expenses totaled $400,000 in the first quarter, which included a discrete stock windfall benefit of $1.3 million. Given recent windfall tax benefits, we expect our full-year GAAP tax expense to be approximately $6.3 million. Our non-GAAP net income for the first quarter was $21.7 million, or $0.32 per diluted share. Consistent with the methodology followed by a number of other successful technology businesses, I would like to note a change we're making in calculating our non-GAAP tax rate. To provide better consistency across interim reporting periods, starting this quarter, we've adopted a long-term projected non-GAAP tax rate of 25%. This non-GAAP tax rate excludes the income tax effect of our non-GAAP adjustments. This change was made in accordance with the SEC's non-GAAP financial measures compliance and disclosure interpretations 102.11. Under this methodology, we've calculated an effective non-GAAP tax expense commensurate with our level of non-GAAP profitability using an estimated long-term tax rate applied to our non-GAAP pre-tax earnings. It is important to note that this approach is solely for purposes of applying a notional tax rate to non-GAAP pre-tax income, and as such, these figures have no impact on our GAAP consolidated financial statements or the cash taxes we pay. We've included a table in today's press release which presents a reconciliation of net income to non-GAAP net income, as well as the summary non-GAAP tax recast for the prior fiscal year. I would also note that our projected 25% non-GAAP tax rate is consistent with the guidance we provided last quarter. Turning to cash flow. First quarter operating cash flows totaled $40.7 million, or 28.6% of revenue. Free cash flow totaled $31.6 million for the quarter, or 22.2% of revenue. As of June 30th, Mimecast had $338 million of cash on the balance sheet. Net of debt, our current cash balance stands at $236 million. Let me now turn to guidance. For the second quarter of fiscal 2022, revenue is expected to be between $141.8 million and $143.3 million, or 12%-13% growth in constant currency terms. Our guidance is based on exchange rates as of July 26, 2021, and includes an estimated positive impact of $4.6 million resulting from the weakening of the US dollar compared to the prior year. Adjusted EBITDA for the second quarter is expected to be between $39.8 million and $40.8 million, which at the midpoint reflects an adjusted EBITDA margin of 28.2%, up 80 basis points from Q2 of last year. Free cash flow for the second quarter is expected to be between $24.5 million and $25.5 million, which at the midpoint reflects a free cash flow margin of 17.6%. Turning to the full fiscal year, fiscal 2022 revenue is expected to be between $576.7 million and $583.4 million, or 12%-13% growth in constant currency terms. Adding the details, foreign exchange rate fluctuations are positively impacting this guidance by an estimated $16.2 million compared to the rates in effect in the prior year. The prior guidance for fiscal 2022 provided in May was $574.7 million at the midpoint. Our overachievement in Q1, coupled with the strength we've seen in our business, is leading us to raise the midpoint of our full-year guidance by $8 million in constant currency terms. This increase of $8 million is being negatively impacted by $2.6 million of foreign exchange headwind that has arisen since the rates used in our May call, resulting in the midpoint of our full-year guidance moving up by a net $5.4 million in absolute dollar terms from a midpoint of $574.7 million to a midpoint of $580.1 million. We are raising full-year 2022 adjusted EBITDA guidance to be between $152 million and $154 million, which at the midpoint of our guidance would reflect an adjusted EBITDA margin of 26%, up 100 basis points from the prior year, despite our anticipating a return of costs associated with travel and in-person events for the remainder of the fiscal year. At the midpoint, this represents a $3.5 million improvement over our prior guidance. We are also raising full-year 2022 free cash flow expectations to a range of $126.8 million- $128.8 million, reflecting a free cash flow margin of 22% at the midpoint of our revenue guidance. This is a 440-basis point improvement over the prior year. At the midpoint, this represents a $4.1 million of improvement over our prior guidance. To conclude, the Mimecast business is demonstrating its resilience. The strength we noted in North America and the U.K. has given us confidence as we look forward to the full fiscal year. As our teams continue to focus on keeping our customers safe and growing our business, we are pleased with their execution and our strong start to fiscal 2022. With that, I'll turn it back to Peter for some closing remarks. Thanks, Rafe. We have a differentiated platform and a durable business model. With 98% recurring revenue, industry-leading retention, and high gross margin, our results this quarter demonstrate our success in staying close to our customers, innovating on and expanding our capabilities to best protect customers against an advancing threat landscape, and running our business efficiently and profitably. I want to thank all of our employees for your hard work, your resilience, innovative thinking, and strong execution. Now, operator, if you would please open the line for questions. Thank you. To ask a question, you need to press star one on your telephone. To withdraw your question, press the pound key. Our first question comes from Saket Kalia with Barclays. Your line is open. Okay, great. Hey, guys. Thanks for taking my questions here. How are you? Yeah, good. Thanks, Saket. Hey, Peter, maybe just to start with you. A lot of great stuff to kind of touch on in the quarter. Maybe just zooming out a little bit, I'd love to talk a little bit about the competitive environment, just to level set. Particularly, whether you've seen anything change competitively as a result of Proofpoint's recent changes, as well as any commentary you would offer on Microsoft competitively. Does that make sense? Absolutely, Saket. I think to begin with, we continue to make really good progress up market, and obviously that's an area where Proofpoint has built a strong franchise. I think with respect to their M&A, the take-private deal with Thoma Bravo. Look, I think M&A in our space typically always represents an opportunity, at a minimum, creating opportunities for us to have further conversations with prospective customers. Over time, as we've looked back at M&A and ownership structure changes in our space, they've almost always yielded additional opportunity for Mimecast. I think it'll take some time to see how that all pans out. I think with respect to Microsoft, what we've seen out there is an intensifying of the cyber threat landscape. I'm sure you're familiar with the anecdotes and the news stories of how the Microsoft platform has been very heavily targeted lately, both obviously, end users, the human layer being targeted, but also Microsoft vulnerabilities being identified and exploited. This is really driving an appetite for defensive depth and layered independent best-of-breed security brought on top of Microsoft, so that we get away from a homogenous attack surface and a single flavor of security-approach. Organizations are really able to mitigate against some of these fast-spreading, highly scalable threats that we've seen out there. Our share of Office 365 customers that are benefiting from the cybersecurity and resilience platform that we layer on top of Office 365 is certainly continuing to grow nicely. Got it. That's really helpful. Rafe, maybe for a follow-up for you, it was great to see the net revenue retention start to increase again. Can you just maybe just talk about which area is driving sort of that sequential improvement? Meaning, is churn perhaps getting a little bit better, or is it more upsell, cross-sell? Just any color sort of on kind of what's driving that sequential improvement. Yeah. Thanks, Saket. We were obviously very pleased with that result because it's just incredibly important to the company, and it speaks to the good work we're doing with our customers. The great news here for us is we actually saw it on both sides of the equation. The upsell came in stronger this quarter as a rate, downsell and churn improved. That improvement from 104 of last quarter up to 105, it's almost evenly split along those lines. I think there's some great things in there. There's the new products we're taking to our customers, and they're seeing value in and buying. You're also seeing some of the companies that decreased seat count last year coming back and adding seats, which is really encouraging. Obviously on the downsell and churn side, I think we've been extremely focused on getting out in front of renewals with our customers. I think we're seeing signs of paying off there, and obviously that's helped by an improving macro environment, at least in our biggest markets. Got it. That's very helpful. Thanks a lot, guys. I'll get back in queue. Thank you. Thank you. Our next question comes from Steve Koenig with SMBC Nikko your line is open. Good morning. Thanks for taking my question. I appreciate the congrats on the quarter, actually, is what I wanted to start with. Looks very strong. Things are recovering well. Yes. I was curious, little a bit of tangential here. I was wondering, as you're seeing more customers move to cloud and not beyond just the migration to Office 365 as they look at zero trust network architectures, et cetera, how does that changing security landscape affect you guys in terms of selling motions or how you're gonna be integrated with the broader security architectures and also with the other threat vectors? Just curious your view on the cyber landscape as it's changing and moving to cloud. Yeah, it's a great question. I think about it in two ways. Firstly, how does Mimecast fit in with the broader security architecture that a customer's putting together? This has been a huge area of investment for us with our platform and our API integrations. Today, we have over 60 out-of-the-box integrations with a variety of security products, industry-leading security products that our customers use, as well as certain other tools that they use for actual compliance and e-discovery. These really help our organizations build a stronger security architecture by connecting threat intelligence that we gather, as well as threat intelligence that these other products gather, and integrating them bi-directionally with our technology. They also improve incident response capabilities with automation and workflow capabilities with things like SIEM and SOAR environments. We're increasingly seeing our customers connecting us up to build a robust security architecture in conjunction with the rest of their product. In fact, just today at Black Hat, we're announcing a new integration and partnership with Exabeam, and the formulation of the XDR Alliance in conjunction with them. That's really exciting. I think the second thing, what's really interesting in a sort of a zero trust architecture is that email and messaging sort of cuts all the way through that. While you can secure access to systems and use zero trust network approaches to reduce the attack surface, by definition, email and messaging must remain open so that you can communicate with the outside world. The layers of technology that we bring to interrogate messaging and email traffic to make sure that it is clean and safe, and then tracking how those messages are used inside an organization and looking for threats that might be moving laterally inside the organization, essentially not trusting internal email, if you like, the way one might have historically, is really important for organizations today. There's no simple networking solution to the email and messaging security problem, simply because it must be an open port to communicate with the outside world. Great. Thanks for the color, Peter, and congrats again. Thank you. Thank you. Our next question comes from Matt Hedberg with RBC Capital Markets. Your line is open. Hey, this is Anushka for Matt Hedberg. Congratulations on the strong start to the fiscal year with accelerating growth. Peter, can you start by talking about the overall demand environment coming out of the pandemic, and specifically for those customers or verticals that were heavily impacted by COVID, how are you seeing buying trends from this group as we emerge from the pandemic? Are those customers adopting more modules on an initial deal versus what you've seen historically? Great question. We've had a really strong quarter from an upsell perspective with customers purchasing more products, and you can see that in our increase of average number of products per customer from 3.4 up to 3.6. As well as the growth in our average order value, which reflects a couple of factors, but very much existing customers buying additional modules. I think we are seeing, particularly in the U.K. and the U.S., some economic recovery and confidence across all sectors, particularly those that have been impacted by COVID during the pandemic. We're seeing a little bit of a rebound there. Obviously, we're not off the other side of the pandemic entirely, and in some of our markets, the recovery is lagging. We feel good that our customers are coming back in aggregate and continuing to buy and demand more products from us. Now with 40,600 customers, it represents a really strong base as they hire more staff and continue to adopt additional modules from us. Very helpful. Thank you. Thank you. Our next question comes from Jonathan Ruykhaver with Baird. Your line is open. Yes, good morning. I'm wondering if you could talk a little bit more about CyberGraph, just what exactly that brings to the Mimecast platform, and how should we be thinking about monetization and anything else worth noting? Yeah. Great. Thanks, Jonathan. The way in which CyberGraph works is it leverages graph database technology and machine learning, and essentially it builds baselines of what normal, good communication traffic looks like in quite a rich sense, using many different variables of that communication, looking deep inside the messages as well as metadata. It builds this normal baseline, and then as deviations occur to that, as we see sort of abnormalities in those patterns, we leverage that to make security decisions. One of the cool things about it is it can share those insights. It can share some of those contextual pieces of information dynamically with the end user inside the message across mobile and across desktop mail clients, and help them make informed decisions. Let them know, for example, that they've never communicated with this person before, even if that person may be using the same display name as someone they feel they're familiar with. You can imagine how, as an example, if they're involved in a communication chain around making a particular payment and some email appears with a change of bank details, we would flag that and let them know. We may have blocked that in the first place, we may flag that as well and let them know this is a potential problem with this message. It really provides that additional depth for some of these highly targeted and very advanced attacks that may not contain malware or a particular payload, but may be looking at business email compromise or some kind of phishing attack. From a monetization point of view, this is a brand-new module, and we've introduced it to our customers. We're seeing a lot of interest in it. The monetization strategy is still under development. It is a billable module. Today, customers are paying additionally for it. It really has been initially one of the contributors to our growth in AOV, which I think you can see has gone up 9% year-over-year, up to $14,000 today. Modules like CyberGraph contribute towards that motion. We'll continue to see what the potential is overall with CyberGraph as we penetrate our customer base more deeply with it in the coming quarters. Peter, it sounds like it has broad applicability across the different offerings you provide. Is this something that could potentially drive a premium version of your current offerings, or will it just be one module, which I think is what you suggested? Yeah. That's a great question. It's early with the product. The way we've typically approached the introduction of new modules is to initially offer it as a discrete module. Get a sense of customer value and sort of price points around it. Over time, we may look to incorporate that into a premium edition of our product. That's a reasonably sort of common motion that we've followed over time with the introduction of sort of highly adjacent premium capabilities that we've released. Yeah, that's exactly the right question, that's how we think about it and how we look at how these things travel through time and drive greater adoption. That's helpful. Thanks, Peter. Thank you. Our next question comes from Terry Tillman with Truist. Your line is open. Hey, guys. This is Joe Meares on for Terry. Thanks so much for taking the question. You mentioned in the press release as well as the prepared remarks about strengthening the marketing team, as well as building out an integrated product organization. Could you delve a little bit into this more from the vantage point of the benefits from both efforts? Are there still more benefits in the coming quarters from these areas? Yeah, absolutely. That's right. These are brand-new changes and evolutions inside our organization. We're looking to the benefits going forward. The thinking behind the changes and some of the benefits that we're starting to see, if you look at who Mimecast is from a market positioning, a market perception perspective, we've built a really strong franchise in the SMB and mid-market, and we have an emerging strength in the enterprise space now with 19% of our revenues from organizations above 5,000 seats. We've started to build a really strong referenceable base in the higher end of the enterprise. That represents, I think, a real opportunity for our marketing organization to capitalize on that and build that brand upmarket as a leading cybersecurity and resilience provider in the enterprise. I think there's real upside there for us, and the marketing team is focused on that. As well as all of the usual dimensions of improving our impact at scale, from a digital marketing perspective, channel marketing perspective, and building out our organization, looking at our global operations too, and how we can support their growth through the marketing organization. I think from a product team perspective, we've spoken quite a bit about the thinking behind this integrated product and engineering organization, and we're super excited about some of those synergies and new capabilities as we brought those groups closer together. Obviously, David has just joined us a handful of weeks into his new role, and really looking at how we shape that organization to continue to accelerate innovation and bring out even more industry-leading cybersecurity capabilities for our customers. Capitalizing on this terrific platform that we've built that is a true multi-tenant, multi-product architecture, and how we leverage that to create an even better experience and better defenses for our customers into the future. Thanks so much. Thank you. Our next question comes from Nehal Chokshi with Northland Capital. Your line is open. Thank you. Congratulations on strong results. Thank you for the explanation on the constant currency effective guidance raise. That being said, big picture on constant currency is that you did put up a 15% year-over-year growth in the June quarter here, and you're guiding to 12%-13% for the next quarter. What's the largest sort of step down in that year-over-year growth rate here? Yeah, thank you for the question. One of the things we talked about, I think, over the last couple of quarters is that largely because of the way our revenue is recognized. Remember, 98% of our revenue is deferred. Even when we have a great quarter, that revenue is going to be recognized over the contract life, typically around a year. You get this delay. We talked about that U-shaped recovery, and we see that really come into play. I would point out, this is the first quarter over the last few where our next quarter guidance is perfectly aligned with our full-year guidance, again, both at 12%-13%. I think really establishing that U-shaped recovery we're talking about and positioning us as we continue to execute for re-acceleration. All of that, I think, is one part of your question. Another part of it is just as we look forward or, excuse me, as we look into this next quarter, there's a couple of really good things that happened in Q1. The linearity of Q1 actually came in quite strong earlier on in the quarter. I mentioned in my prepared remarks about how we saw strengthening in the U.K. That was helpful, and it happened early enough in the quarter. It actually helped quite a bit. Q1 is a quarter where we're doing a lot of the implementations and importing data to our archiving solution, those kind of things from the prior quarter. We had perhaps a little bit higher than you'd normally expect of kind of some of that one-off income, even though it's only 2% of the full-year, a few hundred thousand dollars of that makes a difference. We had I think a number of really good things coming for us in the Q1 revenue recognition. The real important thing here is our bookings performance set us up for a strong rest of the year. That's where we got that $8 million constant currency raise. Recall, that came on the back of a $6.5 million constant currency raise last quarter. It's two quarters in the row where you're seeing the business strengthen, and I think it's playing out just as we had hoped. Great. Thank you. Just to follow up here, does that mean that the strength in the business in the current fiscal Q2 has trended similarly to what you saw in Q1? Yeah. For the one month that we're into it, we did feel good about the strong start to Q2. Obviously, that's something we take in close account as we're doing our guidance. Yeah, we're seeing again that strength, particularly North America and the U.K., off to a strong start for the quarter. That also helped with that confidence for that $80 million constant currency raise. Great. Thank you very much, and congrats on a great quarter. Thank you. Thank you. Our next question comes from Catharine Trebnick with Colliers. Your line is open. Oh, congratulations on a nice quarter. Could you just reiterate if I missed it? I had to get off for a client call. The last quarter, you talked about how you're restaffing, and you're talking about bringing in a higher level of sales expertise and looking to replace staff that were more focused on the SMB. It's a two-part question. How are you doing on your staffing and getting new guys to come in, or gals? Then what type of automation have you put in place or plan to put in place to do a better job to go after the SMB market? Even though you're looking at moving up market, I do believe you are still trying to maintain part of it through automation. Thanks. Yeah. Thanks, Catharine. You're spot on, just making sure everyone's alive. We did talk about a restructuring for that shift that you called out, where we're trying to make sure we're deploying resources in line with our strategic initiatives. If people are to go to our website, you'll see we have a number of job openings out there that has actually increased. We're very much focused on investing in line with the strategic initiatives that we've shared. We're also really focused on, as we're seeing strength in the economy, investing in that growth opportunity. I think both things are happening. I would say we're making good progress on that front. I think like many peer companies out there, the job market is certainly competitive right now. Definitely in North America that's the case. We're getting some really talented people joining us, and I think they're excited about what Mimecast does and how it protects customers, but also excited about being part of the Mimecast story. Great progress there. We do have those openings though, we welcome any referrals that people might have. The second part of your question is of course near and dear to the finance guy's heart about where we can automate and drive efficiency. We have a number of projects underway, and some of them are starting to produce benefit already. One of the first areas we're really focused on is how we can improve our automation vis-a-vis the channel, and in particular, the MSPs. I think that's a great opportunity to reach a lot of the customers and enable the ecosystem around Mimecast, which will further drive growth. Making it easier for them to transact with us, making it more automated, all of those are really primary efforts as we launch into that. We kind of have a long detailed list in the, if you will, in the quote to cash cycle, where we, starting at the top end of it, not just with the channel, but where we think we can go in and frankly modernize our systems and upgrade them to reflect the much larger organization we are now. We're looking at everything about how do we make this easier to drive that growth to $1 billion. All right. Thank you. Thank you. Our next question comes from Alex Henderson with Needham & Company. Your line is open. Great. Thank you very much. I wanted to go back to the architectural question that was raised earlier. I think it's really critical. You've spent a lot of time building out a truly microservices-based cloud-native architecture. It is, in my opinion, the defining characteristic of your strategy from the get-go. It seems like as we move to this platform world, what we've been calling for three years the looming platform wars, that you become strategically more important, and the integration of your APIs become much more resilient than any of your competitors. Can you talk about the differentiation of your platform against the competitive landscape in that context? Yeah, it's a key point. Obviously, this is really where architecture does provide us with advantages because across all of our products, we're able to deliver a consistent, easy-to-use integration experience where features and functions of the product can be called quite easily by developers, our own developers at partners, and other vendors, to build these integrations. That's really helped us to accelerate the breath of integrations that we do have. I think, without that, from a competitive standpoint, other competitors can find themselves having to either r equire additional solutions that they have to provide to customers. Limit customers' choice down to the products that they have, as opposed to our strategy, which is expand the choice, work, and interoperate with the other products and platforms the customer's choosing. Really get much less value out of the email and messaging security threat landscape. If you think about email, it's such an interesting and intense attack surface, and the opportunity to extract value and telemetry out of what is going on in that attack surface and translate that into threat intelligence that can be consumed by other products or other parts of the environment, really starts to enable customers to think about email and messaging security, not just as a way of plugging a gap or plugging a hole or putting an additional fence up over that aspect, but really as something that can be a strategic contributor to their overall architecture and can strengthen several other parts of their security architecture. That's really the strategy. Being able to do that technically at scale really does require an architecture so that this kind of approach can be available to 40,000 customers instantly, as opposed to having to perhaps bring in expensive consultancy and handcraft integrations, which really is out of reach for the majority of organizations today. Providing this out of the box and making it really quick and easy, is what the architecture provides and what we really designed for here. If I could slide in a second question. You mentioned that you're starting to see a rebound over the course of the quarter and the demand, as customers rehire and so forth. Has that accelerated over the course of the quarter? In other words, I assume it's not a linear thing, that it actually has improved month to month to month, and that the highest rate of transition is actually in the headlights as opposed to the rear view mirror. Yeah. I think as things are improving, that is absolutely the case. It's ticking up as it goes along. I think the one thing we should just caution is, like unfortunately every software company out there, we tend to do the bulk of our business in the third month of the quarter, so that tends to be where you have big renewals and opportunities for that. That might skew my data to say that it's improving across the quarter. Certainly, we're seeing a lot of companies out there hiring, right? That drives additional seats, and that's going to help us out. Especially as we see that moving beyond North America and hopefully picking up steam around the world, that will continue to be a big part of the story on that net revenue retention rate metric. Great. Thank you. Thank you. Our next question comes from Brian Essex with Goldman Sachs. Your line is open. Great. Thank you. Good morning, and thank you for taking the question. Peter, just want to follow up on, you had some commentary around Humio and Exabeam. Maybe if we could dig into that a little bit in terms of how you're partnering with XDR platforms, the nature of those relationships. Is this something more complex than providing raw data for better ingestion into those platforms? Maybe a little background there to understand how those relationships are evolving and technically, how much work does that require on your end? That's a great question. There is a data exchange component to it, and then there are also hooks in terms of automation that are part of the solution. These things evolve and develop over time. We've got our first integration out right now. Obviously, Humio are owned by CrowdStrike. This is another integration in the CrowdStrike family. It's a little bit more broad-based with CrowdStrike, too. How we really capitalize on this with our customers and our channel partners, is quite interesting, too. From a go-to-market perspective, we're able to take these integrations and really talk to customers with our channel partners that sell each one of these different solutions in many cases, and have quite interesting joint go-to-market activities, have collaborations between our sales organizations and the sales organizations of these vendors, and then work with our channel partners in the field, to do educational events, and other promotional activity that I think helps customers see the stronger solutions that we're building together and that are available to them. We're very bullish on these partnerships, and the value that they bring to customers. We'll continue to evolve and develop the technology that brings them together, as these different use cases that we support initially, get deployed into the field. Got it. That's helpful. Maybe just a quick follow-up for Rafe. Just noticed the spike in R&D, and I think you talked a little bit about initiatives on the development side, but maybe a little bit more detail in terms of spending there and expectations for the remainder of the year. That's a good call-out. One of the things, just to begin with, we have, throughout the pandemic, continued to be prioritizing investment around our product side. You're seeing some of that and some of the hiring that's going on there. That's part of it. Also, there is a one-time item in this quarter that's worth calling out, and particularly on the GAAP side, you'll see it. With the executive transition that we announced back a quarter ago, as you know, they're retained till almost, I think, April of next year in an advisory capacity. With David joining and really taking over the primary responsibility there, the accounting has this, frankly, conservatively accelerate that cost all into this quarter, and that would be for the two executives that are both transitioning into that advisory capacity. You see, that piece of it's about $1.9 million of stock-based compensation that would otherwise been spread out of the year, accelerated into Q1. On the OpEx side, which hits non-GAAP, it's about $900,000 that accelerates there. You're seeing that bump up in Q1. It'll normalize, or, well, it'll drop down without those costs. If you look at it on a full-year basis, it's quite normalized. That's super helpful. Thank you very much for the follow-up, and congrats on your results. Yeah. Thank you. Our next question comes from Brent Thill with Jefferies. Your line is open. Hey, guys. You have Joe on for Brent. Really appreciate the question. Rafe, starting off with you, how should we think about AOV going forward? Is high single digits the proxy, or can we get to double digits? Maybe if you could talk about the levers. Is it driven more by seats as you move up market or cross-sell? Yeah. No, very good question. I think you're nailing it. This is a big part of our story as we look out. AOV benefits from a multitude of components. That move up market where we have bigger deals is a key piece of it, but also just the fact that we have now 12 products with a lot of maturity in them that we're taking out to our customers, which is showing up both on new customer sales as well as upsell opportunities, right. All of that adds up to build that bigger AOV, and I think that's really quite exciting. At $14,000, as you noted, some 9% constant currency increase since last year. We're obviously pushing for a bigger number there, and we're knocking on the door of double digits. We're pleased with where it is, but I will tell you internally, I think it's easy to say our biggest corporate initiatives are both designed about driving that number up. That's great to hear. Peter, maybe for you've talked a lot more about internal messaging today, kind of that east-west traffic in the org. Does that open up the opportunity for defending products like Teams and Slack? Would we ever see Mimecast move into that category? Does anything that you've kind of acquired in the last year help in that capacity? Yeah. We do see that as an emerging opportunity. Obviously, we've got a lot of the technology under the covers that can interrogate threats and, using API connections, as we do with email, can interrogate those environments and remediate threats from within those systems. I think there's also a compliance and archiving opportunity in that space that we've spoken about. Yeah, I would look out for some of the things in the coming months and quarters that we'll be doing there. Great to hear. Thanks, guys. Our next question comes from Keith Bachman with Bank of Montreal. Your line is open. Good morning. Two questions. First, Rafe, for you is, could you talk a little bit about what you think the trends on net retention will be? You did 105%. Do you think it gets back to kind of a 107% level by end of year? Just in the interest of time, I'm going to ask my follow-up to Peter. You talked about 12 products now. You're expanding your technology leadership. You're moving to a new architecture. I'm trying to understand what you think the outcomes may be of that. I tend to think it could be a few different things, but if you think about the number of services, does it materially increase the number of services? In particular, if you thought about the number of services used per customer, it's been growing at a fairly steady clip. I think you said 3.6 this quarter, which is up 0.2. Does it change the rate of growth of adoption of those number of services, or how do you think all these technology changes will manifest itself and how investors view it? That's it for me. Thank you. Yeah. Thanks, Keith. On the net revenue retention side, we're really pleased to see that number stabilize and now re-accelerate there. Start building back is probably the best way to say it. Remembering it as a trailing four-quarter metric. Yeah it does tend to move slowly. We're doing everything we can to build that arc back in the right direction. We don't give guidance on this number, and I think in some part it's because COVID has taught us one thing, it's hard to predict exactly how the global economies will recover and when based on all the variables in that number. That building back, going from 104 to 105 is really key. Believe us, we are really focused on continuing to drive that number back towards the historic numbers we used to put up there. I think the situation is right for us to be successful in improving economy, more products, and a sales team that has really been focused on providing the upsell opportunities to us. We're really proud of the work the team's doing, and I think all of that coming together, taking care of our customers and continuing to have more value to offer, is the right recipe for building that number up. Yeah, Keith, just to touch on your question. Obviously we built this architecture, we built this foundation from the get-go as a multi-product, multi-tenanted platform. That obviously has some considerable operational benefits for us, but also creating a simpler, easier to use, greater than the sum of the parts value equation for customers. We talk about 12 products in the portfolio, and that's expanded steadily. I think when we came public five and a bit years ago, it was about seven products. We've added those products during that time. I think one thing to note is that as we've introduced some of the additional modules and additional capabilities that may be monetizable, those don't always increment up and say, "Okay, now it's 13, now it's 14." The additional products tend to be sort of specific things, whereas some of these modules will contribute towards an increase in average order value. The 9% year-over-year constant currency growth in AOV to $14,000. That is supported by additional monetization opportunity within the base that you may not necessarily see in a 3.4-3.6 year-over-year shift. I think the other really interesting thing is as customers have more products that they're consuming, and today we have, I think it's 46% of our customers using more than four of our products. As we have customers using more products, they actually become stickier. We've seen, you asked a second ago about retention rates with Rafe. Customers with more products tend to stay longer with us. Also because of the nature of the platform, they're also margin accretive. You've seen that effect as our gross margins have climbed over time as well with customers adopting more products. Because the underlying platform cost of delivering two, three or five or six products is very marginally different. That is a key part of the economic engine of the business and our strategy. You've seen that scale and play out nicely as we've built this customer base out. Okay, great. Thanks, team. Thanks, Keith. Thank you. There are no further questions at this time. I'd like to turn the call back to Peter Bauer for closing remarks. Well, folks, thanks for joining us for our Q1 earnings call. We hope you have a terrific rest of the day, and we look forward to presenting our results to you again in around about three months time. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.