Sustained momentum in Q3; strong cash generation

Sophos Press Release

Oxford, 8 February 2017. Sophos Group plc (the “Group” / LSE: SOPH), a leading provider of cloud-enabled enduser and network security solutions, today issues its trading update for the third quarter and nine-months ended 31 December 2016.

Financial and operational highlights

  • Strong momentum continued in Q3 with 16.1% billings1 growth (18.3% at constant currency)
    • Particular strength in software subscription business with Sophos Central a key driver
    • Highly successful first full-quarter contribution from our industry-leading next-generation endpoint solution, Intercept X, with over 3,300 customers signed contributing to total enduser product billings growth in excess of 20%
    • Good momentum in network billings supported by recent product launches
    • A strong performance in Europe and an acceleration in the Americas, which delivered over 20% growth at constant currency, while APJ was steady against a strong prior-year comparative
    • Reported revenue on an accelerating trend increased by 11.0% in Q3 (13.4% at constant currency), strengthened by mid-teens growth in subscription revenue at constant currency
  • Strong visibility over future billings and revenue underpinned by expansion of the renewal book, further improvement in renewal rates and continued growth in new customers
  • Strong cash generation in the period, with unlevered free cash flow2 increasing by 28.4% to $18.1 million in Q3 and by 136.2% to $80.3 million for the nine-month period
  • The Board was strengthened through the appointment of new UK-based non-executive director
  • Improved outlook, with unlevered free cash flow now expected to more than double for the full-year

To read the full report, please go to

More than 100 million users in 150 countries rely on Sophos’ complete security solutions as the best protection against complex threats and data loss. Simple to deploy, manage, and use, Sophos’ award-winning encryption, endpoint security, web, email, mobile and network security solutions are backed by SophosLabs - a global network of threat intelligence centers. Sophos is headquartered in Oxford, U.K., and is publicly traded on the London Stock Exchange under the symbol “SOPH.” More information is available at