Business Roundup: Loom raises $6m; JV announced; Mimecast results

News by SC Staff

Loom Systems raises US$6 million (£4.6 million) led by JVP; Darktrace/Siemens in industrial system JV; Mimecast Q4 and year-end results issued.

Loom Systems secures $6 million for AI driven log analytics 

AI-driven log analysis software platform provider Loom Systems has secured US$6 million in (£4.6 million) Series A funding led by Israel's leading venture capital firm Jerusalem Venture Partners (JVP), with Meron Capital and 31Ventures Global Innovation Fund managed by Global Brain Corporations.

In a press statement the company says that the funding will help accelerate Loom Systems' growing international operations.

It says its platform analyses logs and semi-structured machine data for immediate visibility into a company's digital environment and is targeted at DevOps and IT professionals. Using a combination of machine learning technologies the system is designed to provide predictive insights and a virtual personal assistant recommendation back engine, Sophie.

“Utilising artificial intelligence, we can find abnormal behaviour with remarkable granularity within enormous amounts of data, down to the single event or transaction,” said Gabby Menachem, CEO and founder, Loom Systems.

He adds that the system applies “artificial intelligence to remove both the pre-processing humans need to do before they can analyse data, as well as the analysis itself, root-cause investigation and remediation recommendations.”

Gadi Tirosh, managing partner at JVP said that a flexible AI is needed by industry because “a monitoring platform needs to be as dynamic and flexible as the IT platform that it's monitoring”. This is particularly true following “the introduction of hybrid architectures that span from on-premises to cloud and home-grown to third-party apps”.

Darktrace partners Siemens to target oil, gas and utilities industries

Darktrace is partnering with Siemens to bring its Industrial Immune System to customers in utilities and the oil and gas industry.

Countries recognise their critical national infrastructure is under attack from foreign governments, particularly the energy and utility sectors, hence it is taking steps to stem these attacks.

The companies have issued a statement explaining that the partnership aims to combine Darktrace's AI algorithms and machine learning with Siemens' 165-year expertise in industrial technology provision.

Utilities and oil and gas organisations are seeking to defend their entire networks, including all OT, against persistent and highly sophisticated cyber-threats without disrupting business processes. In the oil and gas industry, digitalisation results in convergence of IT and OT with critical data travelling from the field, to the control room, to the enterprise network.

Leveraging advances in machine learning and probabilistic mathematics, Darktrace's Industrial Immune System platform is designed to detect and remediate in-progress cyber-threats at their nascent stages. Siemens brings deep domain know-how and solutions for OT cyber, including security programme design, security lifecycle management, plant security monitoring and incident response.

“As energy infrastructure becomes increasingly data-driven, it is critical for operators to quickly detect and disrupt cyber-threats,” commented Aymeric Sarrazin, senior vice president, Controls and Digitalisation at Siemens Power Generation Services in a press statement.

Sarrazin added, “Through this strategic collaboration, Siemens and Darktrace will give customers actionable insights and intelligence to be faster in identifying and neutralising those threats, protecting critical assets from harmful and costly attacks.”

“As OT environments become more digital, they open a new and glaring vulnerability in organisations of all sizes,” commented Nicole Eagan, CEO at Darktrace.

Mimecast quarter and full year 2017 financial results issued

Revenue grew by 42 percent year on year to a total figure of US $52.4 million (£40.5 million) at Mimecast as a result of adding 1,500 new customers

Reporting the company's fourth quarter and full year ended March 31, 2017 results, Peter Bauer, CEO of Mimecast, commented: “2017 was a year of outperformance for Mimecast. We exceeded our expectations for both top and bottom line growth. We hired aggressively and acquired industry leading talent across the organisation. We expanded our ecosystem with channel and marketing partners. Importantly, we launched new products, like Internal Email Protect, to support our future success."

Mimecast's CFO Peter Campbell adds, "We are very pleased that our revenue growth accelerated to 42 percent as reported and 45 percent on a constant currency basis in the fourth quarter. We are also pleased that we signed on more mid and large customers this quarter, driving higher average order values."

Fourth quarter 2017 financial highlights

Revenue: GAAP revenue US$52.4 million (£40.5 million), up 42 percent compared to US$ 36.9 million (£28.5 million) in Q4 of 2016..

Customers: Added 1,500 net new customers in the fourth quarter of 2017 to reach over 26,400 organisations globally.

Adjusted EBITDA: US$ 3.6 million (£2.9 million), representing an adjusted EBITDA margin of 6.8 percent up from 1.3 percent in the fourth quarter of 2016.

Free cash flow and cash: Mimecast generated US$ 4.8 million (£3.7 million) of free cash flow in the fourth quarter of 2017 so that as of March 31, 2017 it reached US$ 111.7 million (£86.3 million).

Full year 2017 financial highlights

Revenue: GAAP revenue for 2017 was US$ 186.6 million (£144.3), an increase of 32 percent compared to the US$141.8 million (£109.6 million) of GAAP revenue in 2016. Revenue on a constant currency basis grew 39 percent compared to 2016.

Customers: Added 8,400 net new customers in 2017.

Adjusted EBITDA: Adjusted EBITDA was US$ 11.8 million (£ 9.1 million, representing an Adjusted EBITDA margin of 6.3 percent, down from 11.2 percent in 2016.

Non-GAAP Net Income: Non-GAAP net income was US$ 4.6 million (£3.6 million), or US$ 0.08 (£0.062) per share, based on 59.0 million diluted shares outstanding.


First quarter 2018 guidance:

Mimecast also reports that for its first quarter of 2018, constant currency revenue growth is expected to be in the range of 35 to 36 percent and revenue is expected to be in the range of US$ 54.7 million (£42.3 million) to US$ 55.3 million (£42.7 million). Adjusted EBITDA for the first quarter is expected to be in the range of US$ 3.3 million to US$ 4 .3 million (£2.6 million to £3.2 million).

Full year 2018 guidance:

For the full year 2018, revenue is expected to be the range of US$ 239.4 million (£185 million) to US$ 247.6 million (£191.4 million) or 28 percent to 32 percent revenue growth in constant currency. Adjusted EBITDA is expected to be in the range of US$ 18.7 million (£14.5 million) to US$ 20.7 million (£16 million).


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