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 https://otp.tools.investis.com/clients/uk/sophos1/rns/regulatory-story.aspx?cid=1119&newsid=842419