We believe our financial performance also reflects the economic recovery we’re seeing globally across small and medium-sized businesses." Zix’s Chief Financial Officer Dave Rockvam commented: "In addition to robust, double-digit revenue and ARR increases as well as strong cash flow generation, we also delivered meaningful quarter-to-quarter adjusted EBITDA dollar expansion in Q3, highlighting our success in layering on organic, higher-margin products. CloudAlly continues to perform exceptionally well, with a record number of transacting partners coming online in Q3, helping produce 20% sequential growth and 74% year-over-year growth in this segment."
This achievement is a direct reflection of Zix’s successful transformation into a cloud-first organization and underscores the success we are having retaining customers, adding customers onto Secure Cloud, and selling CloudAlly backup into our base. "The double-digit growth we achieved was driven by strong Zix IP attach rates as well as increasing sales synergies we are realizing across our organization, which produced a record of over 103% net dollar revenue retention rate in Q3.
"We delivered strong financial results across the board in the third quarter, highlighted by 18% growth in revenue and ARR, along with solid EBITDA and cash flow generation," said David Wagner, Zix’s Chief Executive Officer. The company ended the quarter with $39.0 million in cash, an increase of 15.0% or $5.1 million compared to the end of the prior quarter.Ĭash flow from operations was $10.1 million, a decrease of 33% or $5.0 million compared to the prior year period. Non-GAAP adjusted net income per share before deemed dividends and excluding deferred tax (benefit) expense totaled $0.15.Īdjusted EBITDA increased to $13.9 million, representing an adjusted EBITDA margin of 21.5%. Non-GAAP adjusted net income before deemed dividends and excluding deferred tax (benefit) expense totaled $8.2 million compared to $9.2 million. GAAP fully diluted earnings (loss) per share attributable to common stockholders totaled ($0.09) compared to ($0.05). The company’s Q3 2021 net loss attributable to common shareholders includes the effect of a deemed dividend to preferred shareholders of $2.4 million and acquisition-related expenses of $0.5 million. GAAP net loss attributable to common stockholders totaled ($4.9) million compared to a year ago net loss attributable to common stockholders of ($3.0) million. GAAP net loss totaled ($2.4) million compared to a year ago net loss of ($0.7) million. Cloud ARR increased 19% to $236.9 million or 90% of total ARR. Third Quarter 2021 Financial Highlights (results compared to the same year-ago quarter)Īnnual recurring revenue (ARR) increased 18% to $262.8 million. Generated $10.1 Million in Cash Flow from Operations, $35.5 Million Year-to-date, up 46.7%Ĭash Position Increased $5.1 Million or 15.0% to $39.0 Million Compared to Q2 2021ĭALLAS, November 08, 2021-( BUSINESS WIRE)- Zix Corporation (Zix) (NASDAQ: ZIXI), a leading provider of cloud email security, productivity, and compliance solutions, today announced financial results for the third quarter ended September 30, 2021. Record Net Dollar Retention of 103.1% Driven by Strong Customer Adoption of CloudAlly and Secure Cloudġ8% Increase in Revenue and Annual Recurring Revenue (ARR)