Q1 FY19 Update

Sophos Group plc

Q1 FY19 Update

Oxford, 5^th July 2018.  Sophos Group plc (the "Group" / LSE: SOPH), a leading provider of cloud-enabled enduser and network cybersecurity solutions, provides the following update in advance of publishing its scheduled trading statement for the quarter ended 30^th June 2018.

Trading Update

The Group expects to report Q1 billings growth of approximately 6% (2% at constant currency), with a strong performance in revenue and cash flow. We continued to see a strong demand environment and expect to report mid-teens growth in new customer and network security billings in the period.

The lower than anticipated billings growth in Q1 was primarily driven by our Enduser security business, which faced a particularly challenging comparable. Underlying Enduser billings growth in Q1 FY18 was in excess of 50% at constant currency, after adjusting for the previously disclosed material contract in FY17. The significant increase in demand for our Endpoint protection solutions in the first-half of FY18 was driven by high-profile global ransomware attacks such as WannaCry, with the additional contribution from Intercept X, our new next-generation endpoint solution, included in the H1 FY18 billings mix for the first time.  These factors will also apply to the second quarter of the current fiscal year, albeit with a somewhat easier prior-year comparable.  As the prior-year comparators normalise, we expect a return to mid-teens constant currency billings growth in the second half of the year. Our long-term outlook remains unchanged.

Sophos is scheduled to publish its full Q1 trading statement on 26^th July 2018.

Contact

Sophos Group plc

Tel: +44 (0) 1235 559 933

Derek Brown, Vice President Investor Relations

Financial Public Relations

Tulchan Communications

Tel: +44 (0) 20 7353 4200