MIME 2017 Annual Report

45 Other income (expense) Year ended March 31, Period-to-period change 2018 2017 Amount % Change (dollars in thousands) Other income (expense): $ 1,310 $ 510 $ 800 157% Interest expense (598) (268) (330) 123% Foreign exchange (expense) income (3,511) 6,892 (10,403) nm Other income, net 72 — 72 nm Total other (expense) income, net $ (2,727) $ 7,134 $ (9,861) nm nm—not meaningful Other income (expense) changed $9.9 million in the year ended March 31, 2018 compared to the year ended March 31, 2017, which was primarily attributable to a change of $10.4 million in foreign exchange expense which was primarily attributable to the re- measurement of short-term intercompany balances denominated in currencies other than the functional currency of our operating units. The increase in interest income is primarily due to interest on investments. Provision for income taxes Year ended March 31, Period-to-period change 2018 2017 Amount % Change (dollars in thousands) Provision for income taxes $ 2,705 $ 2,202 $ 503 23% Provision for income taxes increased $0.5 million in the year ended March 31, 2018 compared to the year ended March 31, 2017. The provision for income taxes in each period was primarily attributable to taxes related to our South African entity. The increase in the provision for income taxes from the prior period was primarily attributable to withholding taxes accrued by our Australian entity combined with an increase in the earnings in South Africa. Comparison of Years Ended March 31, 2017 and 2016 Revenue Year ended March 31, Period-to-period change 2017 2016 Amount % Change (dollars in thousands) Revenue $ 186,563 $ 141,841 $ 44,722 32% Revenue increased $44.7 million in the year ended March 31, 2017 compared to the year ended March 31, 2016. The increase in revenue was primarily attributable to increases in new customers, including the 8,400 new customers added during fiscal 2017, a full year of revenue related to new customers added in fiscal 2016 and additional revenue from customers that existed as of March 31, 2016. Revenue for the year ended March 31, 2017 compared to the year ended March 31, 2016 was negatively impacted by approximately $9.9 million primarily as a result of the strengthening of the U.S. dollar relative to the British pound and to a lesser extent the South African rand. Cost of revenue Year ended March 31, Period-to-period change 2017 2016 Amount % Change (dollars in thousands) Cost of revenue $ 50,314 $ 41,809 $ 8,505 20%