MIME 2017 Annual Report

62 MIMECAST LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year ended March 31, 2018 2017 2016 Operating activities Net loss $ (12,386) $ (5,441) $ (3,244) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 18,960 11,881 10,527 Share-based compensation expense 11,734 10,294 7,886 Provision for doubtful accounts 185 87 91 Impairment of long-lived assets 1,712 — — Loss (gain) on disposal of fixed assets 181 (4) (5) Other non-cash items 184 132 106 Unrealized currency loss (gain) on foreign denominated transactions 2,958 (6,496) (988) Changes in assets and liabilities: Accounts receivable (18,120) (11,750) (9,820) Prepaid expenses and other current assets (5,037) (2,752) (2,191) Other assets 33 1,861 (437) Accounts payable (104) 758 (542) Deferred revenue 39,042 29,072 18,588 Accrued expenses and other liabilities 7,070 4,872 4,672 Net cash provided by operating activities 46,412 32,514 24,643 Investing activities Purchases of investments (76,948) (67,550) — Maturities of investments 77,808 7,000 — Purchases of property, equipment and capitalized software (34,498) (18,491) (14,234) Payments for acquisitions (1,381) (5,574) — Net cash used in investing activities (35,019) (84,615) (14,234) Financing activities Proceeds from issuance of ordinary shares 17,039 4,476 885 Payments on debt (1,825) (4,559) (5,412) Payments on capital lease obligations (1,039) (249) — Payments on construction financing lease obligation (1,019) — — Proceeds from initial public offering, net of issuance costs — — 68,328 Net cash provided by (used in) financing activities 13,156 (332) 63,801 Effect of foreign exchange rates on cash 2,471 (2,388) (960) Net increase (decrease) in cash and cash equivalents 27,020 (54,821) 73,250 Cash and cash equivalents at beginning of period 51,319 106,140 32,890 Cash and cash equivalents at end of period $ 78,339 $ 51,319 $ 106,140 Supplemental disclosure of cash flow information Cash paid during the period for interest $ 591 $ 211 $ 488 Cash paid during the period for income taxes $ 2,545 $ 2,046 $ 58 Supplemental disclosure of non-cash investing and financing activities Unpaid purchases of property and equipment $ 2,422 $ 848 $ 308 Property and equipment acquired under capital lease $ 4,000 $ 713 $ — Unpaid purchases of capitalized software licenses $ 5,555 $ — $ — Conversion of convertible preferred shares to ordinary shares $ — $ — $ 59,305 Amounts due for acquisition of business $ — $ 600 $ — Construction costs capitalized under financing lease obligations $ 70,645 $ — $ — The accompanying notes are an integral part of these consolidated financial statements.