There were 729 press releases posted in the last 24 hours and 153,899 in the last 365 days.

Carbonite Announces Fourth Quarter and Full Year 2017 Financial Results

FY 2017 Revenue Growth of 16% with Expanding Profitability

Announces Agreement to Acquire Mozy Inc. from Dell Technologies Inc.

/EIN News/ -- BOSTON, Feb. 13, 2018 (GLOBE NEWSWIRE) -- Carbonite, Inc. (NASDAQ:CARB), a leader in data protection, today announced financial results for the quarter and full year ended December 31, 2017. The Company also announced it has entered into a definitive agreement to acquire Mozy, Inc. ("Mozy") from a subsidiary of Dell Technologies Inc. The deal expands Carbonite’s customer base and better positions Carbonite to offer its data protection platform to every segment of the market.

“We are thrilled to announce the acquisition of Mozy,” said Mohamad Ali, President and CEO of Carbonite. “Carbonite’s competitive advantage is our flexible data protection platform, which serves every scenario, from backing up individual laptops to maintaining uptime for hundreds of business servers. This deal provides Mozy customers scalable options for the future and gives Carbonite a broader base to which we offer our solutions.”

The total purchase price for Mozy is $145.8 million in cash.  The Company will fund the transaction with existing cash and newly secured financing commitments in the form of a $120.0 million revolving credit facility. The credit agreement will allow the Company to borrow, as needed, for general corporate purposes, including acquisitions.  The transaction is expected to close during the first quarter of 2018 and is subject to customary closing conditions and regulatory approvals. Barclays acted as financial advisor to the Company for the acquisition of Mozy.  Stifel also acted as an advisor.

Full Year 2017 Highlights:

  • Revenue of $239.5 million increased 16% year-over-year.
  • Non-GAAP revenue of $246.1 million increased 18% year-over-year.1
  • Bookings of $245.9 million increased 17% year-over-year.2
  • Net loss per share was ($0.14), as compared to ($0.15) in 2016 (basic and diluted).
  • Non-GAAP net income per share was $0.82 (basic) and $0.79 (diluted), as compared to $0.61 (basic) and $0.60 (diluted) in 2016.4

“2017 was another successful year for Carbonite. We built and integrated the major elements of our leading data protection platform for businesses. We launched new programs and tools to better enable our partners, and again we were recognized for excellence in customer support. I am confident in our path forward and our ability to continue to execute the long-term strategic transformation we started just a few years ago,” said Mohamad Ali, President and CEO of Carbonite.

“We delivered solid bookings and revenue growth for the year and a meaningful increase in profitability. We remain focused on operational excellence, continuing to streamline the business and efficiently drive results. Our guidance for 2018 calls for balanced organic and inorganic growth with another significant increase in non-GAAP net income per share,” said Anthony Folger, CFO of Carbonite.

The Company uses a variety of operational and financial metrics, including non-GAAP financial measures, to evaluate its performance and financial condition. The accompanying financial data includes additional information regarding these metrics and a reconciliation of non-GAAP financial information to GAAP. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Fourth Quarter 2017 Results:

  • Revenue for the fourth quarter was $61.7 million, an increase of 15% from $53.5 million in the fourth quarter of 2016. Non-GAAP revenue for the fourth quarter was $62.8 million, an increase of 17% from $53.9 million in the fourth quarter of 2016.1
  • Bookings for the fourth quarter were $60.2 million, an increase of 11% from $54.0 million in the fourth quarter of 2016.2
  • Gross margin for the fourth quarter was 72.8%, compared to 72.2% in the fourth quarter of 2016. Non-GAAP gross margin was 77.6% in the fourth quarter, compared to 74.0% in the fourth quarter of 2016.3
  • Net loss for the fourth quarter was ($1.6) million, compared to net loss of ($0.7) million in the fourth quarter of 2016. Non-GAAP net income for the fourth quarter was $8.8 million, compared to non-GAAP net income of $3.3 million in the fourth quarter of 2016.4
  • Net loss per share for the fourth quarter was ($0.06) (basic and diluted), compared to net loss per share of ($0.02) (basic and diluted) in the fourth quarter of 2016. Non-GAAP net income per share was $0.31 (basic) and $0.30 (diluted) for the fourth quarter, compared to non-GAAP net income per share of $0.12 (basic and diluted) in the fourth quarter of 2016.4
  • Cash flow from operations for the fourth quarter was $13.9 million, compared to $9.8 million in the fourth quarter of 2016. Adjusted free cash flow for the fourth quarter was $9.7 million, compared to $6.9 million in the fourth quarter of 2016.5

Full Year 2017 Results:

  • Revenue for the full year was $239.5 million, an increase of 16% from $207.0 million in 2016. Non-GAAP revenue for the full year was $246.1 million, an increase of 18% from $209.3 million in 2016.1
  • Bookings for the full year were $245.9 million, an increase of 17% from $209.3 million in 2016.2
  • Gross margin for the full year was 70.7%, compared to 70.6% in 2016. Non-GAAP gross margin was 75.5% in the full year, compared to 72.6% in 2016.3
  • Net loss for the full year was ($4.0 million), compared to a net loss of ($4.1 million) in 2016. Non-GAAP net income for the full year was $22.8 million, compared to non-GAAP net income of $16.4 million in 2016.4
  • Net loss per share for the full year was ($0.14) (basic and diluted), compared to a net loss per share of ($0.15) (basic and diluted) in 2016. Non-GAAP net income per share was $0.82 (basic) and $0.79 (diluted) for the full year, compared to non-GAAP net income per share of $0.61 (basic) and $0.60 (diluted) in 2016.4
  • Total cash and cash equivalents were $128.2 million as of December 31, 2017, compared to $59.2 million as of December 31, 2016.
  • Cash flow from operations for the full year was $31.3 million, compared to $13.2 million in 2016. Adjusted free cash flow for the full year was $20.2 million, compared to $18.2 million in 2016.5
 

Non-GAAP revenue excludes the impact of purchase accounting adjustments for significant acquisitions.
2  Bookings represent the aggregate dollar value of customer subscriptions and software arrangements, which may include multiple revenue elements, such as software licenses, hardware, professional services and post-contractual support, received during a period and are calculated as revenue recognized during a particular period plus the change in total deferred revenue, excluding deferred revenue recorded in connection with acquisitions and divestitures, net of foreign exchange during the same period.
Non-GAAP gross margin excludes the impact of purchase accounting adjustments on acquired deferred revenue, amortization expense on intangible assets, stock-based compensation expense, acquisition-related expense and intangible asset impairment charges.
Non-GAAP net income and non-GAAP net income per share excludes the impact of purchase accounting adjustments on acquired deferred revenue, amortization expense on intangible assets, stock-based compensation expense, litigation-related expense, restructuring-related expense, acquisition-related expense, intangible asset impairment charges, non-cash convertible debt interest expense and the income tax effect of non-GAAP adjustments.
Adjusted free cash flow is calculated by subtracting the cash paid for the purchase of property and equipment and adding the payments related to acquisitions, restructuring, litigation and the cash portion of the lease exit charge from net cash provided by operating activities.

Business Outlook

Based on the information available as of February 13, 2018, Carbonite expects the following for the first quarter and full year of 2018:

First Quarter 2018:

  Current Guidance
(2/13/2018)
GAAP Revenue $61.7 - $63.7 million
Non-GAAP Revenue $63.0 - $65.0 million
Non-GAAP Net Income Per Share $0.20 - $0.24

Full Year 2018:

  Current Guidance
(2/13/2018)
Business Bookings $223.8 - $234.8 million
Consumer Bookings Y/Y Growth 5% - 15% growth
GAAP Revenue $294.0 - $304.0 million
Non-GAAP Revenue $302.5 - $312.5 million
Non-GAAP Net Income Per Share (Diluted) $1.45 - $1.55
Non-GAAP Gross Margin 76.0% - 77.0%
Adjusted Free Cash Flow $32.0 - $38.0 million

The guidance provided above reflects the estimated impact of ASC 606, which Carbonite is adopting in the first quarter of 2018. Carbonite’s expectations of non-GAAP net income per share for the first quarter and full year of 2018 excludes the impact of purchase accounting adjustments on acquired deferred revenue, amortization expense on intangible assets, stock-based compensation expense, litigation-related expense, restructuring-related expense, non-cash convertible debt interest expense, and the income tax effect of non-GAAP adjustments. Non-GAAP net income per share assumes an effective tax rate of 11% for the full year of 2018. Non-GAAP net income per share assumes fully-diluted weighted average shares outstanding of approximately 29.7 million for the first quarter and 29.9 million for the full year of 2018.

Conference Call and Webcast Information

In conjunction with this announcement, Carbonite will host a conference call on Tuesday, February 13, 2018 at 5:30 p.m. ET to review the results. This call will be webcast live and can be found in the investor relations section of the Company's website at http://investor.carbonite.com. The conference call can also be accessed by dialing (877) 303-1393 in the United States or (315) 625-3228 internationally with the passcode 1669107.

Following the completion of the call, a recorded replay will be available on the Company’s website, http://investor.carbonite.com, under “Events & Presentations”.

Non-GAAP Financial Measures

To supplement our consolidated financial statements presented in accordance with GAAP, this press release contains non-GAAP financial measures, including bookings, non-GAAP revenue, non-GAAP gross margin, non-GAAP net income and non-GAAP net income per share, non-GAAP operating expense and adjusted free cash flow.

The Company believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and ordinary results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods and uses these measures in financial reports prepared for management and the Company’s board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software-as-a-service companies, many of which present similar non-GAAP financial measures to investors.

The Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant items that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management. The Company urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures provided in the tables at the end of this press release, and not to rely on any single financial measure to evaluate the Company’s business.

With respect to our expectations under "Business Outlook" above, the Company has not reconciled non-GAAP net income per share to net (loss) income per share in this press release because we do not provide guidance for stock-based compensation expense, litigation-related expense, acquisition-related expense, amortization expense on intangible assets, non-cash convertible debt interest expense, and the income tax effect of non-GAAP adjustments as we are unable to quantify certain of these amounts that would be required to be included in the GAAP measure without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors.

Cautionary Language Concerning Forward-Looking Statements

Certain matters discussed in this press release, including under “Business Outlook,” have "forward-looking statements"  intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such because the context of such statements will include words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or words of similar import. Similarly, statements that describe the Company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, our ability to complete the acquisition of Mozy, our ability to integrate Mozy into our operations and achieve the expected benefits of the acquisition, our ability to profitably attract new customers and retain existing customers, our dependence on the market for cloud backup services, our ability to manage growth, changes in economic or regulatory conditions or other trends affecting the Internet and the information technology industry, and those discussed in the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the Securities and Exchange Commission (the "SEC"), which is available on www.sec.gov, and elsewhere in any subsequent periodic or current reports filed by us with the SEC. Except as required by applicable law, we do not undertake any obligation  to update our forward-looking statements to reflect future events, new information or circumstances.

About Carbonite

Carbonite provides a robust Data Protection Platform for businesses, including backup, disaster recovery, high availability and workload migration technology. The Carbonite Data Protection Platform supports any size business, in locations around the world with secure and scalable global cloud infrastructure. To learn more visit www.Carbonite.com.

Investor Relations Contact:

Jeremiah Sisitsky
Carbonite
781-928-0713
investor.relations@carbonite.com

Media Contacts:

Sarah King
Carbonite
617-421-5601
media@carbonite.com

 

       
Carbonite, Inc.
Consolidated Statement of Operations (unaudited)
(In thousands, except share and per share amounts)
       
  Three Months Ended
December 31,
  Twelve Months Ended
December 31,
  2017   2016   2017   2016
Revenue $ 61,692     $ 53,488     $ 239,462     $ 206,986  
Cost of revenue 16,811     14,859     70,067     60,937  
Gross profit 44,881     38,629     169,395     146,049  
Operating expenses:              
Research and development 12,125     8,026     46,160     33,298  
General and administrative 9,586     10,464     43,331     41,332  
Sales and marketing 21,568     20,278     90,922     73,347  
Restructuring charges 1,047     22     1,047     856  
Total operating expenses 44,326     38,790     181,460     148,833  
Income (loss) from operations 555     (161 )   (12,065 )   (2,784 )
Interest (expense) income, net (2,219 )   (12 )   (6,866 )   (122 )
Other income (expense), net 123     72     1,252     190  
Loss before income taxes (1,541 )   (101 )   (17,679 )   (2,716 )
Provision (benefit) for income taxes 73     569     (13,677 )   1,383  
Net loss $ (1,614 )   $ (670 )   $ (4,002 )   $ (4,099 )
Net loss per share:              
Basic $ (0.06 )   $ (0.02 )   $ (0.14 )   $ (0.15 )
Diluted $ (0.06 )   $ (0.02 )   $ (0.14 )   $ (0.15 )
Weighted-average shares outstanding:              
Basic 27,971,459     27,183,545     27,779,098     27,028,636  
Diluted 27,971,459     27,183,545     27,779,098     27,028,636  
                       


       
Carbonite, Inc.
Consolidated Balance Sheets (unaudited)
(In thousands)
       
  December 31,
2017
  December 31,
2016
Assets      
Current assets      
Cash and cash equivalents $ 128,231     $ 59,152  
Trade accounts receivable, net 22,219     16,639  
Prepaid expenses and other current assets 6,823     7,325  
Restricted cash     135  
Total current assets 157,273     83,251  
Property and equipment, net 28,790     23,872  
Other assets 804     157  
Acquired intangible assets, net 44,994     13,751  
Goodwill 80,958     23,728  
Total assets $ 312,819     $ 144,759  
Liabilities and Stockholders’ Equity      
Current liabilities      
Accounts payable $ 10,842     $ 5,819  
Accrued expenses 21,675     19,768  
Current portion of deferred revenue 100,241     86,311  
Total current liabilities 132,758     111,898  
Long-term debt 111,819      
Deferred revenue, net of current portion 24,273     21,280  
Other long-term liabilities 5,704     5,747  
Total liabilities 274,554     138,925  
Stockholders’ equity      
Common stock 301     285  
Additional paid-in capital 233,343     177,931  
Treasury stock, at cost (26,616 )   (10,657 )
Accumulated deficit (169,344 )   (165,042 )
Accumulated other comprehensive income 581     3,317  
Total stockholders’ equity 38,265     5,834  
Total liabilities and stockholders’ equity $ 312,819     $ 144,759  
               

 

   
Carbonite, Inc.
Consolidated Statement of Cash Flows (unaudited)
(In thousands)
   
  Twelve Months Ended
December 31,
  2017   2016
Operating activities      
Net loss $ (4,002 )   $ (4,099 )
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization 21,731     15,869  
(Gain) loss on disposal of equipment (907 )   748  
Intangible asset impairment charges 352      
Impairment of capitalized software 1,048      
Stock-based compensation expense 12,742     8,900  
Benefit for deferred income taxes (15,392 )   (15 )
Non-cash interest expense related to amortization of debt discount 4,434      
Other non-cash items, net (533 )   68  
Changes in assets and liabilities, net of acquisition:      
Accounts receivable 1,786     (13,412 )
Prepaid expenses and other current assets 389     (1,547 )
Other assets (580 )   17  
Accounts payable 5,035     (3,345 )
Accrued expenses (995 )   8,183  
Other long-term liabilities 53     (586 )
Deferred revenue 6,169     2,384  
Net cash provided by operating activities 31,330     13,165  
Investing activities      
Purchases of property and equipment (17,351 )   (6,582 )
Proceeds from sale of property and equipment 955     13  
Proceeds from maturities of marketable securities and derivatives 534     3,395  
Purchases of derivatives (5,040 )   (1,476 )
Proceeds from sale of businesses 295      
Payment for intangibles (1,250 )    
Payment for acquisition, net of cash acquired (69,798 )   (11,625 )
Net cash used in investing activities (91,655 )   (16,275 )
Financing activities      
Proceeds from exercise of stock options 4,987     3,560  
Proceeds from issuance of treasury stock under employee stock purchase plan 1,052      
Proceeds from long-term borrowings, net of debt issuance costs 177,797      
Payments on long-term borrowings (39,200 )    
Repurchase of common stock (17,014 )   (4,964 )
Net cash provided by (used in) financing activities 127,622     (1,404 )
Effect of currency exchange rate changes on cash 1,782     (270 )
Net increase (decrease) in cash and cash equivalents 69,079     (4,784 )
Cash and cash equivalents, beginning of period 59,152     63,936  
Cash and cash equivalents, end of period $ 128,231     $ 59,152  
               


Carbonite, Inc.
Reconciliation of GAAP to Non-GAAP Measures (unaudited)
(In thousands, except share and per share amounts)

       
Reconciliation of GAAP Revenue to Non-GAAP Revenue
       
  Three Months Ended
December 31,
  Twelve Months Ended
December 31,
  2017   2016   2017   2016
GAAP revenue $ 61,692     $ 53,488     $ 239,462     $ 206,986  
Add:              
Fair value adjustment of acquired deferred revenue (1) 1,130     415     6,628     2,314  
Non-GAAP revenue $ 62,822     $ 53,903     $ 246,090     $ 209,300  
(1)  Excludes the impact of purchase accounting adjustments for significant acquisitions.
 


       
Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
       
  Three Months Ended
December 31,
  Twelve Months Ended
December 31,
  2017   2016   2017   2016
Gross profit $ 44,881     $ 38,629     $ 169,395     $ 146,049  
Gross margin 72.8 %   72.2 %   70.7 %   70.6 %
Add:              
Fair value adjustment of acquired deferred revenue 1,130     415     6,628     2,314  
Amortization of intangibles 2,226     633     8,179     2,632  
Stock-based compensation expense 274     206     1,061     806  
Acquisition-related expense 92         401     251  
Intangible asset impairment charges 127         127      
Non-GAAP gross profit $ 48,730     $ 39,883     $ 185,791     $ 152,052  
Non-GAAP gross margin 77.6 %   74.0 %   75.5 %   72.6 %
                       


       
Calculation of Non-GAAP Net Income and Non-GAAP Net Income per Share
       
  Three Months Ended
December 31,
  Twelve Months Ended
December 31,
  2017   2016   2017   2016
Net loss $ (1,614 )   $ (670 )   $ (4,002 )   $ (4,099 )
Add:              
Fair value adjustment of acquired deferred revenue 1,130     415     6,628     2,314  
Amortization of intangibles 2,783     932     10,271     3,870  
Stock-based compensation expense 3,523     2,272     12,742     8,900  
Litigation-related expense 181         374     1  
Restructuring-related expense 1,047     22     1,047     852  
Acquisition-related expense 430     657     6,794     5,464  
Intangible asset impairment charges 352         352      
Non-cash convertible debt interest expense 1,491         4,434      
Less:              
Income tax effect of non-GAAP adjustments 566     318     15,807     876  
Non-GAAP net income $ 8,757     $ 3,310     $ 22,833     $ 16,426  
GAAP net loss per share:              
Basic $ (0.06 )   $ (0.02 )   $ (0.14 )   $ (0.15 )
Diluted $ (0.06 )   $ (0.02 )   $ (0.14 )   $ (0.15 )
Non-GAAP net income per share:              
Basic $ 0.31     $ 0.12     $ 0.82     $ 0.61  
Diluted $ 0.30     $ 0.12     $ 0.79     $ 0.60  
GAAP weighted-average shares outstanding:              
Basic 27,971,459     27,183,545     27,779,098     27,028,636  
Diluted 27,971,459     27,183,545     27,779,098     27,028,636  
Non-GAAP weighted-average shares outstanding:              
Basic 27,971,459     27,183,545     27,779,098     27,028,636  
Diluted 29,322,013     28,286,618     29,079,105     27,491,064  
                       


       
Reconciliation of GAAP Operating Expense to Non-GAAP Operating Expense
       
  Three Months Ended
December 31,
  Twelve Months Ended
December 31,
  2017   2016   2017   2016
Research and development $ 12,125     $ 8,026     $ 46,160     $ 33,298  
Less:              
Stock-based compensation expense 665     79     1,969     869  
Acquisition-related expense 77     40     1,249     349  
Non-GAAP research and development $ 11,383     $ 7,907     $ 42,942     $ 32,080  
               
General and administrative $ 9,586     $ 10,464     $ 43,331     $ 41,332  
Less:              
Amortization of intangibles 123     62     469     262  
Stock-based compensation expense 2,027     1,685     7,827     6,160  
Litigation-related expense 181         374     1  
Acquisition-related expense 145     617     4,448     4,748  
Non-GAAP general and administrative $ 7,110     $ 8,100     $ 30,213     $ 30,161  
               
Sales and marketing $ 21,568     $ 20,278     $ 90,922     $ 73,347  
Less:              
Amortization of intangibles 434     237     1,623     976  
Stock-based compensation expense 557     302     1,885     1,065  
Acquisition-related expense 116         696     116  
Intangible asset impairment charges 225         225      
Non-GAAP sales and marketing $ 20,236     $ 19,739     $ 86,493     $ 71,190  
               
Restructuring charges $ 1,047     $ 22     $ 1,047     $ 856  
Less:              
Restructuring-related expense 1,047     22     1,047     851  
Non-GAAP restructuring charges $     $     $     $ 5  
                               


       
Reconciliation of Revenue to Bookings
       
  Three Months Ended
December 31,
  Twelve Months Ended
December 31,
  2017   2016   2017   2016
Revenue $ 61,692     $ 53,488     $ 239,462     $ 206,986  
Add:              
Deferred revenue ending balance 124,514     107,591     124,514     107,591  
Deferred revenue divested         373      
Impact of foreign exchange     404         240  
Less:              
Impact of foreign exchange 324         1,474      
Beginning deferred revenue from acquisitions         9,420     6,830  
Deferred revenue beginning balance 125,705     107,445     107,591     98,703  
Change in deferred revenue balance (1,515 )   550     6,402     2,298  
Bookings $ 60,177     $ 54,038     $ 245,864     $ 209,284  
                               


       
Calculation of Adjusted Free Cash Flow
       
  Three Months Ended
December 31,
  Twelve Months Ended
December 31,
  2017   2016   2017   2016
Net cash provided by operating activities $ 13,864     $ 9,801     $ 31,330     $ 13,165  
Subtract:              
Purchases of property and equipment 5,407     2,867     17,351     6,582  
Free cash flow 8,457     6,934     13,979     6,583  
               
Add:              
Acquisition-related payments 864     8     5,707     9,989  
Restructuring-related payments 359         359     341  
Cash portion of lease exit charge     (11 )       343  
Litigation-related payments 51         188     924  
Adjusted free cash flow $ 9,731     $ 6,931     $ 20,233     $ 18,180  
                               

Primary Logo