BOSTON, May 03, 2016 (GLOBE NEWSWIRE) -- Carbonite, Inc. (NASDAQ:CARB), a leading provider of cloud backup and disaster recovery solutions for small and midsize
businesses (SMBs), today announced financial results for the quarter ended March 31, 2016.
Q1'16 Highlights:
- Non-GAAP revenue of $48.7 million increased 47% year over year.1 Revenue of $48.1 million increased 46% year over
year.
- Bookings of $52.3 million increased 42% year over year.2
- SMB bookings grew 124% year over year.
- Non-GAAP net income (loss) per share was $0.15 compared with ($0.05) year over year.4 Net loss per share was
($0.17) compared with ($0.23) year over year.
“I am very pleased to report that SMB bookings grew by more than 120% year over year, and for the first time, SMB accounted for
more than 50% of total quarterly bookings. SMB demand for cloud backup and disaster recovery solutions continues to grow, driven by
the need to protect valuable data against an evolving threat landscape. With the Carbonite product line-up providing
market-leading cloud backup for small businesses, and the EVault product suite providing best-in-class disaster recovery as a
service (DRaaS) solutions for mid-size businesses, we are well positioned to capitalize on all of the opportunities ahead,” said
Mohamad Ali, President and CEO of Carbonite.
“Our strong performance in the first quarter was driven by bookings of EVault-branded products combined with better than 25%
bookings growth of Carbonite-branded SMB products, led by our Carbonite Server Backup solution. Both consumer and SMB retention
rates remained at all-time highs and we drove gross margin improvement and improved profitability through disciplined cost
management,” said Anthony Folger, CFO of Carbonite.
First Quarter 2016 Results:
- Revenue for the first quarter was $48.1 million, an increase of 46% from $33.0 million in the first quarter of 2015.
Non-GAAP revenue for the first quarter was $48.7 million, an increase of 47% from $33.0 million in the first quarter of
2015.1
- Bookings for the first quarter were $52.3 million, an increase of 42% from $36.9 million in the first quarter of
2015.2
- Gross margin for the first quarter was 69.3%, compared to 69.7% in the first quarter of 2015. Non-GAAP gross margin was 71.9%
in the first quarter, compared to 71.1% in the first quarter of 2015.3
- Net loss for the first quarter was ($4.7) million, compared to a net loss of ($6.2) million in the first quarter of 2015.
Non-GAAP net income for the first quarter was $4.1 million, compared to non-GAAP net loss of ($1.4) million in the first quarter
of 2015.4
- Net loss per share for the first quarter was ($0.17) (basic and diluted), compared to a net loss per share of ($0.23) (basic
and diluted) in the first quarter of 2015. Non-GAAP net income per share was $0.15 (basic and diluted) for the first quarter,
compared to non-GAAP net loss per share of ($0.05) (basic and diluted) in the first quarter of 2015.4
- Total cash, cash equivalents and marketable securities were $42.0 million as of March 31, 2016, compared to $64.9 million as
of December 31, 2015.
- Cash flow from operations for the first quarter was ($6.8) million, compared to $2.6 million in the first quarter of 2015.
Free cash flow for the first quarter was ($0.5) million, compared to $2.6 million in the first quarter of 2015.5
1 Non-GAAP revenue excludes the impact of purchase accounting adjustments for the acquisition of EVault.
2 Bookings represent the aggregate dollar value of customer subscriptions 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, net of foreign exchange during the same period.
3 Non-GAAP gross margin excludes the impact of purchase accounting adjustments, amortization expense on intangible
assets, stock-based compensation expense and acquisition-related expense.
4 Non-GAAP net income (loss) and non-GAAP net income (loss) per share excludes the impact of purchase accounting
adjustments, amortization expense on intangible assets, stock-based compensation expense, litigation-related expense,
restructuring-related expense, acquisition-related expense, hostile takeover-related expense, and CEO transition expense.
5 Free cash flow is calculated by subtracting the cash paid for the purchase of property and equipment and adding
the payments related to corporate headquarter relocation, acquisition-related payments, hostile takeover-related payments, CEO
transition payments, restructuring-related payments, litigation-related payments and the cash portion of the lease exit charge from
net cash provided by operating activities.
An explanation of non-GAAP measures is provided under the heading “Non-GAAP Financial Measures” below, and reconciliations to
the most comparable GAAP measures are provided in the tables at the end of this press release.
Business Outlook
For the second quarter of 2016, non-GAAP revenues are expected to be in the range of $42.5-$47.5 million and non-GAAP net income
per share to be in the range of $0.01 - $0.05 (basic and diluted).
For the full year of 2016, non-GAAP revenues are expected to be in the range of $177.5-$192.5 million and non-GAAP net income
per share to be in the range of $0.31 - $0.35 (basic and diluted).
Carbonite’s expectations of non-GAAP net income per share for the second quarter and full year of 2016 excludes the impact of
purchase accounting adjustments, stock-based compensation expense, litigation-related expense, acquisition-related expense,
amortization expense on intangible assets and assumes a 2016 effective tax rate of 0% and weighted average shares outstanding of
approximately 27.1 million for the second quarter and full year of 2016.
Conference Call and Webcast Information
In conjunction with this announcement, Carbonite will host a conference call on Tuesday, May 3, 2016 at 8:30 a.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 80071329.
Following the completion of the call, a recorded replay will be available on the company’s website, http://investor.carbonite.com, under “Events & Presentations” through May 3,
2017.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures including bookings, non-GAAP revenue, non-GAAP gross margin, non-GAAP
net income (loss) and non-GAAP net income (loss) per share, non-GAAP operating expense and free cash flow. Bookings represent the
aggregate dollar value of customer subscriptions 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,
net of foreign exchange during the same period. Non-GAAP revenue excludes the impact of purchase accounting adjustments for the
acquisition of EVault. Non-GAAP gross margin excludes the impact of purchase accounting adjustments, amortization expense on
intangible assets, stock-based compensation expense and acquisition-related expense. Non-GAAP net income (loss) and non-GAAP net
income (loss) per share excludes the impact of purchase accounting adjustments, amortization expense on intangible assets,
stock-based compensation expense, litigation-related expense, restructuring-related expense, acquisition-related expense, hostile
takeover-related expense, and CEO transition expense. Non-GAAP operating expense excludes amortization expense on intangible
assets, stock-based compensation expense, litigation-related expense, restructuring-related expense, acquisition-related expense,
hostile takeover-related expense, and CEO transition expense. Free cash flow is calculated by subtracting the cash paid for
the purchase of property and equipment and adding the payments related to corporate headquarter relocation, acquisition-related
payments, hostile takeover-related payments, CEO transition payments, restructuring-related payments, litigation-related payments
and the cash portion of the lease exit charge from net cash provided by operating activities.
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. In order to compensate for these limitations, management
presents its non-GAAP financial measures in connection with its GAAP results. The Company urges investors to review the
reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases
announcing financial results, including this press release, and not to rely on any single financial measure to evaluate the
Company’s business.
Cautionary Language Concerning Forward-Looking Statements
This Press Release contains "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities
Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements
represent the Company's views as of the date they were first made based on the current intent, belief or expectations, estimates,
forecasts, assumptions and projections of the Company and members of our management team. Words such as "expect," "anticipate,"
"should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could,"
"intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these
forward-looking statements. Those statements include, but are not limited to, statements regarding guidance on our future financial
results and other projections or measures of future performance. Forward-looking statements are subject to a number of risks and
uncertainties, many of which involve factors or circumstances that are beyond the Company's control. The Company's actual results
could differ materially from those stated or implied in forward-looking statements due to a number of factors, including, but not
limited to, the Company's ability to profitably attract new customers and retain existing customers, the Company's dependence on
the market for cloud backup services, the Company's ability to manage growth, and changes in economic or regulatory conditions or
other trends affecting the Internet and the information technology industry. These and other important risk factors are discussed
under the heading "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 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, Inc. (Nasdaq:CARB) provides cloud backup and recovery solutions to secure personal and business data. The Carbonite
family of cloud backup software, together with the EVault disaster recovery portfolio, offer a full data protection suite for users
that range from individuals to midsize businesses. Learn why more than 1.5 million customers trust Carbonite with their data by
visiting Carbonite.com.
| |
|
|
|
|
|
|
|
|
|
| Carbonite, Inc. |
|
| Condensed Consolidated Statement of Operations
(unaudited) |
|
| (In thousands, except per share data) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
|
|
|
| |
|
March 31, |
|
|
|
|
|
| |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Revenue |
|
$ |
48,115 |
|
|
$ |
33,026 |
|
|
|
|
|
|
| Cost of revenue |
|
|
14,755 |
|
|
|
10,014 |
|
|
|
|
|
|
| Gross profit |
|
|
33,360 |
|
|
|
23,012 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
| Research and development |
|
|
8,736 |
|
|
|
6,929 |
|
|
|
|
|
|
| General and administrative |
|
|
11,420 |
|
|
|
7,576 |
|
|
|
|
|
|
| Sales and marketing |
|
|
16,882 |
|
|
|
14,381 |
|
|
|
|
|
|
| Restructuring charges |
|
|
773 |
|
|
|
119 |
|
|
|
|
|
|
| Total operating expenses |
|
|
37,811 |
|
|
|
29,005 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Loss from operations |
|
|
(4,451 |
) |
|
|
(5,993 |
) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Interest and other income (expense), net |
|
|
(150 |
) |
|
|
(33 |
) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Loss before income taxes |
|
|
(4,601 |
) |
|
|
(6,026 |
) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Provision (benefit) for income taxes |
|
|
95 |
|
|
|
204 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(4,696 |
) |
|
$ |
(6,230 |
) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Net loss per share: |
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.17 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
| Assuming Dilution |
|
$ |
(0.17 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
| Basic |
|
|
27,055,269 |
|
|
|
27,239,201 |
|
|
|
|
|
|
| Assuming Dilution |
|
|
27,055,269 |
|
|
|
27,239,201 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| Carbonite, Inc. |
|
|
|
| Condensed Consolidated Balance Sheets
(unaudited) |
|
|
|
| (In thousands) |
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
March 31, |
|
December 31, |
|
|
|
| |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
|
$ |
41,009 |
|
|
$ |
63,936 |
|
|
|
|
| Marketable securities |
|
|
|
|
1,000 |
|
|
|
1,000 |
|
|
|
|
| Trade accounts receivable, net |
|
|
|
|
12,743 |
|
|
|
3,736 |
|
|
|
|
| Prepaid expenses and other current assets |
|
|
|
|
10,514 |
|
|
|
3,188 |
|
|
|
|
| Restricted cash |
|
|
|
|
135 |
|
|
|
135 |
|
|
|
|
| Total current assets |
|
|
|
|
65,401 |
|
|
|
71,995 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
|
|
26,377 |
|
|
|
22,083 |
|
|
|
|
| Other assets |
|
|
|
|
220 |
|
|
|
167 |
|
|
|
|
| Acquired intangible assets, net |
|
|
|
|
17,053 |
|
|
|
8,640 |
|
|
|
|
| Goodwill |
|
|
|
|
23,620 |
|
|
|
23,105 |
|
|
|
|
| Total assets |
|
|
|
$ |
132,671 |
|
|
$ |
125,990 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
|
$ |
5,129 |
|
|
$ |
8,384 |
|
|
|
|
| Accrued expenses |
|
|
|
|
16,478 |
|
|
|
11,559 |
|
|
|
|
| Current portion of deferred revenue |
|
|
|
|
89,824 |
|
|
|
80,269 |
|
|
|
|
| Total current liabilities |
|
|
|
|
111,431 |
|
|
|
100,212 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Deferred revenue, net of current portion |
|
|
|
|
20,054 |
|
|
|
18,434 |
|
|
|
|
| Other long-term liabilities |
|
|
|
|
5,970 |
|
|
|
6,271 |
|
|
|
|
| Total liabilities |
|
|
|
|
137,455 |
|
|
|
124,917 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Stockholders' equity |
|
|
|
|
|
|
|
|
|
| Common stock |
|
|
|
|
279 |
|
|
|
278 |
|
|
|
|
| Additional paid-in capital |
|
|
|
|
168,047 |
|
|
|
165,391 |
|
|
|
|
| Treasury stock, at cost |
|
|
|
|
(8,938 |
) |
|
|
(5,693 |
) |
|
|
|
| Accumulated deficit |
|
|
|
|
(165,639 |
) |
|
|
(160,943 |
) |
|
|
|
| Accumulated other comprehensive income |
|
|
|
|
1,467 |
|
|
|
2,040 |
|
|
|
|
| Total stockholders' (deficit) equity |
|
|
|
|
(4,784 |
) |
|
|
1,073 |
|
|
|
|
| Total liabilities and stockholders' (deficit) equity |
|
|
|
$ |
132,671 |
|
|
$ |
125,990 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
| Carbonite, Inc. |
|
| Condensed Consolidated Statement of Cash Flows
(unaudited) |
|
| (In thousands) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Three Months Ended |
|
| |
|
|
|
|
|
March 31, |
|
| |
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Operating activities |
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
|
|
|
$ |
(4,696 |
) |
|
$ |
(6,230 |
) |
|
| Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
|
|
4,339 |
|
|
|
3,354 |
|
|
| Loss (gain) on disposal of equipment |
|
|
|
|
|
|
432 |
|
|
|
(33 |
) |
|
| Accretion of discount on marketable securities |
|
|
|
|
|
|
- |
|
|
|
(9 |
) |
|
| Stock-based compensation expense |
|
|
|
|
|
|
2,343 |
|
|
|
2,468 |
|
|
| Provision for (reduction of) reserves on accounts receivable |
|
|
|
|
759 |
|
|
|
(20 |
) |
|
| Warrant remeasurement |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
| Other non-cash items, net |
|
|
|
|
|
|
360 |
|
|
|
107 |
|
|
| Changes in assets and liabilities, net of acquisition: |
|
|
|
|
|
|
|
|
|
| Accounts receivable |
|
|
|
|
|
|
(9,711 |
) |
|
|
(795 |
) |
|
| Prepaid expenses and other current assets |
|
|
|
|
|
|
(5,408 |
) |
|
|
(1,065 |
) |
|
| Other assets |
|
|
|
|
|
|
(40 |
) |
|
|
218 |
|
|
| Accounts payable |
|
|
|
|
|
|
(2,523 |
) |
|
|
1,172 |
|
|
| Accrued expenses |
|
|
|
|
|
|
3,549 |
|
|
|
(611 |
) |
|
| Other long-term liabilities |
|
|
|
|
|
|
(381 |
) |
|
|
184 |
|
|
| Deferred revenue |
|
|
|
|
|
|
4,220 |
|
|
|
3,831 |
|
|
| Net cash (used in) provided by operating activities |
|
|
|
|
|
(6,757 |
) |
|
|
2,571 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Investing activities |
|
|
|
|
|
|
|
|
|
| Purchases of property and equipment |
|
|
|
|
|
|
(1,924 |
) |
|
|
(3,289 |
) |
|
| Proceeds from sale of property and equipment |
|
|
|
|
|
|
- |
|
|
|
33 |
|
|
| Proceeds from maturities of marketable securities and derivatives |
|
|
|
|
- |
|
|
|
12,712 |
|
|
| Purchases of marketable securities and derivatives |
|
|
|
|
|
|
(538 |
) |
|
|
- |
|
|
| Increase in restricted cash |
|
|
|
|
|
|
- |
|
|
|
(136 |
) |
|
| Payment for acquisition, net of cash acquired |
|
|
|
|
|
|
(11,000 |
) |
|
|
- |
|
|
| Net cash (used in) provided by investing activities |
|
|
|
|
(13,462 |
) |
|
|
9,320 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Financing activities |
|
|
|
|
|
|
|
|
|
| Proceeds from exercise of stock options |
|
|
|
|
|
|
314 |
|
|
|
1,276 |
|
|
| Repurchase of common stock |
|
|
|
|
|
|
(3,246 |
) |
|
|
- |
|
|
| Net cash (used in) provided by financing activities |
|
|
|
|
(2,932 |
) |
|
|
1,276 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Effect of currency exchange rate changes on cash |
|
|
|
|
|
|
224 |
|
|
|
(212 |
) |
|
| Net increase in cash and cash equivalents |
|
|
|
|
|
|
(22,927 |
) |
|
|
12,955 |
|
|
| Cash and cash equivalents, beginning of period |
|
|
|
|
|
|
63,936 |
|
|
|
46,084 |
|
|
| Cash and cash equivalents, end of period |
|
|
|
|
|
$ |
41,009 |
|
|
$ |
59,039 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
| |
|
| |
|
| Carbonite, Inc. |
|
| Reconciliation of GAAP to Non-GAAP Measures
(unaudited) |
|
| (In thousands, except share and per share
amounts) |
|
| |
|
|
|
|
|
|
|
|
|
| Calculation of Bookings |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
|
|
|
| |
|
March 31, |
|
|
|
|
|
| |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Revenue |
|
$ |
48,115 |
|
|
$ |
33,026 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Add : |
|
|
|
|
|
|
|
|
|
| Deferred revenue ending balance |
|
|
109,878 |
|
|
|
95,007 |
|
|
|
|
|
|
| Impact of foreign exchange |
|
|
- |
|
|
|
241 |
|
|
|
|
|
|
| Less : |
|
|
|
|
|
|
|
|
|
| Beginning total deferred revenue from acquisitions |
|
|
6,830 |
|
|
|
- |
|
|
|
|
|
|
| Impact of foreign exchange |
|
|
145 |
|
|
|
- |
|
|
|
|
|
|
| Deferred revenue beginning balance |
|
|
98,703 |
|
|
|
91,424 |
|
|
|
|
|
|
| Change in deferred revenue balance |
|
|
4,200 |
|
|
|
3,824 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Bookings |
|
$ |
52,315 |
|
|
$ |
36,850 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of GAAP Revenue to Non-GAAP Revenue |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
|
|
|
| |
|
March 31, |
|
|
|
|
|
| |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
| GAAP revenue |
|
$ |
48,115 |
|
|
$ |
33,026 |
|
|
|
|
|
|
| Fair value adjustment of acquired deferred revenue |
|
|
563 |
|
|
|
- |
|
|
|
|
|
|
| Non-GAAP revenue |
|
$ |
48,678 |
|
|
$ |
33,026 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Calculation of Non-GAAP Net Loss and Non-GAAP Net Loss per Share |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
|
|
|
| |
|
March 31, |
|
|
|
|
|
| |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| GAAP net loss |
|
$ |
(4,696 |
) |
|
$ |
(6,230 |
) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Add: |
|
|
|
|
|
|
|
|
|
| Fair value adjustment of acquired deferred revenue |
|
|
563 |
|
|
|
0 |
|
|
|
|
|
|
| Amortization of intangibles |
|
|
997 |
|
|
|
479 |
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
2,343 |
|
|
|
2,468 |
|
|
|
|
|
|
| Litigation-related expense |
|
|
1 |
|
|
|
88 |
|
|
|
|
|
|
| Restructuring-related expense |
|
|
768 |
|
|
|
115 |
|
|
|
|
|
|
| Acquisition-related expense |
|
|
4,148 |
|
|
|
356 |
|
|
|
|
|
|
| Hostile takeover-related expense |
|
|
- |
|
|
|
1,297 |
|
|
|
|
|
|
| CEO transition expense |
|
|
- |
|
|
|
54 |
|
|
|
|
|
|
| Non-GAAP net income |
|
$ |
4,124 |
|
|
$ |
(1,373 |
) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
| Basic |
|
|
27,055,269 |
|
|
|
27,239,201 |
|
|
|
|
|
|
| Assuming Dilution |
|
|
27,055,269 |
|
|
|
27,239,201 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.15 |
|
|
$ |
(0.05 |
) |
|
|
|
|
|
| Assuming Dilution |
|
$ |
0.15 |
|
|
$ |
(0.05 |
) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
|
|
|
| |
|
March 31, |
|
|
|
|
|
| |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Gross profit |
|
$ |
33,360 |
|
|
$ |
23,012 |
|
|
|
|
|
|
| Add: |
|
|
|
|
|
|
|
|
|
| Fair value adjustment of acquired deferred revenue |
|
|
563 |
|
|
|
- |
|
|
|
|
|
|
| Amortization of intangibles |
|
|
682 |
|
|
|
316 |
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
214 |
|
|
|
167 |
|
|
|
|
|
|
| Acquisition-related expense |
|
|
182 |
|
|
|
- |
|
|
|
|
|
|
| Non-GAAP gross profit |
|
$ |
35,001 |
|
|
$ |
23,495 |
|
|
|
|
|
|
| Non-GAAP gross margin |
|
|
71.9 |
% |
|
|
71.1 |
% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of GAAP Operating Expense to Non-GAAP Operating Expense |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
|
|
|
| |
|
March 31, |
|
|
|
|
|
| |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Research and development |
|
$ |
8,736 |
|
|
$ |
6,929 |
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
285 |
|
|
|
325 |
|
|
|
|
|
|
| Acquisition-related expense |
|
|
238 |
|
|
|
- |
|
|
|
|
|
|
| Non-GAAP research and development |
|
$ |
8,213 |
|
|
$ |
6,604 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| General and administrative |
|
$ |
11,420 |
|
|
$ |
7,576 |
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
| Amortization of intangibles |
|
|
70 |
|
|
|
54 |
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
1,633 |
|
|
|
1,733 |
|
|
|
|
|
|
| Litigation-related expense |
|
|
1 |
|
|
|
88 |
|
|
|
|
|
|
| Acquisition-related expense |
|
|
3,609 |
|
|
|
61 |
|
|
|
|
|
|
| Hostile takeover-related expense |
|
|
0 |
|
|
|
1,297 |
|
|
|
|
|
|
| CEO transition expense |
|
|
0 |
|
|
|
54 |
|
|
|
|
|
|
| Non-GAAP general and administrative |
|
$ |
6,107 |
|
|
$ |
4,289 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Sales and marketing |
|
$ |
16,882 |
|
|
$ |
14,381 |
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
| Amortization of intangibles |
|
|
245 |
|
|
|
109 |
|
|
|
|
|
|
| Stock-based compensation expense |
|
|
211 |
|
|
|
243 |
|
|
|
|
|
|
| Litigation-related expense |
|
|
0 |
|
|
|
- |
|
|
|
|
|
|
| Acquisition-related expense |
|
|
119 |
|
|
|
295 |
|
|
|
|
|
|
| Non-GAAP sales and marketing |
|
$ |
16,307 |
|
|
$ |
13,734 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Restructuring charges |
|
$ |
773 |
|
|
$ |
119 |
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
| Restructuring-related expense |
|
|
768 |
|
|
|
115 |
|
|
|
|
|
|
| Non-GAAP restructuring charges |
|
$ |
5 |
|
|
$ |
4 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Calculation of Free Cash Flow |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
|
|
|
| |
|
March 31, |
|
|
|
|
|
| |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
$ |
(6,757 |
) |
|
$ |
2,571 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Subtract: |
|
|
|
|
|
|
|
|
|
| Purchases of property and equipment |
|
|
1,924 |
|
|
|
3,289 |
|
|
|
|
|
|
| Add: |
|
|
|
|
|
|
|
|
|
| Payments related to corporate headquarter relocation |
|
|
- |
|
|
|
1,309 |
|
|
|
|
|
|
| Acquisition-related payments |
|
|
7,056 |
|
|
|
75 |
|
|
|
|
|
|
| Hostile takeover-related payments |
|
|
- |
|
|
|
1,262 |
|
|
|
|
|
|
| CEO transition payments |
|
|
- |
|
|
|
29 |
|
|
|
|
|
|
| Restructuring-related payments |
|
|
102 |
|
|
|
- |
|
|
|
|
|
|
| Cash portion of lease exit charge |
|
|
66 |
|
|
|
622 |
|
|
|
|
|
|
| Litigation-related payments |
|
|
924 |
|
|
|
- |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Free cash flow |
|
$ |
(533 |
) |
|
$ |
2,579 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Investor Relations Contact: Emily Walt Carbonite 617-927-1972 investor.relations@carbonite.com Media Contact: Emily Held, PAN Communications (for Carbonite) 617-502-4300 carbonite@pancomm.com Sarah King Carbonite 617-421-5601 media@carbonite.com
