Barracuda: Fiscal 1Q15 Financial Results

Barracuda Networks, Inc. announced results for its first quarter of fiscal 2015, which ended May 31, 2014.

Billings and Revenue
For the first quarter of fiscal 2015, gross billings grew 17% to $87.6 million, up from $74.9 million in the first quarter of fiscal 2014, and up 7% on a sequential basis. Total revenue increased 18% to $66.2 million, up from $56.3 million in the first quarter of fiscal 2014. Appliance revenue in the first quarter of fiscal 2015 grew to $20.8 million and recurring subscription revenue grew to $45.4 million, representing 69% of total revenue.

Net Income
GAAP net income in the first quarter of fiscal 2015 was $0.2 million, or $0.00 earnings per share, based on a diluted share count of 53.6 million. Non-GAAP net income for the first quarter of 2015 was $3.6 million, or $0.07 earnings per share. Non-GAAP net income excludes $3.1 million in stock-based compensation expense, $0.9 million in income tax benefit of non-GAAP exclusions, $1.0 million in amortization of intangibles, and $0.4 million in acquisition and other non-recurring charges.

“We are pleased with our results across all of our markets and product categories in the first quarter, and we believe we strengthened our position as a go-to provider of security and storage solutions that simplify the lives of IT professionals,” said BJ Jenkins, president and CEO. “Our recent product announcements demonstrate the strong engine of innovation at Barracuda. We’ve continued to invest in new functionality and strategic technology alliances to attract new customers and expand with existing ones. We added over 8,900 new active subscribers, bringing our total active subscribers to over 214,000, while continuing to focus on our cross-selling initiatives. Barracuda offers a broad product portfolio in a variety of delivery models designed to meet the needs of our highly diverse customers who look for IT solutions that are easy to buy, install, manage and use. We believe all of these elements combine to underpin the strength and resilience of our business model.”

“We had strong financial performance in the first quarter, posting solid billings growth and strong cash flow metrics, as we continued to balance growth with profitability,” said David Faugno , CFO. “Adjusted EBITDA in the quarter was $19.4 million, or 29% of total revenue. On a trailing 12-month basis, adjusted free cash flow was $42.0 million, growing 28% year-over-year. Non-GAAP operating income was $5.3 million.”

Recent company Highlights

• Product Innovation – Announced a number of new product launches and updates including NG Firewall version 5.4.3 to support Microsoft centric environments; advanced application security availability on some of the Load Balancer ADC models at no additional cost; Firewall version 6.5 next-generation firewall with enterprise-grade application control for the mid-market; Mobile Device Manager, a free cloud-based MDM service for customers in the K-12 education space; Web Filter version 8.0 with wireless access point integration and 1-to-1 Chromebook support; and SSL VPN version 2.5 private cloud access extended to mobile devices.
• Industry Recognition – Received a number of industry accolades and achievements including Gartner Magic Quadrant for Enterprise Backup Software and Integrated Appliances; Gartner Magic Quadrant for Enterprise Network Firewalls; Gartner Magic Quadrant for Web Application Firewalls; Gartner Magic Quadrant for Secure Email Gateway; Gartner Magic Quadrant for Secure Web Gateway; Champion in Info-Tech Vendor Landscape: Email Security Gateway; Volume leader in Content Security appliances for Q1 CY2014 by IDC; Number one in integrated PBBA by IDC for Q1 CY2014; Barracuda Backup acclaimed by Storage Review; and Best Web Application Firewall from Network World Asia Information Management Awards 2014.
• Growing Technology Partner Ecosystem – Began integrating Lastline into our security product portfolio to bring APT and zero-day attack protection to the mid-market in a simplified way; signed technology alliance with Ruckus Wireless to bring the powerful functionality of the Web Filter to wireless users; expanded international capabilities within Central for content categorization, reputation data, and malicious and compromised website analysis through the integration of NetSTAR; and earned VMware Ready status for Barracuda Backup as part of the VMware Technology Alliance Partner certification program.