Carbonite: Fiscal 4Q15 Financial Results

Carbonite, Inc. announced financial results for the fourth quarter and full year ended December 31, 2015.

The company reported:

• Record revenue of $136.6 million for 2015, an increase of 11% year over year
• Record bookings of $144.1 million for 2015, an increase of 12% year over year
• Record revenue of $35.1 million for the fourth quarter, an increase of 10% year over year
• Record bookings of $37.4 million for the fourth quarter, an increase of 8% year over year

The company also reported that both SMB and consumer bookings for 2015 were consistent with expectations. SMB bookings grew 35% over 2014, consistent with expectations of growth greater than 30% and consumer bookings grew 2% consistent with expectations of zero to 5%. Non-GAAP gross margins and non-GAAP net income per share significantly outperformed expectations for the year ended December 31, 2015.

“2015 was a strong year for Carbonite, driven by the growth in SMB bookings which accounted for 38% of total bookings in 2015 versus 31% in 2014. Now that we have closed the acquisition of EVault, integration will be a top priority as we integrate the two businesses to maximize operational and go-to-market synergies, positioning ourselves for continued growth,” said Anthony Folger, CFO.

“The acquisition of EVault is transformative for Carbonite,” said Mohamad Ali, president and CEO. “With EVault, Carbonite now has a complete family of products that address the needs of all sizes of SMBs, positioning us to gain share in the cloud-based backup and disaster recovery market and enter the disaster recovery as a service (DRaaS) market – a market with an estimated 30% CAGR through 2018 according to Gartner – with customer-proven solutions. I’m most pleased with how we continue to deliver value above and beyond what our customers expect of us, which is evident by the numerous customer-choice awards we won in 2015. There’s no doubt we’ve hit our stride and after substantial progress made in 2015, we’re well positioned for continued success in the year ahead.“

Fourth Quarter 2015 Results:

• Revenue was $35.1 million, an increase of 10% from $31.9 million in the fourth quarter of 2014.
• Bookings were $37.4 million, an increase of 8% from $34.5 million in the fourth quarter of 2014.
• Gross margin was 73.8%, compared to 68.7% in the fourth quarter of 2014. Non-GAAP gross margin was 75.3% in the fourth quarter, compared to 69.5% in the fourth quarter of 2014.
• Net loss was ($4.6) million, compared to a net loss of ($5.1) million in the fourth quarter of 2014. Non-GAAP net income for the fourth quarter was $3.6 million, compared to non-GAAP net loss of ($0.9) million in the fourth quarter of 2014.
• Net loss per share was ($0.17) (basic and diluted), compared to a net loss per share of ($0.19) (basic and diluted) in the fourth quarter of 2014. Non-GAAP net income per share was $0.13 (basic and diluted) for the fourth quarter, compared to non-GAAP net loss per share of ($0.03) (basic and diluted) in the fourth quarter of 2014.
• Total cash, cash equivalents and marketable securities were $64.9 million as of December 31, 2015, compared to $61.1 million as of December 31, 2014.
• Cash flow from operations was $4.6 million, compared to $7.9 million in the fourth quarter of 2014. Free cash flow for the fourth quarter was $7.1 million, compared to $7.1 million in the fourth quarter of 2014.

Full Year 2015 Results:

• Revenue was $136.6 million, an increase of 11% from $122.6 million in 2014.
• Bookings were $144.1 million, an increase of 12% from $128.2 million in 2014.
• Gross margin was 71.6%, compared to 68.5% in 2014. Non-GAAP gross margin was 73.1% compared to 69.3% in 2014.
• Net loss was ($21.6) million, compared to a net loss of ($9.4) million in 2014. Non-GAAP net income was $4.1 million, compared to non-GAAP net loss of ($0.1) million in 2014.
• Net loss per share was ($0.80) (basic and diluted), compared to a net loss per share of ($0.35) (basic and diluted) in 2014. Non-GAAP net income per share was $0.15 (basic and diluted) compared to non-GAAP net loss per share of ($0.00) (basic and diluted) in 2014.
• Total cash and investments were $64.9 million as of December 31, 2015, compared to $61.1 million as of December 31, 2014.
• Cash flow from operations was $13.2 million, compared to $22.7 million in 2014. Free cash flow for the full year was $14.3 million, compared to $15.1 million in 2014.