Carbonite: Fiscal 1Q12 Financial Results

Carbonite, Inc. announced financial results for the quarter ended March 31, 2012.

"Our first quarter highlights include record quarterly bookings and revenue that exceeded our prior guidance, and we continue to be pleased with the initial uptake of our new Home suite and the increasing contribution from our small business solutions," said David Friend, chairman and CEO of Carbonite. "The strength of the market demand, our competitive position and brand awareness are helping to drive a high level of customer interest in our solutions. Carbonite’s online backup solutions are delivering an unmatched value proposition and we are executing well on serving our large cloud-based market opportunity.

Financial and Operating Metrics
for the First Quarter Ended March 31, 2012

• Bookings for the first quarter of 2012 were $24.5 million, an increase of 29% from $19.0 million in the first quarter 2011.
• Revenue for the first quarter of 2012 was $18.5 million, an increase of 44% from $12.8 million in the first quarter of 2011.
• Gross margin for the first quarter of 2012 was 63.4%, compared to 63.7% in the first quarter of 2011.
• Net loss for the first quarter of 2012 was ($9.1) million, compared to ($5.3) million in the first quarter of 2011.
• Net loss attributable to common stockholders for the first quarter of 2012 was ($0.36) per share (basic and diluted), an increase compared to a net loss of ($1.09) per share (basic and diluted) in the first quarter of 2011.
• Non-GAAP gross margin, which excludes amortization expense on intangible assets and stock-based compensation expense, was 64.2% in the first quarter of 2012, compared to 64.0% in the first quarter of 2011.
• Non-GAAP net loss for the first quarter of 2012, which excludes amortization expense on intangible assets, stock-based compensation expense, patent litigation expense and a lease exit charge associated with our data center relocation, was ($6.7) million, compared to ($5.0) million in the first quarter of 2011.
• Non-GAAP net loss per share for the first quarter of 2012 was ($0.27) compared to a non-GAAP net loss per share of ($0.20) in the first quarter of 2011.
• Cash flow from operations for the first quarter of 2012 was $145,000, compared to $1.1 million in the first quarter of 2011.
• Non-GAAP free cash flow for the first quarter of 2012 was ($4.6) million, compared to ($3.3) million in the first quarter of 2011.
• Cash, cash equivalents and short-term investments were $68.1 million as of March 31, 2012, compared to $72.5 million as of December 31, 2011 and $21.1 million as of March 31, 2011.
• Quarterly retention rate, excluding forced churn, was in the 96% to 97% range, consistent with prior quarters since 2009.

Recent Business Highlights:

• Released new functionality to backup NAS devices via Carbonite Business. With this added functionality, Carbonite Business and BusinessPremier provide SMBs with peace of mind knowing that their on-premise backup solution can also be backed up to Carbonite’s secure offsite data centers – adding a layer of data redundancy and protection.
• Unveiled an advertising campaign with a message for consumers: there’s no warning when you lose your files, which is why you need Carbonite. Featuring new television, print, radio and digital creative, the integrated campaign engagingly illustrates that computers need backing up, and that Carbonite is the solution for data protection.
• Awarded first patent by the United States Patent and Trademark Office (USPTO). USPTO patent number 8,117,163 was issued on February 14, 2012 and is titled Backup and Restore System for a Computer. The patent describes overlay icons which indicate backup status of a user’s files and folders. The technology helps Carbonite users identify which files and folders Carbonite is backing up, as well as the status of their backups.

Business Outlook

• Second Quarter 2012: The company expects total revenue for the second quarter to be in the range of $20.1 million to $20.3 million and non-GAAP net loss per common share to be in the range of ($0.18) to ($0.19). Expectations of non-GAAP net loss per diluted common share for the second quarter exclude stock-based compensation expense, patent litigation expense and amortization expense on intangible assets and assume a tax rate of 0% and weighted average shares outstanding of approximately 25.5 million.
• Full Year 2012: The company expects 2012 total revenue to be in the range of $83.6 million to $84.9 million and non-GAAP net loss per diluted common share to be in the range of ($0.77) to ($0.81). Expectations of non-GAAP net loss per common share for the full year excludes stock-based compensation expense, patent litigation expense, a lease exit charge and amortization expense on intangible assets and assumes a tax rate of 0% and weighted average shares outstanding of approximately 25.5 million.