Carbonite: Fiscal 2Q12 Financial Results

Carbonite, Inc. announced financial results for the quarter ended June 30, 2012.

"We reported another record quarter with revenue increasing 41% year-over-year. At the same time, we made significant progress and exceeded our expectations with respect to reducing our non-GAAP net loss per common share," said David Friend, founder and CEO of Carbonite. "We believe that we have the opportunity to improve the productivity of our customer acquisition initiatives and increase website conversion in order to drive top line growth moving forward. We remain optimistic about our new reseller channel distribution programs, our expanded mobile offerings, and our larger market opportunity resulting from the growing adoption of our small business offerings. In addition, our new customer support center in Maine continues to drive down costs, and the high marks in customer satisfaction are enabling us to keep retention at record levels."

Financial and Operating Metrics for 2Q12

• Bookings for the second quarter of 2012 were $22.1 million, an increase of 21% from $18.3 million in the second quarter of 2011.
• Revenue for the second quarter of 2012 was $20.2 million, an increase of 41% from $14.4 million in the second quarter of 2011.
• Gross margin for the second quarter of 2012 was 65.5%, compared to 60.8% in the second quarter of 2011.
• Net loss for the second quarter of 2012 was ($4.2) million, compared to ($4.7) million in the second quarter of 2011.
• Net loss attributable to common stockholders for the second quarter of 2012 was ($0.17) per share (basic and diluted), compared to a net loss of ($0.93) per share (basic and diluted) in the second quarter of 2011.
• Non-GAAP net loss for the second quarter of 2012, which excludes amortization expense on intangible assets, stock-based compensation expense, and patent litigation expense was ($2.9) million, compared to ($4.1) million in the second quarter of 2011.
• Non-GAAP net loss per common share for the second quarter of 2012 was ($0.11), compared to a non-GAAP net loss per common share of ($0.17) in the second quarter of 2011.
• Cash flow from operations for the second quarter of 2012 was $1.4 million, compared to $(0.3) million in the second quarter of 2011.
• Non-GAAP free cash flow for the second quarter of 2012 was ($2.1) million, compared to ($3.0) million in the second quarter of 2011.
• Cash, cash equivalents, and marketable securities were $65.7 million as of June 30, 2012, compared to $68.1 million as of March 31, 2012 and $16.2 million as of June 30, 2011.
• Quarterly retention rate was in the 96% to 97% range, consistent with prior quarters since 2009.

Recent Business Highlights

• Unveiled a reseller program designed to help our online backup resellers grow their businesses by providing even more value to their clients with data protection and DR services.
• Announced that VP of Operations, Kai Gray, has been honored by the Boston Business Journal and Mass High Tech as one of the top CIOs in the region in its annual CIO of the Year awards.

Business Outlook

• The company expects total revenue for the third quarter to be in the range of $21.2 million to $21.5 million and non-GAAP net loss per common share to be in the range of ($0.17) to ($0.18).
• Expectations of non-GAAP net loss per common share for the third 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 25.6 million.
• For full year 2012, the company expects 2012 total revenue to be in the range of $83.0 million to $83.9 million and non-GAAP net loss per common share to be in the range of ($0.65) to ($0.69). 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 25.6 million.