Carbonite: Fiscal 4Q14 Financial Results

 Carbonite, Inc. announced financial results for the fourth quarter and full year ended December 31, 2014.

Record revenue for the fourth quarter was $31.9 million, an increase of 11% year over year. Total bookings for the fourth quarter were $34.5 million, an increase of 9% year over year.

The company also reported record revenue for the full year of 2014 of $122.6 million, an increase of 14% year over year.

Cash flow from operations for the full year was $22.7 million and Non-GAAP free cash flow for the full year was a record $15.1 million. Total cash and investments were $61.1 million as of December 31, 2014.

“The growth Carbonite experienced in 2014 was driven by the strength in our hybrid Carbonite Server Backup product as a result of our rapidly expanding partner network,” said Mohamad Ali, new president and CEO. “To date, our success offering cloud and hybrid backup and recovery solutions has been as a result of our consumer-simple approach and disruptive pricing. Looking ahead into 2015 and beyond, we believe applying our powerful yet simple approach to developing fuller BC solutions for SMBs will expand our addressable market and bring more value to our customers.”

Anthony Folger, CFO and treasurer, said: “I am pleased with our record revenue and free cash flow growth for the fourth quarter. For the full year of 2014, we saw our SMB bookings become an increasingly larger%age of total bookings and our consumer bookings showed a steady increase over last year. Our strong cash balance and free cash flow position us well to continue to invest in the business for long-term growth and profitability.”

Fourth Quarter 2014 Results

• Revenue for the fourth quarter was $31.9 million, an increase of 11% from $28.8 million in the fourth quarter of 2013.
• Bookings for the fourth quarter were $34.5 million, an increase of 9% from $31.6 million in the fourth quarter of 2013.
• Cash flow from operations for the fourth quarter was $7.9 million, compared to $5.1 million in the fourth quarter of 2013.
• Non-GAAP free cash flow for the fourth quarter was $7.1 million, compared to $2.8 million in the fourth quarter of 2013
• Total cash and investments were $61.1 million as of December 31, 2014, compared to $71.5 million as of September 30, 2014.
• Gross margin for the fourth quarter was 68.7%, compared to 69.8% in the fourth quarter of 2013. Non-GAAP gross margin was 69.5% in the fourth quarter, compared to 70.5% in the fourth quarter of 2013.
• Net loss for the fourth quarter was ($5.1) million, compared to a net income of $0.3 million in the fourth quarter of 2013.
• Non-GAAP net loss for the fourth quarter was ($0.9) million, compared to non-GAAP net income of $1.7 million in the fourth quarter of 2013.
• Net loss per share for the fourth quarter was ($0.19) (basic and diluted), compared to a net income per share of $0.01 (basic and diluted) in the fourth quarter of 2013. Non-GAAP net loss per share was ($0.03) (basic and diluted) for the fourth quarter, compared to non-GAAP net income per share of $0.06 (basic and diluted) in the fourth quarter of 2013.

Full Year 2014 Results

• Revenue for the full year was $122.6 million, an increase of 14% from $107.2 million in 2013.
• Bookings for the full year were $128.2 million, an increase of 11% from $116.0 million in 2013.
• Cash flow from operations for the full year was $22.7 million, compared to $14.6 million in 2013. Non-GAAP free cash flow for the full year was $15.1 million, compared to $6.0 million in 2013.
• Total cash and investments were $61.1 million as of December 31, 2014, compared to $65.4 million as of December 31, 2013.
• Gross margin for the full year was 68.5%, compared to 67.5% in 2013. Non-GAAP gross margin was 69.3% in the full year, compared to 68.4% in 2013.
• Net loss for the full year was ($9.4) million, compared to a net loss of ($10.6) million in 2013. Non-GAAP net loss for the full year was ($0.1) million, compared to non-GAAP net loss of ($3.2) million in 2013.
• Net loss per share for the full year was ($0.35) (basic and diluted), compared to a net loss per share of ($0.41) (basic and diluted) in 2013. Non-GAAP net loss per share was ($0.00) (basic and diluted), for the full year, compared to non-GAAP net loss per share of ($0.12) (basic and diluted) in 2013.

Business Outlook
For the first quarter of 2015, revenues are expected to be in the range of $31.9-$32.1 million and non-GAAP net (loss) per share to be in the range of ($0.09)-($0.07).

For the full year of 2015, revenues are expected to be in the range of $137.0-$138.0 million and non-GAAP net income per share to be in the range of $0.08-$0.10.

Carbonite’s expectations of non-GAAP net earnings (loss) per share for the quarter and full year excludes stock-based compensation expense, patent litigation expense, tender offer-related expense, amortization expense on intangible assets and assumes a 2015 effective tax rate of 0% and weighted average shares outstanding of approximately 27.3 million for the quarter and 27.6 million for the full year 2015.