Carbonite: Fiscal 3Q17 Financial Results

(in $ million)	3Q16	3Q17	9 mo. 16	9 mo. 17
Revenues	51.9	61.6	153.5	177.8
*Growth*		19%		*16%*
Net income (loss)	0.01	(3.6)	(3.4)	(2.4)

Carbonite, Inc. announced financial results for the quarter ended September 30, 2017.

“The third quarter was another successful quarter for Carbonite as we delivered strong financial results and we made significant progress on our integration priorities. We are successfully executing our plan to build the leading data protection platform for businesses, and I am incredibly pleased with our progress,” said Mohamad Ali, president and CEO.

“Our disciplined approach to driving growth has produced another quarter of sequential double-digit growth in non-GAAP net income per share. As we continue to integrate acquired businesses, we expect to realize more synergies in the coming quarters and to continue expanding profitability,” said Anthony Folger, CFO.

Third Quarter 2017 Results:
• Revenue was $61.6 million, an increase of 19% from $51.9 million in the third quarter of 2016. Non-GAAP revenue for the third quarter was $63.1 million, an increase of 20% from $52.5 million in the third quarter of 2016.
• Bookings were $59.7 million, an increase of 21% from $49.2 million in the third quarter of 2016.
• Gross margin was 71.5%, compared to 70.2% in the third quarter of 2016. Non-GAAP gross margin was 76.3% in the third quarter, compared to 72.2% in the third quarter of 2016.
• Net loss was ($3.6) million, compared to net income of $0.1 million in the third quarter of 2016. Non-GAAP net income for the third quarter was $7.3 million, compared to non-GAAP net income of $3.8 million in the third quarter of 2016.
• Net loss per share was ($0.13) (basic and diluted), compared to net income per share of $0.00 (basic and diluted) in the third quarter of 2016. Non-GAAP net income per share was $0.26 (basic) and $0.25 (diluted) for the third quarter, compared to non-GAAP net income per share of $0.14 (basic and diluted) in the third quarter of 2016.
• Cash flow from operations was $6.9 million, compared to $5.0 million in the third quarter of 2016. Adjusted free cash flow for the third quarter was $6.0 million, compared to $4.5 million in the third quarter of 2016.

Comments

The company exceeded revenue guidance, delivering better-than-expected gross margin and drove net income above the range of guidance provided.

Business subscription bookings were $27.6 million for the quarter, representing an increase of 18% one year ago. Consumer bookings of $19.5 million are down 5% Y/Y.

For the next three-month period, Carbonite expects revenue between $61.5 and $63.5 million or -0% to 3%, and in the range of $239.2 to $241.2 million for current fiscal year to be compared to $207.0 million for FY16, up 16% to 17%.

Non-GAAP revenue (in $million)

Bookings growth
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