Carbonite: Fiscal 2Q19 Financial Results

(in $ million)	2Q18	2Q19	6 mo. 18	6 mo. 19
Revenue	77.7	121.5	141.8	202.7
*Growth*		56%		*43%*
Net income (loss)	(5.7)	(11.3)	6.3	(9.3)

Carbonite, Inc. announced financial results for the second quarter ended June 30, 2019.

2Q19 highlights:

Revenue of $121.5 million increased 56% Y/Y.
Non-GAAP revenue of $135.0 million increased 69% Y/Y.
Net loss was ($11.3) million, compared to net loss of ($5.7) million in 2018.
Net loss per share was ($0.33) (basic and diluted), as compared to ($0.20) (basic and diluted) in 2018.
Non-GAAP net income per share was $0.58 (basic) and $0.56 (diluted), as compared to $0.50 (basic) and $0.45 (diluted) in 2018.
Adjusted EBITDA of $39.1 million, or 29% of non-GAAP revenue, compared to $20.9 million, or 26% of non-GAAP revenue in 2018.

“Carbonite delivered second quarter non-GAAP revenue of $135 million, up 69% year-over-year, while delivering an adjusted EBITDA margin of 29%,” said Steve Munford, new COB and interim CEO. “Our security software business performed well during the quarter, however, we continued to experience challenges in parts of our data protection business. We remain committed to capitalizing on the opportunity of combining data protection and security, while we improve the effectiveness of our go-to-market efforts and deliver on our profitability targets.”

He added: “During the quarter we executed on our previously stated plans and made approximately $55 million in accelerated principal payments on our outstanding term loan; we remain committed to leveraging our strong and growing free cash flow to aggressively pay down outstanding debt.”

2Q19 Results:

Revenue was $121.5 million, an increase of 56% from $77.7 million in 2FQ18. Non-GAAP revenue was $135.0 million, an increase of 69% from $79.9 million in 2FQ18.
Net loss for the second quarter was ($11.3) million, compared to net loss of ($5.7) million in the second quarter of 2018. Non-GAAP net income for the second quarter was $19.8 million, compared to non-GAAP net income of $14.2 million in 2FQ18.
Net loss per share was ($0.33) (basic and diluted), compared to net loss per share of ($0.20) (basic and diluted) in 2FQ18. Non-GAAP net income per share was $0.58 (basic) and $0.56 (diluted), compared to non-GAAP net income per share of $0.50 (basic) and $0.45 (diluted) in 2FQ18.
Adjusted EBITDA was $39.1 million, compared to $20.9 million in 2FQ18.
Gross margin was 72.4%, compared to 70.3% in 2FQ18. Non-GAAP gross margin was 82.3%, compared to 77.1% in 2FQ18.
Cash flow from operations was $20.3 million, compared to $13.6 million in 2FQ18. Adjusted free cash flow for was $24.3 million, compared to $13.3 million in 2FQ18.

Business outlook for non-GAAP revenue: