– Q1 gross billings up 17% year-over-year and 7% sequentially to a record $88 million
– Total revenue growth of 18% year-over-year and 10% sequentially to $66 million in Q1
– Adjusted EBITDA growth of 61% year-over-year to over $19 million, or 29% of revenue
– Trailing 12-month adjusted free cash flow of $42 million, or 28% growth year-over-year
– Total active subscribers exceed 214,000
CAMPBELL, Calif., July 10, 2014 /PRNewswire/ — Barracuda Networks, Inc. (NYSE: CUDA), a leading provider of cloud-connected security and storage solutions, today announced results for its first quarter of fiscal 2015, which ended May 31, 2014.
Billings & Revenue: For the first quarter of fiscal 2015, gross billings grew 17% to $87.6 million, up from $74.9 million in the first quarter of fiscal 2014, and up 7% on a sequential basis. Total revenue increased 18% to $66.2 million, up from $56.3 million in the first quarter of fiscal 2014. Appliance revenue in the first quarter of fiscal 2015 grew to $20.8 million and recurring subscription revenue grew to $45.4 million, representing 69% of total revenue.
Net Income: GAAP net income in the first quarter of fiscal 2015 was $0.2 million, or $0.00 earnings per share, based on a diluted share count of 53.6 million. Non-GAAP net income for the first quarter of 2015 was $3.6 million, or $0.07 earnings per share. Non-GAAP net income excludes $3.1 million in stock-based compensation expense, $0.9 million in income tax benefit of non-GAAP exclusions, $1.0 million in amortization of intangibles, and $0.4 million in acquisition and other non-recurring charges. A reconciliation between GAAP and non-GAAP information is contained in the tables below.
“We are pleased with our results across all of our markets and product categories in the first quarter, and we believe we strengthened our position as a go-to provider of security and storage solutions that simplify the lives of IT professionals,” said BJ Jenkins, president and CEO. “Our recent product announcements demonstrate the strong engine of innovation at Barracuda. We've continued to invest in new functionality and strategic technology alliances to attract new customers and expand with existing ones. We added over 8,900 new active subscribers, bringing our total active subscribers to over 214,000, while continuing to focus on our cross-selling initiatives. Barracuda offers a broad product portfolio in a variety of delivery models designed to meet the needs of our highly diverse customers who look for IT solutions that are easy to buy, install, manage and use. We believe all of these elements combine to underpin the strength and resilience of our business model.”
“We had strong financial performance in the first quarter, posting solid billings growth and strong cash flow metrics, as we continued to balance growth with profitability,” said David Faugno , CFO. “Adjusted EBITDA in the quarter was $19.4 million, or 29% of total revenue. On a trailing 12-month basis, adjusted free cash flow was $42.0 million, growing 28% year-over-year. Non-GAAP operating income was $5.3 million.”
Recent Company Highlights
- Continued Product Innovation – Announced a number of new product launches and updates including Barracuda NG Firewall version 5.4.3 to support Microsoft centric environments; advanced application security availability on some of the Barracuda Load Balancer ADC models at no additional cost; Barracuda Firewall version 6.5 next-generation firewall with enterprise-grade application control for the mid-market; Barracuda Mobile Device Manager, a free cloud-based MDM service for Barracuda customers in the K-12 education space; Barracuda Web Filter version 8.0 with wireless access point integration and 1-to-1 Chromebook support; and SSL VPN version 2.5 private cloud access extended to mobile devices.
- Industry Recognition1 – Received a number of industry accolades and achievements including Gartner Magic Quadrant for Enterprise Backup Software and Integrated Appliances; Gartner Magic Quadrant for Enterprise Network Firewalls; Gartner Magic Quadrant for Web Application Firewalls; Gartner Magic Quadrant for Secure Email Gateway; Gartner Magic Quadrant for Secure Web Gateway; Champion in Info-Tech Vendor Landscape: Email Security Gateway; Volume leader in Content Security appliances for Q1 CY2014 by IDC; Number one in integrated PBBA by IDC for Q1 CY2014; Barracuda Backup highly acclaimed by Storage Review; and Best Web Application Firewall from Network World Asia Information Management Awards 2014.
- Growing Technology Partner Ecosystem – Began integrating Lastline into our security product portfolio to bring APT and zero-day attack protection to the mid-market in a simplified way; signed technology alliance with Ruckus Wireless to bring the powerful functionality of the Barracuda Web Filter to wireless users; expanded international capabilities within Barracuda Central for content categorization, reputation data, and malicious and compromised website analysis through the integration of NetSTAR; and earned VMware Ready status for Barracuda Backup as part of the VMware Technology Alliance Partner (TAP) certification program.
Conference Call Information
Barracuda will host a conference call and corresponding live webcast at 2:00 p.m. PT today. To access the conference call, dial 1-877-201-0168 for the U.S. and Canada or +1-647-788-4901 for international callers, and enter conference ID 58575538#. The webcast will be available live on the investor relations section of the Company's website at https://investors.barracuda.com, and via replay beginning approximately two hours after the completion of the call for a period of one year. An audio replay of the call will be available to investors beginning at approximately 5:00 p.m. PT today through July 15, 2014 by dialing 1-855-859-2056 in the U.S. and Canada, or +1-404-537-3406 for international callers, and entering conference ID 58575538#. Additional information can be found in an accompanying supplemental investor slide presentation located athttps://investors.barracuda.com.
This announcement contains forward-looking statements related to future product performance and potential results from new initiatives that involve risks and uncertainties, including statements regarding the Company's expectations regarding financial performance, the potential impact of our new and updated products and expectations regarding the expanded partner ecosystem. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including, but not limited to: fluctuations in demand for the Company's products and services; a highly competitive business environment for network security and storage solutions; the Company's effectiveness in controlling expenses, the possibility that the Company might experience delays in the development of new technology and products; customer response to its new technology and products; risks related to pending or future litigation, and a dependency on third parties for certain components of the Company's products. The Company undertakes no obligation to update the forward-looking information in this release. More information about potential factors that could affect the Company's business and financial results is included in its filings with the Securities and Exchange Commission, including, without limitation, under the captions: “Management's Discussion and Analysis of Financial Condition and Results of Operations,” and “Risk Factors,” which are on file with the Securities and Exchange Commission.
Non-GAAP Financial Measures
Barracuda provides all financial information required in accordance with generally accepted accounting principles (GAAP). To supplement our consolidated financial statements presented in accordance with GAAP, we are also providing with this press release non-GAAP net income and non-GAAP operating income. In preparing our non-GAAP information, we have excluded, where applicable, the impact of non-recurring charges, stock-based compensation, amortization of intangibles and depreciation. We believe that excluding these items provides both management and investors with additional insight into our current operations and the trends affecting the Company. In particular, management finds it useful to exclude these items in order to more readily correlate the Company's operating activities with the Company's ability to generate cash from operations. Accordingly, management uses these non-GAAP measures, along with the comparable GAAP information, in evaluating our historical performance and in planning our future business activities. Please note that our non-GAAP measures may be different than those used by other companies. The additional non-GAAP financial information we present should be considered in conjunction with, and not as a substitute for, our financial information presented in accordance with GAAP. We have provided a non-GAAP reconciliation of the Condensed Consolidated Statement of Operations for the periods presented in this release, which are adjusted to exclude non-recurring charges, stock-based compensation, amortization of intangibles and depreciation for these periods. These measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures for comparable financial information and understanding of the Company's ongoing performance as a business. Barracuda uses both GAAP and non-GAAP measures to evaluate and manage its operations.
About Barracuda Networks Inc. (NYSE: CUDA)
Barracuda provides cloud-connected security and storage solutions that simplify IT. These powerful, easy-to-use and affordable solutions are trusted by more than 150,000 organizations worldwide and are delivered in appliance, virtual appliance, cloud and hybrid deployments. Barracuda's customer-centric business model focuses on delivering high-value, subscription-based IT solutions that provide end-to-end network and data security. For additional information, please visit http://www.barracuda.com.
Barracuda Networks, Barracuda and the Barracuda Networks logo are registered trademarks or trademarks ofBarracuda Networks, Inc. in the US and other countries.
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Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact.Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Gartner Magic Quadrant for Enterprise Backup Software and Integrated Appliances by Dave Russell andRushan Rinnen , June 2014
Gartner Magic Quadrant for Enterprise Network Firewalls by Greg Young , Adam Hils , Jeremy D'Hoinne, April 2014
Gartner Magic Quadrant for Web Application Firewalls by Jeremy D'Hoinne, Adam Hils , Greg Young , Joseph Feiman, June 2014
Gartner Magic Quadrant for Secure Email Gateway by Peter Firstbrook , Brian Lowans, July 2014
Gartner Magic Quadrant for Secure Web Gateway by Lawrence Orans, Peter Firstbrook June 2014
For more information, including Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Reconciliation of Selected GAAP to Non-GAAP Financial Measures, Reconciliation of Selected GAAP to Non-GAAP Financial Measures, Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA, Reconciliation of GAAP Cash Flows from Operating Activities to Adjusted Free Cash Flow, and Reconciliation of GAAP Revenue to Gross Billings, Condensed Consolidated Statements of Cash Flows, visit the original press release at http://cuda.co/q1fy15.