-Q3 gross billings up 18% year-over-year to a record $92 million
-Total revenue grew 19% year-over-year to $70 million in Q3
-Adjusted EBITDA grew 54% year-over-year to $19 million
-Total active subscribers exceed 234,900, up 19% year-over-year
CAMPBELL, Calif., Jan. 8, 2015 /PRNewswire/ — Barracuda Networks, Inc. (NYSE: CUDA), a leading provider of cloud-connected security and storage solutions, today announced results for its third quarter of fiscal 2015, which ended November 30, 2014.
Net Income: GAAP net loss in the third quarter of fiscal 2015 was $36,000, or $0.00 loss per share, based on a basic share count of 52.1 million. Non-GAAP net income for the third quarter of fiscal 2015 was $3.2 million, or $0.06 earnings per share, based on a diluted share count of 54.0 million. Non-GAAP net income excludes$4.9 million in stock-based compensation expense, $4.7 million in income tax benefit of non-GAAP exclusions,$1.7 million net in other income and expense, $0.8 million in amortization of intangible assets, and $0.6 millionin acquisition and other non-recurring charges. The reconciliation between GAAP and non-GAAP information is contained in the tables below.
“We delivered another quarter of strong financial performance across all of our major markets and product categories,” said BJ Jenkins, president and CEO. “In the third quarter, we added more than 9,300 new active subscribers, bringing our total active subscribers to more than 234,900. Our results reflect the continued demand for our storage and network and application security products which continue to drive our top line growth. We also continued to make progress in the public cloud market with more integrations of our products into Microsoft Azure and Amazon Web Services. Given the expanding opportunities for our products, we will continue to invest to grow our sales and R&D efforts while driving toward our long-term model.”
“We achieved record results in gross billings in Q3, which grew 20% year-over-year on a constant currency basis,” said David Faugno , CFO. “In the quarter, adjusted EBITDA grew 54% year-over-year to $19 million, or 28% of total revenue. On a trailing 12-month basis, adjusted free cash flow was $46.0 million, growing 49% year-over-year.”
Recent Company Highlights
- Storage Product Innovation – Released a number of new product updates across the storage portfolio, including: ArchiveOne version 7.0 that expands information management functionality; and Barracuda Backup 995 with 72 TB of usable storage capacity and 32 TB of suggested backup.
- Security Product Innovation – Launched Total Threat Protection initiative, which is aimed at providing customers advanced security protection, a single point of service, and affordability across multiple threat vectors. Also launched a number of new products and enhancements including: Barracuda Security Suite to provide protection for the three most commonly deployed threat vectors – email, web browsing and network perimeters; and Barracuda Web Application Firewall updates including URL encryption, SSL enhancements, improved user access control, and improved administrative interface.
- Public Cloud Momentum – Announced several new integrations with Microsoft Azure, including commerce-enablement in the Azure Marketplace for the Barracuda Web Application Firewall, Barracuda Email Security Gateway, and Barracuda Message Archiver to allow customers to purchase these solutions directly from Microsoft; Barracuda Web Application Firewall integration with Azure Active Directory to streamline authentication and access; and Barracuda Web Application Firewall availability in the new Microsoft Azure Government cloud; and announced the availability of the Barracuda Load Balancer ADC on Amazon Web Services.
- Industry Recognition – Received a number of industry accolades and achievements, including: Volume Leader in Content Security appliances for Q3 CY2014 by IDC; Number one vendor in unit volume for integrated PBBA by IDC; Five Star review by PC Pro for Barracuda Backup 290; Readers' Choice awards by TechTarget and Information Security magazine for Barracuda Email Security Gateway and Barracuda Web Application Firewall; Excellence Awards for Best Upgraded Products by Tech & Learning magazine for Barracuda Message Archiver, Barracuda Backup, Barracuda Email Security Gateway and Barracuda Web Security Gateway; Excellence Awards for Best New Products by Tech & Learning magazine for Barracuda Copy and Barracuda SignNow; Best Buy ratings and Five Star reviews by SC Magazine for both Barracuda Web Application Firewall and Barracuda Email Security Gateway; and 2014 Cloud Computing and Disaster Recovery award by TMC Net for Barracuda Backup.
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 39759612#. 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 January 15, 2015 by dialing 1-855-859-2056 in the U.S. and Canada, or +1-404-537-3406 for international callers, and entering conference ID 39759612#. 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 and the potential impact of our new and updated products. 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 regulatory matters; 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, non-GAAP operating income, adjusted EBITDA and adjusted free cash flow. Additionally, all forward-looking non-GAAP financial measures discussed on our earnings call exclude certain items such as stock-based compensation, amortization of intangible assets and acquisition and other non-recurring adjustments. While a reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis, in preparing our historical non-GAAP information, we have excluded certain amounts as set forth in the attached financial tables and footnotes. 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 exclude certain amounts as set forth in the attached financial tables and footnotes 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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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/q3fy15.