– FY2015 gross billings up 18% year-over-year to a record $364 million
– FY2015 adjusted EBITDA grew 50% year-over-year to $79 million
– Q4 total revenue grew 20% year-over-year to $72 million
– Q4 non-GAAP earnings per share grew 21% to $0.07
– FY2015 operating cash flow grew 28% to $54 million
– Increased the number of active subscribers by 19% year-over-year to more than 243,000
CAMPBELL, Calif., April 27, 2015 /PRNewswire/ — Barracuda Networks, Inc. (NYSE: CUDA), a leading provider of cloud-connected security and storage solutions, today announced results for its fourth quarter and fiscal year 2015, which ended February 28, 2015.
Billings: For the fourth quarter, gross billings were $96.1 million which represents 17.2% growth from the prior year and more than 20% growth on a constant currency basis. For fiscal 2015, gross billings grew 17.5% to $364.3 million, up from $310.0 million in fiscal 2014.
Revenue: Total revenue for the fourth quarter grew 19.6% from the fourth quarter of fiscal 2014, to $72.2 million. For the full year, total revenue was $277.4 million. Appliance revenue, in the fourth quarter, reached $20.9 million and for the full year was $83.1 million. Subscription revenue grew to $51.2 million in the fourth quarter of fiscal 2015 up 22.0% from $42.0 million in the fourth quarter of fiscal 2014. For fiscal 2015, subscription revenue was $194.3 million and represented 70.0% of total revenue.
Net Income/Loss: GAAP net loss was $68.4 million in the fourth quarter and $67.5 million for the full fiscal year. The loss per share was $1.30 based on a basic share count of 52.6 million and 51.9 million for the fourth quarter and full year, respectively. The GAAP loss was primarily due to a one-time, non-cash charge of $67.7 million to establish a deferred tax asset valuation allowance. Non-GAAP net income for the fourth quarter of fiscal 2015 was $3.7 million, or $0.07 earnings per share, based on a diluted share count of 54.7 million. Non-GAAP net income excludes $64.3 million in income tax expense and the effect of non-GAAP exclusions, $5.4 million in stock-based compensation expense, $1.1 million net in other income and expense, $0.7 million in acquisition and other non-recurring charges and $0.6 million in amortization of intangibles. For the full year fiscal 2015, non-GAAP net income was $15.1 million, or $0.28 earnings per share, based on a diluted share count of 54.0 million. The reconciliation between GAAP and non-GAAP information is contained in the tables below.
“We closed a strong and exciting year for Barracuda, experiencing continued demand across all major product categories and geographies. On a constant currency basis, quarterly billings growth accelerated for the fourth consecutive quarter, increasing more than 20% in the fourth quarter of Fiscal 2015 compared to the prior year,” said BJ Jenkins, president and CEO. “We now have more than 243,000 active subscribers, accelerated the growth in multiproduct customers to nearly 35,000, and the number of Barracuda Shops grew 41% to almost 11,000. We believe our results continue to reflect the progress we have made in strengthening our position as a leading provider of security and storage solutions that simplify the lives of IT professionals.”
“We achieved record revenue and billings in the fourth quarter and for the full year. In addition to accelerating revenue growth for fiscal 2015, we also expanded our non-GAAP operating margin by more than 480 basis points,” said David Faugno , CFO. “For the full year, adjusted EBITDA grew 50% to $79 million, which was 29% of total revenue.”
Recent Company Highlights
- Achieved VMware Ready – vCloud Air™ status for Barracuda NG Firewall, Barracuda Message Archiver, Barracuda Email Security Gateway and Barracuda Web Application Firewall – now listed on the VMware Solution Exchange
- Recognized as one of CRN's 100 Coolest Cloud Computing Vendors and 20 Coolest Cloud Storage Vendors of 2015
- Received SC Magazine Reader Trust Award for Best UTM Security Solution for the Barracuda Firewall
- Listed as Volume Leader for Content Security by IDC's Worldwide Quarterly Security Appliance Tracker CQ4 2014, and listed by IDC's Worldwide Quarterly PBBA Tracker CQ4 2014 as number 1 for total integrated PBBA units sold
- Launched Barracuda Web Application Firewall and Barracuda NG Firewall in Microsoft Azure Government, a government-community cloud designed to support strategic government scenarios that require speed, scale, security, compliance, and economics for U.S. government organizations
- Enhanced worldwide partner program to establish global consistency for improved discount structure, new tools and resources, expanded lead flow, differentiated partner levels, and support for MSP partners
- Awarded 5-star Rating in CRN's 2015 Partner Program Guide for the fourth consecutive year
- Launched Barracuda Mobile Device Manager for Android, expanding mobility management across iOS and Android devices
- Rebranded SignNow to CudaSign, launched CudaSign Premium with options to use as appliance or virtual appliance on-premises or cloud service – with eSignature pricing of $1 per user per month for businesses
- Received Excellence Awards for Barracuda Copy, CudaSign (formerly SignNow), Barracuda Firewall, Barracuda Backup, Barracuda Message Archiver, Barracuda Email Security Gateway (formerly Barracuda Spam Firewall) and Barracuda Web Filter from Tech & Learning magazine
- Awarded Best Buy and 5-Star Rating by SC Magazine for Barracuda Web Application Firewall in the Application Security Product Group Test review
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 1-866-270-1533 for the U.S. or +1-412-317-0797 for international callers. 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 May 3, 2015 by dialing 1-877-344-7529 in the U.S., or +1-412-317-0088 for international callers, and entering conference ID 10062060. Additional information can be found in an accompanying supplemental investor slide presentation located at https://investors.barracuda.com.
This announcement contains forward-looking statements related to product and solution strength and expectations regarding financial performance. 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; continued relations with its partners; 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. In preparing our 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 of Barracuda Networks, Inc. in the US and other countries.
Investor Relations: Adam Carson ; +1-408-342-5480; firstname.lastname@example.org
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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/q4fy15.