– Total revenue grew 18% year-over-year to $78 million
– Q1 non-GAAP earnings per share grew 39% to $0.09
– Total active subscribers exceed 252,000, up 18% year-over-year
CAMPBELL, Calif., July 9, 2015 /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 2016, which ended May 31, 2015.
Billings & Revenue: For the first quarter of fiscal 2016, gross billings grew to $94.3 million, up from $87.6 million in the first quarter of fiscal 2015. Total revenue increased 18% to $78.0 million, up from $66.2 million in the first quarter of fiscal 2015. Appliance revenue in the first quarter of fiscal 2016 grew to $23.7 million, up from $20.8 million in the first quarter of fiscal 2015, and recurring subscription revenue grew to $54.3 million in the first quarter of fiscal 2016, up from $45.4 million in the first quarter of fiscal 2015, representing 70% of total revenue.
Net Income: GAAP net loss in the first quarter of fiscal 2016 was $3.8 million, or $0.07 loss per share, based on a basic share count of 53.0 million. Non-GAAP net income for the first quarter of fiscal 2016 was $5.1 million, or $0.09 earnings per share, based on a diluted share count of 55.0 million. Non-GAAP net income excludes $6.5 million in stock-based compensation expense, $1.1 million in acquisition and other non-recurring charges, $0.6 million in amortization of intangibles, $0.5 million in other expense, net and $0.2 million in income tax provision of non-GAAP exclusions. The reconciliation between GAAP and non-GAAP information is contained in the tables below.
“We delivered revenue and non-GAAP EPS at the top end of our targeted range,” said BJ Jenkins, president and CEO. “During the quarter, we grew total active subscribers, increased gross margin and maintained a 92.5% dollar-based renewal rate, speaking to the underlying strength of our business model.”
“Total billings grew by 12% year-over-year on a constant currency basis,” said David Faugno, CFO. “In the quarter, non-GAAP operating income grew 40% year-over-year to $7.4 million, or 9.5% of total revenue.”
Recent Company Highlights
- Expanded Market Share: Listed once again as number one for total integrated PBBA units sold in IDC's Worldwide Quarterly PBBA Tracker CQ1 2015.
- Extended Channel Reach: Signed a distribution agreement with Tech Data Corporation to extend the market availability of the company's full product portfolio in the United States through Tech Data'sAdvanced Infrastructure Solutions (AIS) division. This relationship provides authorized Tech Dataresellers access to Barracuda's complete security and storage product suite of appliances, virtual appliances, SaaS and cloud solutions.
- Increased Public Cloud Momentum: Enhanced networking and application security capabilities to support Microsoft Azure enhancements; and achieved VMware Ready – vCloud Air™ status for Barracuda NG Firewall, Barracuda Message Archiver, Barracuda Email Security Gateway and Barracuda Web Application Firewall.
- Continued Product Innovation: Launched new Barracuda Load Balancer FDC that delivers high 40 Gbps throughput load balancing; updated Barracuda NG Firewall to include SafeSearch, YouTube for Schools, WiFi Policy Enforcement, and Remote Access Management for Mac OS X, Windows and iOS devices; and introduced CudaSign Premium to provide businesses with multiple options to integrate eSignatures into existing business processes such as customer relationship management systems, contract management tools, and productivity tools.
- Enhanced Mobility Initiatives: Announced product integrations with Aerohive's HiveOS® devices, including access points, switches and routers, offering customers more granular visibility and security for wireless access; and enhanced Barracuda Mobile Device Manager to support both Android and iOS operating systems.
Conference Call Information
Barracuda will host a conference call and corresponding live webcast at 1:30 p.m. PT today. To access the conference call, dial 1-855-560-2573 for the U.S. or 1-412-542-4159 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 July 17, 2015 by dialing 1-877-344-7529 in the U.S. or 1-412-317-0088 for international callers, and entering conference ID 10067135. 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 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 effects of significant developments in IT infrastructure deployments, particularly cloud computing; the impact of foreign currency fluctuations; 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. 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, and 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/q1fy16.