Carbonite: Fiscal 3Q18 Financial Results

Carbonite, Inc. announced financial results for the quarter ended September 30, 2018.

Third Quarter 2018 Highlights:
• Revenue of $77.7 million increased 26% Y/Y.
• Non-GAAP revenue of $79.1 million increased 25% Y/Y.
• Business subscription bookings of $43.9 million increased 59% Y/Y.
• Net income for the third quarter was $0.6 million, compared to net loss of ($3.6) million in the third quarter of 2017.
• Net income (loss) per share was $0.02 (basic and diluted), as compared to ($0.13) in 2017 (basic and diluted).
• Non-GAAP net income per share was $0.53 (basic) and $0.48 (diluted), as compared to $0.26 (basic) and $0.25 (diluted) in 2017.
• Adjusted EBITDA of $23.0 million, or 29% of non-GAAP revenue, compared to $11.3 million, or 18% of non-GAAP revenue in 2017.

“We continue to deliver strong results across the board while successfully executing against our strategic plan,” said Mohamad Ali, CEO . “With the newly launched Carbonite Data Protection Console and our robust server backup solution that now includes purpose-built protection for VMs, our solutions address all of the market’s most pressing data protection needs. In addition to our strengthening product portfolio, we are making investments in our partner network to effectively enable our partners to sell the full suite of Carbonite data protection solutions.”

“In Q3 we delivered strong bookings growth, expanded gross margin, and drove a meaningful increase in free cash flow. Our focus on driving total growth and delivering operating efficiencies across the business continues to yield exceptional results,” said Anthony Folger, CFO.

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Third Quarter 2018 Results:
• Revenue was $77.7 million, an increase of 26% from $61.6 million in the third quarter of 2017. Non-GAAP revenue for the third quarter was $79.1 million, an increase of 25% from $63.1 million in the third quarter of 2017.1
• Bookings were $78.8 million, an increase of 32% from $59.7 million in the third quarter of 2017.
• Net income was $0.6 million, compared to net loss of ($3.6) million in the third quarter of 2017. Non-GAAP net income for the third quarter was $17.3 million, compared to non-GAAP net income of $7.3 million in the third quarter of 2017.3
• Net income per share was $0.02 (basic and diluted), compared to net loss per share of ($0.13) (basic and diluted) in the third quarter of 2017. Non-GAAP net income per share was $0.53 (basic) and $0.48 (diluted) for the third quarter, compared to non-GAAP net income per share of $0.26 (basic) and $0.25 (diluted) in the third quarter of 2017.3
• Adjusted EBITDA was $23.0 million, compared to $11.3 million in the third quarter of 2017.
• Gross margin was 71.9%, compared to 71.5% in the third quarter of 2017. Non-GAAP gross margin was 78.4% in the third quarter, compared to 76.3% in the third quarter of 2017.5
• Cash flow from operations was $17.0 million, compared to $6.9 million in the third quarter of 2017. Adjusted free cash flow for the third quarter was $17.3 million, compared to $6.0 million in the third quarter of 2017.6

The company expects the following for the fourth quarter:
GAAP Revenue: $77.6 – $80.6 million
Non-GAAP Revenue: $78.6 – $81.6 million

And expects the following for the full year of 2018:
GAAP Revenue: $297.0 – $300.0 million
Non-GAAP Revenue: $302.5 – $305.5 million