Carbonite: Fiscal 1Q19 Financial Results

(in $ million)	1Q18	1Q19	Growth
Revenue	64.0	81.2	*27%*
Net income (loss)	11.9	2.0	-83%

Carbonite, Inc. announced financial results for the first quarter ended March 31, 2019.

First Quarter 2019 Highlights:
• Revenue of $81.2 million increased 27% Y/Y and 5% Q/Q.
• Non-GAAP revenue of $83.0 million increased 28% Y/Y.
• Net income was $2.0 million, compared to net income of $11.9 million in 2018.
• Net income per share was $0.06 (basic and diluted), as compared to $0.42 (basic) and $0.40 (diluted) in 2018.
• Non-GAAP net income per share was $0.45 (basic) and $0.44 (diluted), as compared to $0.29 (basic) and $0.27 (diluted) in 2018.
• Adjusted EBITDA of $24.9 million, or 30% of non-GAAP revenue, compared to $12.3 million, or 19% of non-GAAP revenue in 2018.

“We had a good first quarter and a strong start to 2019, with first quarter revenue and adjusted EBITDA above the high-end of our guidance,” said Mohamad Ali, CEO. “We are excited to have closed the Webroot acquisition as planned and started the integration process. Together, these leading solutions will provide robust protection of data, devices and networks for our partners and customers.”

1FQ19 Results:
• Revenue for 1FQ19 was $81.2 million, an increase of 27% from $64.0 million in 1FQ18. Non-GAAP revenue for 1FQ19 was $83.0 million, an increase of 28% from $64.9 million in 1FQ18.
• Net income for 1FQ19 was $2.0 million, compared to net income of $11.9 million in 1FQ18. Non-GAAP net income for 1FQ19 was $15.4 million, compared to non-GAAP net income of $8.1 million in 1FQ18.
• Net income per share for 1FQ19 was $0.06 (basic and diluted), compared to net income per share of $0.42 (basic) and $0.40 (diluted) in 1FQ18. Non-GAAP net income per share was $0.45 (basic) and $0.44 (diluted) for 1FQ19, compared to non-GAAP net income per share of $0.29 (basic) and $0.27 (diluted) in 1FQ18.
• Adjusted EBITDA for 1FQ19 was $24.9 million, compared to $12.3 million in 1FQ18.
• Gross margin for 1FQ19 was 74.4%, compared to 71.4% in 1FQ19. Non-GAAP gross margin was 79.5% in 1FQ19, compared to 76.1% in 1FQ18.
• Cash flow from operations for 1FQ19 was $18.7 million, compared to $3.3 million in 1FQ19. Adjusted free cash flow for 1FQ19 was $19.7 million, compared to $2.4 million in 1FQ18.

Business outlook for 2FQ19: $119 – $123 million

Business outlook for FY19: $457 – $471 million