Carbonite Announces Record Second Quarter 2012 Financial
August 01, 2012
Revenue of $20.2 million; increases 41%
BOSTON, MA - August 1, 2012 - Carbonite, Inc. (NASDAQ:
CARB), a leading provider of online backup solutions for
consumers and small and medium sized businesses, today
announced financial results for the quarter ended June 30,
"We reported another record quarter with revenue
increasing 41% year-over-year. At the same time, we made
significant progress and exceeded our expectations with
respect to reducing our non-GAAP net loss per common
share," said David Friend, founder and chief executive
officer of Carbonite. "We believe that we have the
opportunity to improve the productivity of our customer
acquisition initiatives and increase website conversion in
order to drive top line growth moving forward. We remain
optimistic about our new reseller channel distribution
programs, our expanded mobile offerings, and our larger
market opportunity resulting from the growing adoption of
our small business offerings. In addition, our new customer
support center in Maine continues to drive down costs, and
the high marks in customer satisfaction are enabling us to
keep retention at record levels."
Financial and Operating Metrics for the Second Quarter
Ended June 30, 2012
Bookings for the second quarter of 2012 were $22.1
million, an increase of 21% from $18.3 million in the
second quarter of 2011.
Revenue for the second quarter of 2012 was $20.2 million,
an increase of 41% from $14.4 million in the second
quarter of 2011.
Gross margin for the second quarter of 2012 was 65.5%,
compared to 60.8% in the second quarter of 2011.
Net loss for the second quarter of 2012 was ($4.2)
million, compared to ($4.7) million in the second quarter
Net loss attributable to common stockholders for the
second quarter of 2012 was ($0.17) per share (basic and
diluted), compared to a net loss of ($0.93) per share
(basic and diluted) in the second quarter of 2011.
Non-GAAP net loss for the second quarter of 2012, which
excludes amortization expense on intangible assets,
stock-based compensation expense, and patent litigation
expense was ($2.9) million, compared to ($4.1) million in
the second quarter of 2011.
Non-GAAP net loss per common share for the second quarter
of 2012 was ($0.11), compared to a non-GAAP net loss per
common share of ($0.17) in the second quarter of 2011.
Cash flow from operations for the second quarter of 2012
was $1.4 million, compared to $(0.3) million in the
second quarter of 2011.
Non-GAAP free cash flow for the second quarter of 2012
was ($2.1) million, compared to ($3.0) million in the
second quarter of 2011.
Cash, cash equivalents, and marketable securities were
$65.7 million as of June 30, 2012, compared to $68.1
million as of March 31, 2012 and $16.2 million as of June
Quarterly retention rate was in the 96% to 97% range,
consistent with prior quarters since 2009.
An explanation of non-GAAP measures is provided under the
"Non-GAAP Financial Measures" below and
reconciliation to the most comparable GAAP measures is
provided in the tables at the end of this press release.
Recent Business Highlights
Unveiled our new reseller program designed to help our
online backup resellers grow their businesses by
providing even more value to their clients with data
protection and disaster recovery services.
Announced that Vice President of Operations, Kai Gray,
has been honored by the Boston Business Journal
and Mass High Tech as one of the top CIOs in the region
in its annual "CIO of the Year" awards.
Based on information available as of August 1, 2012,
Carbonite is issuing guidance for the third quarter and
full year 2012 as follows:
Third Quarter 2012: The Company expects total revenue for
the third quarter to be in the range of $21.2 million to
$21.5 million and non-GAAP net loss per common share to be
in the range of ($0.17) to ($0.18). Carbonite's
expectations of non-GAAP net loss per common share for the
third quarter exclude stock-based compensation expense,
patent litigation expense, and amortization expense on
intangible assets and assume a tax rate of 0% and weighted
average shares outstanding of approximately 25.6 million.
Full Year 2012: The Company expects 2012 total revenue to
be in the range of $83.0 million to $83.9 million and
non-GAAP net loss per common share to be in the range of
($0.65) to ($0.69). Carbonite's expectations of
non-GAAP net loss per common share for the full year
excludes stock-based compensation expense, patent
litigation expense, a lease exit charge, and amortization
expense on intangible assets and assumes a tax rate of 0%
and weighted average shares outstanding of approximately
Conference Call and Webcast Information
Carbonite will host a conference call on August 1, 2012, at
5:00 p.m. Eastern Time (ET) to discuss the Company's
second quarter financial results and its business outlook.
To access this call, dial 888-539-3686 (domestic) or
+1-719-325-2353 (international). A replay of this
conference call will be available until August 8, 2012 at
877-870-5176 (domestic) or +1-858-384-5517 (international).
The replay pass code is 7314853. A live web cast of this
conference call will also be available in the investor
relations section on the Company's website at http://investor.carbonite.com
under "Events and Presentations" and a replay
will be archived on the website as well.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures
including bookings, non-GAAP net loss and non-GAAP net loss
per common share, and free cash flow. Bookings represent
the aggregate dollar value of customer subscriptions
received during a period and are calculated as revenue
recognized during the period plus the change in total
deferred revenue during the same period. Non-GAAP net loss
and non-GAAP net loss per common share exclude amortization
expenses on intangible assets, stock-based compensation
expenses, a lease exit charge associated with our data
center relocation, and patent litigation expenses from net
loss and give effect to the conversion of preferred stock
and issuance of common stock in connection with the
Company's initial public offering as if both had
happened at the beginning of the period. Non-GAAP free cash
flow is calculated by adding the cash portion of the lease
exit charge and subtracting cash paid for the purchase of
property and equipment from net cash provided by operating
activities. Quarterly retention rate is defined as the
percentage of customers on the last day of the prior
quarter who remain customers on the last day of the current
The Company believes that these non-GAAP measures of
financial results provide useful information to management
and investors regarding certain financial and business
trends relating to the Company's financial condition
and results of operations. The Company's management
uses these non-GAAP measures to compare the Company's
performance to that of prior periods and uses these
measures in financial reports prepared for management and
the Company's board of directors. The Company believes
that the use of these non-GAAP financial measures provides
an additional tool for investors to use in evaluating
ongoing operating results and trends and in comparing the
Company's financial measures with other
software-as-a-service companies, many of which present
similar non-GAAP financial measures to investors.
The Company does not consider these non-GAAP measures in
isolation or as an alternative to financial measures
determined in accordance with GAAP. The principal
limitation of these non-GAAP financial measures is that
they exclude significant items that are required by GAAP to
be recorded in the Company's financial statements. In
addition, they are subject to inherent limitations as they
reflect the exercise of judgments by management. In order
to compensate for these limitations, management presents
its non-GAAP financial measures in connection with its GAAP
results. The Company urges investors to review the
reconciliation of its non-GAAP financial measures to the
comparable GAAP financial measures, which it includes in
press releases announcing quarterly financial results,
including this press release, and not to rely on any single
financial measure to evaluate the Company's business.
Cautionary Language Concerning Forward-Looking Statements
This press release contains "forward-looking
statements" within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934, as amended
by the Private Securities Litigation Reform Act of 1995.
These forward-looking statements represent the
Company's views as of the date of this press release
based on the current intent, belief or expectations,
estimates, forecasts, assumptions and projections of the
Company and members of our management team. Words such as
"should," "believe," "hope,"
"target," "project," "goals,"
"predict," "may," "will,"
"might," "could," "intend,"
variations of these terms or the negative of these terms
and similar expressions are intended to identify these
forward-looking statements. Those statements include, but
are not limited to, statements regarding guidance on our
future financial results and other projections or measures
of future performance, and our expectations concerning
market opportunities and our ability to capitalize on them.
Forward-looking statements are subject to a number of risks
and uncertainties, many of which involve factors or
circumstances that are beyond the Company's control.
The Company's actual results could differ materially
from those stated or implied in forward-looking statements
due to a number of factors, including, but not limited to,
the Company's ability to profitably attract new
customers and retain existing customers, the Company's
dependence on the market for online computer backup
services, the Company's ability to manage growth, and
changes in economic or regulatory conditions or other
trends affecting the Internet and the information
technology industry. These and other important risk factors
are discussed or referenced in our Annual Report on Form
10-K for the fiscal year ended December 31, 2011 filed with
the Securities and Exchange Commission, which is available
on www.sec.gov, under the
heading "Risk Factors" and elsewhere, and any
subsequent periodic or current reports filed by us with the
SEC. The Company anticipates that subsequent events and
developments will cause its views to change. Except as
required by applicable law or regulation, we do not
undertake any obligation to update our forward-looking
statements to reflect future events or circumstances.
Carbonite, Inc. (NASDAQ: CARB), is a leading provider of online backup
solutions for consumers and small and medium sized
businesses. Subscribers in more than 100 countries rely on
Carbonite to provide easy-to-use, affordable and secure
online backup solutions with anytime, anywhere data access.
Carbonite's online backup solution runs on both the
Windows and Mac platforms. The company has backed up nearly
200 billion files, restored more than 7 billion files and
currently backs up more than 300 million files each day.www.carbonite.com, twitter.com/carbonite,