Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Carbonite Inc | ex991-q12017pressrelease.htm |
| 8-K - 8-K - Carbonite Inc | a8-kq12017earningsrelease.htm |
May 4, 2017
CARBONITE, INC.
Q1 2017 FINANCIAL RESULTS
(NASDAQ:CARB)
2carbonite.com
SAFE HARBOR STATEMENT
Certain matters discussed in these slides and accompanying oral presentation have "forward-looking statements" intended to qualify
for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking
statements may generally be identified as such because the context of such statements will include words such as "anticipate,"
"believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" or words
of similar import. Similarly, statements that describe the Company's future plans, objectives or goals are also forward-looking
statements. 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, economic conditions and markets
(including current financial conditions), exchange rate fluctuations, risks associated with debt prepayment, stock repurchases or
acquisitions in lieu of retaining such cash for future needs, and changes in regulatory conditions or other trends affecting the
Internet and the information technology industry. These and other important risk factors are discussed under the heading "Risk
Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the Securities and Exchange
Commission (the "SEC"), which is available on www.sec.gov, and elsewhere in any subsequent periodic or current reports filed by
us with the SEC. Except as required by applicable law, we do not undertake any obligation to update our forward-looking
statements to reflect future events, new information or circumstances.
This presentation contains non-GAAP financial measures including, but not limited to, non-GAAP Revenue, non-GAAP Gross Margin,
non-GAAP Net Income and non-GAAP Net Income Per Share, non-GAAP Operating Expense and Adjusted Free Cash Flow. A
reconciliation to GAAP can be found in the financial schedules included in our most recent earnings press release located on
Carbonite’s website, http://investor.carbonite.com, in the Company’s filings or with the SEC at www.sec.gov. The presentation of
non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP.
3carbonite.com
FINANCIAL RESULTS CONFERENCE CALL DETAILS
What: Carbonite First Quarter 2017
Financial Results Conference Call
When: Thursday, May 4th 2017
Time: 5:30 p.m. ET
Live Call: 877-303-1393 (U.S.)
315-625-3228 (International)
Conference ID: 7845290
Live and Recorded
Webcast:
http://investor.carbonite.com
4carbonite.com
DEFINITIONS OF NON-GAAP MEASURES
Bookings: Bookings represent the aggregate dollar value of customer subscriptions and software arrangements, which may include multiple revenue elements, such as
software licenses, hardware, professional services and post-contractual support, received during a period and are calculated as revenue recognized during a particular period
plus the change in total deferred revenue, excluding deferred revenue recorded in connection with acquisitions, net of foreign exchange during the same period.
Non-GAAP revenue: Excludes the impact of purchase accounting adjustments for significant acquisitions.
Non-GAAP gross margin: Excludes the impact of purchase accounting adjustments for significant acquisitions, amortization expense on intangible assets, stock-based
compensation expense, and acquisition-related expense.
Non-GAAP operating income: Non-GAAP operating income excludes the impact of purchase accounting adjustments for significant acquisitions, amortization expense on
intangible assets, stock-based compensation expense, litigation-related expense, restructuring-related expense, acquisition-related expense, and the income tax effect of
non-GAAP adjustments.
Non-GAAP operating expense: Excludes amortization expense on intangible assets, stock-based compensation expense, litigation related expense, restructuring-related
expense, and acquisition-related expense.
Non-GAAP net income and non-GAAP net income per share: Non-GAAP net income and non-GAAP net income per share excludes the impact of purchase accounting
adjustments for significant acquisitions, amortization expense on intangible assets, stock-based compensation expense, litigation-related expense, restructuring-related
expense, acquisition-related expense, and the income tax effect of non-GAAP adjustments.
Adjusted EBITDA: Adjusted EBITDA excludes the impact of purchase accounting adjustments for significant acquisitions, amortization expense on intangible assets, stock-
based compensation expense, litigation-related expense, restructuring-related expense, acquisition-related expense, and the income tax effect of non-GAAP adjustments.
Adjusted Free cash flow: Adjusted free cash flow is calculated by subtracting the cash paid for the purchase of property and equipment and adding the payments related to
acquisition-related payments, restructuring-related payments, litigation-related payments and the cash portion of the lease exit charge from net cash provided by operating
activities.
For a full reconciliation of GAAP to non-GAAP, please visit the investor relations portion of the Carbonite web site – investor.carbonite.com
5carbonite.com
RECENT FINANCIAL AND OPERATIONAL HIGHLIGHTS
Consistent financial performance
Steady growth and improving margins
Successful capital raise - $143.75m in convertible notes; $15m share repurchase
Proven acquisition growth strategy; successfully integrating
Strong team executing well
Simplifying and streamlining the business
6carbonite.com
ADDRESSING THE FULL SPECTRUM OF OUR CUSTOMER’S NEEDS
Carbonite protects data in any environment across corporate use cases
Carbonite’s
initial product
Virtual
Physical
Cloud
Back-Up Disaster Recovery High Availability
Hours Minutes Seconds
Recovery time measured in:
Type of service offered by Carbonite:
Where
dat
a
resides
:
7carbonite.com
SUMMARY Q1 2017 FINANCIAL RESULTS
Q1 2017 Outlook*
(a/o 2/9/2017)
Q1 2017 Results
GAAP Revenue $51.3M - $55.3M $57.1M
Non-GAAP Revenue $55.1M - $59.1M $59.1M
GAAP Net Income Per Share (Diluted) Not guided $0.27
Non-GAAP Net Income Per Share (Diluted) $0.06 - $0.08 $0.09
Consumer Bookings Not guided $22.0M, (-4% yoy)
SMB Bookings Not guided $40.1M (+36% yoy)
Adjusted Free Cash Flow Not guided $2.4M
• Q1 2017 bookings up 19% year-over-year
• Q1 2017 non-GAAP revenue up 21% year-over-year
*With respect to expectations under “Q1 2017 Outlook" above, the Company has not reconciled non-GAAP net income per share to net income (loss) per share because we do not
provide guidance for stock-based compensation expense, litigation-related expense, acquisition-related expense, amortization expense on intangible assets and the income tax effect of
non-GAAP adjustments as we are unable to quantify certain of these amounts that would be required to be included in the GAAP measure without unreasonable efforts. In addition, the
Company believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors.
Source: SEC Filings; For a full reconciliation of GAAP to non-GAAP, please visit the investor relations portion of the Carbonite web site – investor.carbonite.com
8carbonite.com
BOOKINGS GROWTH
$19
$32 $40
$55
$124$80
$84
$88
$90
$85
$98
$116
$128
$144
$209
2012 2013 2014 2015 2016
SMB / Mid-Market Bookings Consumer Bookings
Annual Bookings ($M) Quarterly Bookings ($M)
Source: SEC Filings; For a full reconciliation of GAAP to non-GAAP, please visit the investor relations portion of the Carbonite web site – investor.carbonite.com
$29.4
$32.3
$28.8
$33.9
$40.1
$22.9
$21.4
$20.4
$20.1
$22.0
$52.3 $53.7
$49.2
$54.0
$62.1
$24.3 $24.5 $23.4
$26.1 $27.3
Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17
SMB / Mid-Market Bookings Consumer Bookings
Subscription Bookings
carbonite.com
REVENUE AND GROSS MARGIN
9
Non-GAAP Revenue ($M) Non-GAAP Gross Margin (%)
Q1 ’17 Growth Y/Y
GAAP Gross Margin 69.6% +30bps
Non-GAAP Gross
Margin
73.8% +190bps
Q1 ’17 Growth Y/Y
GAAP Revenue $57.1M 19%
Non-GAAP Revenue $59.1M 21%
$48.7
$54.2
$52.5
$53.9
$59.1
Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17
71.9%
72.5%
72.2%
74.0%
73.8%
Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17
Source: SEC Filings; For a full reconciliation of GAAP to non-GAAP, please visit the investor relations portion of the Carbonite web site – investor.carbonite.com
10carbonite.com
BUSINESS OUTLOOK (AS OF MAY 4th 2017)*
Q2 2017
GAAP Revenue $56.0M - $60.0M
Non-GAAP Revenue $58.0M - $62.0M
Non-GAAP Net Income Per Share $0.11 - $0.13
FY 2017
Guidance a/o
February 9th 2017
Guidance a/o
May 4th 2017
SMB Bookings $158.6M - $170.2M $158.6M - $170.2 M
Consumer Bookings Y/Y Growth (10%) – 0% growth (10%) – 0% growth
GAAP Revenue $223.0M - $243.0M $229.0M - $246.0M
Non-GAAP Revenue $232.5M - $252.5M $234.5M - $252.5M
Non-GAAP Net Income Per Share $0.72 - $0.80 $0.74 - $0.80
Non-GAAP Gross Margin 74.0% - 75.0% 74.0% - 75.0%
Adjusted Free Cash Flow $14M - $18M $16M - $20M
*With respect to our expectations under "Business Outlook" above, the Company has not reconciled non-GAAP net income per share to net income (loss) per share because we do not provide guidance for stock-based compensation
expense, litigation-related expense, acquisition-related expense, amortization expense on intangible assets, non-cash convertible debt interest expense, and the income tax effect of non-GAAP adjustments as we are unable to
quantify certain of these amounts that would be required to be included in the GAAP measure without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision that would be
confusing or misleading to investors.