Carbonite Announces First Quarter 2013 Financial Results

           Carbonite Announces First Quarter 2013 Financial Results

Revenue of $24.5 million increases 32%; Bookings of $29.3 million increases
20%

PR Newswire

BOSTON, May 2, 2013

BOSTON, May 2, 2013 /PRNewswire/ -- Carbonite, Inc. (NASDAQ: CARB), leading
provider ofcloud backup solutions for small businesses and consumers, today
announced financial results for the quarter ended March 31, 2013.

(Logo: http://photos.prnewswire.com/prnh/20120124/NE40289LOGO )

"This was another successful quarter at Carbonite, highlighted by accelerating
bookings growth, increasing traction in the small business market, and our
third consecutive quarter of positive free cash flow," said David Friend,
Chairman and Chief Executive Officer of Carbonite. "I am pleased with the
progress we've been making in our shift towards the small business market, the
growing importance of distribution channels in reaching our target customers,
and the development of new solutions that enhance our value proposition."

Financial and Operating Metrics for the First Quarter Ended March 31, 2013

  oBookings for the first quarter of 2013 were $29.3 million, an increase of
    20% from $24.5 million in the first quarter 2012.
  oRevenue for the first quarter of 2013 was $24.5 million, an increase of
    32% from $18.5 million in the first quarter of 2012.
  oGross margin for the first quarter of 2013 was 63.9%, compared to 63.4% in
    the first quarter of 2012.
  oNet loss for the first quarter of 2013 was ($7.4) million, compared to
    ($9.1) million in the first quarter of 2012.
  oNet loss attributable to common stockholders for the first quarter of 2013
    was ($0.29) per share (basic and diluted), compared to a net loss of
    ($0.36) per share (basic and diluted) in the first quarter of 2012.
  oNon-GAAP gross margin, which excludes amortization expense on intangible
    assets and stock-based compensation expense, was 65.0% in the first
    quarter of 2013, compared to 64.2% in the first quarter of 2012.
  oNon-GAAP net loss, which excludes amortization expense on intangible
    assets, stock-based compensation expense, patent litigation expense, and a
    lease exit charge associated with our data center relocation was ($4.7)
    million for the first quarter of 2013 compared to ($6.7) million in the
    first quarter of 2012
  oNon-GAAP net loss per share for the first quarter of 2013 was ($0.18)
    compared to a non-GAAP net loss per share of ($0.27) in the first quarter
    of 2012.
  oCash flow from operations for the first quarter of 2013 was $3.8 million,
    compared to $145,000 in the first quarter of 2012.
  oNon-GAAP free cash flow for the first quarter of 2013 was $654,000,
    compared to ($4.6) million in the first quarter of 2012.
  oCash, cash equivalents and short-term investments were $56.5 million as of
    March 31, 2013, compared to $55.3 million as of December 31, 2012.
  oQuarterly 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 measure is
provided in the tables at the end of this press release.

Recent Business Highlights:

  oAnnounced it has been selected to participate with Comcast on Upware™ from
    Comcast Business. Together, Carbonite and Comcast are delivering cloud
    solutions for small businesses that may be conveniently purchased and
    managed from one central location. The Upware™ marketplace is a suite of
    cloud-based business solutions that can be purchased through one
    easy-to-use web portal.
  oAnnounced that Database Backup is available for its online backup reseller
    partners to offer to their small business clients. With the Carbonite
    Database Backup solution, resellers can deliver a comprehensive cloud
    backup solution and ensure their clients can rest easy knowing their
    backup is protected offsite- securely, automatically and affordably. 
  oAnnounced the latest releases of Amanda Enterprise and Zmanda Recovery
    Manager (ZRM) for MySQL, which simplify backup management and recovery for
    small businesses operating in heterogeneous environments. Zmanda solutions
    offer high-end features with price and ease-of-use designed with SMBs in
    mind.
  oPrevailed at trial in a non-practicing entity patent suit brought by
    Oasis Research LLC, after a Texas federal jury concluded that Oasis'
    patents were invalid.

Business Outlook

Based on information available as of May 2, 2013, Carbonite is issuing
guidance for the second quarter and full year 2013 as follows:

Second Quarter 2013: The Company expects total revenue for the second quarter
to be in the range of $25.7 million to $25.9 million and non-GAAP net loss per
common share to be in the range of ($0.10) to ($0.12). Carbonite's
expectations of non-GAAP net loss per diluted common share for the second
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 25.9 million.

Full Year 2013: The Company expects 2013 total revenue to be in the range of
$104.0 million to $106.0 million and non-GAAP net loss per diluted common
share to be in the range of ($0.40) to ($0.44). 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 26.0 million.

Conference Call and Webcast Information

Carbonite will host a conference call on May 2, 2013, at 5:00 p.m. Eastern
Time (ET) to discuss the Company's first quarter financial results and its
business outlook. To access this call, dial 888-797-2980 (domestic) or
+1-913-312-0677 (international). The conference ID is 8075660. A replay of
this conference call will be available until May 9, 2013 at 877-870-5176
(domestic) or +1-858-384-5517 (international). The replay pass code is
8075660. 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 gross margin, non-GAAP net loss and non-GAAP net loss per 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 gross margin, non-GAAP net loss and non-GAAP net
loss per share exclude amortization expenses on intangible assets, stock-based
compensation expenses, patent litigation expenses and a lease exit charge
associated with our data center relocation from net loss. 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 quarter.

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 "expect," "anticipate," "should," "believe," "hope," "target,"
"project," "goals," "estimate," "potential," "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, 2012 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.

About Carbonite
Carbonite, Inc. (NASDAQ: CARB), is a leading provider of online backupfor
small businesses and consumers. Subscribers in more than 100 countries rely
on Carbonite to provide easy-to-use, affordable and secure cloud backup
solutions with anytime, anywhere data access. Carbonite's backup solution runs
on both the Windows and Mac platforms. The company has backed up more than 300
billion files, restored nearly 20 billion files, and currently backs up more
than 350 million files each day. For more information, please
visitwww.carbonite.com,twitter.com/carbonite,twitter.com/carbonitebiz,
orfacebook.com/CarboniteOnlineBackup.



Carbonite, Inc.
Condensed Consolidated Statement of Operations (unaudited)
(In thousands, except per share data)
                                      Three Months Ended
                                      March 31,
                                      2013               2012
Revenue                               $            $     18,547
                                      24,508
Cost of revenue                       8,838              6,785
Gross profit                          15,670             11,762
Operating expenses:
Research and development              5,476              4,840
General and administrative            4,777              2,236
Sales and marketing                   12,682             12,615
Restructuring charges                 146                1,174
Total operating expenses              23,081             20,865
Loss from operations                  (7,411)            (9,103)
Interest and other income (expense),  2                  (3)
net
Loss before income taxes              (7,409)            (9,106)
Provision for income taxes            (10)               (10)
Net loss                              $           $     (9,116)
                                      (7,419)
Basic and diluted net loss per share  $          $     
attributable to common stockholders   (0.29)             (0.36)
Weighted-average number of common
shares used in computing basic and    25,888,694         25,226,515
diluted net loss per share



Carbonite, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
                                      March 31,          December 31,
                                      2013               2012
Assets
Current assets
Cash and cash equivalents             $     41,504   $      40,341
Marketable securities                 14,996             14,990
Accounts receivable, net              2,017              1,549
Prepaid expenses and other current    2,343              2,369
assets
Restricted cash                       500                500
 Total current assets             61,360             59,749
Property and equipment, net           24,859             24,622
Other assets                          181                147
Acquired intangible assets, net       4,607              4,871
Goodwill                              11,536             11,536
Total assets                          $    102,543    $     100,925
Liabilities and Stockholders'
Equity
Current liabilities
Accounts payable                     $      5,074  $       6,247
Accrued expenses                      8,592              5,068
Current portion of deferred           65,388             60,119
revenue
 Total current liabilities       79,054             71,434
Deferred revenue, net of current      14,637             15,087
portion
Other long-term liabilities           510                473
Total liabilities                     94,201             86,994
Stockholders' equity
Common stock                          260                258
Additional paid-in capital            134,888            133,059
Accumulated deficit                   (126,792)          (119,373)
Treasury stock, at cost              (22)               (22)
Accumulated other comprehensive       8                  9
income
 Total stockholders' equity      8,342              13,931
Total liabilities and                 $    102,543    $     100,925
stockholders' equity



Carbonite, Inc.
Condensed Consolidated Statement of Cash Flows (unaudited)
(In thousands)
                                                        Three Months Ended
                                                        March 31,
                                                        2013         2012
Operating activities
Net loss                                                $       $    
                                                        (7,419)      (9,116)
Adjustments to reconcile net loss to net cash provided
by operating activities:
Depreciation and amortization                           3,158        2,404
Amortization (accretion) of premium (discount) on       (4)          62
marketable securities
Stock-based compensation expense                        1,319        956
Provision for reserves on accounts                      7            48
receivable
Non-cash restructuring charge                           92           1,017
Changes in assets and liabilities, net
of acquisition:
 Accounts receivable                                (475)        (273)
 Prepaid expenses and other current                 26           (399)
assets
 Other assets                                       (34)         14
 Accounts payable                                   (1,176)      (2,045)
 Accrued expenses                                   3,435        1,509
Other long-term liabilities                            37           21
 Deferred revenue                                  4,819        5,947
 Net cash provided by operating                      3,785        145
activities
Investing activities
Purchases of property and equipment                     (3,131)      (4,926)
Proceeds from maturities of marketable                  -            2,500
securities
 Net cash used in investing                    (3,131)      (2,426)
activities
Financing activities
Proceeds from exercise of stock options                 512          448
 Net cash provided by financing                512          448
activities
Effect of currency exchange rate changes                (3)          4
on cash
Net increase (decrease) in cash and cash                1,163        (1,829)
equivalents
Cash and cash equivalents, beginning of                 40,341       59,842
period
Cash and cash equivalents, end of period                $       $    
                                                        41,504       58,013



Carbonite, Inc.
Reconciliation of GAAP to Non-GAAP Measures (unaudited)
(In thousands, except share and per share amounts)
Calculation of Bookings
                                 Three Months Ended
                                 March 31,
                                 2013                   2012
Revenue                          $       24,508  $     18,547
Add :
 Deferred revenue ending      80,025                 65,643
balance
Less :
 Deferred revenue beginning   75,206                 59,696
balance
Change in deferred revenue       4,819                  5,947
balance
Bookings                         $       29,327  $     24,494
Calculation of Non-GAAP Net Loss and Non-GAAP Net Loss per Share
                                 Three Months Ended
                                 March 31,
                                 2013                   2012
Net loss                         $               $     (9,116)
                                 (7,419)
Add:
Amortization of intangibles      264                    67
Stock-based compensation         1,319                  956
expense
Patent litigation expense        1,183                  207
Lease exit charge                -                      1,174
Non-GAAP net loss                $               $     (6,712)
                                 (4,653)
Weighted average shares          25,888,694             25,226,515
outstanding (basic)
Non-GAAP net loss per share      $              $      (0.27)
                                 (0.18)



Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
                                  Three Months Ended
                                  March 31,
                                  2013                   2012
Gross profit                      $       15,670  $     11,762
Add:
Amortization of intangibles       118                    44
Stock-based compensation expense  132                    95
Non-GAAP gross profit             $       15,920  $     11,901
Non-GAAP gross margin             65.0%                  64.2%
Reconciliation of GAAP Operating Expense to Non-GAAP Operating Expense
                                  Three Months Ended
                                  March 31,
                                  2013                   2012
Research and development          $               $      4,840
                                  5,476
Less:
Stock-based compensation expense  236                    292
Non-GAAP research and             $               $      4,548
development                       5,240
General and administrative        $               $      2,236
                                  4,777
Less:
Amortization of intangibles       48                     8
Stock-based compensation expense  650                    366
Patent litigation expense         1,183                  207
Non-GAAP general and              $               $      1,655
administrative                    2,896
Sales and marketing               $       12,682  $     12,615
Less:
Amortization of intangibles       98                     15
Stock-based compensation expense  301                    203
Non-GAAP sales and marketing      $       12,283  $     12,397
Restructuring charges             $             $      1,174
                                  146
Less:
Lease exit charge                 -                      1,174
Non-GAAP restructuring charges    $             $        
                                  146                    -



Calculation of Free Cash Flow
                                   Three Months Ended
                                   March 31,
                                   2013                 2012
Net cash provided by operating     $             $       145
activities                         3,785
Add
Cash portion of lease exit charge  -                    157
Subtract:
Purchases of property and          3,131                4,926
equipment
Free cash flow                     $           $     (4,624)
                                   654





Investor Relations Contact:
Cassandra Hudson
Carbonite
617-587-1144
chudson@carbonite.com

Staci Mortenson
ICR
617-587-1102
investor.relations@carbonite.com

Media Contact:
Erin Delaney
Carbonite
617-421-5637
media@carbonite.com

SOURCE Carbonite, Inc.

Website: http://www.carbonite.com
 
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