Carbonite Reports Record Revenue and Free Cash Flow Results for First Quarter of 2014

Carbonite Reports Record Revenue and Free Cash Flow Results for First Quarter
of 2014

BOSTON, April 29, 2014 (GLOBE NEWSWIRE) -- Carbonite, Inc. (Nasdaq:CARB), a
leading provider of cloud solutions that keep small businesses and home
offices running smoothly, today announced financial results for the first
quarter March 31, 2014.

First Quarter 2014 Results:

  *Revenue for the first quarter was $29.1 million, an increase of 19% from
    $24.5 million in the first quarter of 2013.
    
  *Bookings for the first quarter were $32.5 million, an increase of 11% from
    $29.3 million in the first quarter of 2013.
    
  *Net loss for the first quarter was ($1.0) million, compared to a net loss
    of ($7.4) million in the first quarter of 2013. Non-GAAP net income for
    the first quarter was $0.5 million, compared to non-GAAP net loss of
    ($4.7) million in the first quarter of 2013.^1

  *Net loss for the first quarter was ($0.04) per share (basic and diluted),
    compared to a net loss of ($0.29) per share (basic and diluted) in the
    first quarter of 2013. Non-GAAP net earnings were $0.02 per share (basic
    and diluted) for the first quarter, compared to non-GAAP net loss of
    ($0.18) per share (basic and diluted), in the first quarter of 2013.
    
  *Gross margin for the first quarter was 68.2%, compared to 63.9% in the
    first quarter of 2013.Non-GAAP gross margin was 69.0% in the first
    quarter, compared to 65.0% in the first quarter of 2013.^2

  *Total cash and investments were $70.0 million as of March 31, 2014,
    compared to $56.5 million as of March 31, 2013.
    
  *Cash flow from operations for the first quarter was $7.3 million, compared
    to $3.8 million in the first quarter of 2013. Non-GAAP free cash flow for
    the first quarter was $4.2 million, compared to $0.7 million in the first
    quarter of 2013.^3

"I am pleased to announce another record-setting quarter of revenue and free
cash flow," said David Friend, Chairman and Chief Executive Officer of
Carbonite. "The success of our new Server Backup product announced in the
first quarter reinforces that the hybrid approach to backup is resonating with
customers and partners. Carbonite's products are purposefully designed for
ease-of-use, efficiency and affordability, all attributes which a hybrid
solution of local and cloud back up can provide. Along with our best-in-class
customer service, we believe Carbonite provides solutions that bring
tremendous value to the SMB marketplace."

_____________________________________
^1 Non-GAAP net earnings and earnings per share, net loss and net loss per
share excludes amortization expense on intangible assets, stock-based
compensation expense and patent litigation expense.
^2 Non-GAAP gross margin excludes amortization expense on intangible assets
and stock-based compensation expense.
^3 Non-GAAP free cash flow is calculated by adding the cash portion of our
planned corporate headquarters relocation and subtracting cash paid for the
purchase of property and equipment from net cash provided by operating
activities.

An explanation of non-GAAP measures is provided under the heading "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.

Business Outlook

For the second quarter of 2014, revenues are expected to be in the range of
$30.0-$30.2 million and non-GAAP net loss per share to be in the range of
($0.05)-($0.03).

For the full year of 2014, revenues are expected to be in the range of
$121.7-$123.4 million and non-GAAP net loss per share to be in the range of
($0.10)-($0.04).

Carbonite's expectations of non-GAAP net loss per share for the quarter and
full year excludes stock-based compensation expense, patent litigation
expense, amortization expense on intangible assets and assumes a tax rate of
0% and weighted average shares outstanding of approximately 26.6 million.

Conference Call and Webcast Information

Carbonite will host a conference call on Tuesday, April 29, 2014 at 8:30 a.m.
Eastern Daylight Time to review the results of business operations. This call
will be webcast live in the investor relations section of the Company's
website at http://investor.carbonite.com. The conference call can also be
accessed by dialing (877) 303-1393 in the United States or (315) 625-3228
internationally with the passcode 24938613.

Following the completion of the call, a recorded replay will be available on
the company's website, http://investor.carbonite.com, under "Events &
Presentations" through December 31, 2014.

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,
non-GAAP net earnings and non-GAAP net earnings 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,
non-GAAP net earnings and non-GAAP net earnings per share exclude amortization
expenses on intangible assets, stock-based compensation expenses and patent
litigation expenses. Non-GAAP free cash flow is calculated by adding the cash
portion of our planned corporate headquarters relocation and subtracting cash
paid for the purchase of property and equipment from net cash provided by
operating activities.

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, 2013 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 (Nasdaq:CARB) keeps small businesses and home offices running
smoothly. Carbonite offers a comprehensive suite of affordable services for
data protection, recovery and anywhere, anytime access. More than 1.5 million
customers, including 50,000 small businesses, trust Carbonite's secure,
easy-to-usecloud backup solutionsand award-winning U.S.-based customer
support. For more information, please visitCarbonite.com, connect with us on
Twitter@carboniteor visit ourFacebook page.

Carbonite, Inc.
Condensed Consolidated Statement of Operations (unaudited)
(In thousands, except per share data)
                                                   
                                                   
                                        Three Months Ended
                                        March 31,
                                        2014        2013
                                                   
Revenue                                  $29,137   $24,508
Cost of revenue                          9,260      8,838
Gross profit                             19,877     15,670
                                                   
Operating expenses:                                 
Research and development                 5,422      5,476
General and administrative               3,520      4,777
Sales and marketing                      11,873     12,682
Restructuring charges                    4          146
Total operating expenses                 20,819     23,081
                                                   
Loss from operations                     (942)      (7,411)
                                                   
Interest and other income (expense), net (30)       2
                                                   
Loss before income taxes                 (972)      (7,409)
                                                   
Provision for income taxes               (10)       (10)
                                                   
Net loss                                 $(982)    $(7,419)
                                                   
                                                   
Net loss per share:                                 
Basic and diluted                        $(0.04)   $(0.29)
                                                   
Weighted-average shares outstanding:                
Basic and diluted                        26,583,158 25,888,694


Carbonite, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
                                                       
                                             March 31,  December 31,
                                             2014       2013
                                                       
Assets                                                  
Current assets                                          
Cash and cash equivalents                     $55,292  $50,392
Marketable securities                         14,746    14,994
Accounts receivable, net of allowance         2,145     1,876
Prepaid expenses and other current assets     3,154     3,122
Total current assets                          75,337     70,384
                                                       
Property and equipment, net                   20,959     22,111
Other assets                                  1,179      1,177
Acquired intangible assets, net               3,720      3,953
Goodwill                                      11,536     11,536
Total assets                                  $112,731 $109,161
                                                       
Liabilities and Stockholders' Equity                    
Current liabilities                                     
Accounts payable                              $2,320   $3,810
Accrued expenses                              9,174     8,156
Current portion of deferred revenue           72,967    69,498
Total current liabilities                     84,461     81,464
                                                       
Deferred revenue, net of current portion      14,381     14,502
Other long-term liabilities                   329        374
Total liabilities                             99,171     96,340
                                                       
Stockholders' equity                                    
Common stock                                  267        265
Additional paid-in capital                    144,302    142,557
Treasury stock, at cost                       (22)       (22)
Accumulated other comprehensive income (loss) (27)       (1)
Accumulated deficit                           (130,960)  (129,978)
Total stockholders' equity                    13,560     12,821
Total liabilities and stockholders' equity    $112,731 $109,161


Carbonite, Inc.
Condensed Consolidated Statement of Cash Flows (unaudited)
(In thousands)
                                                                 
                                                       Three Months Ended
                                                       March 31,
                                                       2014       2013
                                                                 
Operating activities                                              
Net loss                                                $(982)   $(7,419)
Adjustments to reconcile net loss to net cash provided by operating
activities:
Depreciation and amortization                           3,155     3,158
Amortization (accretion) of premium (discount) on       (5)       (4)
marketable securities
Stock-based compensation expense                        1,257     1,319
Provision for reserves on accounts receivable           30        7
Non-cash restructuring charge                           --        92
Changes in assets and liabilities, net of acquisition:            
Accounts receivable                                     (299)     (475)
Prepaid expenses and other current assets               (32)      26
Other assets                                            (2)       (34)
Accounts payable                                        (779)     (1,176)
Accrued expenses                                        1,677     3,435
Other long-term liabilities                             (45)      37
Deferred revenue                                        3,349     4,819
Net cash provided by operating activities               7,324     3,785
                                                                 
Investing activities                                              
Purchases of property and equipment                     (3,145)   (3,131)
Proceeds from maturities of marketable securities       (2,750)   --
Purchases of marketable securities                      3,000     --
Net cash used in investing activities                   (2,895)   (3,131)
                                                                 
Financing activities                                              
Proceeds from exercise of stock options                 490       512
Net cash provided by financing activities               490       512
                                                                 
Effect of currency exchange rate changes on cash        (19)      (3)
Net increase in cash and cash equivalents               4,900     1,163
Cash and cash equivalents, beginning of period          50,392    40,341
Cash and cash equivalents, end of period                $55,292  $41,504


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,
                                                2014           2013
                                                              
Revenue                                          $29,137      $24,508
                                                              
Add :                                                          
Deferred revenue ending balance                  87,349        80,025
Less :                                                         
Deferred revenue beginning balance               84,000        75,206
Change in deferred revenue balance               3,349         4,819
                                                              
Bookings                                         $32,486      $29,327
                                                              

Calculation of Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) per
Share
                                                              
                                                Three Months Ended
                                                March 31,
                                                2014           2013
                                                              
Net loss                                         $(982)       $(7,419)
                                                              
Add:                                                           
Amortization of intangibles                      233           264
Stock-based compensation expense                 1,257         1,319
Patent litigation expense                        17            1,183
                                                              
Non-GAAP net income (loss)                       $525         $(4,653)
                                                              
Weighted-average shares outstanding:                           
Basic and diluted                                26,583,158    25,888,694
                                                              
Net income (loss) per share:                                   
Basic and diluted                                $0.02        $(0.18)

Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit
                                                              
                                                Three Months Ended
                                                March 31,
                                                2014           2013
                                                              
Gross profit                                     $19,877      $15,670
Add:                                                           
Amortization of intangibles                      110            118
Stock-based compensation expense                 117            132
Non-GAAP gross profit                            $20,104      $15,920
Non-GAAP gross margin                            69.0%          65.0%
                                                              
                                                              

Reconciliation of GAAP Operating Expense to Non-GAAP Operating Expense
                                                              
                                                Three Months Ended
                                                March 31,
                                                2014           2013
                                                              
Research and development                         $5,422       $5,476
Less:                                                          
Stock-based compensation expense                 260            236
Non-GAAP research and development                $5,162       $5,240
                                                              
General and administrative                       $3,520       $4,777
Less:                                                          
Amortization of intangibles                      40             48
Stock-based compensation expense                 652            650
Patent litigation expense                        17             1,183
Non-GAAP general and administrative              $2,811       $2,896
                                                              
Sales and marketing                              $11,873      $12,682
Less:                                                          
Amortization of intangibles                      83             98
Stock-based compensation expense                 228            301
Non-GAAP sales and marketing                     $11,562      $12,283
                                                              
Non-GAAP restructuring charges                   $4           $146
                                                              

Calculation of Free Cash Flow
                                                              
                                                Three Months Ended
                                                March 31,
                                                2014           2013
                                                              
Net cash provided by operating activities        $7,324       $3,785
                                                              
Add                                                            
Payments related to corporate headquarter        64            --
relocation
Subtract:                                                      
Purchases of property and equipment              3,145          3,131
                                                              
Free cash flow                                   $4,243       $654

CONTACT: Investor Relations Contacts:
         Emily Walt
         Carbonite
         617-927-1972
         investor.relations@carbonite.com
        
         Media Contact:
         Megan Wittenberger
         Carbonite
         617-421-5687
         media@carbonite.com

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