Carbonite Announces Second Quarter 2019 Financial Results

July 25, 2019 at 4:05 PM EDT

BOSTON--(BUSINESS WIRE)--Jul. 25, 2019-- Carbonite, Inc. (NASDAQ: CARB), a global leader in data protection, today announced financial results for the second quarter ended June 30, 2019.

Second Quarter 2019 Highlights:

  • Revenue of $121.5 million increased 56% year-over-year.
  • Non-GAAP revenue of $135.0 million increased 69% year-over-year.1
  • Net loss was ($11.3) million, compared to net loss of ($5.7) million in 2018.
  • Net loss per share was ($0.33) (basic and diluted), as compared to ($0.20) (basic and diluted) in 2018.
  • Non-GAAP net income per share was $0.58 (basic) and $0.56 (diluted), as compared to $0.50 (basic) and $0.45 (diluted) in 2018.2
  • Adjusted EBITDA of $39.1 million, or 29% of non-GAAP revenue, compared to $20.9 million, or 26% of non-GAAP revenue in 2018.3

“Carbonite delivered second quarter non-GAAP revenue of $135 million, up 69% year-over-year, while delivering an adjusted EBITDA margin of 29%,” said Steve Munford, chairman of the board and interim CEO of Carbonite. “Our security software business performed well during the quarter, however, we continued to experience challenges in parts of our data protection business. We remain committed to capitalizing on the opportunity of combining data protection and security, while we improve the effectiveness of our go-to-market efforts and deliver on our profitability targets.”

Munford added, “During the quarter we executed on our previously stated plans and made approximately $55 million in accelerated principal payments on our outstanding term loan; we remain committed to leveraging our strong and growing free cash flow to aggressively pay down outstanding debt.”

The Company uses a variety of operational and financial metrics, including non-GAAP financial measures, to evaluate its performance and financial condition. The accompanying financial data includes additional information regarding these metrics and a reconciliation of non-GAAP financial information to GAAP. 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.

Second Quarter 2019 Results:

  • Revenue for the second quarter was $121.5 million, an increase of 56% from $77.7 million in the second quarter of 2018. Non-GAAP revenue for the second quarter was $135.0 million, an increase of 69% from $79.9 million in the second quarter of 2018.1
  • Net loss for the second quarter was ($11.3) million, compared to net loss of ($5.7) million in the second quarter of 2018. Non-GAAP net income for the second quarter was $19.8 million, compared to non-GAAP net income of $14.2 million in the second quarter of 2018.
  • Net loss per share for the second quarter was ($0.33) (basic and diluted), compared to net loss per share of ($0.20) (basic and diluted) in the second quarter of 2018. Non-GAAP net income per share was $0.58 (basic) and $0.56 (diluted) for the second quarter, compared to non-GAAP net income per share of $0.50 (basic) and $0.45 (diluted) in the second quarter of 2018.2
  • Adjusted EBITDA for the second quarter was $39.1 million, compared to $20.9 million in the second quarter of 2018.3
  • Gross margin for the second quarter was 72.4%, compared to 70.3% in the second quarter of 2018. Non-GAAP gross margin was 82.3% in the second quarter, compared to 77.1% in the second quarter of 2018.4
  • Cash flow from operations for the second quarter was $20.3 million, compared to $13.6 million in the second quarter of 2018. Adjusted free cash flow for the second quarter was $24.3 million, compared to $13.3 million in the second quarter of 2018.5

_____________

  1. Non-GAAP revenue excludes the impact of purchase accounting adjustments for acquisitions.
  2. Non-GAAP net income and non-GAAP net income per share excludes the impact of purchase accounting adjustments on acquired deferred revenue, amortization expense on intangible assets, stock-based compensation expense, litigation-related expense, restructuring-related expense, acquisition-related expense, non-cash convertible debt interest expense and the income tax effect of non-GAAP adjustments.
  3. Adjusted EBITDA is calculated by excluding the impact of interest expense, net, income taxes, depreciation, amortization, purchase accounting adjustments on acquired deferred revenue, stock-based compensation expense, litigation-related expense, restructuring-related expense, and acquisition-related expense from net (loss) income.
  4. Non-GAAP gross margin excludes the impact of purchase accounting adjustments on acquired deferred revenue, amortization expense on intangible assets, stock-based compensation expense, and acquisition-related expense.
  5. Adjusted free cash flow is calculated by subtracting the cash paid for the purchase of property and equipment and adding the payments related to acquisitions, restructuring, and litigation to net cash provided by operating activities.

CEO Transition

In a separate press release issued today, Carbonite announced that Steve Munford has been named interim CEO of Carbonite, effective immediately. Mr. Munford succeeds Mohamad Ali, who has stepped down as president and CEO and as a member of the Carbonite Board, also effective immediately.

Business Outlook

Based on the information available as of July 25, 2019, Carbonite expects the following for the third quarter and full year of 2019:

Third Quarter 2019:

 

Current Guidance
(7/25/2019)

GAAP Revenue

$117 - $119 million

Non-GAAP Revenue

$131 - $133 million

Adjusted EBITDA

$34 - $37 million

Full Year 2019:

 

Prior Guidance
(5/2/2019)

Current Guidance
(7/25/2019)

GAAP Revenue

$457 - $471 million

$443.5 - $448.5 million

Non-GAAP Revenue

$491 - $505 million

$477.5 - $482.5 million

Non-GAAP Gross Margin

80.5% - 81.5%

80.5% - 81.5%

Adjusted EBITDA

$132 - $137 million

$132 - $137 million

Carbonite’s expectations of adjusted EBITDA for the third quarter and full year of 2019 excludes the impact of interest expense, net, income taxes, depreciation, amortization, purchase accounting adjustments on acquired deferred revenue, stock-based compensation expense, litigation-related expense, restructuring-related expense and acquisition-related expense from net income (loss).

The Company is assuming an effective annual tax rate of approximately 22% and 35.5 million shares outstanding for the full year of 2019.

Conference Call and Webcast Information

Carbonite will host a conference call on Thursday, July 25, 2019 at 5:30 p.m. ET to review these results. This call will be webcast live and can be found 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: 8188460.

Following the completion of the call, a recorded replay will be available on the Company’s website, http://investor.carbonite.com, under “Events & Presentations”.

Non-GAAP Financial Measures

To supplement our consolidated financial statements presented in accordance with GAAP, this press release contains non-GAAP financial measures, including non-GAAP revenue, non-GAAP gross margin, non-GAAP net income and non-GAAP net income per share, non-GAAP operating expense, adjusted EBITDA and adjusted free cash flow.

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 ordinary 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. The Company urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures provided in the tables at the end of this press release, and not to rely on any single financial measure to evaluate the Company’s business.

With respect to our expectations under "Business Outlook" above, the Company has not reconciled non-GAAP gross margin to gross margin or adjusted EBITDA to net income (loss) in this press release because we do not provide guidance for amortization expense on intangible assets, depreciation expense, stock-based compensation expense, litigation-related expense, income tax expense, restructuring-related expense, interest expense, and acquisition-related expense 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.

Cautionary Language Concerning Forward-Looking Statements

Certain matters discussed in this press release, including under “Business Outlook,” 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. Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, our ability to integrate the Webroot acquisition and other acquisitions into our operations and achieve the expected operational and financial benefits of such acquisitions and the timing of such benefits, our ability to profitably attract new customers and retain existing customers, our dependence on the market for cloud backup services, our ability to manage growth, changes in economic or regulatory conditions or other trends affecting the Internet and the information technology industry, and those discussed in the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 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.

About Carbonite

Carbonite provides a robust Data Protection Platform for businesses, including backup, disaster recovery, high availability and workload migration technology. The Carbonite Data Protection Platform supports businesses on a global scale with secure cloud infrastructure. To learn more, visit www.carbonite.com and follow us on Twitter at @Carbonite.

Carbonite, Inc. serves customers through three brands: Carbonite data protection, Webroot cybersecurity, and MailStore email archiving.

Carbonite, Inc.
Consolidated Statement of Operations (unaudited)
(In thousands, except share and per share amounts)

 

 

Three Months Ended
June 30, 2019

 

Six Months Ended
June 30, 2019

 

2019

 

2018

 

2019

 

2018

Revenue:

 

 

 

 

 

 

 

Services

$

114,431

 

 

$

68,814

 

 

$

185,934

 

 

$

123,388

 

Product

7,079

 

 

8,920

 

 

16,791

 

 

18,372

 

Total revenue

121,510

 

 

77,734

 

 

202,725

 

 

141,760

 

Cost of revenue:

 

 

 

 

 

 

 

Services

23,956

 

 

18,358

 

 

41,058

 

 

33,688

 

Product

440

 

 

374

 

 

823

 

 

931

 

Amortization of intangible assets

9,081

 

 

4,325

 

 

12,375

 

 

6,750

 

Total cost of revenue

33,477

 

 

23,057

 

 

54,256

 

 

41,369

 

Gross profit

88,033

 

 

54,677

 

 

148,469

 

 

100,391

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

27,879

 

 

15,719

 

 

43,686

 

 

28,238

 

General and administrative

17,567

 

 

13,460

 

 

38,556

 

 

27,920

 

Sales and marketing

36,945

 

 

22,086

 

 

58,710

 

 

41,946

 

Amortization of intangible assets

9,765

 

 

3,652

 

 

14,065

 

 

4,591

 

Restructuring charges

702

 

 

41

 

 

702

 

 

903

 

Total operating expenses

92,858

 

 

54,958

 

 

155,719

 

 

103,598

 

Loss from operations

(4,825

)

 

(281

)

 

(7,250

)

 

(3,207

)

Interest expense

(11,844

)

 

(3,420

)

 

(15,855

)

 

(6,021

)

Interest income

418

 

 

169

 

 

1,383

 

 

413

 

Other income (expense), net

175

 

 

183

 

 

387

 

 

195

 

Loss before income taxes

(16,076

)

 

(3,349

)

 

(21,335

)

 

(8,620

)

(Benefit) provision for income taxes

(4,802

)

 

2,338

 

 

(12,064

)

 

(14,877

)

Net (loss) income

$

(11,274

)

 

$

(5,687

)

 

$

(9,271

)

 

$

6,257

 

Net (loss) income per share:

 

 

 

 

 

 

 

Basic

$

(0.33

)

 

$

(0.20

)

 

$

(0.27

)

 

$

0.22

 

Diluted

$

(0.33

)

 

$

(0.20

)

 

$

(0.27

)

 

$

0.20

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

34,459,359

 

 

28,628,173

 

 

34,312,971

 

 

28,485,695

 

Diluted

34,459,359

 

 

28,628,173

 

 

34,312,971

 

 

30,885,633

 

Carbonite, Inc.
Consolidated Balance Sheets (unaudited)
(In thousands)

 

 

June 30, 2019

 

December 31, 2018

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

83,378

 

 

$

198,087

 

Trade accounts receivable, net

47,110

 

 

31,569

 

Prepaid expenses and other current assets

22,573

 

 

10,409

 

Total current assets

153,061

 

 

240,065

 

Property and equipment, net

45,961

 

 

34,101

 

Right-of-use lease assets

48,299

 

 

 

Other assets

24,176

 

 

13,876

 

Acquired intangible assets, net

417,827

 

 

117,963

 

Goodwill

543,524

 

 

155,086

 

Total assets

$

1,232,848

 

 

$

561,091

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

7,787

 

 

$

2,114

 

Accrued compensation

20,919

 

 

11,620

 

Accrued expenses and other current liabilities

29,947

 

 

15,844

 

Current portion of deferred revenue

180,053

 

 

121,553

 

Total current liabilities

238,706

 

 

151,131

 

Long-term debt

598,301

 

 

118,305

 

Long-term lease liabilities

46,750

 

 

 

Deferred revenue, net of current portion

43,727

 

 

29,151

 

Long-term deferred tax liabilities

43,052

 

 

1,456

 

Other long-term liabilities

3,140

 

 

3,838

 

Total liabilities

973,676

 

 

303,881

 

Stockholders’ equity

 

 

 

Common stock

374

 

 

366

 

Additional paid-in capital

461,633

 

 

451,618

 

Treasury stock, at cost

(47,850

)

 

(48,522

)

Accumulated other comprehensive income

2,188

 

 

1,650

 

Accumulated deficit

(157,173

)

 

(147,902

)

Total stockholders’ equity

259,172

 

 

257,210

 

Total liabilities and stockholders’ equity

$

1,232,848

 

 

$

561,091

 

Carbonite, Inc.
Consolidated Statement of Cash Flows (unaudited)
(In thousands)

 

 

Six Months Ended
June 30, 2019

 

2019

 

2018

Operating activities

 

 

 

Net (loss) income

$

(9,271

)

 

$

6,257

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

34,214

 

 

17,763

 

Amortization of right-of-use lease assets

3,556

 

 

 

Amortization of deferred costs

1,413

 

 

931

 

Gain on disposal of equipment

(17

)

 

(141

)

Impairment of capitalized software

 

 

653

 

Stock-based compensation expense

9,717

 

 

8,478

 

Benefit for deferred income taxes

(12,241

)

 

(16,317

)

Non-cash interest expense related to amortization of debt discount

3,955

 

 

3,101

 

Other non-cash items, net

(262

)

 

64

 

Changes in assets and liabilities, net of acquisition:

 

 

 

Accounts receivable

3,401

 

 

(6,437

)

Prepaid expenses and other current assets

(394

)

 

(1,541

)

Other assets

(1,512

)

 

(3,771

)

Accounts payable

4,553

 

 

(3,895

)

Accrued expenses and other current liabilities

(6,254

)

 

2,549

 

Other long-term liabilities

(6,858

)

 

53

 

Deferred revenue

15,020

 

 

9,099

 

Net cash provided by operating activities

39,020

 

 

16,846

 

Investing activities

 

 

 

Purchases of property and equipment

(6,023

)

 

(7,795

)

Proceeds from sale of property and equipment and businesses

77

 

 

534

 

Proceeds from maturities of derivatives

1,340

 

 

1,680

 

Purchases of derivatives

(6

)

 

(1,403

)

Payment for intangibles

 

 

(1,250

)

Payment for acquisition, net of cash acquired

(622,009

)

 

(144,597

)

Net cash used in investing activities

(626,621

)

 

(152,831

)

Financing activities

 

 

 

Proceeds from exercise of stock options

263

 

 

942

 

Proceeds from issuance of treasury stock under employee stock purchase plan

1,582

 

 

1,215

 

Payments of withholding taxes in connection with restricted stock unit vesting

(905

)

 

(1,184

)

Proceeds from long-term borrowings, net of debt issuance costs

529,483

 

 

88,068

 

Payments on long-term borrowings

(55,000

)

 

(10,000

)

Net cash provided by financing activities

475,423

 

 

79,041

 

Effect of currency exchange rate changes on cash

(92

)

 

(305

)

Net decrease in cash, cash equivalents and restricted cash

(112,270

)

 

(57,249

)

Cash, cash equivalents and restricted cash, beginning of period

198,087

 

 

128,231

 

Cash, cash equivalents and restricted cash, end of period

$

85,817

 

 

$

70,982

 

 

Carbonite, Inc.
Reconciliation of GAAP to Non-GAAP Measures (unaudited)
(In thousands, except share and per share amounts)

Reconciliation of GAAP Revenue to Non-GAAP Revenue

 

 

Three Months Ended
June 30, 2019

 

Six Months Ended
June 30, 2019

 

2019

 

2018

 

2019

 

2018

GAAP revenue

$

121,510

 

 

$

77,734

 

 

$

202,725

 

 

$

141,760

 

Add:

 

 

 

 

 

 

 

Fair value adjustment of acquired deferred revenue

13,537

 

 

2,116

 

 

15,290

 

 

2,998

 

Non-GAAP revenue

$

135,047

 

 

$

79,850

 

 

$

218,015

 

 

$

144,758

 

Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin

 

 

Three Months Ended
June 30, 2019

 

Six Months Ended
June 30, 2019

 

2019

 

2018

 

2019

 

2018

Gross profit

$

88,033

 

 

$

54,677

 

 

$

148,469

 

 

$

100,391

 

Gross margin

72.4

%

 

70.3

%

 

73.2

%

 

70.8

%

Add:

 

 

 

 

 

 

 

Fair value adjustment of acquired deferred revenue

13,537

 

 

2,116

 

 

15,290

 

 

2,998

 

Amortization of intangibles

9,081

 

 

4,325

 

 

12,375

 

 

6,750

 

Stock-based compensation expense

478

 

 

413

 

 

902

 

 

738

 

Acquisition-related expense

 

 

3

 

 

14

 

 

57

 

Non-GAAP gross profit

$

111,129

 

 

$

61,534

 

 

$

177,050

 

 

$

110,934

 

Non-GAAP gross margin

82.3

%

 

77.1

%

 

81.2

%

 

76.6

%

Reconciliation of GAAP Net Income and Net Income per Share to Non-GAAP Net Income and Net Income per Share

 

 

Three Months Ended
June 30, 2019

 

Six Months Ended
June 30, 2019

 

2019

 

2018

 

2019

 

2018

GAAP net (loss) income

$

(11,274

)

 

$

(5,687

)

 

$

(9,271

)

 

$

6,257

 

Add:

 

 

 

 

 

 

 

Fair value adjustment of acquired deferred revenue

13,537

 

 

2,116

 

 

15,290

 

 

2,998

 

Amortization of intangibles

18,846

 

 

7,977

 

 

26,440

 

 

11,341

 

Stock-based compensation expense

5,512

 

 

4,741

 

 

9,717

 

 

8,478

 

Litigation-related expense

73

 

 

46

 

 

171

 

 

63

 

Restructuring-related expense

702

 

 

41

 

 

702

 

 

903

 

Acquisition-related expense

872

 

 

2,357

 

 

10,735

 

 

5,977

 

Non-cash debt interest expense

2,243

 

 

1,558

 

 

3,955

 

 

3,101

 

Less:

 

 

 

 

 

 

 

Income tax effect of non-GAAP adjustments

10,664

 

 

(1,027

)

 

22,455

 

 

16,818

 

Non-GAAP net income

$

19,847

 

 

$

14,176

 

 

$

35,284

 

 

$

22,300

 

GAAP net (loss) income per share:

 

 

 

 

 

 

 

Basic

$

(0.33

)

 

$

(0.20

)

 

$

(0.27

)

 

$

0.22

 

Diluted

$

(0.33

)

 

$

(0.20

)

 

$

(0.27

)

 

$

0.20

 

Non-GAAP net income per share:

 

 

 

 

 

 

 

Basic

$

0.58

 

 

$

0.50

 

 

$

1.03

 

 

$

0.78

 

Diluted

$

0.56

 

 

$

0.45

 

 

$

1.00

 

 

$

0.72

 

GAAP weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

34,459,359

 

 

28,628,173

 

 

34,312,971

 

 

28,485,695

 

Diluted

34,459,359

 

 

28,628,173

 

 

34,312,971

 

 

30,885,633

 

Non-GAAP weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

34,459,359

 

 

28,628,173

 

 

34,312,971

 

 

28,485,695

 

Diluted

35,277,653

 

 

31,718,232

 

 

35,285,788

 

 

30,885,633

 

Reconciliation of GAAP Operating Expense to Non-GAAP Operating Expense

 

 

Three Months Ended
June 30, 2019

 

Six Months Ended
June 30, 2019

 

2019

 

2018

 

2019

 

2018

Research and development

$

27,879

 

 

$

15,719

 

 

$

43,686

 

 

$

28,238

 

Less:

 

 

 

 

 

 

 

Stock-based compensation expense

1,611

 

 

1,047

 

 

2,557

 

 

1,734

 

Acquisition-related expense

 

 

2

 

 

83

 

 

37

 

Non-GAAP research and development

$

26,268

 

 

$

14,670

 

 

$

41,046

 

 

$

26,467

 

 

 

 

 

 

 

 

 

General and administrative

$

17,567

 

 

$

13,460

 

 

$

38,556

 

 

$

27,920

 

Less:

 

 

 

 

 

 

 

Stock-based compensation expense

2,290

 

 

2,494

 

 

4,248

 

 

4,618

 

Litigation-related expense

73

 

 

46

 

 

171

 

 

63

 

Acquisition-related expense

768

 

 

2,321

 

 

10,246

 

 

5,811

 

Non-GAAP general and administrative

$

14,436

 

 

$

8,599

 

 

$

23,891

 

 

$

17,428

 

 

 

 

 

 

 

 

 

Sales and marketing

$

36,945

 

 

$

22,086

 

 

$

58,710

 

 

$

41,946

 

Less:

 

 

 

 

 

 

 

Stock-based compensation expense

1,133

 

 

787

 

 

2,010

 

 

1,388

 

Acquisition-related expense

104

 

 

31

 

 

392

 

 

72

 

Non-GAAP sales and marketing

$

35,708

 

 

$

21,268

 

 

$

56,308

 

 

$

40,486

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

$

9,765

 

 

$

3,652

 

 

$

14,065

 

 

$

4,591

 

Less:

 

 

 

 

 

 

 

Amortization of intangible assets

9,765

 

 

3,652

 

 

14,065

 

 

4,591

 

Non-GAAP amortization of intangible assets

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

Restructuring charges

$

702

 

 

$

41

 

 

$

702

 

 

$

903

 

Less:

 

 

 

 

 

 

 

Restructuring-related expense

702

 

 

41

 

 

702

 

 

903

 

Non-GAAP restructuring charges

$

 

 

$

 

 

$

 

 

$

 

Calculation of Adjusted Free Cash Flow

 

 

Three Months Ended
June 30, 2019

 

Six Months Ended
June 30, 2019

 

2019

 

2018

 

2019

 

2018

Net cash provided by operating activities

$

20,276

 

 

$

13,555

 

 

$

39,020

 

 

$

16,846

 

Subtract:

 

 

 

 

 

 

 

Purchases of property and equipment

3,265

 

 

4,507

 

 

6,023

 

 

7,795

 

Free cash flow

17,011

 

 

9,048

 

 

32,997

 

 

9,051

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

Acquisition-related payments

7,182

 

 

3,681

 

 

10,853

 

 

5,328

 

Restructuring-related payments

 

 

461

 

 

 

 

1,125

 

Litigation-related payments

137

 

 

85

 

 

138

 

 

212

 

Adjusted free cash flow

$

24,330

 

 

$

13,275

 

 

$

43,988

 

 

$

15,716

 

 

Reconciliation of EBITDA and Adjusted EBITDA to Net (Loss) Income

 

 

Three Months Ended
June 30, 2019

 

Six Months Ended
June 30, 2019

 

2019

 

2018

 

2019

 

2018

Net (loss) income

$

(11,274

)

 

$

(5,687

)

 

$

(9,271

)

 

$

6,257

 

Adjustments:

 

 

 

 

 

 

 

Interest expense, net

11,426

 

 

3,251

 

 

14,472

 

 

5,608

 

Income tax (benefit) provision

(4,802

)

 

2,338

 

 

(12,064

)

 

(14,877

)

Depreciation and amortization

23,065

 

 

11,686

 

 

34,214

 

 

17,763

 

EBITDA

18,415

 

 

11,588

 

 

27,351

 

 

14,751

 

 

 

 

 

 

 

 

 

Adjustments to EBITDA:

 

 

 

 

 

 

 

Fair value adjustment of acquired deferred revenue

13,537

 

 

2,116

 

 

15,290

 

 

2,998

 

Stock-based compensation expense

5,512

 

 

4,741

 

 

9,717

 

 

8,478

 

Litigation-related expense

73

 

 

46

 

 

171

 

 

63

 

Restructuring-related expense

702

 

 

41

 

 

702

 

 

903

 

Acquisition-related expense

872

 

 

2,357

 

 

10,735

 

 

5,977

 

Adjusted EBITDA

$

39,111

 

 

$

20,889

 

 

$

63,966

 

 

$

33,170

 

 

Source: Carbonite, Inc.

Investor Relations Contact:
Jeremiah Sisitsky
Carbonite
781-928-0713
investor.relations@carbonite.com

Media Contact:
Sarah King
Carbonite
617-421-5601
media@carbonite.com


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