Post Earnings Coverage as Barracuda Sales Up 11%, Adjusted EPS More Than Tripled

Upcoming AWS Coverage on QUALCOMM Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 12, 2017 / Active Wall St. announces its post-earnings coverage on Barracuda Networks, Inc. (NYSE: CUDA). The Company released its third quarter fiscal 2017 financial results on January 09, 2017. The cloud based security and storage provider surpassed top- and bottom-line market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Barracuda Networks’ competitors within the Communication Equipment space, QUALCOMM Inc. (NASDAQ: QCOM), is expected to report its fiscal Quarter ending December 2016 earnings on January 25, 2017 after market close. AWS will be initiating a research report on QUALCOMM following the release of its earnings results.

Today, AWS is promoting its earnings coverage on CUDA; touching on QCOM. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=CUDA

http://www.activewallst.com/registration-3/?symbol=QCOM

Earnings Reviewed

For the three months ended November 30, 2016, Barracuda’s total revenue increased 11% to $88.8 million compared to $80.1 million in Q3 FY16. The Company’s revenue numbers outperformed analysts’ projections of $86.6 million.

During Q3 FY17, Barracuda’s GAAP net income was $1.8 million, or $0.03 per share, based on a diluted share count of 54.0 million compared to a GAAP net loss of $1.6 million, or $0.03 per share, in Q3 FY16. For the reported quarter, the Company’s non-GAAP net income was $11.6 million, or $0.22 per share, compared to non-GAAP net income of $3.98 million, or $0.07 per share. Non-GAAP net income excludes $9.2 million in stock-based compensation expense, $2.4 million in other expense, $1.8 million in amortization of intangibles, $0.2 million in acquisition and other charges, and was partially offset by an income tax effect of $3.7 million. The Company’s non- GAAP earnings number topped Wall Street’s expectations of $0.14 per share.

Segment Results

During Q3 FY17, Barracuda’s subscription revenue grew to $68.3 million, up 17% from $58.4 million in Q3 FY16, representing 77% of total revenue, while the Company’s appliance revenue totaled $20.5 million compared to $21.7 million in the year ago same period. The subscription ARR for Barracuda’s core products was $155 million, representing 25% y-o-y organic growth. The Company’s legacy on-prem billings were $35.9 million, reflecting the seasonally lower third-quarter renewal pool.

On a geographical basis, Barracuda generated 76% of total Q3 FY17 revenue from the Americas. The Company’s revenue from EMEA accounted for 18% of total revenue, and Asia/Pacific was 6% of total revenue. The Company stated that Asia/Pacific region delivered the largest quarter for new business in the region’s history.

During Q3 FY17, Barracuda’s gross billings were $100.4 million compared to $89.0 million in Q3 FY16. Billings for core products increased 30% to $61.6 million in the reported quarter compared to $47.2 million in the year ago corresponding period and ahead of the Company’s expectations. During the reported period, the number of Barracuda’s active subscribers grew approximately 15% to over 309,000 and the dollar-based renewal rate was 90%. The Company achieved over $100 million in gross billings for the second consecutive quarter.

Operating Metrics

During Q3 FY17, Barracuda delivered $16.6 million in non-GAAP operating income, more than double the amount generated in the year earlier quarter. The Company’s non-GAAP gross margin in the reported quarter was 79.6%, a 60 basis point decrease from the year earlier quarter. The decrease in the quarter reflects additional investments made to increase its data center capacity to accommodate growth for the cloud delivered services. Non-GAAP operating expenses in Q3 FY17 were $51.9 million or 58% of revenue compared to 70% in Q3 FY16 and 59% in Q2 FY17.

Balance Sheet

In Q3 FY17, Barracuda generated $18.9 million of adjusted EBITDA, or 21% of revenue, compared to $7.9 million, or 10% of revenue, in the same quarter of last year. Free cash flow in the reported quarter was $13.8 million compared to $3.2 million in Q3 FY16.

Outlook

For Q4 FY17, Barracuda is expecting billings to be in the range of $100 million to $103 million. The Company is projecting revenue to be in the range of $87 million to $89 million. Guidance for non-GAAP operating income for Q4 FY17 is forecasted to be between $10 million and $12 million. Non-GAAP earnings per share for the upcoming quarter are expected to be between $0.13 and $0.15 per share.

Stock Performance

At the closing bell, on Wednesday, January 11, 2017, Barracuda Networks’ stock climbed 3.37%, ending the trading session at $24.83. A total volume of 2.75 million shares were traded at the end of the day, which was higher than the 3-month average volume of 716.95 thousand shares. In the last six months and previous twelve months, shares of the Company have advanced 25.53% and 136.70%, respectively. Moreover, the stock gained 15.87% since the start of the year. The stock currently has a market cap of $1.28 billion.

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