Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Carbonite Inc | ex991-q42017pressrelease.htm |
| 8-K - 8-K - Carbonite Inc | a8-kq42017earningsrelease.htm |
carbonite.com 1
Carbonite, Inc.
Q4 and FY 2017 Financial Results
February 13, 2018
carbonite.com 2
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. 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
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, 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, Bookings, non-GAAP Revenue, non-GAAP Gross Margin,
non-GAAP Net Income and non-GAAP Net Income Per Share, 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.
carbonite.com 3
Financial Results Conference Call Details
What: Carbonite Q4 and FY 2017 Financial Results Conference Call
When: Tuesday, February 13, 2018
Time: 5:30 p.m. ET
Live Call: 877-303-1393 (U.S.)
315-625-3228 (International)
Conference ID: 1669107
Live / Recorded Webcast: http://investor.carbonite.com
carbonite.com 4
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 and divestitures, net of foreign exchange during the same period.
Non-GAAP revenue: Excludes the impact of purchase accounting adjustments in connection with acquisitions.
Non-GAAP gross margin: Excludes the impact of purchase accounting adjustments on acquired deferred revenue, amortization expense on intangible assets, stock-based
compensation expense, acquisition-related expense and intangible asset impairment charges.
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 on acquired deferred revenue, amortization expense on intangible assets, stock-based compensation expense, litigation-related expense, restructuring-related expense,
acquisition-related expense, intangible asset impairment charges, non-cash convertible debt interest 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
acquisitions, restructuring, litigation 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
carbonite.com 5
Carbonite Announces Acquisition of Mozy
Mozy is one of the leading providers in online backup
• ~35,000 business customers
• ~100,000 consumers
• +2,000 partners / resellers
• Capitalizing on the Carbonite data protection platform
• Profitably adds new customers
• Meaningfully expands the partner channel
• Creates opportunity for cross-sell
carbonite.com 6
Transaction Details
The Deal Acquiring Mozy, Inc. from a subsidiary of
Dell Technologies Inc.
Purchase Price $145.8 million in cash
Source of Funds Financed through cash on-hand and new
$120 million revolving credit facility
Transaction Closing Expected to close later in Q1 2018
Subject to customary closing conditions and regulatory approval
carbonite.com 7
Carbonite’s Transformation – 2014 - Today
>2x $25m>40%
620
Bps
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
More than doubled
non-GAAP revenue
More than 40%
business bookings
CAGR
620 Bps increase in
non-GAAP Gross
Margin
~$25 m in share
repurchases
carbonite.com 8
Hours Minutes Seconds
Backup Disaster recovery High availability
Our transformation to a data protection platform
From laptop backup to complete data protection for any IT environment
Cloud
Virtual
Physical
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Carbonite is building the data protection platform
Computer
Physical server
Virtual server
Cloud server
Backup &
Archiving
Workload
portability
Carbonite Endpoint
Backup
Carbonite Hybrid
Backup
Carbonite Cloud
Backup
Carbonite Move
Carbonite Cloud
Migration
Carbonite MailStore
Carbonite Endpoint
Backup
DR as a Service (DRaaS )
& High availability
Carbonite Availability
Carbonite DRaaS
Not applicable
carbonite.com 10
2018: one solution, easy to consume & world’s best support
One solution across
all systems
Exceptional support
before, during and
after an outage
From physical to virtual,
legacy systems and cloud
Easy to consume via
single API and UX
Easy to configure, operate,
test, fail over and fail back
24x7 support, ensuring tests
successful, recovery smooth
2017 Gold Stevie Awards for
Contact Center of the year
and Customer Service
Leader of the Year
carbonite.com 11
Carbonite Recover – Disaster-Recovery-as-a-Service
carbonite.com 12
Summary Q4 Financial Results
Q4 2017 Outlook Q4 2017 Results
GAAP Revenue $61.5 M to $63.5 M $61.7 M (+15% YoY)
Non-GAAP Revenue $63.0 M to $65.0 M $62.8 M (+17% YoY)
GAAP Net Loss Per Share Not guided $(0.06)
Non-GAAP Net Income Per Share
(Basic / Diluted)
$0.27 to $0.31 $0.31 /$0.30
Consumer Bookings YoY Growth Not guided $19.4 M (-4% YoY)
Business Bookings Not guided $40.8 M (+20% YoY)
Non-GAAP Gross Margin Not guided 77.6%
Adjusted Free Cash Flow Not guided $9.7 M
*With respect to expectations under “Q4 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,
restructuring-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
carbonite.com 13
Summary FY 2017 Financial Results
FY 2017 Outlook FY 2017 Results
GAAP Revenue $239.2 M to $241.2 M $239.5 M (+16% YoY)
Non-GAAP Revenue $246.3 M to $248.3 M $246.1 M (+18% YoY)
GAAP Net Loss Per Share Not guided $(0.14)
Non-GAAP Net Income Per Share
(Basic / Diluted)
$0.76 to $0.80 $0.82 / $0.79
Consumer Bookings (10%) to 0% growth $81.8 M (-4% YoY)
Business Bookings $163.8 M to $168.8 M $164.1 M (+32% YoY)
Non-GAAP Gross Margin ~75.0% 75.5%
Adjusted Free Cash Flow $16.0 M to $20.0 M $20.2 M
*With respect to expectations under “FY 2017 Outlook" above, the Company has not reconciled non-GAAP net income per share to net income (loss) per share because we do not provide guidance for stock-based compensation expense, litigation-related expense,
restructuring-related expense, acquisition-related expense, amortization expense on intangible assets and the income tax effect of non-GAAP adjustments as we are unable to quantify certain of these amounts that would be required to be included in the GAAP
measure without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors.
Source: SEC Filings; For a full reconciliation of GAAP to non-GAAP, please visit the investor relations portion of the Carbonite web site – investor.carbonite.com
carbonite.com 14
Subscription Business Bookings
Bookings Growth
Annual Bookings ($M)
Approximate, may not foot due to rounding. Source: SEC Filings and company estimates; For a full reconciliation of GAAP to non-GAAP, please visit the investor relations portion of the Carbonite web site – investor.carbonite.com
Quarterly Bookings ($M)
Business BookingsConsumer Bookings
+11%
Q4 ‘17 YoY
growth
-4%
+20%
+15%
+17%
FY ‘17 YoY
growth
-4%
+32%
$19 $32
$40 $55
$124
$164
$80
$84
$88
$90
$85
$82
$98
$116
$128
$145
$209
$246
2012 2013 2014 2015 2016 2017
$28.8
$33.9
$40.1
$43.0
$40.2 $40.8
$20.4
$20.1
$22.0
$20.9
$19.5 $19.4
$23.4
$26.1 $27.3
$29.3 $27.6
$30.0
$49.2
$54.0
$62.1 $63.9
$59.7 $60.2
Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17
carbonite.com 15
Revenue Growth
Annual non-GAAP Revenue ($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
Quarterly non-GAAP Revenue ($M)
$84.0
$107.2
$122.6
$136.6
$209.3
$246.1
2012 2013 2014 2015 2016 2017
$52.5
$53.9
$59.1
$61.1
$63.1 $62.8
Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17
carbonite.com 16
Improving Gross Margin
Annual non-GAAP Gross Margin* Quarterly non-GAAP Gross Margin*
+360 Bps
+930 Bps
*As a percentage of non-GAAP revenue; 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
66.2%
68.4%
69.3%
73.1%
72.6%
75.5%
2012 2013 2014 2015 2016 2017
72.2%
74.0% 73.8%
74.1%
76.3%
77.6%
Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17
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Driving Operating Leverage
Sales and Marketing*
*As a percentage of non-GAAP revenue; 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
Research and Development*
-490 Bps-1,460 Bps
49.7%
42.9%
39.6%
38.1%
34.0%
35.1%
2012 2013 2014 2015 2016 2017
22.3%
18.6% 18.6%
19.5%
15.3%
17.4%
2012 2013 2014 2015 2016 2017
carbonite.com 18
2018 Expected Financial Impact* – Mozy
FY 2018
Expected Mozy Contribution
Bookings** $50.0 M to $55.0 M
Non-GAAP Revenue $40.0 M to $45.0 M
Non-GAAP Net Income Per Share (Diluted) ~$0.25
*With respect to our expectations 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, restructuring-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.
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
**Expect approximately 85% of bookings are business bookings
carbonite.com 19
Business Outlook (as of February 13, 2018)*
Q1 2018
Outlook
FY 2018
Outlook
Growth at
midpoint
(YoY)
GAAP Revenue $61.7 M to $63.7 M $294.0 M to $304.0 M +25%
Non-GAAP Revenue $63.0 M to $65.0 M $302.5 M to $312.5 M +25%
Non-GAAP Net Income Per Share (Diluted) $0.20 to $0.24 $1.45 to $1.55 +90%
Business Bookings Not guided $223.8 M to $234.8 M +40%
Consumer Bookings YoY Growth Not guided 5% to 15% growth +1,000 Bps
Non-GAAP Gross Margin Not guided 76.0% to 77.0% +100 Bps
Adjusted Free Cash Flow Not guided $32.0 M to $38.0 M +73%
*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,
restructuring-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.
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
carbonite.com 20
Carbonite ASC 606 Impact
• Minimal impact, majority of revenue is SaaS
• Revenue from term licenses and certain MSP
arrangements currently recognized ratably will now be
primarily recognized upfront
Revenue
Profitability • Commissions and third-party referral fees were expensed
in period will now be recognized ratably over multiple
periods
• The actual impact of the adoption of ASC 606 will depend
on the timing and mix of our 2018 bookings