Earnings Review and Free Research Report: Barracuda's Revenue Grew 9%; Subscription Revenue Advanced 13%

LONDON, UK / ACCESSWIRE / July 14, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Barracuda Networks, Inc. (NYSE: CUDA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CUDA, following the Company's posting of its first quarter fiscal 2018 earnings results on July 10, 2017. The leading provider of cloud-enabled security and data protection solutions outperformed revenue expectations and met earnings estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For its first quarter fiscal 2018 that ended May 31, 2017, Barracuda's total revenue increased 9% to $94.2 million compared with $86.7 million in Q1 FY17. The Company's revenue numbers surpassed analysts' expectations of $91.3 million.

In Q1 FY18, Barracuda's non-GAAP research and development expenses were $16.7 million, while it's non-GAAP sales and marketing expenses were $33.5 million, and non-GAAP general and administrative expenses totaled $7.2 million. Barracuda's non-GAAP operating income was $14 million in Q1 FY18 compared with $15.3 million in Q1 FY17.

Barracuda generated $16.5 million of adjusted EBITDA, or 18% of revenue, in Q1 FY18 compared with $17.7 million, or 20% of revenue, in Q1 FY17.

Barracuda posted GAAP net income of $2.7 million, or $0.05 per share, for Q1 FY18 compared to GAAP net income of $2.8 million, or $0.05 per share, in Q1 FY17. The Company's non-GAAP net income for the reported quarter totaled $10.0 million, or $0.18 per share. Barracuda's non-GAAP net income excludes $7.4 million in stock-based compensation expense, $1.8 million in income tax benefits, $1.7 million in amortization of intangibles, $1.0 million in other income, and $0.9 million in the acquisition and other charges.

Subscription Detail

During Q1 FY18, Barracuda's subscription revenue grew 13% to $73.9 million compared with from $65.3 million in Q1 FY17. The subscription revenue represented 78% of total revenue, while its appliance revenue totaled $20.3 million in the reported quarter compared with $21.3 million in the prior year's same quarter. Barracuda derived 76% of total Q1 FY18 revenue from the Americas, 18% from EMEA, and 6% from Asia/Pacific.

Barracuda's gross billings totaled $105.2 million in Q1 FY18 compared with $98.2 million in Q1 FY17. The Company's billings for core products advanced 20% to $67.1 million in the reported quarter versus $55.9 million in the prior year's comparable quarter.

Barracuda's total subscription annual recurring revenue (ARR) revenue grew to $294 million in Q1 FY18, which represents a 12% increase on a y-o-y basis. The Company's core subscription ARR grew 23% to reach $172 million. The Company's legacy on-premise billings totaled $35.8 million, down 5% from the prior year, and the corresponding subscription ARR totaled $117 million. Barracuda's non-core billings in the reported quarter totaled $2.3 million compared with $4.4 million in the prior year's same quarter.

Barracuda's active subscribers' numbers surged approximately 17% to over 335,000 as of May 31, 2017. The renewal rate was 90% on a dollar basis and in constant currency, and 93% on an annualized basis.

Cash Matters

Barracuda's operating cash flow for Q1 FY18 was $20.2 million, up 67% compared to Q1 FY17. The Company's free cash flow for the reported quarter totaled $15.5 million, up 52% on a y-o-y basis. Barracuda's free cash flow reflects an increase in capital investments as the Company continues to scale its infrastructure to support cloud-based services.

Barracuda closed Q1 FY18 with cash, cash equivalents, and marketable securities of $207 million. During the reported quarter, the Company repurchased a total of 331,413 shares in the open market at an average weighted cost of $19.75 per share for a total consideration of $6.5 million. As of the end of Q1 FY18, under its current $50 million share buyback authorization, Barracuda has repurchased a total of 2.3 million shares at an average weighted cost of $14.30 per share for a total consideration of $33.4 million.

Outlook

For Q2 FY18, Barracuda is forecasting billings to be in the range of $105 million to $108 million. The Company expects revenue to be in the range of $92 million to $94 million.

Barracuda is estimating non-GAAP operating income for Q2 FY18 in the range of $12 million and $14 million. The Company's non-GAAP earnings per share for the upcoming quarter are expected to be between $0.16 and $0.18 per share.

Stock Performance

On Thursday, July 13, 2017, the stock closed the trading session at $22.90, dropping 1.21% from its previous closing price of $23.18. A total volume of 720.81 thousand shares has exchanged hands. Barracuda Networks' stock price surged 3.57% in the last one month and 15.77% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 6.86%. The stock is trading at a PE ratio of 119.90 and currently, has a market cap of $1.24 billion.

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