Barracuda Networks Wins Big on the Bottom Line

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Barracuda Networks Inc. (NYSE: CUDA) reported fiscal second-quarter financial results after markets closed on Tuesday. The company said that it had $0.21 in earnings per share (EPS) on $87.9 million in revenue. Thomson Reuters has consensus estimates calling for $0.13 in EPS on $85.27 million in revenue. The same period from last year had $0.10 in EPS and $78.37 million in revenue.

Gross billings were $100.3 million, compared with $98.4 million in the second quarter of fiscal 2016. The number of active subscribers grew approximately 14% to over 298,000 and the dollar-based renewal rate was 96% for the quarter.

During this quarter, the company announced the availability of the new Barracuda Email Threat Scan for Office 365, a cloud-based service that identifies latent threats, including hidden advanced persistent threats, within Microsoft Office 365 email accounts.

Also Barracuda launched Microsoft SharePoint Online backup capability for Barracuda Cloud-to-Cloud Backup, which is available as a standalone product and as part of Barracuda Essentials for Office 365. Barracuda now offers granular backup and recovery options for Microsoft SharePoint Online.

B.J. Jenkins, president and CEO, commented:

In the second quarter, we are pleased with our financial results, and continue to execute on our strategy to position Barracuda as the clear choice to help customers protect their email, networks, applications and data across diverse and distributed deployments. Our total revenue grew 12% year-over-year, gross billings reached $100.3 million and our non-GAAP earnings per share more than doubled year-over-year to reach $0.21 per share. We continue to innovate and bring new solutions to market that fortify the security fabric across public, private and hybrid cloud deployments and can be centrally managed from a single pane of glass. We believe Barracuda is well positioned to build on our momentum and be a market leader in our targeted focus areas as customers look to adopt new application and network deployment models and move workloads to the cloud.

On the books, cash, cash equivalents and marketable securities totaled $179.6 million at the end of the quarter, versus $155.0 at the end of the previous fiscal year.

Shares of Barracuda closed Tuesday down 3% at $23.33, with a consensus analyst price target of $21.89 and a 52-week trading range of $9.44 to $25.77. Following the release of the earnings report the stock was up nearly 6% at $24.69 in the after-hours trading session.