Barracuda Networks Wins Big on the Bottom Line

By Chris Lange Updated Jan 13, 2:32AM EST · Published Oct 11, 4:22PM EDT

Barracuda Networks Wins Big on the Bottom Line — © Thinkstock

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.

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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.