When Barracuda Networks Inc. (NYSE: CUDA) reported its fiscal third-quarter earnings report after the markets closed on Monday, the company said that it had $0.22 in earnings per share (EPS) and $88.8 million in revenue. Consensus estimates from Thomson Reuters had called for $0.14 in EPS and revenue of $86.59 million. In the same period of last year, it posted EPS of $0.07 and $80.09 million in revenue.
Keep in mind that three major banks are reporting earnings at the end of this week to kick off the new earnings season.
Total revenue increased 11% from the same quarter of last year. Subscription revenue grew to $68.3 million, up 17% from $58.4 million in same period from last year, representing 77% of total revenue. Appliance revenue was $20.5 million, compared with $21.7 million at the same time.
During the quarter, the company announced the availability of Barracuda NextGen Firewall on Google Cloud Platform, marking the first next-generation firewall available on Google Cloud Platform. Barracuda NextGen Firewall, which is available directly on AWS Marketplace, Microsoft Azure and now Google Cloud Platform, is designed for the cloud era, with features that enable direct access to cloud applications in dispersed networks where quality of service, network reliability and secure connectivity are required at every location.
On the books, Barracuda Networks cash, cash equivalents and marketable securities totaled $194.3 million at the end of the quarter, up from $155.0 million at the end of the previous fiscal year.
B. J. Jenkins, president and CEO, commented:
Barracuda delivered a strong third quarter with core product billings outpacing our expectations, driven in part by increasing customer adoption of our cloud-based security and data protection solutions. We continue to execute on our strategy to capitalize on market trends as more customers utilize our solutions as they move applications and workloads to the cloud. The threat landscape is complex and constantly evolving. As threats become more sophisticated, security remains a top priority for customers. We continue to drive innovation and deliver easy-to-use products that address our customers’ most pressing security needs across multiple threat vectors, including email, networks, web applications and mobile devices.
Shares of Barracuda closed Monday up 4% to $23.77, with a consensus analyst price target of $26.87 and a 52-week trading range of $9.44 to $26.69. Following the release, the stock was up 8% at $25.75 in early trading indications Tuesday.