Carbonite Posts Relatively In-Line Fourth-Quarter Results
Carbonite (NASDAQ:CARB) reported relatively in-line fourth-quarter results, led by sales of its server backup product. The company reported fourth-quarter revenue of $31.9 million and non-GAAP loss per share of $0.03, which were both in line with consensus estimates. The company continues to build its network of channel partners, which saw a 36% year-over-year increase and now comprises over 5,800 partners (e.g., value-added-resellers, systems integrators, distributors).
Still, the company witnessed weaker-than-expected SMB bookings largely due to lower sales of the endpoint backup into the SMB segment; this trend is not unsurprising given that most important documents and data are stored on servers rather than on users’ end devices, so server and application backup is much more critical than device backup. The server backup solution has the potential to drive meaningful growth for the company, as it provides a high value proposition when compared with legacy on-premise backup solutions, and offers a differentiated pricing strategy from competitors.
In addition, the company will continue to develop its acquired MailStore e-mail archiving solution to provide cloud data backup capabilities, which—when coupled the cross-selling efforts—should drive double-digit-plus growth in 2015.
Shares of Carbonite closed today at $14.90. CARB has a 1-year high of $15.16 and a 1-year low of $8.26. The stock’s 50-day moving average is $14.22 and its 200-day moving average is $11.78.
Carbonite, Inc. provides cloud backup solutions with access to files stored in its servers in the United States.