This cloud company beat earnings estimates by $0.16 last quarter, posting EPS of $0.19 per share. Analysts are forecasting double-digit growth for the next five years.
Carbonite, Inc. (CARB)
From The Oberweis Report
Carbonite, Inc. (CARB) provides cloud and hybrid business continuity solutions that provide powerful features packaged in a cost-effective, simple and secure manner and are designed to address the specific needs of small and medium-sized businesses (“SMBs”), and individuals.
The company sells Carbonite-branded products, as well as acquired brands including MailStore and eVault. Carbonite completed the acquisition of the North American assets of eVault from Seagate Technology in January of 2016. And in its latest reported quarter, Carbonite management noted a faster than expected integration and strong than expected results from the business. eVault solutions provide disaster recovery and business continuity solutions for SMB’s and small enterprises, and, unlike many competing solutions, are available as cloud-cased appliances and cloud services.
Carbonite derives the majority of its revenue from subscription fees and the remainder of revenue from software arrangements. For subscription sales, the company generally charges customers the full subscription amount at the beginning of each subscription period.
Carbonite has tiered business offerings that provide a fixed amount of cloud storage for an unlimited number of connected devices, and customers can purchase additional cloud storage at any time after the commencement of a subscription. For individuals, the company offers three different annual cloud backup solutions, each including unlimited storage for one computer.
In the company’s latest reported second quarter, sales increased approximately 60% to $54.2 million from $34.0 million in the third quarter of last year. Carbonite reported earnings per share of $.19 in the latest reported second quarter versus a loss in the same quarter of last year.
Jim Oberweis, CFA, The Oberweis Report, www.oberweisreport.com, 800-323-6166, September 2016