Carbonite, Inc. EBITDA surged on 461% and Revenue surged on 23.8%
02/07/2019 • About Carbonite, Inc. (
$CARB) • By InTwits
Carbonite, Inc. reported 2018 financial results today. Here are the key drivers of the company's long term financial model:
- Carbonite, Inc. is a fast growth stock: 2018 revenue growth was 23.8%, 5 year revenue CAGR was 22.6% at 2018 ROIC 1.4%
- EBITDA Margin is quite volatile: 18.3% in 2018, 4.0% in 2017, 6.3% in 2016, -5.9% in 2015, 3.2% in 2014
- Carbonite, Inc. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.8%. At the same time it's a lot of higher than industry average of 5.2%.
- CAPEX is quite volatile: $13m in 2018, $17m in 2017, $7m in 2016, $10m in 2015, $14m in 2014
- The company has potentially unprofitable business model: ROIC is 1.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 23.8%. Revenue growth showed acceleration in 18Q4 - it increased 24.8% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.8 pp from 10.7% to 15.6% in 2018.
Gross Margin showed almost no change in 2018. SG&A as a % of Revenue dropped on 10.1 pp from 56.1% to 45.9% in 2018.
Net Income margin increased on 4.2 pp from -1.7% to 2.6% in 2018. During the last 5 years Net Income margin bottomed in 2015 at -15.8% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In 2018 Carbonite, Inc. had CAPEX/Revenue of 4.4%. CAPEX/Revenue decreased on 2.7 pp from 7.1% in 2015 to 4.4% in 2018. It's average level of CAPEX/Revenue for the last three years was 5.0%.
Return on investment
The company operates at low ROIC (1.4%) and ROE (5.1%). ROIC jumped on 16.2 pp from -14.8% to 1.4% in 2018. ROE surged on 23.3 pp from -18.2% to 5.1% in 2018. During the last 5 years ROIC bottomed in 2015 at -265% and was growing since that time. During the last 5 years ROE bottomed in 2015 at -277% and was growing since that time.
Leverage (Debt)
Debt level is -1.5x Net Debt / EBITDA and 2.2x Debt / EBITDA. Debt increased on 5.8% while cash surged on 54.5%.
The company has no short term refinancing risk: short term debt is zero.
Valuation and dividends
The company's trades at EV/EBITDA 13.9x and P/E 110.5x.
Management team
The company's CEO Stephen Munford "Steve" is a founder and has spent 4 years with the company. Carbonite, Inc.'s CFO Anthony Folger has spent 6 years with the company.
Financial and operational results
FY ended 12/31/2018
Carbonite, Inc. ($CARB) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 122.6 | 136.6 | 207.0 | 239.5 | 296.4 | 23.8% |
| Gross Profit | 84.1 | 97.8 | 146.0 | 169.4 | 211.0 | 24.6% |
| SG&A | 67.7 | 90.9 | 114.7 | 134.3 | 136.2 | 1.4% |
| EBITDA | 3.9 | -8.0 | 13.1 | 9.7 | 54.3 | 461.3% |
| Net Income | -9.4 | -21.6 | -4.1 | -4.0 | 7.6 | |
Balance Sheet
|
|---|
| Cash | 46.1 | 63.9 | 59.2 | 128.2 | 198.1 | 54.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 111.8 | 118.3 | 5.8% |
Cash flow
|
|---|
| Capex | 14.5 | 9.7 | 6.6 | 17.4 | 13.1 | -24.3% |
Ratios
|
|---|
| Revenue growth | 14.4% | 11.4% | 51.5% | 15.7% | 23.8% | |
| EBITDA growth | 90.6% | -306.6% | -263.1% | -26.1% | 461.3% | |
|
|---|
| Gross Margin | 68.5% | 71.6% | 70.6% | 70.7% | 71.2% | 0.5% |
| EBITDA Margin | 3.2% | -5.9% | 6.3% | 4.0% | 18.3% | 14.3% |
| SG&A, % of revenue | 55.2% | 66.6% | 55.4% | 56.1% | 45.9% | -10.1% |
| Net Income Margin | -7.6% | -15.8% | -2.0% | -1.7% | 2.6% | 4.2% |
| CAPEX, % of revenue | 11.8% | 7.1% | 3.2% | 7.2% | 4.4% | -2.8% |
|
|---|
| ROIC | -62.4% | -265.1% | -49.1% | -14.8% | 1.4% | 16.2% |
| ROE | -68.4% | -276.9% | -118.7% | -18.2% | 5.1% | 23.3% |
| Net Debt/EBITDA | -11.9x | | -4.5x | -1.7x | -1.5x | 0.2x |
Carbonite, Inc. ($CARB) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 64 | 78 | 78 | 77 | | 12.1% | 31.7% | 26.0% | 24.8% |
| EBITDA | 3 | 11 | 16 | 15 | | | 1,233.9% | 255.3% | 135.7% |
| Net Income | 12 | -6 | 1 | 1 | | 57.3% | | | |
Balance Sheet
|
|---|
| Cash | 71 | 71 | 201 | 198 | | 69.8% | -43.3% | 68.3% | 54.5% |
| Short Term Debt | 0 | 0 | 117 | 0 | | | | | |
| Long Term Debt | 203 | 195 | 0 | 118 | | 420.7% | 79.3% | -100.0% | 5.8% |
Ratios
|
|---|
| Gross Margin | 71.4% | 70.3% | 71.9% | 71.2% | | 1.8% | 1.4% | 0.4% | -1.6% |
| EBITDA Margin | 4.9% | 14.7% | 20.8% | 19.1% | | 8.4% | 13.2% | 13.4% | 9.0% |
| Net Income Margin | 18.7% | -7.3% | 0.8% | 0.9% | | 5.4% | 3.5% | 6.6% | 3.6% |
Peers in Internet Services & Infrastruc
Below we provide Carbonite, Inc. benchmarking against other companies in Internet Services & Infrastruc industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Liberated Syndication Inc ($LSYN) | | | | 20.4% | 108.0% |
| GTT Communications, Inc. ($GTT) | | 78.1% | 41.3% | 58.7% | 80.1% |
| MongoDB, Inc. ($MDB) | | | | 55.3% | 63.8% |
| Twilio Inc. ($TWLO) | | 87.9% | 66.1% | 43.9% | 62.9% |
| Okta, Inc. ($OKTA) | | | 109.5% | 86.6% | 60.0% |
| |
|---|
| Median (15 companies) | 25.5% | 13.9% | 13.3% | 10.6% | 16.9% |
|---|
| Carbonite, Inc. ($CARB) | | 11.4% | 51.5% | 15.7% | 23.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Liberated Syndication Inc ($LSYN) | | | 68.1% | 77.5% | 84.9% |
| VeriSign, Inc. ($VRSN) | 81.3% | 81.8% | 82.6% | 83.4% | 84.2% |
| Wix.com Ltd. ($WIX) | 81.6% | 82.8% | 84.4% | 83.7% | 79.0% |
| MongoDB, Inc. ($MDB) | | | 68.0% | 70.5% | 74.2% |
| Okta, Inc. ($OKTA) | | 54.3% | 58.1% | 65.1% | 68.5% |
| |
|---|
| Median (15 companies) | 48.4% | 54.3% | 59.2% | 61.7% | 64.9% |
|---|
| Carbonite, Inc. ($CARB) | 68.5% | 71.6% | 70.6% | 70.7% | 71.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| VeriSign, Inc. ($VRSN) | 62.2% | 63.0% | 65.2% | 65.0% | 67.1% |
| Liberated Syndication Inc ($LSYN) | | | 32.0% | -29.9% | 32.2% |
| Internap Corporation ($INAP) | 20.0% | 21.0% | -5.4% | 28.4% | 30.5% |
| Akamai Technologies, Inc. ($AKAM) | 37.5% | 34.8% | 33.9% | 27.6% | 29.4% |
| Endurance International Group Holdings, Inc. ($EIGI) | 23.2% | 24.0% | 14.8% | 20.0% | 26.0% |
| |
|---|
| Median (15 companies) | 6.1% | 2.9% | -5.1% | -7.1% | 14.4% |
|---|
| Carbonite, Inc. ($CARB) | 3.2% | -5.9% | 6.3% | 4.0% | 18.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Akamai Technologies, Inc. ($AKAM) | 16.2% | 20.2% | 13.5% | 16.7% | 14.9% |
| 21Vianet Group, Inc. ($VNET) | 32.6% | 29.0% | 15.8% | 11.7% | 12.8% |
| Internap Corporation ($INAP) | 24.0% | 17.5% | 14.9% | 12.7% | 12.1% |
| Limelight Networks, Inc. ($LLNW) | 11.5% | 14.5% | 5.7% | 11.2% | 8.2% |
| GTT Communications, Inc. ($GTT) | 2.8% | 3.8% | 4.6% | 5.1% | 5.2% |
| |
|---|
| Median (15 companies) | 3.9% | 3.8% | 4.0% | 3.8% | 3.0% |
|---|
| Carbonite, Inc. ($CARB) | 11.8% | 7.1% | 3.2% | 7.2% | 4.4% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| VeriSign, Inc. ($VRSN) | 60.6% | 68.7% | 65.2% | 54.3% | 81.9% |
| Liberated Syndication Inc ($LSYN) | | | | -13.2% | 12.1% |
| Akamai Technologies, Inc. ($AKAM) | 15.5% | 12.5% | 11.9% | 7.9% | 8.2% |
| Endurance International Group Holdings, Inc. ($EIGI) | 1.0% | 4.2% | -2.3% | 2.0% | 7.5% |
| GoDaddy Inc. ($GDDY) | -3.3% | -1.7% | 2.9% | 2.7% | 4.6% |
| |
|---|
| Median (16 companies) | -2.4% | -4.4% | -11.3% | -13.2% | 1.0% |
|---|
| Carbonite, Inc. ($CARB) | -62.4% | -265.1% | -49.1% | -14.8% | 1.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| GTT Communications, Inc. ($GTT) | 3.1x | 7.4x | 6.8x | 7.2x | 12.7x |
| Internap Corporation ($INAP) | 5.1x | 5.3x | | 6.5x | 6.9x |
| Endurance International Group Holdings, Inc. ($EIGI) | 7.3x | 6.0x | 11.8x | 7.8x | 5.8x |
| GoDaddy Inc. ($GDDY) | 14.0x | 5.4x | 2.3x | 6.8x | 3.9x |
| VeriSign, Inc. ($VRSN) | 1.9x | 2.5x | 2.2x | 2.6x | 1.8x |
| |
|---|
| Median (9 companies) | 4.1x | 3.9x | 2.2x | 6.5x | 1.8x |
|---|
| Carbonite, Inc. ($CARB) | -11.9x | | -4.5x | -1.7x | -1.5x |
