Barracuda Networks (CUDA 22.75, -1.25) has given up 5.2% in pre-market despite reporting in-line earnings and reaffirming its guidance.
The security, networking, and data storage company reported first quarter earnings of $0.18 per share on revenue of $94.18 million, which increased 8.7% year-over-year and exceeded estimates. The company's top line was also ahead of its guidance for sales between $90.00 million and $92.00 million.
Subscription revenue, which accounted for 78.0% of total revenue, grew 13.2% year-over-year to $73.90 million. Appliance revenue declined 4.7% year-over-year to $20.30 million.
Gross billings increased 7.1% year-over-year to $105.20 million with billings for core products growing 20.0% to $67.10 million. Barracuda's management sounded most optimistic about the future of its core segment, which includes email security and management, network and application security, and data protection solutions.
Active subscriber count increased 17.0%, exceeding 335,000. Renewal rate checked in at 90.0% on a dollar-basis in constant currency while annualized renewal rate was reported at 93.0%.
Looking ahead, the company expects that billings in the second quarter will be between $105.00 million and $108.00 million, which would represent an increase of up to 2.7% on a sequential basis. Second quarter revenue is expected between $92.00 million and $94.00 million, which encompasses current market expectations. Earnings per share are expected to be between $0.16 and $0.18 in the second quarter, which is slightly below market expectations.
For the full year, Barracuda Networks expects revenue between $370.00 million and $380.00 million while earnings are expected between $0.73 per share and $0.78 per share. The company's guidance range envelops current market estimates.
Shares of Barracuda have seen some significant swings since becoming a public company in late 2013, but the stock finds itself back within a couple points of its IPO price.