What: Shares of cloud backup and disaster recovery solutions provider Carbonite (NASDAQ:CARB) surged on Tuesday following the company's second-quarter report. Carbonite beat analyst estimates for both revenue and earnings by a wide margin, pushing the stock up 16% by 3:15 p.m. ET.
So what: Carbonite reported second-quarter revenue of $53.4 million, up 57% year over year and about $9 million higher than the average analyst estimate. Bookings rose 50% to $53.7 million. CEO Mohamad Ali pointed to rapid growth among small and midsize business customers:
I am very pleased with our progress, especially the expansion of our SMB business which grew approximately 150%. The EVault integration is exceeding expectations, yielding faster and better-than-expected synergies. Market demand for our expanded set of solutions is strong and growing, and I am confident in the team's ability to continue to drive results.
Non-GAAP EPS came in at $0.19, up from a loss of $0.01 during the second quarter of 2015 and $0.16 better than analysts expected. On a GAAP basis, Carbonite reported EPS of $0.04, up from a loss of $0.18 a year ago. Higher revenue and a 26% increase in operating expenses, far smaller than the 57% rise in revenue, drove earnings higher.
Now what: Carbonite expects to produce revenue of $44.5 million to $49.5 million during the third quarter, along with non-GAAP EPS in a range of $0.06 to $0.10. The company announced along with its results that it was increasing its full-year guidance. Carbonite now expects revenue of $192.7 million antod $202.7 million, with non-GAAP EPS of $0.48 to $0.52.
Shares of Carbonite have now doubled since bottoming out in February, but even after Tuesday's gain the stock is still a bit below levels reached in early 2015. The numbers are moving in the right direction, with company reaching GAAP profitability during the second quarter. If Carbonite can keep it up, further gains could be in the cards.
Timothy Green has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.