Shares of Carbonite (NASDAQ:CARB) have plunged today, down by 24% as of 1:15 p.m. EDT, after the company reported third-quarter earnings. The data backup and recovery company posted better-than-expected profits, but guidance came in below expectations.
Non-GAAP revenue in the third quarter grew 25% to $79.1 million, which led to non-GAAP earnings per share of $0.48. The Street had been expecting adjusted sales of $80.5 million and adjusted earnings per share of $0.41. Business subscription bookings rose 59% to $43.9 million, and adjusted EBITDA was $23 million. Non-GAAP gross margin also expanded to 78.4%, up from 76.3% a year ago.
"We continue to deliver strong results across the board while successfully executing against our strategic plan," CEO Mohamad Ali said in a statement. "With the newly launched Carbonite Data Protection Console and our robust server backup solution that now includes purpose-built protection for virtual machines, our solutions address all of the market's most pressing data protection needs. In addition to our strengthening product portfolio, we are making investments in our partner network to effectively enable our partners to sell the full suite of Carbonite data protection solutions."
Carbonite revised its full-year guidance, and now expects 2018 non-GAAP revenue to be $302.5 million to $305.5 million, bringing the high end of its outlook down from $312.5 million. The low end of that forecast was unchanged. Adjusted revenue in the fourth quarter should be $78.6 million to $81.6 million, with non-GAAP earnings per share of $0.40 to $0.44. The Street is currently modeling for $83 million in revenue and $0.42 per share in adjusted profit.