Shares of Carbonite (CARB) have cratered today, down by 24% as of 11:50 a.m. EDT, after the cloud data backup provider reported second-quarter earnings results. The company also announced a CEO transition.
Revenue in the second quarter jumped 56% to $121.5 million as reported under generally accepted accounting principles (GAAP), with non-GAAP revenue of $135 million. That all translated into non-GAAP net income of $0.56 per share. Analysts had been modeling for revenue of $138.1 million and $0.47 per share in adjusted profits. Adjusted gross margin expanded from 77.1% a year ago to 82.3%.
CEO Mohamad Ali announced that he was stepping down in order to become CEO of IDG, which operates media brands like Computerworld, CIO, and Macworld, among others. Carbonite named Steve Munford as interim CEO; Munford is currently Carbonite's chairman of the board.
"Our security software business performed well during the quarter, however, we continued to experience challenges in parts of our data protection business," Munford said in a statement. "We remain committed to capitalizing on the opportunity of combining data protection and security, while we improve the effectiveness of our go-to-market efforts and deliver on our profitability targets."
In terms of outlook, adjusted revenue in the third quarter is expected to be $131 million to $133 million, which should translate into adjusted EBITDA of $34 million to $37 million. Investors weren't happy that Carbonite cut its full-year outlook, and the company now expects 2019 adjusted revenue to be $477.5 million to $482.5 million, down from a prior forecast of $491 million to $505 million.