Barracuda Networks Posts Wider Q3 Loss, Shares Down

(RTTNews) - Internet security and storage systems provider Barracuda Networks Inc. (CUDA), posted a wider loss in the third quarter, hurt largely by higher stock based compensation expenses, notwithstanding a 15 percent growth in revenues. However, both earnings and revenues for the quarter came in ahead of analysts' estimates.

Investors reacted negatively to the news, sending Barracuda Networks stock down ten percent in extended trading hours on the New York Stock Exchange.

Reporting its first earnings results after going public in November, Barracuda Networks loss for the third-quarter was $2.1 million or $0.06 per share, compared to a loss of $2.0 million or $0.06 per share last year.

Adjusted earnings for the quarter dropped to $493 thousand or $0.01 per share from $1.9 million or $0.04 per share last year. On average, six analysts polled by Thomson Reuters expected a loss of $0.01 per share for the quarter. Analysts' estimates typically exclude special items.

Barracuda's total revenues for the quarter grew 15 percent to $59.4 million from $51.4 million last year. Five analysts estimated revenues of $57.69 million for the quarter.

For the third quarter, gross billings grew 19 percent to $77.5 million from $65.0 million a year ago.

"Our business showed strong performance in the third quarter across both our security and storage segments, and we continue to see positive results from our high growth market segments," said Chief Executive BJ Jenkins. "During the quarter, we added over 6,800 new active subscribers, including both small businesses and large firms, across multiple geographies and industries."

CUDA closed Thursday's trading at $39.00, up $1.25 or 3.31%. In the after hours, the stock plunged $3.60 or 9.23%.