þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 83-0380411 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | ¨ | Accelerated filer | þ |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | ||
Smaller reporting company | ¨ | ||
Emerging growth company | þ |
Page | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. |
• | our pending acquisition by Thoma Bravo, including our expectations regarding the timing and expected benefits of such acquisition transaction, our plans, objectives and intentions with respect to our future operations, and the expected impact of the proposed acquisition transaction on our business, our customers and our market prior to consummation or termination of such transaction; |
• | our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit or gross margin, operating expenses, including changes in research and development, sales and marketing and general and administrative expenses, and our ability to achieve and maintain future profitability; |
• | our business plan and our ability to effectively manage our growth and associated investments; |
• | anticipated trends, growth rates and challenges in our business and in the markets in which we operate; |
• | market acceptance of recently introduced security and data protection solutions; |
• | beliefs about and objectives for future operations; |
• | our ability to increase sales of our solutions and renewals of our subscriptions; |
• | our ability to attract and retain customers; |
• | our ability to cross-sell to our existing customers; |
• | maintaining and expanding our customer base and our relationships with our channel partners; |
• | our ability to timely and effectively scale and adapt our existing solutions; |
• | our ability to develop new solutions and bring them to market in a timely manner; |
• | our ability to maintain, protect and enhance our brand and intellectual property; |
• | our ability to continue to expand internationally; |
• | the effects of increased competition in our markets and our ability to compete effectively; |
• | sufficiency of cash to meet cash needs for at least the next 12 months; |
• | future acquisitions or investments; |
• | our ability to stay in compliance with laws and regulations that currently apply or become applicable to our business both in the United States and internationally; |
• | economic and industry trends or trend analysis; |
• | the attraction and retention of qualified employees and key personnel; |
• | the impact of the recently passed Tax Cuts and Jobs Act; |
• | the estimates and estimate methodologies used in preparing our condensed consolidated financial statements; and |
• | the future trading prices of our common stock. |
As of November 30, 2017 | As of February 28, 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 96,894 | $ | 120,194 | |||
Marketable securities | 80,850 | 79,915 | |||||
Accounts receivable, net of allowance for doubtful accounts of $3,512 and $2,857 as of November 30, 2017 and February 28, 2017, respectively | 45,229 | 40,560 | |||||
Inventories, net | 8,259 | 5,847 | |||||
Prepaid income taxes | 987 | 11,050 | |||||
Deferred costs | 34,352 | 32,598 | |||||
Other current assets | 9,221 | 5,245 | |||||
Total current assets | 275,792 | 295,409 | |||||
Property and equipment, net | 30,824 | 29,979 | |||||
Deferred costs, non-current | 30,502 | 27,285 | |||||
Deferred income taxes, non-current | 704 | 1,554 | |||||
Other non-current assets | 21,646 | 8,607 | |||||
Intangible assets, net | 52,111 | 32,145 | |||||
Goodwill | 98,135 | 69,795 | |||||
Total assets | $ | 509,714 | $ | 464,774 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 11,243 | $ | 11,439 | |||
Accrued payroll and related benefits | 12,803 | 13,593 | |||||
Other accrued liabilities | 19,089 | 12,942 | |||||
Deferred revenue | 247,330 | 239,796 | |||||
Note payable | — | 4,115 | |||||
Total current liabilities | 290,465 | 281,885 | |||||
Long-term liabilities: | |||||||
Deferred revenue, non-current | 170,415 | 167,286 | |||||
Deferred income taxes, non-current | 3,293 | 2,803 | |||||
Other long-term liabilities | 7,394 | 6,377 | |||||
Commitments and contingencies (Note 10) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value; 20,000,000 shares authorized; zero shares issued and outstanding as of November 30, 2017 and February 28, 2017, respectively | — | — | |||||
Common stock, $0.001 par value; 1,000,000,000 shares authorized; 53,606,385 and 52,897,128 shares issued and outstanding as of November 30, 2017 and February 28, 2017, respectively | 54 | 53 | |||||
Additional paid-in capital | 393,048 | 370,745 | |||||
Accumulated other comprehensive loss | (3,199 | ) | (5,226 | ) | |||
Accumulated deficit | (351,756 | ) | (359,149 | ) | |||
Total stockholders’ equity | 38,147 | 6,423 | |||||
Total liabilities and stockholders’ equity | $ | 509,714 | $ | 464,774 |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Appliance | $ | 17,459 | $ | 20,457 | $ | 56,071 | $ | 62,824 | |||||||
Subscription | 77,288 | 68,349 | 227,180 | 200,566 | |||||||||||
Total revenue | 94,747 | 88,806 | 283,251 | 263,390 | |||||||||||
Cost of revenue | 22,098 | 21,098 | 70,944 | 61,579 | |||||||||||
Gross profit | 72,649 | 67,708 | 212,307 | 201,811 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 20,616 | 18,627 | 59,412 | 56,280 | |||||||||||
Sales and marketing | 34,988 | 33,368 | 109,769 | 96,842 | |||||||||||
General and administrative | 12,366 | 10,217 | 33,648 | 31,958 | |||||||||||
Total operating expenses | 67,970 | 62,212 | 202,829 | 185,080 | |||||||||||
Income from operations | 4,679 | 5,496 | 9,478 | 16,731 | |||||||||||
Gain on sale of business | 7,382 | — | 7,382 | — | |||||||||||
Other income, net | 332 | (2,374 | ) | 2,640 | 131 | ||||||||||
Income before income taxes | 12,393 | 3,122 | 19,500 | 16,862 | |||||||||||
Provision for income taxes | (4,610 | ) | (1,329 | ) | (7,491 | ) | (9,848 | ) | |||||||
Net income | $ | 7,783 | $ | 1,793 | $ | 12,009 | $ | 7,014 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.15 | $ | 0.03 | $ | 0.23 | $ | 0.13 | |||||||
Diluted | $ | 0.14 | $ | 0.03 | $ | 0.22 | $ | 0.13 | |||||||
Weighted-average shares used to compute net income per share: | |||||||||||||||
Basic | 53,378 | 52,457 | 53,098 | 52,336 | |||||||||||
Diluted | 54,995 | 53,995 | 54,645 | 53,391 |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 7,783 | $ | 1,793 | $ | 12,009 | $ | 7,014 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Change in net foreign currency translation adjustment | 190 | 493 | 2,181 | 119 | |||||||||||
Available-for-sale investments: | |||||||||||||||
Change in net unrealized gains (losses) (net of tax effect of $0 in all periods) | (319 | ) | (339 | ) | (170 | ) | 31 | ||||||||
Less: reclassification adjustment for net gains (losses) included in net income (net of tax effect of $(3), $(1), $(9) and $393) | 6 | 3 | 16 | (729 | ) | ||||||||||
Net change | (313 | ) | (336 | ) | (154 | ) | (698 | ) | |||||||
Other comprehensive income (loss) | (123 | ) | 157 | 2,027 | (579 | ) | |||||||||
Comprehensive income | $ | 7,660 | $ | 1,950 | $ | 14,036 | $ | 6,435 |
Nine Months Ended November 30, | |||||||
2017 | 2016 | ||||||
Operating activities | |||||||
Net income | $ | 12,009 | $ | 7,014 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and impairment expense | 12,716 | 12,442 | |||||
Stock-based compensation expense | 26,343 | 25,050 | |||||
Excess tax benefits from equity compensation plans | — | (2,023 | ) | ||||
Deferred income taxes | 1,158 | 391 | |||||
Gain on sale of business | (7,382 | ) | — | ||||
Other | 88 | (555 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (1,531 | ) | (3,054 | ) | |||
Inventories, net | (2,485 | ) | 931 | ||||
Income taxes, net | 10,594 | 3,138 | |||||
Deferred costs | (5,294 | ) | 567 | ||||
Other assets | (6,389 | ) | (469 | ) | |||
Accounts payable | (63 | ) | (4,889 | ) | |||
Accrued payroll and related benefits | 629 | 898 | |||||
Other liabilities | 1,957 | (646 | ) | ||||
Deferred revenue | 12,565 | 8,916 | |||||
Net cash provided by operating activities | 54,915 | 47,711 | |||||
Investing activities | |||||||
Purchases of marketable securities | (32,810 | ) | (59,561 | ) | |||
Proceeds from the sale of marketable securities | 20,820 | 11,530 | |||||
Proceeds from the maturity of marketable securities | 11,027 | 13,590 | |||||
Purchases of non-marketable investments | (4,056 | ) | (636 | ) | |||
Purchases of property and equipment | (9,145 | ) | (4,265 | ) | |||
Purchases of intangible assets | — | (1,374 | ) | ||||
Business combinations, net of cash acquired | (51,668 | ) | (243 | ) | |||
Proceeds from sale of business | 2,000 | — | |||||
Payment for the sale of net liabilities | (800 | ) | — | ||||
Net cash used in investing activities | (64,632 | ) | (40,959 | ) | |||
Financing activities | |||||||
Proceeds from issuance of common stock | 4,362 | 7,425 | |||||
Taxes paid related to net share settlement of equity awards | (7,823 | ) | (6,003 | ) | |||
Excess tax benefits from equity compensation plans | — | 2,023 | |||||
Employee loans extended, net of repayment | (23 | ) | (122 | ) | |||
Repayment of note payable | (4,115 | ) | (200 | ) | |||
Repurchases of common stock | (6,546 | ) | (7,241 | ) | |||
Payments of acquisition-related liabilities | (742 | ) | — | ||||
Net cash used in financing activities | (14,887 | ) | (4,118 | ) | |||
Effect of exchange rate changes | 1,337 | (175 | ) | ||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (23,267 | ) | 2,459 | ||||
Cash, cash equivalents and restricted cash at beginning of period | 120,837 | 118,654 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 97,570 | $ | 121,113 |
• | Forfeitures: Under the new standard, we can make an accounting policy election to either estimate the number of share-based awards that are expected to vest or account for forfeitures when they occur. We elected to account for forfeitures when they occur and adopted this change on a modified retrospective basis. As a result, we recorded the cumulative effect of the change as a $0.4 million increase to the March 1, 2017 opening accumulated deficit balance on our condensed consolidated balance sheets. |
• | Income tax accounting: The standard eliminates additional paid-in-capital ("APIC") pools and requires excess tax benefits and tax deficiencies on share-based awards to be recognized in the statement of income prospectively when share-based awards vest or are settled. The standard also requires excess tax benefits to be recognized regardless of whether the benefit reduces taxes payable. We adopted the guidance related to the timing of previously unrecognized excess tax benefits, which resulted in no impact to the March 1, 2017 opening accumulated deficit balance on our condensed consolidated balance sheets. |
• | Net income per share: Because excess tax benefits are no longer recognized in APIC, the assumed proceeds from applying the treasury stock method when calculating dilutive shares was amended to exclude the amount of excess tax benefits that would be recognized upon exercise or vesting of such awards. As a result, this reduces the assumed shares to be repurchased under the treasury stock method, thereby increasing the amount of dilutive shares used to compute earnings per share. We adopted the guidance related to the exclusion of excess tax benefits in calculating net income per share on a prospective basis, with an insignificant impact. |
• | Cash flow presentation of excess tax benefits: Prior to the new standard, we were required to present excess tax benefits on share-based awards as a cash inflow from financing activities with a corresponding cash outflow from operating activities. The new standard required that these excess tax benefits be classified as an operating activity. We adopted the guidance related to the presentation of excess tax benefits in our condensed consolidated statements of cash flows on a prospective basis with an insignificant impact, while the prior period presented has not been adjusted. |
As of November 30, 2017 | As of February 28, 2017 | ||||||
Cash and cash equivalents: | |||||||
Cash | $ | 79,900 | $ | 103,726 | |||
Money market funds | 16,994 | 16,468 | |||||
Other non-current assets: | |||||||
Restricted cash | 676 | 643 | |||||
$ | 97,570 | $ | 120,837 |
As of November 30, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Asset-backed securities | $ | 9,511 | $ | — | $ | (44 | ) | $ | 9,467 | ||||||
Corporate debt securities | 43,776 | 1 | (212 | ) | 43,565 | ||||||||||
Foreign government bonds | 1,050 | — | (6 | ) | 1,044 | ||||||||||
Mortgage-backed securities | 3,510 | — | (22 | ) | 3,488 | ||||||||||
U.S. government agency securities | 15,323 | — | (88 | ) | 15,235 | ||||||||||
U.S. government notes | 8,112 | — | (61 | ) | 8,051 | ||||||||||
$ | 81,282 | $ | 1 | $ | (433 | ) | $ | 80,850 | |||||||
As of February 28, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Asset-backed securities | $ | 9,597 | $ | 6 | $ | (28 | ) | $ | 9,575 | ||||||
Corporate debt securities | 41,822 | 11 | (140 | ) | 41,693 | ||||||||||
Foreign government bonds | 650 | — | (1 | ) | 649 | ||||||||||
Mortgage-backed securities | 3,324 | — | (22 | ) | 3,302 | ||||||||||
U.S. government agency securities | 12,707 | 1 | (77 | ) | 12,631 | ||||||||||
U.S. government notes | 12,092 | 2 | (29 | ) | 12,065 | ||||||||||
$ | 80,192 | $ | 20 | $ | (297 | ) | $ | 79,915 |
As of November 30, 2017 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Asset-backed securities | $ | 6,706 | $ | (25 | ) | $ | 2,361 | $ | (19 | ) | $ | 9,067 | $ | (44 | ) | ||||||||
Corporate debt securities | 23,558 | (103 | ) | 18,116 | (109 | ) | 41,674 | (212 | ) | ||||||||||||||
Foreign government bonds | 844 | (6 | ) | 200 | — | 1,044 | (6 | ) | |||||||||||||||
Mortgage-backed securities | 1,384 | (8 | ) | 1,704 | (14 | ) | 3,088 | (22 | ) | ||||||||||||||
U.S. government agency securities | 6,421 | (44 | ) | 8,601 | (44 | ) | 15,022 | (88 | ) | ||||||||||||||
U.S. government notes | 6,951 | (48 | ) | 1,100 | (13 | ) | 8,051 | (61 | ) | ||||||||||||||
$ | 45,864 | $ | (234 | ) | $ | 32,082 | $ | (199 | ) | $ | 77,946 | $ | (433 | ) |
As of February 28, 2017 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Asset-backed securities | $ | 6,086 | $ | (28 | ) | $ | — | $ | — | $ | 6,086 | $ | (28 | ) | |||||||||
Corporate debt securities | 35,095 | (140 | ) | — | — | 35,095 | (140 | ) | |||||||||||||||
Foreign government bonds | 650 | (1 | ) | — | — | 650 | (1 | ) | |||||||||||||||
Mortgage-backed securities | 3,204 | (22 | ) | — | — | 3,204 | (22 | ) | |||||||||||||||
U.S. government agency securities | 11,306 | (65 | ) | 731 | (12 | ) | 12,037 | (77 | ) | ||||||||||||||
U.S. government notes | 7,265 | (29 | ) | — | — | 7,265 | (29 | ) | |||||||||||||||
$ | 63,606 | $ | (285 | ) | $ | 731 | $ | (12 | ) | $ | 64,337 | $ | (297 | ) |
As of November 30, 2017 | |||
Due in 1 year | $ | 25,821 | |
Due in 1 year through 5 years | 50,382 | ||
Due in 5 years through 10 years | 993 | ||
Due after 10 years | 3,654 | ||
$ | 80,850 |
Level 1: | Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. |
Level 2: | Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. |
Level 3: | Inputs are unobservable inputs based on our assumptions. |
As of November 30, 2017 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | 16,994 | $ | — | $ | — | $ | 16,994 | |||||||
Marketable securities: | |||||||||||||||
Asset-backed securities | $ | — | $ | 9,467 | $ | — | $ | 9,467 | |||||||
Corporate debt securities | $ | — | $ | 43,565 | $ | — | $ | 43,565 | |||||||
Foreign government bonds | $ | — | $ | 1,044 | $ | — | $ | 1,044 | |||||||
Mortgage-backed securities | $ | — | $ | 3,488 | $ | — | $ | 3,488 | |||||||
U.S. government agency securities | $ | — | $ | 15,235 | $ | — | $ | 15,235 | |||||||
U.S. government notes | $ | — | $ | 8,051 | $ | — | $ | 8,051 | |||||||
As of February 28, 2017 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | 16,468 | $ | — | $ | — | $ | 16,468 | |||||||
Marketable securities: | |||||||||||||||
Asset-backed securities | $ | — | $ | 9,575 | $ | — | $ | 9,575 | |||||||
Corporate debt securities | $ | — | $ | 41,693 | $ | — | $ | 41,693 | |||||||
Foreign government bonds | $ | — | $ | 649 | $ | — | $ | 649 | |||||||
Mortgage-backed securities | $ | — | $ | 3,302 | $ | — | $ | 3,302 | |||||||
U.S. government agency securities | $ | — | $ | 12,631 | $ | — | $ | 12,631 | |||||||
U.S. government notes | $ | — | $ | 12,065 | $ | — | $ | 12,065 | |||||||
Other accrued liabilities (current): | |||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 902 | $ | 902 |
Balance as of February 28, 2017 | $ | 902 | |
Total remeasurement recognized in earnings | (160 | ) | |
Settlements | (742 | ) | |
Balance as of November 30, 2017 | $ | — |
As of November 30, 2017 | As of February 28, 2017 | ||||||
Raw materials | $ | 4,959 | $ | 3,479 | |||
Finished goods | 3,782 | 2,878 | |||||
Reserves | (482 | ) | (510 | ) | |||
$ | 8,259 | $ | 5,847 |
As of November 30, 2017 | As of February 28, 2017 | ||||||
Appliance | $ | 40,316 | $ | 39,474 | |||
Commissions | 24,538 | 20,409 | |||||
$ | 64,854 | $ | 59,883 |
As of November 30, 2017 | As of February 28, 2017 | ||||||
Land | $ | 9,849 | $ | 9,849 | |||
Building | 6,549 | 6,549 | |||||
Computer hardware and software | 41,204 | 32,850 | |||||
Vehicles, machinery and equipment | 4,535 | 4,797 | |||||
Leasehold improvements | 4,509 | 4,379 | |||||
66,646 | 58,424 | ||||||
Accumulated depreciation and amortization | (35,822 | ) | (28,445 | ) | |||
$ | 30,824 | $ | 29,979 |
Foreign Currency Translation Adjustments | Unrealized Gains (Losses) on Available-for- Sale Investments | Total | |||||||||
Balance as of February 28, 2017 | $ | (4,954 | ) | $ | (272 | ) | $ | (5,226 | ) | ||
Other comprehensive income before reclassifications | 2,181 | (170 | ) | 2,011 | |||||||
Amounts reclassified from AOCI | — | 16 | 16 | ||||||||
Other comprehensive income | 2,181 | (154 | ) | 2,027 | |||||||
Balance as of November 30, 2017 | $ | (2,773 | ) | $ | (426 | ) | $ | (3,199 | ) |
Cash | $ | 3,078 | ||
Accounts receivable | 3,258 | |||
Other assets | 534 | |||
Customer relationships | 10,530 | |||
Developed technology | 15,400 | |||
Goodwill | 28,034 | |||
Accounts payable and accruals | (890 | ) | ||
Deferred liabilities | (354 | ) | ||
Total value of assets acquired and liabilities assumed | $ | 59,590 |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||
(in thousands) | |||||||||||||
Pro forma revenue | $ | 98,005 | $ | 92,801 | 294,643 | 275,284 | |||||||
Pro forma net income | $ | 7,240 | $ | 1,482 | 10,798 | 6,324 |
Cash | $2,000 | |
Notes receivable | 4,360 | |
Non-marketable securities | 2,250 | |
Total consideration | 8,610 | |
Less: carrying value of assets sold: | ||
Goodwill | (545 | ) |
Intangibles | (915 | ) |
Other net liabilities | 232 | |
Gain on sale of business | $7,382 |
Balance as of February 28, 2017 | $ | 69,795 | |
Goodwill acquired | 28,034 | ||
Goodwill sold | (545 | ) | |
Effect of foreign exchange rates | 851 | ||
Balance as of November 30, 2017 | $ | 98,135 |
As of November 30, 2017 | |||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | |||||||||
Acquired developed technology | $ | 60,914 | $ | (29,359 | ) | $ | 31,555 | ||||
Customer relationships | 30,051 | (10,732 | ) | 19,319 | |||||||
Patents | 2,999 | (2,096 | ) | 903 | |||||||
Trade name | 422 | (282 | ) | 140 | |||||||
$ | 94,386 | $ | (42,469 | ) | $ | 51,917 |
As of February 28, 2017 | |||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | |||||||||
Acquired developed technology | $ | 50,013 | $ | (30,105 | ) | $ | 19,908 | ||||
Customer relationships | 19,736 | (9,348 | ) | 10,388 | |||||||
Patents | 2,999 | (1,781 | ) | 1,218 | |||||||
Trade name | 812 | (375 | ) | 437 | |||||||
$ | 73,560 | $ | (41,609 | ) | $ | 31,951 |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenue | $ | 550 | $ | 323 | $ | 1,472 | $ | 959 | |||||||
Research and development | 4,272 | 3,737 | 10,081 | 8,809 | |||||||||||
Sales and marketing | 2,426 | 2,211 | 7,960 | 6,002 | |||||||||||
General and administrative | 2,083 | 2,946 | 6,830 | 9,280 | |||||||||||
$ | 9,331 | $ | 9,217 | $ | 26,343 | $ | 25,050 |
Nine Months Ended November 30, | ||||||||
2017 | 2016 | |||||||
Total number of shares repurchased | 331 | 482 | ||||||
Dollar amount of shares repurchased | $ | 6,546 | $ | 7,241 | ||||
Average price paid per share | $ | 19.75 | $ | 15.03 |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
North America | $ | 70,642 | $ | 66,760 | $ | 211,213 | $ | 197,712 | |||||||
United States | 66,909 | 63,305 | 199,766 | 187,311 | |||||||||||
Other | 3,733 | 3,455 | 11,447 | 10,401 | |||||||||||
Latin America | 1,399 | 1,163 | 4,040 | 3,513 | |||||||||||
Asia-Pacific | 6,032 | 5,273 | 17,964 | 15,557 | |||||||||||
EMEA | 16,674 | 15,610 | 50,034 | 46,608 | |||||||||||
$ | 94,747 | $ | 88,806 | $ | 283,251 | $ | 263,390 |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 7,783 | $ | 1,793 | $ | 12,009 | $ | 7,014 | |||||||
Weighted-average shares used to compute net income per share, basic | 53,378 | 52,457 | 53,098 | 52,336 | |||||||||||
Dilutive shares from stock options and RSUs | 1,617 | 1,538 | 1,547 | 1,055 | |||||||||||
Weighted-average shares used to compute net income per share, diluted | 54,995 | 53,995 | 54,645 | 53,391 | |||||||||||
Net income per share, basic | $ | 0.15 | $ | 0.03 | $ | 0.23 | $ | 0.13 | |||||||
Net income per share, diluted | $ | 0.14 | $ | 0.03 | $ | 0.22 | $ | 0.13 |
• | Appliance Revenue. Revenue from the sale of our appliances includes hardware and a perpetual software license. We recognize hardware appliance revenue over the estimated customer relationship period of three years, commencing with the end-user’s activation of the appliance and related subscription, provided all other criteria for the recognition of appliance revenue are met. |
• | Subscription Revenue. Subscription revenue is generated primarily from our subscription services such as our Barracuda Energize Updates. Subscription revenue also includes revenue from licenses of our virtual appliance software, support and maintenance. Our subscription terms include monthly and annual terms ranging from one year to five years. We recognize revenue from subscriptions, support and maintenance over the contractual service period. |
• | Research and development. Research and development expenses consist primarily of salaries, benefits and stock-based compensation for employees and executives on our engineering and technical teams who are responsible for increasing the functionality and enhancing the ease-of-use of our appliance and subscription services, as well as the development of new products. We expense our research and development costs as they are incurred. We expect research and development expenses to increase in absolute dollars as we continue to invest in our future solutions, although our research and development expenses may fluctuate as a percentage of total revenue. |
• | Sales and marketing. Our sales and marketing expenses consist primarily of advertising, as well as salaries, commissions, benefits and stock-based compensation for our employees and executives engaged in sales, sales support, marketing, business development and customer service functions. Our advertising expenses include the costs of cooperative marketing programs developed with our channel partners and other marketing programs such as online lead generation, promotional events and web seminars. We market and sell our subscription services worldwide through our sales organization and distribution channels, such as strategic resellers and distributors. We capitalize and amortize the direct and incremental portion of our sales commissions over the period the related revenue is recognized. We expect sales and marketing expenses to increase in absolute dollars as we continue to introduce marketing campaigns and invest in sales resources in key focus areas, although our sales and marketing expenses may fluctuate as a percentage of total revenue. |
• | General and administrative. Our general and administrative expenses consist primarily of salaries, benefits and stock-based compensation for our finance, legal, regulatory and compliance, human resources and other administrative employees and executives. In addition, general and administrative expenses include outside consulting, legal and accounting services and facilities and other supporting overhead costs. We expect general and administrative expenses to increase in absolute dollars due to professional services fees primarily related to outside legal, audit, investor relations and consulting services to support the business, although our general and administrative expenses may fluctuate as a percentage of total revenue. |
Three Months Ended November 30, | |||||||||||||||||
2017 | % of Total Revenue | 2016 | % of Total Revenue | Change | |||||||||||||
Revenue: | |||||||||||||||||
Appliance | $ | 17,459 | 18 | % | $ | 20,457 | 23 | % | $ | (2,998 | ) | ||||||
Subscription | 77,288 | 82 | 68,349 | 77 | 8,939 | ||||||||||||
Total revenue | 94,747 | 100 | 88,806 | 100 | 5,941 | ||||||||||||
Cost of revenue | 22,098 | 23 | 21,098 | 24 | 1,000 | ||||||||||||
Gross profit | 72,649 | 77 | 67,708 | 76 | 4,941 | ||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | 20,616 | 22 | 18,627 | 21 | 1,989 | ||||||||||||
Sales and marketing | 34,988 | 37 | 33,368 | 38 | 1,620 | ||||||||||||
General and administrative | 12,366 | 13 | 10,217 | 11 | 2,149 | ||||||||||||
Total operating expenses | 67,970 | 72 | 62,212 | 70 | 5,758 | ||||||||||||
Income from operations | 4,679 | 5 | 5,496 | 6 | (817 | ) | |||||||||||
Gain on sale of business | 7,382 | 8 | — | — | 7,382 | ||||||||||||
Other income (expense), net | 332 | — | (2,374 | ) | (2 | ) | 2,706 | ||||||||||
Income before income taxes | 12,393 | 13 | 3,122 | 4 | 9,271 | ||||||||||||
Provision for income taxes | (4,610 | ) | (5 | ) | (1,329 | ) | (2 | ) | (3,281 | ) | |||||||
Net income | $ | 7,783 | 8 | % | $ | 1,793 | 2 | % | $ | 5,990 |
Nine Months Ended November 30, | |||||||||||||||||
2017 | % of Total Revenue | 2016 | % of Total Revenue | Change | |||||||||||||
Revenue: | |||||||||||||||||
Appliance | $ | 56,071 | 20 | % | $ | 62,824 | 24 | % | $ | (6,753 | ) | ||||||
Subscription | 227,180 | 80 | 200,566 | 76 | 26,614 | ||||||||||||
Total revenue | 283,251 | 100 | 263,390 | 100 | 19,861 | ||||||||||||
Cost of revenue | 70,944 | 25 | 61,579 | 23 | 9,365 | ||||||||||||
Gross profit | 212,307 | 75 | 201,811 | 77 | 10,496 | ||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | 59,412 | 21 | 56,280 | 21 | 3,132 | ||||||||||||
Sales and marketing | 109,769 | 39 | 96,842 | 38 | 12,927 | ||||||||||||
General and administrative | 33,648 | 12 | 31,958 | 12 | 1,690 | ||||||||||||
Total operating expenses | 202,829 | 72 | 185,080 | 71 | 17,749 | ||||||||||||
Income from operations | 9,478 | 3 | 16,731 | 6 | (7,253 | ) | |||||||||||
Gain on sale of business | 7,382 | 3 | — | — | 7,382 | ||||||||||||
Other income, net | 2,640 | 1 | 131 | — | 2,509 | ||||||||||||
Income before income taxes | 19,500 | 7 | 16,862 | 6 | 2,638 | ||||||||||||
Provision for income taxes | (7,491 | ) | (3 | ) | (9,848 | ) | (3 | ) | 2,357 | ||||||||
Net income | $ | 12,009 | 4 | % | $ | 7,014 | 3 | % | $ | 4,995 |
Nine Months Ended November 30, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Net cash provided by operating activities | $ | 54,915 | $ | 47,711 | |||
Net cash used in investing activities | $ | (64,632 | ) | $ | (40,959 | ) | |
Net cash used in financing activities | $ | (14,887 | ) | $ | (4,118 | ) |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Gross billings | $ | 110,633 | $ | 100,399 | $ | 324,355 | $ | 298,898 | |||||||
Year-over-year percentage change | 10 | % | 13 | % | 9 | % | 6 | % | |||||||
Year-over-year percentage change on a constant currency basis (1) | 9 | % | 13 | % | 9 | % | 6 | % | |||||||
Adjusted EBITDA | $ | 19,064 | $ | 18,854 | $ | 51,192 | $ | 55,190 | |||||||
Adjusted EBITDA as a percentage of total revenue | 20 | % | 21 | % | 18 | % | 21 | % | |||||||
Free cash flow | $ | 22,376 | $ | 13,786 | $ | 45,770 | $ | 43,446 | |||||||
Free cash flow as a percentage of total revenue | 24 | % | 16 | % | 16 | % | 16 | % | |||||||
Active subscribers at period end | 360,326 | 309,323 | 348,087 | 309,323 |
(1) | In order to determine how our business performed exclusive of the effect of foreign currency fluctuations, we compare the percentage change in our gross billings from one period to another using a constant currency. To present this gross billings information, the current and comparative prior period results for entities that operate in other than U.S. dollars are converted into U.S. dollars at constant exchange rates. For example, the average exchange rates for the second quarter of fiscal 2018 were used to convert current and comparable prior period gross billings rather than the actual exchange rates in effect during the respective period. |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Total revenue | $ | 94,747 | $ | 88,806 | $ | 283,251 | $ | 263,390 | |||||||
Total deferred revenue, end of period | 417,745 | 401,300 | 417,745 | 401,300 | |||||||||||
Less: total deferred revenue, beginning of period | (413,665 | ) | (398,878 | ) | (407,082 | ) | (392,774 | ) | |||||||
Add: deferred revenue adjustments | 11,806 | 9,171 | 30,441 | 26,982 | |||||||||||
Total change in deferred revenue and adjustments | 15,886 | 11,593 | 41,104 | 35,508 | |||||||||||
Gross billings | $ | 110,633 | $ | 100,399 | $ | 324,355 | $ | 298,898 | |||||||
Year-over-year percentage change | 10 | % | 13 | % | 9 | % | 6 | % | |||||||
Year-over-year percentage change on a constant currency basis (1) | 9 | % | 13 | % | 9 | % | 6 | % |
(1) | In order to determine how our business performed exclusive of the effect of foreign currency fluctuations, we compare the percentage change in our gross billings from one period to another using a constant currency. To present this gross billings information, the current and comparative prior period results for entities that operate in other than U.S. dollars are converted into U.S. dollars at constant exchange rates. For example, the average exchange rates for the third quarter of fiscal 2018 were used to convert current and comparable prior period gross billings rather than the actual exchange rates in effect during the respective period. |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 7,783 | $ | 1,793 | $ | 12,009 | $ | 7,014 | |||||||
Other income, net (1) | (7,714 | ) | 2,374 | (10,022 | ) | (131 | ) | ||||||||
Provision for income taxes | 4,610 | 1,329 | 7,491 | 9,848 | |||||||||||
Depreciation, amortization and impairment expense (2) | 4,173 | 3,975 | 12,716 | 12,442 | |||||||||||
Stock-based compensation expense | 9,331 | 9,217 | 26,343 | 25,050 | |||||||||||
Acquisition and other charges (3) | 881 | 166 | 2,655 | 967 | |||||||||||
Adjusted EBITDA | $ | 19,064 | $ | 18,854 | $ | 51,192 | $ | 55,190 | |||||||
Adjusted EBITDA as a percentage of total revenue | 20 | % | 21 | % | 18 | % | 21 | % |
(1) | Includes gain on sale of business of $7.4 million during the three and nine months ended November 30, 2017. |
(2) | Represents expenses for the amortization of intangible assets and property and equipment, as well as certain losses on disposal and impairment of long-lived assets. |
(3) | In calculating adjusted EBITDA, we also adjust for acquisition and other charges that we believe are non-recurring, infrequent and/or unusual in nature, can vary significantly in amount and frequency and are unrelated to our ongoing operating performance. We believe that adjusting for these charges allows us to better compare adjusted EBITDA from period to period in order to assess the ongoing operating results of our business. Refer to the "Acquisition and Other Charges" section below for additional details regarding these charges. |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net cash provided by operating activities | $ | 23,705 | $ | 15,082 | $ | 54,915 | $ | 47,711 | |||||||
Less: purchases of property and equipment | (1,329 | ) | (1,296 | ) | (9,145 | ) | (4,265 | ) | |||||||
Free cash flow | $ | 22,376 | $ | 13,786 | $ | 45,770 | $ | 43,446 | |||||||
Free cash flow as a percentage of total revenue | 24 | % | 16 | % | 16 | % | 16 | % |
Three Months Ended November 30, | Nine Months Ended November 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Acquisition and other costs | $ | 881 | $ | 211 | $ | 1,400 | $ | 1,001 | |||||||
Export compliance | — | (45 | ) | — | (34 | ) | |||||||||
Gain on sale of net liabilities | — | — | (449 | ) | — | ||||||||||
Indirect tax costs | — | — | 1,704 | — | |||||||||||
$ | 881 | $ | 166 | $ | 2,655 | $ | 967 |
• | potential uncertainty in the marketplace, which could lead current and prospective customers to purchase from other vendors or delay purchasing from us; |
• | the possibility of disruption to our business and operations, including diversion of management attention and resources, increased transaction costs, and the potentially negative impact on our relationships with our partners and suppliers; |
• | the inability to attract and retain key personnel, and the possibility that our current employees could be distracted, and their productivity decline as a result, due to uncertainty regarding the Merger; |
• | the inability to pursue alternative business opportunities or make changes to our business pending the completion of the Merger, and other restrictions on our ability to conduct our business; |
• | the fact that under the terms of the Merger Agreement, we are unable to solicit other acquisition proposals during the pendency of the Merger; |
• | the amount of the costs, fees, expenses and charges related to the Merger Agreement and the Merger; and |
• | other developments beyond our control, including, but not limited to, changes in domestic or global economic conditions that may affect the timing or success of the Merger. |
• | the failure to obtain the approval of the Merger Agreement by our stockholders; |
• | the failure to obtain regulatory approvals from various governmental entities (or the imposition of any conditions, limitations or restrictions on such approvals); |
• | potential future stockholder litigation and other legal and regulatory proceedings, which could delay or prevent the Merger; and |
• | the failure to satisfy the other conditions to the completion of the Merger, including the possibility that a material adverse effect on our business would permit Thoma Bravo not to close the Merger. |
• | to the extent that the current market price of our stock reflects an assumption that the Merger will be completed, the price of our common stock could decrease if the Merger is not completed; |
• | investor confidence could decline, stockholder litigation could be brought against us, relationships with existing and prospective customers, suppliers and other business partners may be adversely impacted, we may be unable to retain key personnel, and profitability may be adversely impacted due to costs incurred in connection with the pending Merger; and |
• | the requirement that we pay a termination fee of $48.26 million to Thoma Bravo if we terminate the agreement governing the Merger under certain circumstances. |
• | the amount of cash to be paid under the Merger Agreement is fixed and will not be adjusted for changes in our business, assets, liabilities, prospects, outlook, financial condition or operating results or in the event of any change in the market price of, analyst estimates of, or projections relating to, our common stock; and |
• | the fact that, if the Merger is completed, stockholders will forego the opportunity to realize the potential long-term value of the successful execution of our current strategy as an independent company. |
Incorporated By Reference | ||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |
2.1 | 8-K | 001-36162 | 2.1 | November 27, 2017 | ||
31.1 | ||||||
31.2 | ||||||
32.1* | ||||||
32.2* | ||||||
101.INS | XBRL Instance Document | |||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
* | The certifications attached as Exhibit 32.1 and 32.2 that accompany this Quarterly Report on Form 10-Q are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Barracuda Networks, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing. |
BARRACUDA NETWORKS, INC. | |||
Date: January 8, 2018 | By: | /s/ William D. Jenkins, Jr. | |
William D. Jenkins, Jr. | |||
Chief Executive Officer (Principal Executive Officer) | |||
Date: January 8, 2018 | By: | /s/ Dustin Driggs | |
Dustin Driggs | |||
Chief Financial Officer (Principal Financial Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Barracuda Networks, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: January 8, 2018 | By: | /s/ William D. Jenkins, Jr. | |
William D. Jenkins, Jr. | |||
Chief Executive Officer | |||
(Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Barracuda Networks, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: January 8, 2018 | By: | /s/ Dustin Driggs | |
Dustin Driggs | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
Date: January 8, 2018 | By: | /s/ William D. Jenkins, Jr. | |
William D. Jenkins, Jr. | |||
Chief Executive Officer | |||
(Principal Executive Officer) |
Date: January 8, 2018 | By: | /s/ Dustin Driggs | |
Dustin Driggs | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Nov. 30, 2017 |
Dec. 29, 2017 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2017 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CUDA | |
Entity Registrant Name | BARRACUDA NETWORKS INC | |
Entity Central Index Key | 0001348334 | |
Current Fiscal Year End Date | --02-28 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 53,672,307 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Nov. 30, 2017 |
Feb. 28, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Account receivable, allowance for doubtful accounts | $ 3,512 | $ 2,857 |
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 53,606,385 | 52,897,128 |
Common stock, shares outstanding | 53,606,385 | 52,897,128 |
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Revenue: | ||||
Appliance | $ 17,459 | $ 20,457 | $ 56,071 | $ 62,824 |
Subscription | 77,288 | 68,349 | 227,180 | 200,566 |
Total revenue | 94,747 | 88,806 | 283,251 | 263,390 |
Cost of revenue | 22,098 | 21,098 | 70,944 | 61,579 |
Gross profit | 72,649 | 67,708 | 212,307 | 201,811 |
Operating expenses: | ||||
Research and development | 20,616 | 18,627 | 59,412 | 56,280 |
Sales and marketing | 34,988 | 33,368 | 109,769 | 96,842 |
General and administrative | 12,366 | 10,217 | 33,648 | 31,958 |
Total operating expenses | 67,970 | 62,212 | 202,829 | 185,080 |
Income from operations | 4,679 | 5,496 | 9,478 | 16,731 |
Gain on sale of business | 7,382 | 0 | 7,382 | 0 |
Other income, net | 332 | (2,374) | 2,640 | 131 |
Income before income taxes | 12,393 | 3,122 | 19,500 | 16,862 |
Provision for income taxes | (4,610) | (1,329) | (7,491) | (9,848) |
Net income | $ 7,783 | $ 1,793 | $ 12,009 | $ 7,014 |
Net income per share: | ||||
Basic (in usd per share) | $ 0.15 | $ 0.03 | $ 0.23 | $ 0.13 |
Diluted (in usd per share) | $ 0.14 | $ 0.03 | $ 0.22 | $ 0.13 |
Weighted-average shares used to compute net income per share: | ||||
Basic (in shares) | 53,378 | 52,457 | 53,098 | 52,336 |
Diluted (in shares) | 54,995 | 53,995 | 54,645 | 53,391 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 7,783 | $ 1,793 | $ 12,009 | $ 7,014 |
Other comprehensive income, net of tax: | ||||
Change in net foreign currency translation adjustment | 190 | 493 | 2,181 | 119 |
Available-for-sale investments: | ||||
Change in net unrealized gains (losses) (net of tax effect of $0 in all periods) | (319) | (339) | (170) | 31 |
Less: reclassification adjustment for net gains (losses) included in net income (net of tax effect of $(3), $(1), $(9) and $393) | 6 | 3 | 16 | (729) |
Net change | (313) | (336) | (154) | (698) |
Other comprehensive income (loss) | (123) | 157 | 2,027 | (579) |
Comprehensive income | $ 7,660 | $ 1,950 | $ 14,036 | $ 6,435 |
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Change in net unrealized gains (losses), tax effect | $ 0 | $ 0 | $ 0 | $ 0 |
Reclassification adjustment for net gains (losses) included in net income, tax effect | $ (3) | $ (1) | $ (9) | $ 393 |
Overview and Basis of Presentation |
9 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Overview and Basis of Presentation | Overview and Basis of Presentation Nature of Operations Barracuda Networks, Inc., also referred to in this report as "we," "our," "us," "Barracuda" or "the Company," is headquartered in Campbell, California, and designs and delivers powerful yet easy-to-use security and data protection solutions. We offer cloud-enabled solutions that help our customers address security threats, improve network performance and protect and store their data. Our solutions are designed to simplify IT operations for our customers, allowing them to enhance their return on technology investments. On November 26, 2017, we entered into an Agreement and Plan of Merger (the "Merger Agreement") to be acquired by Thoma Bravo, LLC, a private equity investment firm (“Thoma Bravo”) in an all-cash transaction valued at approximately $1.6 billion. Our stockholders will receive $27.55 in cash for each share of Barracuda common stock they hold. The proposed transaction is expected to close before our fiscal year end of February 28, 2018, and is subject to approval by our stockholders and regulatory authorities, and the satisfaction of other customary closing conditions. See Note 12 for more information. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We evaluate our estimates on an ongoing basis, including those related to the fair values of stock-based awards, taxes and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates and such differences could be material to our condensed consolidated financial position and results of operations. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP, and follow the requirements of the U.S. Securities and Exchange Commission (the "SEC") for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP are condensed or omitted. In management’s opinion, the unaudited condensed financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information. The results for the three and nine months ended November 30, 2017 are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of February 28, 2017 has been derived from audited financial statements at that date but does not include all of the information required by GAAP. The accompanying unaudited condensed consolidated financial statements include the accounts of Barracuda Networks, Inc. and our wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited financial statements and related footnotes included in our most recent Annual Report on Form 10-K. There have been no material changes in our significant accounting policies from those that were disclosed in our Annual Report on Form 10-K for the fiscal year ended February 28, 2017. Foreign Currency For those subsidiaries whose functional currency is not the U.S. dollar, assets and liabilities are translated into U.S. dollar equivalents at the exchange rate in effect on the balance sheet date and revenues and expenses are translated into U.S. dollars using the average exchange rate over the period. Resulting currency translation adjustments are recorded in accumulated other comprehensive loss in our condensed consolidated balance sheets. We recorded net gains resulting from foreign exchange transactions of an immaterial amount and $1.9 million for the three and nine months ended November 30, 2017, respectively, and net losses of $2.4 million and $1.0 million for the three and nine months ended November 30, 2016, respectively, which were reflected as a component of other income, net in our condensed consolidated statements of income. We have foreign subsidiaries that operate and sell our products in various markets around the world. As a result, we are exposed to foreign exchange risks. We utilize foreign exchange forward contracts to manage foreign currency risk associated with foreign currency denominated monetary assets and liabilities, primarily trade receivables, and to reduce the volatility of earnings and cash flows related to foreign currency transactions. The fair values of our contracts as of November 30, 2017 and February 28, 2017 were not significant. The change in the fair value of these foreign currency forward contracts is recorded as gains (losses) in other income, net in our condensed consolidated statements of income. Recently Adopted Accounting Pronouncements On March 1, 2017, we adopted Accounting Standards Update No. 2016-09 ("ASU 2016-09"), which simplifies several aspects of employee share-based payment accounting. The impact of the adoption on our condensed consolidated financial statements was as follows:
In January 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update No. 2017-04 ("ASU 2017-04"), which eliminates Step 2 from the goodwill impairment test. Under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We early adopted ASU 2017-04 for impairment tests to be performed on testing dates after January 1, 2017, which did not impact our condensed consolidated financial statements. In November 2016, the FASB issued Accounting Standards Update No. 2016-18 ("ASU 2016-18"), which requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017. We early adopted ASU 2016-18 retrospectively, effective March 1, 2017. Net cash flows for the nine months ended November 30, 2016 did not significantly change as a result of including restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on our condensed consolidated statements of cash flows. Recent Accounting Pronouncements In May 2017, the FASB issued Accounting Standards Update No. 2017-09 ("ASU 2017-09"), which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and early adoption is permitted, including in an interim period. ASU 2017-09 is to be applied on a prospective basis to an award modified on or after the adoption date. We do not intend to early adopt ASU 2017-09 and do not expect the adoption of ASU 2017-09 to have a material impact on our condensed consolidated financial statements. In March 2017, the FASB issued Accounting Standards Update No. 2017-08 ("ASU 2017-08"), which shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, and early adoption is permitted, including in an interim period. If early adopted in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. ASU 2017-08 is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the timing of adoption and do not expect the adoption of ASU 2017-08 to have a material impact on our condensed consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-01 ("ASU 2017-01"), which clarifies the definition of a business, with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and early adoption is permitted for transactions which occur before the issuance or effective date of the amendments, only when the transaction has not been reported in the financial statements that have been issued or made available for issuance. ASU 2017-01 is to be applied on a prospective basis. We do not intend to early adopt ASU 2017-01 and do not expect the adoption of ASU 2017-01 to have a material impact on our condensed consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update No. 2016-15 ("ASU 2016-15") which addresses eight cash flow classification issues. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and early adoption is permitted, including in an interim period. If early adopted in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. Early adoption requires the adoption of all the amendments in the same period. ASU 2016-15 is to be applied through a retrospective transition method to each period presented. If it is impracticable to apply retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. We do not intend to early adopt ASU 2016-15 and do not expect the adoption of ASU 2016-15 to have a material impact on our condensed consolidated statements of cash flows. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 ("ASU 2016-13") which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-13 is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the timing and the impact of adopting ASU 2016-13 on our condensed consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 ("Topic 842") to amend lease accounting requirements and requires entities to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. Topic 842 will require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. Topic 842 is effective for fiscal years beginning after December 15, 2018 and interim periods within those years, and early adoption is permitted. Topic 842 is to be applied using a modified retrospective approach and includes a number of optional practical expedients that entities may elect to apply. We are currently evaluating the timing and the impact of adopting Topic 842 on our condensed consolidated financial statements and expect that most of our operating lease commitments will be subject to Topic 842 and recognized as operating lease liabilities and right-of-use assets upon the adoption. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 ("ASU 2016-01") to enhance the reporting model for financial instruments by amending certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. Early application to financial statements of fiscal years or interim periods that have not yet been issued is permitted by presenting separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk if we elected to measure the liability at fair value in accordance with the fair value option for financial instruments, otherwise, early adoption is not permitted. ASU 2016-01 is to be applied with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values for which the measurement alternative is applied (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. We expect to elect the measurement alternative, defined as cost, less impairments, adjusted by observable price changes. We anticipate that the adoption of ASU 2016-01 may increase the volatility of our other income, net, as a result of the remeasurement of our equity securities upon the occurrence of observable price changes and impairments. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 ("Topic 606") which completed the joint effort by the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and improving financial reporting. Topic 606 also provides guidance on the recognition of costs related to obtaining and fulfilling customer contracts. The FASB issued subsequent amendments to the initial guidance collectively under Topic 606. Topic 606 supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of Topic 606 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Topic 606 defines a five-step process to achieve this core principle, and more judgment and estimates may be required under the Topic 606 revenue recognition process than are required under existing GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation, among others. Topic 606 is required to be effective for us on March 1, 2018. Topic 606 allows for either full retrospective adoption applied to all periods presented or modified adoption with the cumulative effect of initially applying Topic 606 recognized at the date of initial application. We are currently planning to adopt using the modified retrospective approach. Currently, we are in the process of reviewing our historical contracts and evaluating the impact of Topic 606 on our accounting policies, processes and system requirements, and have assigned internal resources and engaged third-party service providers to assist in our evaluation. Furthermore, we will continue to make investments in systems to enable timely and accurate reporting under the new standard. While we continue to assess all potential impacts under the new standard, for the majority of our security solutions, our preliminary evaluation shows that revenue recognition will not change significantly upon the adoption of Topic 606. We will continue to review our contracts to validate such preliminary findings. For our remaining solutions, there is the potential for changes to the pattern of revenue recognition for our arrangements resulting from, for example, the identification of performance obligations, estimation of variable consideration, allocation of the transaction price, timing of recognition, among other areas. We also expect the adoption of the new standard to result in additional financial statement disclosure. Additionally, with respect to contract acquisition costs, we believe that we will capitalize additional costs of obtaining the contract, including additional sales commissions, as the new cost guidance requires the capitalization of all incremental costs that we incur to obtain a contract with a customer that we would not have incurred if the contract had not been obtained, provided we expect to recover the costs. Under our current accounting policy, we would only capitalize such costs if they are both incremental and directly related to acquiring the customer. As we are still in the process of evaluating the impact of the new standard and the impact on our accounting policies across our multiple solutions, we do not know or cannot reasonably estimate quantitative information related to the impact of Topic 606 on our consolidated financial statements, including the effect on our operating results and our accounting for deferred commission balances, at this time. We are also in the process of identifying any necessary changes to our systems processes, and internal controls, which will ultimately assist us in the application of the new standard. |
Balance Sheet Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Information | Balance Sheet Information Cash, Cash Equivalents and Restricted Cash The following table summarizes our cash, cash equivalents and restricted cash by category (in thousands):
Restricted cash is primarily related to customs obligations and letters of credit associated with our leases. Marketable Securities The following tables summarize our marketable securities by category (in thousands):
We use the specific-identification method to determine any realized gains or losses from the sale of our marketable securities classified as available-for-sale. For the three and nine months ended November 30, 2017, realized gross gains and losses were insignificant. For the three and nine months ended November 30, 2016, we realized gross gains of zero and $1.1 million, respectively, and an insignificant amount of gross losses. We reflect these gains and losses as a component of other income, net in our condensed consolidated statements of income. The following tables present gross unrealized losses and fair values for those marketable securities that were in an unrealized loss position aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands):
We periodically review our marketable securities for other-than-temporary impairment. We consider factors such as the duration, severity and the reason for the decline in value, the potential recovery period and whether we intend to sell. For marketable debt securities, we also consider whether (i) it is more likely than not that we will be required to sell the debt securities before recovery of their amortized cost basis and (ii) the amortized cost basis cannot be recovered as a result of credit losses. Unrealized losses related to these investments are due to interest rate fluctuations as opposed to changes in credit quality. We do not intend to sell and it is not more likely than not that we would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. As of November 30, 2017, we have recognized no other-than-temporary impairment loss. The following table summarizes the estimated fair value of our investments in marketable debt securities by contractual maturities (in thousands):
Fair Value Measurements We determine fair value based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:
Cash equivalents and marketable equity securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Marketable debt securities and derivative assets are classified within Level 2 if the investments are valued using model driven valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Our marketable securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models. We estimated the fair value of our Level 3 contingent consideration liabilities based on a weighted probability assessment of achieving the milestones related to certain of our acquisitions. Significant increases (decreases) in the probability assumptions in isolation would result in a significantly higher (lower) fair value measurement. In developing these estimates, we considered unobservable inputs that are supported by little or no market activity and reflect our own assumptions. Financial assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):
The following table summarizes the change in fair value of our Level 3 contingent consideration amounts (in thousands):
For the nine months ended November 30, 2017, the contingent consideration remeasurement was recognized within research and development expense in our condensed consolidated statements of income. No other assets or liabilities were recorded using non-recurring fair value measurements. Inventories, Net Inventories, net consisted of the following (in thousands):
Deferred Costs Deferred costs consisted of the following (in thousands):
Property and Equipment, Net Property and equipment, net consisted of the following (in thousands):
Depreciation and amortization expense related to property and equipment was $2.6 million and $7.7 million for the three and nine months ended November 30, 2017, respectively, and $2.3 million and $7.0 million for the three and nine months ended November 30, 2016, respectively. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) ("AOCI"), net of tax, were as follows (in thousands):
|
Acquisition |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition | Acquisition Sonian, Inc. In November 2017, we acquired Sonian, Inc. (“Sonian”), a provider of public cloud archiving and business insights, to add additional archiving functionality to our current products and improve the efficiency of retrieving archived documents. We acquired all of the outstanding equity interests of Sonian for aggregate purchase consideration of $59.6 million in cash, subject to certain adjustments set forth in an Agreement and Plan of Merger underlying the Sonian acquisition. Purchase consideration totaling $5.4 million is being held back for one year from the date of acquisition for potential indemnification obligations of the former stockholders of Sonian, and is recorded in other accrued liabilities in our condensed consolidated balance sheet. The following table reflects the fair values of assets acquired and liabilities assumed as of the acquisition date (in thousands):
The fair values of assets acquired and liabilities assumed were based on a preliminary valuation and our estimates and assumptions are subject to change within the measurement period of one year from the acquisition date. The primary areas of the purchase price accounting that are not yet finalized are related to the valuation of deferred income taxes and residual goodwill. As of the acquisition date, Sonian's developed technology and customer relationships had weighted-average useful lives of 5.0 years and 7.0 years, respectively. The total weighted-average useful life of these acquired intangible assets is 5.8 years. The goodwill is primarily attributed to the synergies expected to be realized following the acquisition. Goodwill is not expected to be deductible for income tax purposes. Included in our results of operations for the nine months ended November 30, 2017 are $1.1 million and $0.4 million of revenue and net income, respectively, attributable to Sonian since the acquisition. The following unaudited pro forma information presents the combined results of operations of Barracuda and Sonian as if the acquisition had been completed on March 1, 2016, the beginning of the comparable prior annual reporting period. The unaudited pro forma information primarily includes amortization associated with preliminary estimates for the acquired intangible assets, adjustments for loan interest, and other immaterial items, and the associated tax impact on these unaudited pro forma adjustments and certain changes in judgment of valuation allowance as a combined business. The unaudited pro forma information does not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred in integrating the two companies. Accordingly, this unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations.
|
Sale of SignNow business |
9 Months Ended | |||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | ||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||
Sale of SignNow business | As part of our strategy of divesting of non-core solutions, in October 2017, we completed the sale of SignNow for $8.6 million. Our SignNow technology provided customers with an easy to use electronic signature and online notarization tool. The components of the sales proceeds and resulting impact on our results of operations is as follows:
A gain on sale of business, net of tax, of $7.4 million was recorded in the condensed consolidated statement of income. In connection with the sale, we received interest-free notes receivable with a principal amount of $5.0 million payable in three annual payments starting February 28, 2018. A discount was applied to the notes receivable as reflected in the table above with $1.7 million and $2.7 million included in other current assets and other non-current assets, respectively, in the condensed consolidated balance sheets. We also received non-marketable securities with a fair value of $2.3 million that are accounted for under the cost method. The fair value of the non-marketable securities received as consideration was determined based on observable private-market transactions. Notes receivable and non-marketable securities received as consideration are noncash investing activities. Pro forma results of operations related to the sale have not been presented as the impact was not material to our condensed consolidated results of operations for the three and nine months ended November 30, 2017 and 2016. |
Goodwill and Intangible Assets |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill are summarized as follows (in thousands):
Intangible assets subject to amortization are summarized as follows (in thousands):
Certain intangible assets were removed as they were fully amortized as of the periods presented. In addition to the above, we maintained other intangible assets not subject to amortization of $0.2 million as of each of November 30, 2017 and February 28, 2017. Amortization expense, including impairment charges, was $1.6 million and $5.0 million for the three and nine months ended November 30, 2017, respectively, and $1.8 million and $5.5 million for the three and nine months ended November 30, 2016, respectively. As of November 30, 2017, amortization expense for intangible assets in future periods was as follows: $2.9 million for the remainder of fiscal 2018, $10.3 million for fiscal 2019, $10.3 million for fiscal 2020, $9.8 million for fiscal 2021, $9.5 million for fiscal 2022 and $9.2 million thereafter. |
Stockholders' Equity |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Stock-Based Compensation Total stock-based compensation expense has been classified as follows in our condensed consolidated statements of income (in thousands):
As of November 30, 2017, there was $4.6 million of unrecognized compensation cost related to outstanding stock options, expected to be recognized over a weighted-average period of 1.35 years, and $77.1 million of unrecognized compensation cost related to unvested restricted stock units ("RSUs"), expected to be recognized over a weighted-average period of 2.99 years. Our 2015 Employee Stock Purchase Plan (the "ESPP") allows eligible employee participants to purchase shares of our common stock at a discount through payroll deductions. The ESPP consists of offering periods that are six months in length and employees may purchase shares in each period at 85% of the lower of the Company’s fair market value on the first trading day of each offering period or on the purchase date. The ESPP will continue until the earlier to occur of (i) the termination of the ESPP by our board of directors, or (ii) June 15, 2035. As of November 30, 2017, we had reserved 750,000 shares of our common stock for issuance under the ESPP and 594,652 shares remain available for future issuance. Stock Repurchase Program Our stock repurchase program, which allowed us to repurchase shares of our common stock for an aggregate purchase price not to exceed $50.0 million, expired on September 30, 2017. No shares were repurchased in the three months ended November 30, 2017 or 2016. The following table summarizes our common stock repurchases for the nine months ended November 30, 2017 and 2016 (in thousands, except per share data).
|
Income Taxes |
9 Months Ended |
---|---|
Nov. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and nine months ended November 30, 2017, we recorded an income tax provision of $4.6 million and $7.5 million, respectively. For the three and nine months ended November 30, 2016, we recorded an income tax provision of $1.3 million and $9.8 million, respectively. We maintain a valuation allowance against a significant portion of our deferred tax assets, including U.S. federal and state deferred tax assets and certain foreign deferred tax assets, because realization of these tax benefits through future taxable income did not meet the more-likely-than-not threshold. We intend to maintain the valuation allowance until sufficient positive evidence exists to support its reversal. The difference between the income tax provision that would be derived by applying the statutory rate to our before tax income for the three and nine months ended November 30, 2017 and the income tax provision actually recorded is primarily due to the temporary differences we do not expect to benefit from due to our valuation allowance, as well as non-deductible stock-based compensation expense and other currently non-deductible items. |
Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our chief executive officer. Our chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about sales by geographic region, for purposes of allocating resources and evaluating financial performance. We have one business activity and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated level. Accordingly, we have determined that we have a single reportable segment and operating segment structure. Revenue by geographic region is based on our customers' billing addresses and is presented as follows (in thousands):
|
Borrowings |
9 Months Ended |
---|---|
Nov. 30, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Credit Facility We had a $25.0 million credit facility with Silicon Valley Bank which expired in November 2017. The credit facility included an option to request an increase of the available funds to $50.0 million and was secured by a security interest on substantially all of our assets and contained restrictive covenants. . |
Commitments and Contingencies |
9 Months Ended |
---|---|
Nov. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters On February 27, 2017, Realtime Data LLC ("Realtime Data") filed a lawsuit against us in the United States District Court for the Eastern District of Texas, Tyler Division (the “Court”), alleging that certain of our products infringe U.S. patent numbers 9,054,728, 7,415,530, 9,116,908 and 8,717,204 (the “Realtime Matter”). On June 2, 2017, we filed a motion to dismiss for improper venue, and on September 22, 2017, we filed a motion to transfer venue of the action from the Eastern District of Texas to the Northern District of California. On October 24, 2017, the Court granted our motion and transferred the lawsuit to the Northern District of California. Given the early stage of the Realtime Matter, we are unable to estimate a possible loss or range of possible loss, if any. On January 8, 2018, a purported class action lawsuit, captioned Robert Whiteley, on Behalf of Himself and all Others Similarly Situated v. Barracuda Networks, Inc., et al., was filed against us in the Superior Court of California, in and for the County of Santa Clara, alleging a breach of fiduciary duties against the Company and its Board of Directors in connection with the Merger Agreement and the transactions contemplated thereby. The complaint seeks, among other things, to enjoin the merger, a declaration that the Merger Agreement was entered into in breach of fiduciary duties owed to our stockholders, rescission of the merger should it be completed, and damages. Given the early stage of this lawsuit, we are unable to estimate a possible loss or range of possible loss, if any. We may, from time to time, be party to litigation and subject to claims that arise in the ordinary course of business. In addition, third parties may, from time to time, assert claims against us in the form of letters and other communications. We currently believe that these ordinary course matters will not have a material adverse effect on our business, consolidated financial position, results of operations or cash flows; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. |
Net Income Per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share | Net Income Per Share The following table presents the calculation of basic and diluted net income per share (in thousands, except per share amounts):
|
Agreement And Plan Of Merger (Notes) |
9 Months Ended |
---|---|
Nov. 30, 2017 | |
Business Combinations [Abstract] | |
Agreement And Plan Of Merger | Agreement and Plan of Merger On November 26, 2017, we entered into the Merger Agreement with Project Deep Blue Holdings, LLC (“Newco”) and Project Deep Blue Merger Corp., a wholly owned subsidiary of Newco (“Merger Sub”), providing for the merger of Merger Sub with and into us (the “Merger”), with us surviving the Merger as a wholly owned subsidiary of Newco. Newco and Merger Sub were formed by an affiliate of private equity investment firm Thoma Bravo. Capitalized terms used in this Note 12 not otherwise defined have the meanings set forth in the Merger Agreement. At the Effective Time of the Merger, each share of our common stock issued and outstanding as of immediately prior to the Effective Time (other than Owned Shares or Dissenting Shares) will be cancelled and extinguished and automatically converted into the right to receive cash in an amount equal to $27.55, without interest thereon (the “Per Share Price”). Our vested Options will be cancelled and converted into the right to receive the Per Share Price, less the exercise price per share of such Options. Our unvested Options and unvested RSUs will be cancelled and converted into the contingent right to receive the Per Share Price following satisfaction of the underlying vesting conditions of such unvested Options and unvested RSUs. Newco and Merger Sub have secured committed financing, consisting of a combination of equity to be provided by investment funds affiliated with Thoma Bravo and debt financing from Goldman Sachs & Co. LLC, Credit Suisse and UBS Investment Bank, the aggregate proceeds of which will be sufficient for Newco and Merger Sub to pay the aggregate merger consideration and all related fees and expenses. The transaction is not subject to a financing condition. The proposed transaction is expected to close before our fiscal year end of February 28, 2018, and the consummation of the Merger is subject to customary closing conditions, including, without limitation, the absence of certain legal impediments, the expiration or termination of the required waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, antitrust regulatory approval in Germany and Austria and approval by the Company’s stockholders. We have made customary representations and warranties in the Merger Agreement and have agreed to customary covenants regarding the operation of our business and our subsidiaries prior to the Effective Time. We are also subject to customary restrictions on our ability to solicit alternative acquisition proposals from third parties and to provide non-public information to, and participate in discussions and engage in negotiations with, third parties regarding alternative acquisition proposals, with customary exceptions for Superior Proposals. The Merger Agreement contains certain termination rights for us and Newco. Upon termination of the Merger Agreement under specified circumstances, we will be required to pay Newco a termination fee of $48.26 million. If the Merger Agreement is terminated in connection with our accepting a Superior Proposal or due to our Board’s change or withdrawal of its recommendation of the Merger, then the termination fee will become payable by the Company to Newco. This termination fee will also be payable if the Merger Agreement is terminated because our stockholders did not vote to adopt the Merger Agreement and prior to such termination, a proposal to acquire at least 50% of our stock or assets is publicly announced and we enter into an agreement for, or complete, a transaction contemplated by such proposal within one year of termination. In addition, we will be required to reimburse Newco for up to $3.0 million of its expenses associated with the transaction if the Merger Agreement is terminated because our stockholders do not vote to adopt the Merger Agreement or if we breach representations, warranties or covenants in a manner that would cause the related closing conditions to not be met. Upon termination of the Merger Agreement under other specified circumstances, Newco will be required to pay us a termination fee of $96.53 million. The termination fee by Newco will become payable if Newco fails to consummate the Merger after certain conditions are met, if Newco breaches its representations, warranties or covenants in a manner that would cause the related closing conditions to not be met, or if either party terminates because of the termination date described below, and at the time of such termination, we were otherwise entitled to terminate the Agreement for either of the above reasons. Thoma Bravo has provided us with a limited guaranty in our favor (the “Limited Guaranty”). In the aggregate, the Limited Guaranty guarantees the payment of the termination fee payable by Newco and certain reimbursement obligations that may be owed by Newco to the Company pursuant to the Merger Agreement. The Merger Agreement also provides that either party may specifically enforce the other party’s obligations under the Merger Agreement, provided that we may only cause Newco to fund the equity financing if certain conditions are satisfied, including the funding or availability of the debt financing. In addition to the foregoing termination rights, and subject to certain limitations, we or Newco may terminate the Merger Agreement if the Merger is not consummated by March 26, 2018. |
Subsequent Event |
9 Months Ended |
---|---|
Nov. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent event In December 2017, we entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with Chapman Technology Group, Inc., a Wisconsin corporation ("Seller"), and certain other parties to acquire the Seller’s wholly-owned subsidiary PhishLine, LLC (“PhishLine”), a Wisconsin limited liability company, for a purchase price of $25.0 million, subject to certain net working capital adjustments. PhishLine is engaged in the business of designing, developing, marketing, selling and providing enterprise level social engineering and phishing simulation and training software solutions, and we expect will add additional functionality to our security products. The purchase price was financed through available cash and cash equivalents. We are is in the initial stages of determining the accounting related to the transaction, specifically related to the fair value of intangible assets acquired, and the related tax impact. |
Overview and Basis of Presentation (Policies) |
9 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Nature of Operations | Nature of Operations Barracuda Networks, Inc., also referred to in this report as "we," "our," "us," "Barracuda" or "the Company," is headquartered in Campbell, California, and designs and delivers powerful yet easy-to-use security and data protection solutions. We offer cloud-enabled solutions that help our customers address security threats, improve network performance and protect and store their data. Our solutions are designed to simplify IT operations for our customers, allowing them to enhance their return on technology investments. On November 26, 2017, we entered into an Agreement and Plan of Merger (the "Merger Agreement") to be acquired by Thoma Bravo, LLC, a private equity investment firm (“Thoma Bravo”) in an all-cash transaction valued at approximately $1.6 billion. Our stockholders will receive $27.55 |
||||||||||||||||
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We evaluate our estimates on an ongoing basis, including those related to the fair values of stock-based awards, taxes and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates and such differences could be material to our condensed consolidated financial position and results of operations. |
||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP, and follow the requirements of the U.S. Securities and Exchange Commission (the "SEC") for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP are condensed or omitted. In management’s opinion, the unaudited condensed financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information. The results for the three and nine months ended November 30, 2017 are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of February 28, 2017 has been derived from audited financial statements at that date but does not include all of the information required by GAAP. The accompanying unaudited condensed consolidated financial statements include the accounts of Barracuda Networks, Inc. and our wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited financial statements and related footnotes included in our most recent Annual Report on Form 10-K. There have been no material changes in our significant accounting policies from those that were disclosed in our Annual Report on Form 10-K for the fiscal year ended February 28, 2017. |
||||||||||||||||
Foreign Currency | Foreign Currency For those subsidiaries whose functional currency is not the U.S. dollar, assets and liabilities are translated into U.S. dollar equivalents at the exchange rate in effect on the balance sheet date and revenues and expenses are translated into U.S. dollars using the average exchange rate over the period. Resulting currency translation adjustments are recorded in accumulated other comprehensive loss in our condensed consolidated balance sheets. We recorded net gains resulting from foreign exchange transactions of an immaterial amount and $1.9 million for the three and nine months ended November 30, 2017, respectively, and net losses of $2.4 million and $1.0 million for the three and nine months ended November 30, 2016, respectively, which were reflected as a component of other income, net in our condensed consolidated statements of income. We have foreign subsidiaries that operate and sell our products in various markets around the world. As a result, we are exposed to foreign exchange risks. We utilize foreign exchange forward contracts to manage foreign currency risk associated with foreign currency denominated monetary assets and liabilities, primarily trade receivables, and to reduce the volatility of earnings and cash flows related to foreign currency transactions. The fair values of our contracts as of November 30, 2017 and February 28, 2017 were not significant. The change in the fair value of these foreign currency forward contracts is recorded as gains (losses) in other income, net in our condensed consolidated statements of income. |
||||||||||||||||
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements On March 1, 2017, we adopted Accounting Standards Update No. 2016-09 ("ASU 2016-09"), which simplifies several aspects of employee share-based payment accounting. The impact of the adoption on our condensed consolidated financial statements was as follows:
In January 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update No. 2017-04 ("ASU 2017-04"), which eliminates Step 2 from the goodwill impairment test. Under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We early adopted ASU 2017-04 for impairment tests to be performed on testing dates after January 1, 2017, which did not impact our condensed consolidated financial statements. In November 2016, the FASB issued Accounting Standards Update No. 2016-18 ("ASU 2016-18"), which requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017. We early adopted ASU 2016-18 retrospectively, effective March 1, 2017. Net cash flows for the nine months ended November 30, 2016 did not significantly change as a result of including restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on our condensed consolidated statements of cash flows. Recent Accounting Pronouncements In May 2017, the FASB issued Accounting Standards Update No. 2017-09 ("ASU 2017-09"), which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and early adoption is permitted, including in an interim period. ASU 2017-09 is to be applied on a prospective basis to an award modified on or after the adoption date. We do not intend to early adopt ASU 2017-09 and do not expect the adoption of ASU 2017-09 to have a material impact on our condensed consolidated financial statements. In March 2017, the FASB issued Accounting Standards Update No. 2017-08 ("ASU 2017-08"), which shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, and early adoption is permitted, including in an interim period. If early adopted in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. ASU 2017-08 is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the timing of adoption and do not expect the adoption of ASU 2017-08 to have a material impact on our condensed consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update No. 2017-01 ("ASU 2017-01"), which clarifies the definition of a business, with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and early adoption is permitted for transactions which occur before the issuance or effective date of the amendments, only when the transaction has not been reported in the financial statements that have been issued or made available for issuance. ASU 2017-01 is to be applied on a prospective basis. We do not intend to early adopt ASU 2017-01 and do not expect the adoption of ASU 2017-01 to have a material impact on our condensed consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update No. 2016-15 ("ASU 2016-15") which addresses eight cash flow classification issues. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and early adoption is permitted, including in an interim period. If early adopted in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. Early adoption requires the adoption of all the amendments in the same period. ASU 2016-15 is to be applied through a retrospective transition method to each period presented. If it is impracticable to apply retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. We do not intend to early adopt ASU 2016-15 and do not expect the adoption of ASU 2016-15 to have a material impact on our condensed consolidated statements of cash flows. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 ("ASU 2016-13") which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-13 is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the timing and the impact of adopting ASU 2016-13 on our condensed consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 ("Topic 842") to amend lease accounting requirements and requires entities to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. Topic 842 will require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. Topic 842 is effective for fiscal years beginning after December 15, 2018 and interim periods within those years, and early adoption is permitted. Topic 842 is to be applied using a modified retrospective approach and includes a number of optional practical expedients that entities may elect to apply. We are currently evaluating the timing and the impact of adopting Topic 842 on our condensed consolidated financial statements and expect that most of our operating lease commitments will be subject to Topic 842 and recognized as operating lease liabilities and right-of-use assets upon the adoption. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 ("ASU 2016-01") to enhance the reporting model for financial instruments by amending certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. Early application to financial statements of fiscal years or interim periods that have not yet been issued is permitted by presenting separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk if we elected to measure the liability at fair value in accordance with the fair value option for financial instruments, otherwise, early adoption is not permitted. ASU 2016-01 is to be applied with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values for which the measurement alternative is applied (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. We expect to elect the measurement alternative, defined as cost, less impairments, adjusted by observable price changes. We anticipate that the adoption of ASU 2016-01 may increase the volatility of our other income, net, as a result of the remeasurement of our equity securities upon the occurrence of observable price changes and impairments. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 ("Topic 606") which completed the joint effort by the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and improving financial reporting. Topic 606 also provides guidance on the recognition of costs related to obtaining and fulfilling customer contracts. The FASB issued subsequent amendments to the initial guidance collectively under Topic 606. Topic 606 supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of Topic 606 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Topic 606 defines a five-step process to achieve this core principle, and more judgment and estimates may be required under the Topic 606 revenue recognition process than are required under existing GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation, among others. Topic 606 is required to be effective for us on March 1, 2018. Topic 606 allows for either full retrospective adoption applied to all periods presented or modified adoption with the cumulative effect of initially applying Topic 606 recognized at the date of initial application. We are currently planning to adopt using the modified retrospective approach. Currently, we are in the process of reviewing our historical contracts and evaluating the impact of Topic 606 on our accounting policies, processes and system requirements, and have assigned internal resources and engaged third-party service providers to assist in our evaluation. Furthermore, we will continue to make investments in systems to enable timely and accurate reporting under the new standard. While we continue to assess all potential impacts under the new standard, for the majority of our security solutions, our preliminary evaluation shows that revenue recognition will not change significantly upon the adoption of Topic 606. We will continue to review our contracts to validate such preliminary findings. For our remaining solutions, there is the potential for changes to the pattern of revenue recognition for our arrangements resulting from, for example, the identification of performance obligations, estimation of variable consideration, allocation of the transaction price, timing of recognition, among other areas. We also expect the adoption of the new standard to result in additional financial statement disclosure. Additionally, with respect to contract acquisition costs, we believe that we will capitalize additional costs of obtaining the contract, including additional sales commissions, as the new cost guidance requires the capitalization of all incremental costs that we incur to obtain a contract with a customer that we would not have incurred if the contract had not been obtained, provided we expect to recover the costs. Under our current accounting policy, we would only capitalize such costs if they are both incremental and directly related to acquiring the customer. As we are still in the process of evaluating the impact of the new standard and the impact on our accounting policies across our multiple solutions, we do not know or cannot reasonably estimate quantitative information related to the impact of Topic 606 on our consolidated financial statements, including the effect on our operating results and our accounting for deferred commission balances, at this time. We are also in the process of identifying any necessary changes to our systems processes, and internal controls, which will ultimately assist us in the application of the new standard. |
||||||||||||||||
Fair Value Measurements | Fair Value Measurements We determine fair value based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:
Cash equivalents and marketable equity securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Marketable debt securities and derivative assets are classified within Level 2 if the investments are valued using model driven valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Our marketable securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models. We estimated the fair value of our Level 3 contingent consideration liabilities based on a weighted probability assessment of achieving the milestones related to certain of our acquisitions. Significant increases (decreases) in the probability assumptions in isolation would result in a significantly higher (lower) fair value measurement. In developing these estimates, we considered unobservable inputs that are supported by little or no market activity and reflect our own assumptions. |
||||||||||||||||
Segment Information | Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our chief executive officer. Our chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about sales by geographic region, for purposes of allocating resources and evaluating financial performance. We have one business activity and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated level. Accordingly, we have determined that we have a single reportable segment and operating segment structure. |
Balance Sheet Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | The following table summarizes our cash, cash equivalents and restricted cash by category (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | The following tables summarize our marketable securities by category (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Securities with Gross Unrealized Loss Positions and Fair Values | The following tables present gross unrealized losses and fair values for those marketable securities that were in an unrealized loss position aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Estimated Fair Value of Investments in Marketable Debt Securities | The following table summarizes the estimated fair value of our investments in marketable debt securities by contractual maturities (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assets or Liabilities Measured at Fair Value | Financial assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Change in Fair Value of Level 3 Contingent Consideration | The following table summarizes the change in fair value of our Level 3 contingent consideration amounts (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net | Inventories, net consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs | Deferred costs consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | The components of accumulated other comprehensive income (loss) ("AOCI"), net of tax, were as follows (in thousands):
|
Acquisition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Fair Values of Assets Acquired and Liabilities Assumed | The following table reflects the fair values of assets acquired and liabilities assumed as of the acquisition date (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Business Combination, Pro Forma Information | Accordingly, this unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations.
Accordingly, this unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations.
|
Sale of SignNow business (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | ||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations | Our SignNow technology provided customers with an easy to use electronic signature and online notarization tool. The components of the sales proceeds and resulting impact on our results of operations is as follows:
|
Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are summarized as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets Subject to Amortization | Intangible assets subject to amortization are summarized as follows (in thousands):
|
Stockholders' Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Stock-Based Compensation Expense | Total stock-based compensation expense has been classified as follows in our condensed consolidated statements of income (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Common Stock Repurchases | The following table summarizes our common stock repurchases for the nine months ended November 30, 2017 and 2016 (in thousands, except per share data).
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Geographic Region | Revenue by geographic region is based on our customers' billing addresses and is presented as follows (in thousands):
|
Net Income Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Basic and Diluted Net Income Per Share | The following table presents the calculation of basic and diluted net income per share (in thousands, except per share amounts):
|
Overview and Basis of Presentation - Additional Information (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Nov. 26, 2017 |
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2017 |
Nov. 30, 2016 |
Feb. 28, 2017 |
|
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Net gain (loss) from foreign exchange transactions | $ 0 | $ (2,400,000) | $ 1,900,000 | $ (1,000,000) | ||
Retained Earnings | Accounting Standards Update 2016-09 | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption | $ 400,000 | |||||
Additional Paid-in Capital | Accounting Standards Update 2016-09 | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Cumulative effect of new accounting principle in period of adoption | $ 0 | |||||
Barracuda Networks, Inc. | ||||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Proceeds from divestiture of businesses | $ 1,600,000,000 | |||||
Business combination, sale of business, cash received per share (in usd per share) | $ 27.55 |
Balance Sheet Information - Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands |
Nov. 30, 2017 |
Feb. 28, 2017 |
Nov. 30, 2016 |
Feb. 29, 2016 |
---|---|---|---|---|
Cash and cash equivalents: | ||||
Cash | $ 79,900 | $ 103,726 | ||
Money market funds | 16,994 | 16,468 | ||
Other non-current assets: | ||||
Restricted cash | 676 | 643 | ||
Total cash and cash equivalents | $ 97,570 | $ 120,837 | $ 121,113 | $ 118,654 |
Balance Sheet Information - Summary of Estimated Fair Value of Investments in Marketable Debt Securities (Detail) $ in Thousands |
Nov. 30, 2017
USD ($)
|
---|---|
Balance Sheet Information [Abstract] | |
Due in 1 year | $ 25,821 |
Due in 1 year through 5 years | 50,382 |
Due in 5 years through 10 years | 993 |
Due after 10 years | 3,654 |
Total | $ 80,850 |
Balance Sheet Information - Change In Fair Value of Contingent Consideration (Details) - Fair value measurements recurring - Level 3 $ in Thousands |
9 Months Ended |
---|---|
Nov. 30, 2017
USD ($)
| |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance as of February 28, 2017 | $ 902 |
Total remeasurement recognized in earnings | (160) |
Settlements | (742) |
Balance as of November 30, 2017 | $ 0 |
Balance Sheet Information - Inventories, Net (Detail) - USD ($) $ in Thousands |
Nov. 30, 2017 |
Feb. 28, 2017 |
---|---|---|
Balance Sheet Information [Abstract] | ||
Raw materials | $ 4,959 | $ 3,479 |
Finished goods | 3,782 | 2,878 |
Reserves | (482) | (510) |
Total inventories, net | $ 8,259 | $ 5,847 |
Balance Sheet Information - Deferred Costs (Detail) - USD ($) $ in Thousands |
Nov. 30, 2017 |
Feb. 28, 2017 |
---|---|---|
Deferred Cost [Line Items] | ||
Total deferred costs | $ 64,854 | $ 59,883 |
Appliance | ||
Deferred Cost [Line Items] | ||
Total deferred costs | 40,316 | 39,474 |
Commissions | ||
Deferred Cost [Line Items] | ||
Total deferred costs | $ 24,538 | $ 20,409 |
Acquisition - Additional Information (Details) - Sonian, Inc. $ in Millions |
1 Months Ended | 9 Months Ended |
---|---|---|
Nov. 30, 2017
USD ($)
|
Nov. 30, 2017
USD ($)
|
|
Business Acquisition [Line Items] | ||
Proceeds from divestiture of businesses | $ 59.6 | |
Contingent consideration, held for potential indemnification obligations | $ 5.4 | $ 5.4 |
Consideration transferred, held for potential indemnification obligations, term | 1 year | |
Acquired finite-lived intangible assets, weighted average useful life | 5 years 9 months | |
Revenue of acquiree since acquisition date, actual | $ 1.1 | |
Earnings or loss of acquiree since acquisition date, actual | $ 0.4 | |
Acquired developed technology | ||
Business Acquisition [Line Items] | ||
Acquired finite-lived intangible assets, weighted average useful life | 5 years | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Acquired finite-lived intangible assets, weighted average useful life | 7 years |
Acquisition Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Nov. 30, 2017 |
Feb. 28, 2017 |
---|---|---|
Business Acquisition [Line Items] | ||
Goodwill | $ 98,135 | $ 69,795 |
Sonian, Inc. | ||
Business Acquisition [Line Items] | ||
Cash | 3,078 | |
Accounts receivable | 3,258 | |
Other assets | 534 | |
Goodwill | 28,034 | |
Accounts payable and accruals | (890) | |
Deferred liabilities | (354) | |
Total value of assets acquired and liabilities assumed | 59,590 | |
Customer relationships | Sonian, Inc. | ||
Business Acquisition [Line Items] | ||
Acquired finite-lived intangibles | 10,530 | |
Developed technology | Sonian, Inc. | ||
Business Acquisition [Line Items] | ||
Acquired finite-lived intangibles | $ 15,400 |
Acquisition - Pro Forma Information (Details) - Sonian, Inc. - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Business Acquisition [Line Items] | ||||
Pro forma revenue | $ 98,005 | $ 92,801 | $ 294,643 | $ 275,284 |
Pro forma net income | $ 7,240 | $ 1,482 | $ 10,798 | $ 6,324 |
Sale of SignNow business - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 31, 2017 |
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Business Acquisition [Line Items] | |||||
Gain on sale of business | $ 7,382 | $ 0 | $ 7,382 | $ 0 | |
SignNow | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Business Acquisition [Line Items] | |||||
Total consideration | $ 8,610 | ||||
Gain on sale of business | 7,382 | ||||
Notes receivable, gross | 5,000 | ||||
Notes receivable | 4,360 | ||||
Non-marketable securities | 2,250 | ||||
SignNow | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Other Current Assets | |||||
Business Acquisition [Line Items] | |||||
Notes receivable | 1,700 | ||||
SignNow | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Other Noncurrent Assets | |||||
Business Acquisition [Line Items] | |||||
Notes receivable | $ 2,700 |
Sale of SignNow business - Schedule of Noncash or Part Noncash Divestitures (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 31, 2017 |
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Business Acquisition [Line Items] | |||||
Gain on sale of business | $ 7,382 | $ 0 | $ 7,382 | $ 0 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | SignNow | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 2,000 | ||||
Notes receivable | 4,360 | ||||
Non-marketable securities | 2,250 | ||||
Total consideration | 8,610 | ||||
Goodwill | (545) | ||||
Intangibles | (915) | ||||
Other net liabilities | 232 | ||||
Gain on sale of business | $ 7,382 |
Goodwill and Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands |
9 Months Ended |
---|---|
Nov. 30, 2017
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 69,795 |
Goodwill acquired | 28,034 |
Goodwill sold | (545) |
Effect of foreign exchange rates | 851 |
Balance at end of period | $ 98,135 |
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2017 |
Nov. 30, 2016 |
Feb. 28, 2017 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Other intangible assets not subject to amortization | $ 0.2 | $ 0.2 | $ 0.2 | ||
Amortization expense | 1.6 | $ 1.8 | 5.0 | $ 5.5 | |
Amortization expense for the remainder of fiscal year 2018 | 2.9 | 2.9 | |||
Amortization expense for fiscal year 2019 | 10.3 | 10.3 | |||
Amortization expense for fiscal year 2020 | 10.3 | 10.3 | |||
Amortization expense for fiscal year 2021 | 9.8 | 9.8 | |||
Amortization expense for fiscal year 2022 | 9.5 | 9.5 | |||
Amortization expense thereafter | $ 9.2 | $ 9.2 |
Stockholders' Equity - Summary of Common Stock Repurchases (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Total number of shares repurchased (in shares) | 0 | 0 | 331,000 | 482,000 |
Dollar amount of shares repurchased | $ 6,546 | $ 7,241 | ||
Average price paid per share (in usd per share) | $ 19.75 | $ 15.03 |
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ (4,610) | $ (1,329) | $ (7,491) | $ (9,848) |
Segment Information - Additional Information (Detail) |
9 Months Ended |
---|---|
Nov. 30, 2017
Segment
| |
Segment Reporting [Abstract] | |
Number of reporting segment | 1 |
Segment Information - Schedule of Revenue by Geographic Region (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Segment Reporting Information [Line Items] | ||||
Revenue | $ 94,747 | $ 88,806 | $ 283,251 | $ 263,390 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 70,642 | 66,760 | 211,213 | 197,712 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 66,909 | 63,305 | 199,766 | 187,311 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,733 | 3,455 | 11,447 | 10,401 |
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,399 | 1,163 | 4,040 | 3,513 |
Asia-Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 6,032 | 5,273 | 17,964 | 15,557 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 16,674 | $ 15,610 | $ 50,034 | $ 46,608 |
Borrowings (Details) |
Nov. 30, 2017
USD ($)
|
---|---|
Line of Credit Facility [Line Items] | |
Credit facility maximum borrowing capacity | $ 25,000,000.0 |
Second Amendment | |
Line of Credit Facility [Line Items] | |
Credit facility maximum borrowing capacity | $ 50,000,000.0 |
Net Income Per Share - Calculation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2017 |
Nov. 30, 2016 |
Nov. 30, 2017 |
Nov. 30, 2016 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 7,783 | $ 1,793 | $ 12,009 | $ 7,014 |
Weighted-average shares used to compute net income (loss) per share, basic (in shares) | 53,378 | 52,457 | 53,098 | 52,336 |
Dilutive shares from stock options and RSUs (in shares) | 1,617 | 1,538 | 1,547 | 1,055 |
Weighted-average shares used to compute net income (loss) per share, diluted (in shares) | 54,995 | 53,995 | 54,645 | 53,391 |
Net income (loss) per share, basic (in usd per share) | $ 0.15 | $ 0.03 | $ 0.23 | $ 0.13 |
Net income (loss) per share, diluted (in usd per share) | $ 0.14 | $ 0.03 | $ 0.22 | $ 0.13 |
Agreement And Plan Of Merger - Additional Information (Details) - USD ($) |
Nov. 26, 2017 |
Nov. 30, 2017 |
Feb. 28, 2017 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | |
Barracuda Networks, Inc. | |||
Business Acquisition [Line Items] | |||
Proceeds from divestiture of businesses | $ 1,600,000,000 | ||
Business combination, sale of business, cash received per share (in usd per share) | $ 27.55 | ||
Thoma Bravo, LLC | Blue Holdings, LLC | |||
Business Acquisition [Line Items] | |||
Potential termination of merger agreement fee | $ 48,260,000 | ||
Announcement of proposal to acquire stock or assets of the company, percent that would trigger termination of merger agreement fee | 50.00% | ||
Contingent liability, reimbursement of transaction Fees upon termination of merger agreement | $ 3,000,000 | ||
Merger agreement, contingency period | 1 year | ||
Thoma Bravo, LLC | Newco | |||
Business Acquisition [Line Items] | |||
Potential termination of merger agreement fee | $ 96,530,000 |
Subsequent Event - Additional Information (Details) $ in Millions |
Dec. 18, 2017
USD ($)
|
---|---|
PhishLine, LLC | Subsequent Event | |
Subsequent Event [Line Items] | |
Consideration transferred | $ 25 |
>.F)H2 G*@G!"0*4(# $P;38
M(,>LA\0&TO0YQHD/JF:)P"T!H!J?,#-#='XA$:X*)"5%2(5.5&]R.4(+*J
M0@DL2X\)IV)2 JIB8P*K*#:&T82"FB#!:(HKBE%%,5(2'R=(4(($*0GXYK+$
MRO+.IZ"]*PSD ] : =$85#>W0?Z-+J>HI!21!#[A++5B1$"/C8 =MA$4D.0V
MY"YF-QI,"7YL$D1.! ].@K4(?LPHRH_@"8N@: C>B1Q#16ER0]J-&X$BTF(H
MC2+I,$N:C:)A#)79($98#)4A LW;O9FO.F 6-0($(R)IOHSFOPP&D,QHF!.#XL, 4%
MIN.=SD"!V0BGLP>-U N!7'C_NT"0X!V)=XX0--XH@O<<\H LPN$QY-UW>N2Z
MCWH8P3L405LT&H9K0;.;<%X\"8=GB7-STJK7]P_,3GG%K1T5\M#61^N14D&D
MI#N1S9_)+X9N4I"C4,-8CEG[VFPG@M;FD\#IODO2_U!+ P04 " "JKBA,
MJ!,:E"T" "Q!@ &0 'AL+W=O /OHB1$>A\U;<3*+Z5LEP"(8TEJ+)Y82QKUY E#5B8$71&.
M%'!5@2$5"VR$X_X"2Q,14$W#39+U;9(8(*'P3CS03Z^)]WI^AC ! 0E(0T!Z
M!)%V("TF:#!%@_%]G_B:'Z-0L8FB(<$$EDQ!R=243%U- QW '\W@(\!?.X*8@P0W@K)4'LOYF-N\]6B,>>H&?;#
M,>^V'=P)][HVW63_=OIG3L_6S;ZNN$@7R6M'-&(>!@R]PBA^"WD,(7!!)"Z!
M2Q84R^*!!N'T=H%UB%#"R^%_29[>);E)DZ%BL3Z>W8B5X00<)> ] ;\FD,13
M>\"H'E/WF(PKKCP]0E2:ID1ZDH0HFC(JP-,%@4G&,H*7)M#2!%+:Q!Z0*(&<
M+ZY""=0,<0>,N*I4$ W2? 4GO2RW6=2D7\+]O =KW=OH_/5HWOH!#<+)X3)
M;YA=.R S2U"0%C\ >:.35:]I^^%'YB8AV]WM ,\ _ (HW]_4RRK?(4AWXV
MK[P"$08WW//XEPIH2+2KRG5()][O4$A'ZI=]V>&)ANSQ(_"@M%JRL+N"*38E
MB57!\D'\9;*Q)8FWX]I^ :D!U1-\*5UM\X(4'R2AW?LM@]6%$A3=\;HJM^9M
M (A@7M#+(X0O6"(>U,V^SHLL)*S,W%G,ZQ3%9+J;#"A'=E3@!5'T !+/IV,Z[!'+#B.@Q,0MX;CY
MO&>S>#&>.M[9QS+_28!G,-<,U0E'[F_^._T -()37DP,IS7?FS_]IT<9,#'>
M]O?VP5%N/$3((6@)YE?/3N#- (^ 56=3Q*G9".6'H?!=$,^987<#TBP>PD?,
MIMMKT,_@7*EY)1\LHRY.]%2F@N?C>#2:.;;^NPG\15LVZ0'6Y-A-:]>F?NLY
M.FS.@>3CS0$,.M\K\1N;3(T5L\NJEI(KK8 !>1^052KT#JT/.%
M@(LH_ *95R!SZ)N%@(L L5\A]RKD+A\L)"PD-9#.'G,,5M(HO"*%*[*X*7L+
MR>:0E:NR\4IL7(ED(>&!I'X)$/L+*G8]9,N2\F#R%965L@6NAV*I IPS 2@I
M$%JI#^ MX!V KM3R@GDP<.6& 7\5 ^1Z6-XQ'P:NJ/B+';BU#-'B.1HQ\VU+
M499#%"^/*)H]LBWA-]./1'!F]\XTPYEUZGD[:![IOW#;,+]B?FLZ$9R85$^]
M>9"OC$FB HJ?5"BUZM'3@I*KU--[H?A])!E_?,^-%7_M3V%8_SG
MI>V::HB/W6O6G[I0[::@ILY0J3QKJL-QN5E-[QZ[S:I]&^K#,3QVB_ZM::KN
MOVVHV_-Z"EU
MG.2%=Q[8^S2^R>_P<=J?N&V$=N1B/+YL[']MC >4DMS@"+7XP69#0NW#\0[/
M=ARST?"FFWX0F[]Q\0M02P,$% @ JJXH3*XPP>*T 0 T@, !D !X
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MI=B3-*^2M*6!O0:J[L%2@)/%<+*HEJ+);$&91*L&I#'"PXW%E+.(
)WWH)
,GO9*/O1W]37:=\$=L+_$_^/P\
M?">BZ7KIG;C2HV O;,VY MU(<*>=MOI%6@,*M3+;5._%/)=SH/BP/#EH??>*
MOU!+ P04 " "JKBA,$[T%$/L! !S!0 &0 'AL+W=O
>I^PN:=O#A3OBWG6$_ST#96/F
M^N[;Q'-[:Z2>0'DZD!O\ /ESN' U0DM*U7;0BY;U#H
W\;/[+#4>H-;S&KT@/]2>6O
MZIFKE=>H[+*"EB)CI
08S<5_AAL(#P]*?(Y:"QM75(_6:3FS
M>"F2O::=J[A/Z2;/YK#M #H'T"6 IEI2HJC\/7.L*HR>D$F]'UAXXOV)^M[4
MP1E;$>^\>.N]MRK+\X+< M&,.2<,76'V"X)X]B4%W4IQIO^$9_G]-L%A4^,A
M$AS6^8__49!M$F21(/M#P?&O(A,FCQBU6219]52"Z>(T653K4<5)7GF7@7V@
M\4U^P].T?V&FX\JBJW;^96/_6ZT=>"&[.Z^A]Q]L,02T+AR/_FS2F"7#Z6'^
M063YQM4O4$L#!!0 ( *JN*$QR1@]/20, .,- 9 >&PO=V]R:W-H
M965T8B0F+[)^.@,9G ]C
MCGE<%K!?WCCRVGU%5,G[H,C0>(/\QJB;1%!V&NH0-/<]!\R