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Feb. 7, 2019, 4:47 p.m. EST

Carbonite shares drop after earnings, deal to acquire Webroot

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By Wallace Witkowski

Carbonite Inc. shares fell in the extended session Thursday after the cloud-based data protection company topped Wall Street estimates for earnings but not revenue and announced an all-cash deal to acquire cybersecurity company Webroot. Carbonite shares dropped 5.6% after hours, following a 0.5% decline to close the regular session at $29.30. The company reported fourth-quarter net income of $719,000, or 2 cents a share, compared with a loss of $1.6 million, or 6 cents a share, in the year-ago period. Adjusted earnings were 45 cents a share. Revenue rose to $77 million from $61.7 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 42 cents a share on revenue of $79.9 million. Carbonite also said it will acquire Webroot for about $618.5 million in cash on hand in a deal it expects to close in the first quarter of 2019. Webroot reported fiscal 2018 revenue of about $215 million, Carbonite said. The company expects adjusted earnings before interest, tax, depreciation and amortization of $20 million to $25 million on adjusted revenue of $77 million to $78 million in the first quarter, and adjusted EBITDA of $129 million to $134 million on adjusted revenue of $488 million to $502 million for the year. Analysts expect adjusted EBITDA of $25 million on revenue of $80.7 million for the first quarter, and adjusted EBITDA of $334.9 million for the year. Carbonite said the outlook assumes nine months of contribution from Webroot.

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