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Barracuda Networks: New Plans to Boost Its Revenue

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Barracuda’s price movement

Barracuda Networks (CUDA) has a market cap of $1.25 billion. Its YTD (year-to-date) price movement was stable until the last three months. After the earnings report in 2Q16, Barracuda Networks fell by 4.38% to close at $23.55 per share. The price movement on a weekly, monthly, and YTD basis is -15.83%, -11.33%, and -34.29%, respectively. It’s trading at -15.95% on a trailing five-day basis.

In the last three months, it has broken all of the major supports. Earlier, it was trading above the 200-day moving average. Currently, it’s trading at -12.86% below the 20-day moving average, -12.20% below the 50-day moving average, and -33.86% below the 200-day moving average.

The PureFunds ISE Cyber Security ETF (HACK) invests 4.34% of its holdings in Barracuda. HACK tracks a tiered and equal-weighted index that targets companies actively involved in providing cybersecurity technology and services. HACK’s YTD price movement is -3.85%.

Barracuda Networks’ competitors and their market caps are:

  • Check Point Software Technologies (CHKP) – $14.25 billion
  • Symantec (SYMC) – $13.14 billion
  • Palo Alto Networks (PANW) – $14.27 billion
  • Juniper Networks (JNPR) – $9.63 billion
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Barracuda’s performance in 2Q16

Barracuda Networks reported net revenue of $78.371 in 2Q16—a rise of 0.50% compared to net revenue of $77.974 million in 1Q16. The subscription revenue rose by 3.29% and the appliance revenue fell by 5.88%. The net income was -$2.239 million in 2Q16—a rise of 41.57% on a quarterly basis.

The cash and cash equivalents and inventories rose to $173.683 million and $5.579 million—a rise of 11.29% and 18.27% in 2Q16 on a quarterly basis.

In 2Q16, some of Barracuda’s key activities are:

  • The Barracuda Web Application Firewall was approved by Microsoft for integration into the Azure App Service.
  • The company released CudaLaunch—an application for both iOS and Android devices. It provides mobile users with secure remote access to an organization’s private cloud application and networks through the Barracuda NG Firewall.
  • Barracuda announced that it doubled the port capacity and performance of its Load Balancer ADC models without increasing prices.
  • The company launched CudaDrive—a flexible and secure cloud file service with virtual drive and user data protection.

About Barracuda Networks

Barracuda Networks provides solutions designed to solve mainstream IT problem efficiently and cost effectively. Its products are for three different markets—content security, networking and application delivery and data storage, and protection and disaster recovery. Barracuda Networks’ major clients are Citibank, Coca-Cola, Delta Dental, FedEx, Harvard University, IBM, L’Oreal, Liberty Tax Service, and Spokane Public Schools.

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