Carbon Black (CBLK) to be acquired by VMware (VMW) for $26/share

• Carbon Black went public less than a month after Pivotal, and is similar in that it offers cloud software that focuses on securing other companies’ usage of cloud software. Carbon Black sold IPO shares at $19 apiece, but had been trading lower than that level for months before a strong earnings report in May sent shares higher. 

   

VMware (VMW) to acquire Carbon Black for $26/share in cash - representing an enterprise value of $2.1 bln
Under the terms of the Carbon Black merger agreement, Carbon Black stockholders will receive $26 per share cash for each share held, resulting in a net cash payout for VMware of $1.9 billion. The transaction will be funded through cash on the balance sheet and access to short-term borrowing capacity. Closing is expected in the second half of VMware's fiscal year 2020, which ends January 31, 2020.

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Carbon Black (CBLK) reported earnings on Wed 20 Feb 2019 (a/h)

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Carbon Black beats by $0.04, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY19 EPS above consensus, revs below consensus

• Reports Q4 (Dec) loss of $0.20 per share, $0.04 better than the S&P Capital IQ Consensus of ($0.24); revenues rose 27.6% year/year to $56.9 mln vs the $55.59 mln S&P Capital IQ Consensus.
• During the three months ended December 31, 2018, CBLK used ($9.2) million of cash in operations and ($1.1) million in capital expenditures and capitalized software development costs, leading to negative free cash flow of ($10.3) million, compared to positive free cash flow of $3.6 million in the year-ago period.
• Co issues downside guidance for Q1, sees EPS of ($0.23)-($0.22) vs. ($0.21) S&P Capital IQ Consensus; sees Q1 revs of $56.5-$57.5 mln vs. $58.77 mln S&P Capital IQ Consensus.
• Co issues mixed guidance for FY19, sees EPS of ($0.64)-($0.61) vs. ($0.69) S&P Capital IQ Consensus; sees FY19 revs of $240-$244 mln vs. $257.25 mln S&P Capital IQ Consensus.

Carbon Black (CBLK) reported earnings on Thur 25 Oct 2018 (a/h)

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Carbon Black beats by $0.05, beats on revs; guides Q4 EPS in-line, revs in-line 

• Reports Q3 (Sep) loss of $0.20 per share, $0.05 better than the S&P Capital IQ Consensus of ($0.25); revenues rose 28.7% year/year to $53.4 mln vs the $52.64 mln S&P Capital IQ Consensus.
• Non-GAAP gross profit was $42.1 million, representing a 79% non-GAAP gross margin.
• During the three months ended September 30, 2018, CBLK used ($13.4) million of cash in operations and ($2.1) million in capital expenditures and capitalized software development costs, leading to negative free cash flow of ($15.4) million, compared to free cash flow of $11,000 in the year-ago period.
• Co issues in-line guidance for Q4, sees EPS of (0.25)-(0.24) vs. ($0.25) S&P Capital IQ Consensus; sees Q4 revs of 55.3-55.8 mln vs. $54.94 mln S&P Capital IQ Consensus.

Carbon Black (CBLK) reported earnings on Thur 7 June 2018 (a/h)

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Carbon Black beats by $0.29, reports revs in-line with pre-announcement; guides Q2 above consensus; guides FY18 EPS above consensus, revs above consensus 

• Reports Q1 (Mar) loss of $0.98 per share, excluding non-recurring items, $0.29 better than the Capital IQ Consensus of ($1.27); revenues rose 34.8% year/year to $48.4 mln vs the $47.99 mln Capital IQ Consensus. Co preannounced rev of $47.5-48.0 mln in the IPO prospectus.
• Ended the quarter with 4,006 total customers, up from 2,648 in the year-ago period and from 3,739 at the end of the previous quarter. Growth was driven by strong demand across the entire product portfolio and customer acquisition across a broad range of industries. Growth of customers who licensed at least one cloud product increased to 1,870 at the end of the first quarter, compared to 552 in the year-ago period and 1,605 at the end of the previous quarter.
• Co issues upside guidance for Q2, sees EPS of ($0.41-0.42) vs. ($0.43) Capital IQ Consensus Estimate; sees Q2 revs of $48.5-49.0 mln vs. $48.21 mln Capital IQ Consensus Estimate.
• Co issues upside guidance for FY18, sees EPS of ($1.32-1.35) vs. ($1.38) Capital IQ Consensus Estimate; sees FY18 revs of $203.0-204.5 mln vs. $202.01 mln Capital IQ Consensus Estimate.

Carbon Black (CBLK) began trading on the Nasdaq on 4 May 2018

Carbon Black is a cybersecurity company based in Waltham, Massachusetts. The company develops cloud-native endpoint security software that is designed to detect malicious behavior and to help prevent malicious files from attacking an organization.

• Headquarters: Waltham, MA
• CEO: Patrick Morley (Dec 2007–)
• Founded: 2002
• Number of employees: 1,000
• carbonblack.com

Carbon Black priced 8.0 mln share IPO at $19, the high end of the upwardly revised price range of $17-$19