Barracuda Networks hunts down network threats. The company provides firewalls that combine computer network hardware and software to protect enterprises from e-mail spam, viruses, and spyware. Other products include appliances for e-mail archiving, Web filtering, and load balancing. It serves businesses in industries such as consumer goods, financial services, manufacturing, retail, technology, and utilities. Barracuda also provides professional services, such as support, consulting, and implementation. Its extensive customer list has included Coca-Cola, FedEx, IBM, and Toshiba. The company went public in 2013.
Barracuda raised $74 million in its IPO and plans to use the proceeds for general corporate purposes, such as working capital, sales and marketing activities, and product development.
About 70% of Barracuda's revenue comes from subscriptions for the company's cloud-based products. Appliance sales account for the other 30% of revenue. The company makes its appliance hardware at a facility in San Jose, California.
The company has four US offices and international locations in more than 15 countries across Asia and Europe, as well as in Brazil and the United Arab Emirates.
Sales and Marketing
Barracuda sells its appliances, services, and software through a direct sales force and a network of more than 5,000 resellers located in more than 100 countries. North America, however, is its largest market, accounting for about 75% of sales; the US alone generates 68% of sales.
Barracuda’s revenue increased 19% to $277.4 million in 2015 (ended February) compared to $233.8 million in 2014. A 19% increase in the number of subscribers drove subscription revenue higher; the company counted some 240,000 subscribers at the end of its 2015 fiscal year. Appliance revenue rose 16% aided by success in efforts to sell additional products to existing customers.
The company reported a loss of $67.5 million in 2015, which was deeper than the $3.6 million loss of 2014. In 2015, Barracuda had higher expenses in research and development and sales and marketing as well as a much bigger tax bill.
Cash flow from operations rose to $54 million in 2015 from $42 million in 2014.
The rapid evolution of Web technologies and the digital threats designed to undermine them require Barracuda to continually revamp and update its product line. The company started selling CudaDrive, a cloud file service which is delivered to desktops via virtual drive, as well as through mobile and Web applications. The product enables businesses to securely store, share, and get access to files stored in the Barracuda cloud from anywhere. The company charges by the amount of storage capacity with unlimited users rather than charging by seat or by user.
Mergers and Acquisitions
Barracuda acquired C2C, a provider of personal storage table file management, email archiving and information management solutions, for about $9.6 million in 2014. The acquisition of the UK-based C2C enables Barracuda to expand its archiving and information management product portfolio.
Barracuda was founded in 2002 by President and CEO Dean Drako.