Company Quick10K Filing
Carbon Black
Price16.05 EPS-1
Shares73 P/E-23
MCap1,177 P/FCF-29
Net Debt-59 EBIT-52
TEV1,118 TEV/EBIT-22
TTM 2019-06-30, in MM, except price, ratios
10-Q 2019-06-30 Filed 2019-08-01
10-Q 2019-03-31 Filed 2019-05-02
10-K 2018-12-31 Filed 2019-03-08
10-Q 2018-09-30 Filed 2018-10-25
10-Q 2018-06-30 Filed 2018-08-07
S-1 2018-04-09 Public Filing
10-Q 2018-03-31 Filed 2018-06-07
8-K 2019-10-08
8-K 2019-08-22
8-K 2019-08-01
8-K 2019-06-13
8-K 2019-05-02
8-K 2019-02-19
8-K 2019-02-06
8-K 2019-01-23
8-K 2018-12-17
8-K 2018-10-23
8-K 2018-08-07
8-K 2018-06-07

CBLK 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Note 1. Overview and Basis of Presentation
Note 2. New Accounting Pronouncements
Note 3. Cash Equivalents and Short - Term Investments
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Qualitative and Quantitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits.
EX-31.1 cblk-20190630ex3111dd097.htm
EX-31.2 cblk-20190630ex312c16918.htm
EX-32.1 cblk-20190630ex3214b3e46.htm

Carbon Black Earnings 2019-06-30

Balance SheetIncome StatementCash Flow
0.50.30.1-0.0-0.2-0.42016201720182020
Assets, Equity
0.10.10.0-0.0-0.1-0.12016201720182020
Rev, G Profit, Net Income
0.20.10.10.0-0.0-0.12016201720182020
Ops, Inv, Fin

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from______to_____.

Commission File Number: 001-38478

CARBON BLACK, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware

    

55-0810166

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

1100 Winter Street

Waltham, MA

02451

(Address of principal executive offices)

(Zip Code)

(617) 393-7400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

CBLK

The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes       No   

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes       No   

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

    

    

Accelerated filer

Non-accelerated filer

Small reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes         No    

There were 73,549,186 shares of the registrant’s common stock with a par value of $0.001 per share, outstanding as of July 31, 2019.

Table of Contents

CARBON BLACK, INC.

QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED

JUNE 30, 2019

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION

Item 1.

Financial Statements:

Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018 (Unaudited)

3

Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)

4

Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)

5

Consolidated Statements of Redeemable Convertible and Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited)

6

Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018 (Unaudited)

7

Condensed Notes to the Consolidated Financial Statements (Unaudited)

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

23

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

39

Item 4.

Controls and Procedures

39

PART II — OTHER INFORMATION

Item 1.

Legal Proceedings

40

Item 1A.

Risk Factors

40

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

64

Item 3.

Defaults upon Senior Securities

64

Item 4.

Mine Safety Disclosures

64

Item 5.

Other Information

64

Item 6.

Exhibits

65

Signatures

66

2

Table of Contents

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CARBON BLACK, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

June 30, 

December 31, 

(In thousands, except share and per share amounts)

2019

    

2018

Assets:

Current assets:

Cash and cash equivalents

$

58,855

$

67,868

Short-term investments

89,256

92,770

Accounts receivable, net of allowances of $180 and $300, as of June 30, 2019 and December 31, 2018, respectively

 

52,318

 

62,555

Prepaid expenses and other current assets

 

9,302

 

8,751

Deferred commissions

 

14,293

 

13,078

Total current assets

 

224,024

 

245,022

Deferred commissions, net of current portion

 

26,165

 

25,076

Property and equipment, net

 

12,963

 

14,370

Operating lease right-of-use assets

13,852

Intangible assets, net

 

1,936

 

2,529

Goodwill

 

119,656

 

119,656

Deferred tax asset

483

483

Other-long term assets

 

558

 

601

Total assets

$

399,637

$

407,737

Liabilities:

Current liabilities:

 

  

 

  

Accounts payable

$

4,967

$

4,663

Accrued expenses

 

15,927

 

20,669

Deferred revenue

 

149,294

 

152,522

Deferred rent

 

 

1,216

Operating lease short-term liability

5,316

Total current liabilities

 

175,504

 

179,070

Deferred revenue, net of current portion

 

35,787

 

40,371

Deferred rent, net of current portion

 

 

2,651

Operating lease long-term liability

 

12,039

 

Deferred tax liability

49

49

Other long-term liabilities

 

24

 

42

Total liabilities

 

223,403

 

222,183

Commitments and contingencies (Note 10)

 

  

 

  

Stockholders' equity:

Common stock, $0.001 par value per share, 500,000,000 shares authorized:

73,392,066 and 69,738,599 shares issued, and 73,336,662 and 69,683,195 shares outstanding,as of June 30, 2019 and December 31, 2018, respectively

 

73

 

70

Treasury stock, at cost, 55,404 shares as of June 30, 2019 and December 31, 2018, respectively

 

(6)

 

(6)

Additional paid-in capital

 

747,928

 

723,051

Accumulated other comprehensive income (loss)

57

(49)

Accumulated deficit

 

(571,818)

 

(537,512)

Total stockholders' equity

 

176,234

 

185,554

Total liabilities and stockholders' equity

$

399,637

$

407,737

See accompanying condensed notes to the consolidated financial statements.

3

Table of Contents

CARBON BLACK, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended June 30, 

Six Months Ended June 30, 

(In thousands, except share and per share amounts)

2019

    

2018

    

2019

    

2018

Revenue:

  

 

  

 

  

 

  

Subscription, license and support

$

58,631

$

47,891

$

114,925

$

93,282

Services

 

2,226

 

3,101

 

4,488

 

6,144

Total revenue

 

60,857

 

50,992

 

119,413

 

99,426

Cost of revenue:

Subscription, license and support

 

11,291

 

8,051

 

21,793

 

15,263

Services

 

1,879

 

3,053

 

4,402

 

6,056

Total cost of revenue

 

13,170

 

11,104

 

26,195

 

21,319

Gross profit

 

47,687

 

39,888

 

93,218

 

78,107

Operating expenses:

Sales and marketing

 

35,571

 

35,161

 

74,981

 

65,839

Research and development

 

19,250

 

16,084

 

37,627

 

31,006

General and administrative

 

8,108

 

7,850

 

16,196

 

18,276

Total operating expenses

 

62,929

 

59,095

 

128,804

 

115,121

Loss from operations

 

(15,242)

 

(19,207)

 

(35,586)

 

(37,014)

Other income (expense), net:

Interest income

841

439

 

1,700

507

Interest expense

(38)

(28)

 

(69)

(51)

Change in fair value of warrant liability

 

 

(5,957)

 

 

(8,838)

Other income (expense), net

 

(109)

 

(494)

 

(214)

 

(374)

Total other income (expense), net

694

(6,040)

1,417

(8,756)

Loss before income taxes

 

(14,548)

 

(25,247)

 

(34,169)

 

(45,770)

Provision for income taxes

 

71

 

34

 

137

 

105

Net loss

 

(14,619)

 

(25,281)

 

(34,306)

 

(45,875)

Accretion of preferred stock to redemption value

 

 

(159,453)

 

 

(199,492)

Net loss attributable to common stockholders

$

(14,619)

$

(184,734)

$

(34,306)

$

(245,367)

Net loss per share attributable to common stockholders—basic and diluted

$

(0.20)

$

(4.13)

$

(0.48)

$

(8.73)

Weighted-average common shares outstanding—basic and diluted

 

72,375,825

 

44,759,435

 

71,430,435

 

28,104,372

See accompanying condensed notes to the consolidated financial statements.

4

Table of Contents

CARBON BLACK, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)

Three Months Ended June 30, 

(In thousands)

2019

2018

Net loss

$

(14,619)

$

(25,281)

Other comprehensive income (loss), net of related taxes:

Net unrealized gains (losses) on available-for-sale securities, net of related taxes of zero

57

-

Other comprehensive income (loss)

57

-

Total comprehensive loss

$

(14,562)

$

(25,281)

Six Months Ended June 30, 

(In thousands)

2019

2018

Net loss

$

(34,306)

$

(45,875)

Other comprehensive income (loss), net of related taxes:

Net unrealized gains (losses) on available-for-sale securities, net of related taxes of zero

106

-

Other comprehensive income (loss)

106

-

Total comprehensive loss

$

(34,200)

$

(45,875)

See accompanying condensed notes to the consolidated financial statements.

5

Table of Contents

CARBON BLACK, INC.

CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE AND CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)

(UNAUDITED)

Redeemable

Accumulated

Convertible

Convertible

Additional

Other

Total

Preferred Stock

Preferred Stock

Common Stock

Treasury Stock

Paid-in

Comprehensive

Accumulated

Stockholders'

(In thousands, except share amounts)

   

Shares

    

Amount

    

Shares

    

Amount

  

  

Shares

Amount

    

Shares

    

Amount

    

Capital

Income (Loss)

    

Deficit

    

Equity (Deficit)

Balance at December 31, 2017

88,741,194

$

333,204

 

3,851,806

$

1,510

 

11,139,690

$

11

 

53,676

$

(6)

$

13,429

$

$

(273,513)

$

(260,079)

Net loss

(20,594)

(20,594)

Exercise of Series A stock options

185,063

89

Exercise of common stock options

274,840

976

976

Stock-based compensation expense

2,389

2,389

Accretion of redeemable convertible preferred stock to redemption value

40,039

(16,794)

(23,245)

(40,039)

Repurchase of common stock

(1,728)

1,728

Balance at March 31, 2018

88,741,194

$

373,243

4,036,869

$

1,599

11,412,802

$

11

55,404

$

(6)

$

$

$

(317,352)

$

(317,347)

Net loss

 

 

 

 

 

 

 

 

 

(25,281)

 

(25,281)

Exercise of Series A stock options

 

 

175,322

 

122

 

 

 

 

 

 

 

Exercise of common stock options

 

 

 

 

349,179

 

1

 

 

 

1,543

 

 

1,544

Stock-based compensation expense

 

 

 

 

 

 

 

 

3,487

 

 

3,487

Accretion of redeemable convertible preferred stock to redemption value

 

159,453

 

 

 

 

 

 

 

(756)

 

(158,697)

 

(159,453)

Conversion of redeemable convertible preferred stock upon initial public offering

(88,741,194)

(532,696)

44,370,560

44

532,652

532,696

Conversion of convertible preferred stock upon initial public offering

(4,212,191)

(1,721)

1,709,063

2

1,719

1,721

Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and offering costs incurred of $4,858

9,200,000

9

157,697

157,706

Issuance of common stock upon exercise of common stock warrants

712,063

1

11,603

11,604

Balance at June 30, 2018

$

$

67,753,667

$

68

55,404

$

(6)

$

707,945

$

$

(501,330)

$

206,677

Balance at December 31, 2018

$

 

$

 

69,683,195

$

70

 

55,404

$

(6)

$

723,051

$

(49)

$

(537,512)

$

185,554

Net loss

(19,687)

(19,687)

Exercise of common stock options

1,535,993

1

6,225

6,226

Vesting of restricted stock units, net of shares withheld for employee taxes

122,372

(351)

(351)

Stock-based compensation expense

4,204

4,204

Unrealized gain (loss) on available-for-sale securities

49

49

Balance at March 31, 2019

$

$

71,341,560

$

71

55,404

$

(6)

$

733,129

$

$

(557,199)

$

175,995

Net loss

(14,619)

(14,619)

Exercise of common stock options

1,857,948

2

8,870

8,872

Vesting of restricted stock units, net of shares withheld for employee taxes

19,951

(112)

(112)

Stock-based compensation expense

4,709

4,709

Issuance of common stock under employee stock purchase plan

117,203

1,332

1,332

Unrealized gain (loss) on available-for-sale securities

57

57

Balance at June 30, 2019

$

 

$

 

73,336,662

$

73

 

55,404

$

(6)

$

747,928

$

57

$

(571,818)

$

176,234

See accompanying condensed notes to the consolidated financial statements.

6

Table of Contents

CARBON BLACK, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Six Months Ended June 30, 

(In thousands)

2019

2018

Cash flows from operating activities:

Net loss

$

(34,306)

$

(45,875)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization expense

4,163

3,875

Stock-based compensation expense

8,913

5,876

Provisions for doubtful accounts

(57)

118

Non-cash interest expense

40

22

Change in fair value of warrant liability

8,838

Deferred income taxes

4

Other non-cash income

(734)

Changes in operating assets and liabilities:

Accounts receivable

10,294

17,100

Prepaid expenses and other assets

(1,002)

(2,293)

Deferred commissions

(2,304)

(1,962)

Accounts payable

252

1,787

Accrued expenses

(4,761)

(2,773)

Deferred revenue

(7,812)

572

Deferred rent

23

Operating leases right-of-use assets

2,168

Operating leases liability

(2,532)

Other long-term liabilities

(18)

(1)

Net cash used in operating activities

(27,696)

(14,689)

Cash flows from investing activities:

Purchases of short-term investments

(