Barracuda Networks provides backup, firewall, message archiving, load balancing, and communication services. It has experienced 20% annual revenue growth, reaching $233 million in 2014, with 69% from corporate subscriptions. Its strongest product is backup services and fastest growing is message archiving. It focuses on retaining corporate customers through services rather than individual customers through products. While it competes in diverse fields, its focus on subscription retention and aggressive product development make it a company to buy now and watch closely.

1. Barracuda
Networks
Steve
Merritt
(stevemer)

2. What do they do?
● Backup
● Firewall
o WAF
o IM
● Message Archiver
● Load Balancer
● CudaTel Communication Server
● Copy.com

3. Financials
Past 5 years:
2009: $101 million revenue, +$5 million profit
2013: $198 million revenue, -$7 million profit
Key numbers:
20% year-over-year revenue growth
$233 million revenue in 2014
69% of this revenue comes from corporate subscriptions

4. Timeline
Products
Company Growth

5. What’s Hot
- Strongest Product:
BBS: Barracuda Backup Service
- Fastest Growing Product:
BMAS: Barracuda Message Archiver
Service
- Newest Product:
BC: Barracuda Copy (copy.com)

6. Secret Sauce
Standard Tech Company Theory:
- Individuals as customers
- Retain customers through great products
Barracuda Theory:
- Companies as customers
- Retain customers through great service - 90% renewals
- Additive benefit - less expensive engineers

7. Competition
Barracuda competes
in many diverse fields

8. Buy or Sell?
Considerations:
● Overview: Tech Company
● Primary focus: Retention of subscriptions
o Compare: Microsoft Office Suite

9. Buy or Sell?
Considerations:
● Overview: Tech Company Service Provider
● Primary focus: Retention of subscriptions
o Compare: Microsoft Office Suite

10. Buy or Sell?
Considerations:
● Overview: Tech Company Service Provider
● Primary focus: Retention of subscriptions
o Compare: Microsoft Office Suite

11. Buy or Sell?
Considerations:
● Overview: Tech Company Service Provider
● Primary focus: Retention of subscriptions
o Compare: Microsoft Office Suite
● Key differences:
o Aggressive product development
o Willing to cannibalize existing tech
 BBS, BMAS
o Young company + young market

12. Buy or Sell?
Considerations:
● Overview: Tech Company Service Provider
● Primary focus: Retention of subscriptions
o Compare: Microsoft Office Suite
● Key differences:
o Aggressive product development
o Willing to cannibalize existing tech
 BBS, BMAS
o Young company + young market
Conclusion: Buy now, watch closely