Over the last decade, Barracuda Networks has been successful in building out a solid niche providing security and storage products and (increasingly) cloud-based services to midmarket customers. The company provides turnkey products through a straightforward sales engagement. Barracuda went public in November 2013, raising US$75 million to extend market awareness of its growing portfolio.
Barracuda’s revenues for the first three quarters of FY2016 were US$236.4 million, up from US$205.3 million in the first three quarters of FY2015. The company has been particularly successful in growing subscription revenues, which accounted for 73 percent of its revenues in Q3 FY2016. Despite its history of solid growth, Barracuda has posted five consecutive quarters of net losses, based on Generally Accepted Accounting Principles (GAAP), as it continues to ramp its R&D, sales, and marketing spending in order to broaden its portfolio and sales reach.