Carbonite 2011 Annual Report Download - page 39

Table of Contents
Bookings and free cash flow are financial data that are not calculated in accordance with GAAP. The tables below provide reconciliation of
bookings and free cash flow to revenue and cash provided by (used in) operating activities, respectively, the most directly comparable financial
measures calculated and presented in accordance with GAAP.
Our management uses annual retention rate to determine the stability of our customer base and to evaluate the lifetime value of our customer
relationships. As customers’ annual and multi-year subscriptions come up for renewal throughout the calendar year based on the dates of their original
subscriptions, measuring retention on a trailing twelve month basis at the end of each quarter provides our management with useful and timely
information about the stability of our customer base. Management uses renewal rate to monitor trends in customer renewal activity.
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As of December 31,
2011
2010
2009
2008
2007
(in thousands)
Consolidated balance sheet data:
Cash
$
59,842
$
13,855
$
28,276
$
2,543
$
14,773
Working capital (deficit)
18,838
(12,381
)
12,595
12,266
10,342
Total assets
99,606
40,941
46,433
30,701
18,501
Deferred revenue, including current portion
59,696
38,722
23,144
9,401
3,534
Total liabilities
72,004
47,834
29,149
14,009
5,840
Preferred stock warrant liability
—
82
18
18
18
Redeemable and convertible stock
—
68,730
67,770
48,387
26,983
Total stockholders
’
equity (deficit)
27,602
(75,623
)
(50,486
)
(31,696
)
(14,322
)
Years Ended December 31,
2011
2010
2009
2008
2007 (1)
(in thousands, except percentage data)
Key metrics:
Total customers (2)
1,223
951
590
281
95
Annual retention rate (3)
82
%
83
%
79
%
81
%
N/A
Renewal rate (4)
82
%
81
%
78
%
78
%
N/A
Bookings (5)
$
80,900
$
54,141
$
32,857
$
14,069
$
5,170
Free cash flow (6)
$
(5,972
)
$
(12,204
)
$
(8,045
)
$
(12,409
)
$
(8,638
)
(1)
We did not document annual retention rate or renewal rate in 2007.
(2)
We define total customers as the number of paid subscriptions from consumers and SMBs at the end of the relevant period.
(3) We define annual retention rate as the percentage of customers on the last day of the prior year who remain customers on the last day of the
current year, or for quarterly presentations, the percentage of customers on the last day of the comparable quarter in the prior year who remain
customers on the last day of the current quarter.
(4) We define renewal rate for a period as the percentage of customers who renew annual or multi-year subscriptions that expire during the period
presented. Renewal rate excludes customers under our discontinued third-party distribution agreements and prior SMB offering with subscriptions
that remain active until cancelled.
(5)
We define bookings as revenue recognized during the period plus the change in total deferred revenue (excluding deferred revenue recorded in
connection with acquisitions) during the same period.
(6)
We define free cash flow as net cash provided by (used in) operating activities, less capital expenditures, and adjusted for any extraordinary items.