Carbonite 2011 Annual Report Download - page 40

Table of Contents
Our management uses bookings as a proxy for cash receipts. Bookings represents the aggregate dollar value of customer subscriptions received by
us during a period. We initially record a subscription fee as deferred revenue and then recognize it ratably, on a daily basis, over the life of the
subscription period. Management uses free cash flow as a measure of our operating performance; for planning purposes, including the preparation of our
annual operating budget; to allocate resources to enhance the financial performance of our business; to evaluate the effectiveness of our business
strategies; to provide consistency and comparability with past financial performance; to determine capital requirements; to facilitate a comparison of our
results with those of other companies; and in communications with our board of directors concerning our financial performance. We also use free cash
flow as a factor when determining management’s incentive compensation. Management believes that the use of free cash flow provides consistency and
comparability with our past financial performance, facilitates period to period comparisons of operations, and also facilitates comparisons with other
peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.
Although bookings and free cash flow are frequently used by investors and securities analysts in their evaluations of companies, bookings and free
cash flow have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations as
reported under GAAP. Some of these limitations are:
The following tables present reconciliations of our 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.
37
•
bookings does not reflect our receipt of payment from subscribers;
•
free cash flow does not reflect our future requirements for contractual commitments to vendors;
• free cash flow does not reflect the non-cash component of employee compensation or depreciation and amortization of property and
equipment; and
• other companies in our industry may calculate bookings or free cash flow or similarly titled measures differently than we do, limiting their
usefulness as comparative measures.
Years Ended December 31,
2011
2010
2009
2008
2007
(in thousands)
Revenue
$
60,512
$
38,563
$
19,114
$
8,202
$
2,154
Plus change in deferred revenue (excluding acquisition)
20,388
15,578
13,743
5,867
3,016
Bookings
$
80,900
$
54,141
$
32,857
$
14,069
$
5,170
Years Ended December 31,
2011
2010
2009
2008
2007
(in thousands)
Cash provided by (used in) operating activities
$
7,572
$
(1,552
)
$
(946
)
$
(7,705
)
$
(6,094
)
Less capital expenditures
(13,544
)
(10,652
)
(7,099
)
(4,704
)
(2,544
)
Free cash flow
$
(5,972
)
$
(12,204
)
$
(8,045
)
$
(12,409
)
$
(8,638
)