Carbonite 2011 Annual Report Download - page 5

Table of Contents
Unless otherwise indicated, information contained in this Annual Report concerning our industry and the market in which we operate, including
our general expectations and market position, market opportunity, and market size, is based on information from various sources, on assumptions that
we have made that are based on such data, and on our knowledge of the markets for our solutions. Such data involves a number of assumptions and
limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions, and estimates of our future
performance and the future performance of the industry in which we operate, whether made by us or by third parties, are necessarily subject to a high
degree of uncertainty and risk due to a variety of factors, including those described in “Risk Factors” and elsewhere in this Annual Report. These and
other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.
Overview
Carbonite, Inc. (together with its subsidiaries, “Carbonite,” the “Company,” “our,” “we,” or “us”) was incorporated on February 10, 2005 and is a
Delaware corporation. We are a leading provider of online backup solutions for consumers and small and medium sized businesses, or SMBs. We
provide easy-to-use, affordable, unlimited, and secure online backup solutions with anytime, anywhere access to files stored on our servers, which we
call the Carbonite Personal Cloud. We believe that we are the best known brand in the online backup market.
We founded Carbonite on one simple idea: all computers need to be backed up, and in this always-connected and highly-mobile world, online
backup is the ideal approach. Our “set and forget” automated solution requires little effort and protects our customers’ stored files even if their
computers are lost, stolen, or destroyed.
Our backup solutions work quietly in the background, automatically and continuously uploading encrypted copies of our customers’ files to the
Carbonite Personal Cloud. Our customers can browse and share their photos, videos, and documents anytime, anywhere using a web browser or our free
iPad, iPhone, BlackBerry, and Android apps. Our historical consumer offering, re-branded as Carbonite Home, continues to include unlimited online
backup for an annual flat fee of $59. Carbonite HomePlus provides customers with additional backup and restore features for external hard drives for an
annual flat fee of $99. Carbonite HomePremier further includes automatic online backup for video files as well as a recovery-by-mail feature for an
annual flat fee of $149. Our SMB offerings, Carbonite Business and Carbonite BusinessPremier, include features designed for multiple computers and
users, enabling SMBs to easily install and use Carbonite backup without the help of a professional IT staff.
As of December 31, 2011, we had subscribers in more than 100 countries, with subscribers based in the U.S. representing 94% of our total
revenue for 2011. Since 2005, we have backed up over 180 billion files and have restored over 13 billion files that might otherwise have been
permanently lost. We currently back up an average of more than 300 million files each day.
We have developed a highly predictable subscription revenue model, with a consistently high customer retention rate and a scalable infrastructure
to support our growth. We generated revenue of $60.5 million in 2011. We continue to invest heavily in customer acquisition, principally through
advertising, and as a result we recorded a net loss of $23.5 million in 2011. Our bookings have grown from $32.9 million in 2009 to $80.9 million in
2011. For a reconciliation of bookings to revenue for the last five years, see “Selected Consolidated Financial and Other Data.”
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