Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Feb. 28, 2014 | Mar. 31, 2014 | Nov. 06, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 28-Feb-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'CUDA | ' | ' |
Entity Registrant Name | 'BARRACUDA NETWORKS INC | ' | ' |
Entity Central Index Key | '0001348334 | ' | ' |
Current Fiscal Year End Date | '--02-28 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 51,052,959 | ' |
Entity Public Float | ' | ' | $157.50 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $135,879 | $30,095 |
Marketable securities | ' | 1,550 |
Accounts receivable, net of allowance for doubtful accounts of $2,134 and $1,252 as of February 28, 2014 and 2013, respectively | 27,836 | 24,066 |
Inventories | 5,648 | 5,138 |
Prepaid income taxes | 1,147 | 1,120 |
Deferred costs | 25,707 | 20,119 |
Deferred income taxes | 30,156 | 26,158 |
Other current assets | 3,753 | 3,216 |
Total current assets | 230,126 | 111,462 |
Property and equipment | 20,558 | 16,972 |
Deferred costs, non-current | 24,572 | 19,351 |
Deferred income taxes, non-current | 28,515 | 21,065 |
Other non-current assets | 1,851 | 1,637 |
Intangible assets, net | 8,420 | 7,983 |
Goodwill | 36,014 | 33,778 |
Total assets | 350,056 | 212,248 |
Current liabilities: | ' | ' |
Accounts payable | 13,743 | 12,756 |
Accrued payroll and related benefits | 8,494 | 9,967 |
Other accrued liabilities | 9,374 | 9,925 |
Deferred revenue | 167,562 | 146,257 |
Deferred income taxes | 260 | 132 |
Note payable | 237 | 222 |
Total current liabilities | 199,670 | 179,259 |
Long-term liabilities: | ' | ' |
Deferred revenue, non-current | 145,595 | 114,986 |
Deferred income taxes, non-current | 84 | 660 |
Note payable, non-current | 4,635 | 4,872 |
Other long-term liabilities | 5,727 | 4,537 |
Commitments and contingencies (Note 11) | ' | ' |
Redeemable convertible preferred stock: $0.001 par value; zero and 17,626,227 shares authorized as of February 28, 2014 and 2013, respectively; zero and 17,626,227 shares issued and outstanding as of February 28, 2014 and 2013, respectively | ' | 167,554 |
Stockholders' deficit: | ' | ' |
Preferred stock, $0.001 par value; 20,000,000 and zero shares authorized as of February 28, 2014 and 2013, respectively; zero shares issued and outstanding as of February 28, 2014 and 2013, respectively | ' | ' |
Common stock, $0.001 par value; 1,000,000,000 and 53,333,334 shares authorized as of February 28, 2014 and 2013, respectively; 51,045,196 and 28,091,081 shares issued and outstanding as of February 28, 2014 and 2013, respectively | 52 | 28 |
Additional paid-in capital | 278,551 | 23,080 |
Accumulated other comprehensive loss | -817 | -1,112 |
Accumulated deficit | -283,441 | -279,131 |
Total stockholders' deficit controlling interest | -5,655 | -257,135 |
Total stockholders' deficit non-controlling interest | ' | -2,485 |
Total stockholders' deficit | -5,655 | -259,620 |
Total liabilities, redeemable convertible preferred stock, and stockholders' deficit | $350,056 | $212,248 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $2,134 | $1,252 |
Redeemable convertible preferred stock, par value | $0.00 | $0.00 |
Redeemable convertible preferred stock, shares authorized | 0 | 17,626,227 |
Redeemable convertible preferred stock, shares issued | 0 | 17,626,227 |
Redeemable convertible preferred stock, shares outstanding | 0 | 17,626,227 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 20,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000,000 | 53,333,334 |
Common stock, shares issued | 51,045,196 | 28,091,081 |
Common stock, shares outstanding | 51,045,196 | 28,091,081 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Revenue: | ' | ' | ' |
Appliance | $71,914 | $59,528 | $43,258 |
Subscription | 161,873 | 139,403 | 117,662 |
Total revenue: | 233,787 | 198,931 | 160,920 |
Cost of revenue | 53,768 | 45,088 | 34,966 |
Gross profit | 180,019 | 153,843 | 125,954 |
Operating expenses: | ' | ' | ' |
Research and development | 47,142 | 35,167 | 27,824 |
Sales and marketing | 114,024 | 102,329 | 84,885 |
General and administrative | 29,856 | 28,777 | 14,428 |
Total operating expenses | 191,022 | 166,273 | 127,137 |
Loss from operations | -11,003 | -12,430 | -1,183 |
Other income (expense), net | 51 | -839 | 476 |
Loss before income taxes and non-controlling interest | -10,952 | -13,269 | -707 |
Benefit for income taxes | 6,565 | 5,084 | 453 |
Consolidated net loss | -4,387 | -8,185 | -254 |
Net loss attributable to non-controlling interest | 761 | 794 | 859 |
Net income (loss) attributable to Barracuda Networks, Inc. | -3,626 | -7,391 | 605 |
Net income (loss) attributable to common stockholders (Note 13) | ($3,626) | ($9,203) | $466 |
Net income (loss) per share attributable to common stockholders: | ' | ' | ' |
Basic | ($0.10) | ($0.29) | $0.01 |
Diluted | ($0.10) | ($0.29) | $0.01 |
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: | ' | ' | ' |
Basic | 35,355 | 32,031 | 33,829 |
Diluted | 35,355 | 32,031 | 45,355 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) attributable to Barracuda Networks, Inc. | ($3,626) | ($7,391) | $605 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Change in net foreign currency translation adjustment | 352 | -511 | -85 |
Available-for-sale investments: | ' | ' | ' |
Change in net unrealized gains (losses) (net of tax effect of $13, $40 and $519) | -19 | -66 | -846 |
Less: reclassification adjustment for net (gains) losses included in net income (loss) (net of tax effect of $23, $8 and $328) | -38 | -14 | 528 |
Net change | -57 | -80 | -318 |
Other comprehensive income (loss) | 295 | -591 | -403 |
Comprehensive income (loss) attributable to Barracuda Networks, Inc. | ($3,331) | ($7,982) | $202 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Change in net unrealized gains (losses), tax | $13 | $40 | $519 |
Reclassification adjustment for net (gains) losses included in net income (loss), tax | $23 | $8 | $328 |
Consolidated_Statements_of_Red
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit (USD $) | Total | Initial Public Offering [Member] | Series A Redeemable Convertible Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Total Stockholders' Deficit Controlling Interest [Member] | Total Stockholders' Deficit Controlling Interest [Member] | Total Stockholders' Deficit Non-controlling Interest [Member] | Series B Redeemable Convertible Preferred Stock [Member] |
In Thousands, except Share data | Initial Public Offering [Member] | Initial Public Offering [Member] | Initial Public Offering [Member] | ||||||||||
Redeemable convertible preferred stock, Beginning balance at Feb. 28, 2011 | ' | ' | $40,010 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance at Feb. 28, 2011 | -4,984 | ' | ' | 34 | ' | 13,343 | ' | -118 | -19,824 | -6,565 | ' | 1,581 | ' |
Redeemable convertible preferred stock, Beginning balance, Shares at Feb. 28, 2011 | ' | ' | 10,050,254 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance, Shares at Feb. 28, 2011 | ' | ' | ' | 33,748,853 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | 1,462 | ' | ' | ' | ' | 1,462 | ' | ' | ' | 1,462 | ' | ' | ' |
Issuance of common stock, Shares | ' | ' | ' | 146,184 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock | -1,186 | ' | ' | ' | ' | -1,186 | ' | ' | ' | -1,186 | ' | ' | ' |
Repurchase of common stock, Shares | ' | ' | ' | -85,635 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Purchase) Repayment of Employee loans for purchase of stock | -255 | ' | ' | ' | ' | -255 | ' | ' | ' | -255 | ' | ' | ' |
Stock-based compensation expense | 1,871 | ' | ' | ' | ' | 1,871 | ' | ' | ' | 1,871 | ' | ' | ' |
Excess tax benefits from equity incentive plan | 82 | ' | ' | ' | ' | 82 | ' | ' | ' | 82 | ' | ' | ' |
Non-controlling interest | -3,986 | ' | ' | ' | ' | -1,872 | ' | ' | ' | -1,872 | ' | -2,114 | ' |
Change in unrealized gain on available-for-sale securities, net of tax effect | -318 | ' | ' | ' | ' | ' | ' | -318 | ' | -318 | ' | ' | ' |
Foreign currency translation adjustment | -15 | ' | ' | ' | ' | ' | ' | -85 | ' | -85 | ' | 70 | ' |
Net income (loss) | -254 | ' | ' | ' | ' | ' | ' | ' | 605 | 605 | ' | -859 | ' |
Redeemable convertible preferred stock, Ending balance at Feb. 29, 2012 | ' | ' | 40,010 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance at Feb. 29, 2012 | -7,583 | ' | ' | 34 | ' | 13,445 | ' | -521 | -19,219 | -6,261 | ' | -1,322 | ' |
Redeemable convertible preferred stock, Ending balance, Shares at Feb. 29, 2012 | ' | ' | 10,050,254 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, Shares at Feb. 29, 2012 | ' | ' | ' | 33,809,402 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | 8,751 | ' | ' | 2 | ' | 8,749 | ' | ' | ' | 8,751 | ' | ' | ' |
Issuance of common stock, Shares | ' | ' | ' | 1,863,317 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock | -127,613 | ' | ' | -8 | ' | -5,084 | ' | ' | -122,521 | -127,613 | ' | ' | ' |
Repurchase of common stock, Shares | ' | ' | ' | -7,581,638 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of Series B Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,732 |
Issuance of Series B Preferred Stock, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,575,973 |
(Purchase) Repayment of Employee loans for purchase of stock | -2,861 | ' | ' | ' | ' | -2,861 | ' | ' | ' | -2,861 | ' | ' | ' |
Accretion of preferred stock to redemption value | -1,812 | ' | ' | ' | ' | -1,812 | ' | ' | ' | -1,812 | ' | ' | 1,812 |
Stock-based compensation expense | 8,787 | ' | ' | ' | ' | 8,787 | ' | ' | ' | 8,787 | ' | ' | ' |
Excess tax benefits from equity incentive plan | 1,687 | ' | ' | ' | ' | 1,687 | ' | ' | ' | 1,687 | ' | ' | ' |
Cash dividend declared | -130,000 | ' | ' | ' | ' | ' | ' | ' | -130,000 | -130,000 | ' | ' | ' |
Non-controlling interest | -200 | ' | ' | ' | ' | 169 | ' | ' | ' | 169 | ' | -369 | ' |
Change in unrealized gain on available-for-sale securities, net of tax effect | -80 | ' | ' | ' | ' | ' | ' | -80 | ' | -80 | ' | ' | ' |
Foreign currency translation adjustment | -511 | ' | ' | ' | ' | ' | ' | -511 | ' | -511 | ' | ' | ' |
Net income (loss) | -8,185 | ' | ' | ' | ' | ' | ' | ' | -7,391 | -7,391 | ' | -794 | ' |
Redeemable convertible preferred stock, Ending balance at Feb. 28, 2013 | 167,554 | ' | 40,010 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 127,544 |
Ending balance at Feb. 28, 2013 | -259,620 | ' | ' | 28 | ' | 23,080 | ' | -1,112 | -279,131 | -257,135 | ' | -2,485 | ' |
Redeemable convertible preferred stock, Ending balance, Shares at Feb. 28, 2013 | 17,626,227 | ' | 10,050,254 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,575,973 |
Ending balance, Shares at Feb. 28, 2013 | 28,091,081 | ' | ' | 28,091,081 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of stock, net of offering costs | ' | 75,490 | ' | ' | 5 | ' | 75,485 | ' | ' | ' | 75,490 | ' | ' |
Issuance of stock, net of offering costs, Shares | ' | ' | ' | ' | 4,761,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of convertible preferred stock to common stock in connection with initial public offering | 167,554 | ' | -40,010 | 18 | ' | 167,536 | ' | ' | ' | 167,554 | ' | ' | -127,544 |
Conversion of convertible preferred stock to common stock in connection with initial public offering, Shares | ' | ' | -10,050,254 | 17,626,227 | ' | ' | ' | ' | ' | ' | ' | ' | -7,575,973 |
Issuance of common stock | 209 | ' | ' | 1 | ' | 208 | ' | ' | ' | 209 | ' | ' | ' |
Issuance of common stock, Shares | 420,969 | ' | ' | 611,142 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common stock | -723 | ' | ' | ' | ' | -39 | ' | ' | -684 | -723 | ' | ' | ' |
Repurchase of common stock, Shares | ' | ' | ' | -44,254 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Purchase) Repayment of Employee loans for purchase of stock | 3,048 | ' | ' | ' | ' | 3,048 | ' | ' | ' | 3,048 | ' | ' | ' |
Stock-based compensation expense | 10,837 | ' | ' | ' | ' | 10,837 | ' | ' | ' | 10,837 | ' | ' | ' |
Excess tax benefits from equity incentive plan | 1,513 | ' | ' | ' | ' | 1,513 | ' | ' | ' | 1,513 | ' | ' | ' |
Options assumed in acquisition | 129 | ' | ' | ' | ' | 129 | ' | ' | ' | 129 | ' | ' | ' |
Non-controlling interest | ' | ' | ' | ' | ' | -3,246 | ' | ' | ' | -3,246 | ' | 3,246 | ' |
Change in unrealized gain on available-for-sale securities, net of tax effect | -57 | ' | ' | ' | ' | ' | ' | -57 | ' | -57 | ' | ' | ' |
Foreign currency translation adjustment | 352 | ' | ' | ' | ' | ' | ' | 352 | ' | 352 | ' | ' | ' |
Net income (loss) | -4,387 | ' | ' | ' | ' | ' | ' | ' | -3,626 | -3,626 | ' | -761 | ' |
Ending balance at Feb. 28, 2014 | ($5,655) | ' | ' | $52 | ' | $278,551 | ' | ($817) | ($283,441) | ($5,655) | ' | ' | ' |
Redeemable convertible preferred stock, Ending balance, Shares at Feb. 28, 2014 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance, Shares at Feb. 28, 2014 | 51,045,196 | ' | ' | 51,045,196 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Operating activities | ' | ' | ' |
Consolidated net loss | ($4,387) | ($8,185) | ($254) |
Adjustments to reconcile consolidated net loss to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 9,109 | 8,333 | 8,124 |
Stock-based compensation | 10,837 | 8,787 | 1,871 |
Excess tax benefits from equity incentive plan | -1,513 | -1,687 | -82 |
Loss on disposal of property and equipment | 304 | 60 | 240 |
Loss (gain) on sale of marketable securities | -61 | 25 | -852 |
Deferred income taxes | -12,633 | -13,374 | -11,367 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -3,631 | -1,582 | -4,025 |
Inventory | -509 | 278 | -1,219 |
Income taxes, net | 2,696 | 4,403 | 2,210 |
Deferred costs | -10,809 | -10,214 | -10,931 |
Other current assets | -456 | -60 | 150 |
Other non-current assets | 108 | -61 | -172 |
Accounts payable | 1,183 | 3,206 | 2,085 |
Accrued payroll and related benefits | -212 | 2,791 | 443 |
Other accrued liabilities | -18 | 2,349 | 1,274 |
Other long-term liabilities | 405 | 114 | -200 |
Deferred revenue | 51,797 | 44,192 | 56,631 |
Net cash provided by operating activities | 42,210 | 39,375 | 43,926 |
Investing activities | ' | ' | ' |
Purchase of marketable securities | ' | ' | -1,666 |
Proceeds from sales of marketable securities | 1,516 | 575 | 1,189 |
Purchase of investment in non-marketable equity and debt securities | -310 | ' | -750 |
Purchase of property and equipment | -7,616 | -4,722 | -8,510 |
Purchase of intangible assets | -28 | ' | -366 |
Business combinations, net of cash acquired | -8,475 | -4,357 | -1,017 |
Net cash used in investing activities | -14,913 | -8,504 | -11,120 |
Financing activities | ' | ' | ' |
Net proceeds from initial public offering | 75,490 | ' | ' |
Proceeds from issuance of common stock | 209 | 2,203 | 161 |
Dividends paid | -1,419 | -128,385 | ' |
Proceeds from issuance of Series B stock, net of issuance costs | ' | 125,732 | ' |
Issuance costs on line of credit | ' | -313 | ' |
Repurchase of common stock | -723 | -127,613 | -1,186 |
Excess tax benefits from equity incentive plan | 1,513 | 1,687 | 82 |
Repayment of employee loans, net of loans extended | 3,655 | ' | ' |
Repayment of note payable | -222 | -222 | -119 |
Purchase of non-controlling interest | ' | -200 | -3,986 |
Net cash provided by (used in) financing activities | 78,503 | -127,111 | -5,048 |
Effect of exchange rate changes on cash and cash equivalents | -16 | -172 | 7 |
Net increase (decrease) in cash and cash equivalents | 105,784 | -96,412 | 27,765 |
Cash and cash equivalents at beginning of period | 30,095 | 126,507 | 98,742 |
Cash and cash equivalents at end of period | 135,879 | 30,095 | 126,507 |
Cash paid during the period for: | ' | ' | ' |
Interest | 447 | 485 | 36 |
Income taxes, net of tax refunds | 2,565 | 3,408 | 8,142 |
Non-cash financing and investing activities: | ' | ' | ' |
Conversion of preferred stock into common stock | 167,554 | ' | ' |
Ownership increase in non-controlling interest | 3,246 | ' | ' |
Issuance of shares in business combination | ' | 3,528 | ' |
Assumption of note payable in connection with the purchase of land and buildings | ' | ' | 5,332 |
Accretion of issuance costs | ' | $1,812 | ' |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended | ||
Feb. 28, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Organization and Summary of Significant Accounting Policies | ' | ||
1. Organization and Summary of Significant Accounting Policies | |||
Nature of Operations | |||
Barracuda Networks, Inc., also referred to in this report as “we,” “our” or “us,” headquartered in Campbell, California, designs and delivers powerful yet easy-to-use security and storage solutions. We offer cloud-connected solutions that help our customers address security threats, improve network performance and protect and store their data. Our solutions are designed to simplify IT operations for our customers, allowing them to enhance their return on technology investment. We refer to the fiscal years ended February 28, 2014, February 28, 2013 and February 29, 2012 as fiscal 2014, fiscal 2013 and fiscal 2012, respectively. | |||
Initial Public Offering | |||
In November 2013, we completed our initial public offering (the “IPO”) in which we sold 4,761,000 shares of our common stock at a public offering price of $18.00 per share, which included 621,000 shares of common stock issued pursuant to the exercise in full of the over-allotment option by the underwriters. The IPO resulted in proceeds of $75.5 million, net of offering costs and underwriting discounts and commissions. In connection with the closing of the IPO, all of our outstanding redeemable convertible preferred stock automatically converted into 17,626,227 shares of common stock on a one-to-one basis. | |||
Reverse Stock Split | |||
On October 15, 2013, we effected a one-for-three reverse stock split and our board of directors (the “Board”) and stockholders approved an amendment of our certificate of incorporation such that, immediately prior to the completion of our IPO, our authorized capital stock consisted of 1,000,000,000 shares of common stock, $0.001 par value per share, and 20,000,000 shares of preferred stock, $0.001 par value per share. All information in this Annual Report on Form 10-K relating to the number of shares, price per share and per share amounts gives retroactive effect to the one-for-three reverse stock split of our capital stock. | |||
Basis of Presentation | |||
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of Barracuda Networks, Inc. and our wholly and majority-owned subsidiaries. All significant intercompany accounts and transactions are eliminated. | |||
Use of Estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, valuation of stock-based awards, income taxes and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ from those estimates and such differences could be material to our consolidated financial position and results of operations. | |||
Reclassifications | |||
We have reclassified certain immaterial prior period amounts within our consolidated financial statements and related notes to conform to our current year presentation. | |||
Cash and Cash Equivalents | |||
Cash and cash equivalents consist of cash on deposit with banks and money market funds with an original maturity of three months or less. | |||
Marketable Securities | |||
Marketable securities have been classified as available-for-sale securities in the accompanying consolidated financial statements. Available-for-sale securities are carried at fair value, and realized gains and losses and declines in value determined to be other than temporary are included in other income (expense), net in the accompanying consolidated statements of operations. Interest income on securities classified as available-for-sale securities is also included in other income (expense), net. The cost of securities sold is based on the specific-identification method. | |||
Fair Value | |||
The carrying value of our financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximates fair value because of the short-term nature of such financial instruments. We measure certain other assets, including our non-marketable equity securities, at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. | |||
Concentration of Credit Risk and Significant Customers | |||
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities and accounts receivable. | |||
We primarily invest only in high-quality credit instruments and maintain our cash, cash equivalents and marketable securities with high-quality institutions. Deposits held with banks, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. These deposits may be redeemed upon demand and bear minimal risk. We believe that the institutions that hold our instruments are financially sound and are subject to minimal credit risk. | |||
Our accounts receivable are derived from customers located in North America and certain foreign countries and regions, including Europe, the Middle East, Latin America and Asia-Pacific. Sales to foreign customers accounted for 27%, 26% and 29% of total revenue for fiscal 2014, 2013 and 2012, respectively. We perform ongoing credit evaluations of our customers’ financial condition and typically require no collateral from our customers. Credit risk with respect to accounts receivable is dispersed due to the large number of customers. One distribution partner accounted for 10% of receivables as of February 28, 2014, while no single customer or distribution partner accounted for over 10% of receivables as February 28, 2013. | |||
One distribution partner accounted for 18% and 13% of total revenue in fiscal 2014 and 2013, respectively. No single customer or distribution partner accounted for greater than 10% of total revenue in fiscal 2012. | |||
We currently depend on a single source or a limited number of sources for certain components used in the manufacture of our appliances. The inability of any supplier to fulfill our supply requirements could negatively impact future operating results. | |||
Accounts Receivable and Allowance for Doubtful Accounts | |||
Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of accounts. We regularly review the adequacy of the allowance of doubtful accounts by considering the age of outstanding invoices, customers’ expected ability to pay, and collection history, when applicable, to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectible are charged against the allowance for doubtful accounts when identified. | |||
Inventories | |||
Inventories are recorded at the lower of cost (using the first-in, first-out method) or market. | |||
Property and Equipment | |||
Property and equipment are stated at cost, less accumulated depreciation and amortization. Land is not depreciated. Depreciation is calculated using the straight-line method over the following estimated useful lives: | |||
Asset Classification | Estimated Useful Life | ||
Buildings | 39 years | ||
Computer equipment and software | 3 years | ||
Vehicles, machinery and equipment | 3 to 5 years | ||
Leasehold improvements | Lesser of the useful life of the asset, generally 5 years, or remaining lease term | ||
Intangible Assets and Impairment of Long-Lived Assets | |||
Intangible assets consist of customer relationships, trade names, acquired technology, developed software, in-process research and development and patents. Intangible assets are recorded at fair values at the date of the acquisition and, for those assets having finite useful lives, are amortized using the straight-line method over their estimated useful lives, which generally range from three to ten years. In-process research and development is recorded as an indefinite-lived asset until the underlying project is completed, at which time the intangible asset is amortized over the estimated useful life. We periodically review our intangible and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. No impairment charges were recorded in fiscal 2014, 2013 and 2012. | |||
Goodwill | |||
Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed. We test goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that this asset may be impaired. We have elected to first assess the qualitative factors to determine whether it is more likely than not that the fair value of our single reporting operating unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If we determine that it is more likely than not that its fair value is less than its carrying amount, then the two-step goodwill impairment test will be performed. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step will be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. As of February 28, 2014, no impairment of goodwill has been identified. | |||
Revenue Recognition | |||
We typically provide access to our solutions through appliances and related subscription agreements, whereby the customer is charged an upfront fee for the appliance and is required to purchase a related subscription agreement. The subscription agreements are subject to customer renewal at the end of each subscription period. Our appliances contain hardware and embedded proprietary software. The subscriptions, referred to as Barracuda Energize Updates, provide hourly spam, anti-malware and security updates, and are required to be purchased to access our solutions. The subscriptions also entitle customers to phone support and software updates on a when and if available basis. We have determined that the elements of our customer arrangements, including the appliance and subscription, do not qualify for treatment as a separate unit of accounting. Accordingly, all fees received under our customer agreements are accounted for as a single unit of accounting, and, except for any upfront fees for the appliance, such fees are recognized ratably on a daily basis over the term of the subscription agreement. Subscription revenue also includes revenue from fixed term licenses of our virtual appliance software support and maintenance. Recognition of revenue commences when there is persuasive evidence of an arrangement, the fee is fixed and determinable, collectability is deemed reasonably assured and the services have commenced. | |||
We receive an upfront fee from customers for delivery and transfer of title for their appliance. No further fees related to the appliance are required to be paid by the customer in subsequent periods. Because the appliance does not have value to the customer on a stand-alone basis and requires a subscription agreement to access our solutions, the delivery of the appliance does not represent the culmination of a separate earnings process associated with the payment of the upfront fee. Accordingly, the amount of the upfront fee is recorded as deferred revenue upon invoicing and the amount is recognized as revenue ratably on a daily basis over the estimated average customer relationship period of three years. | |||
Customers have a 30-day right to return, after which time the arrangement is non-cancelable. We make estimates and maintain a reserve for expected customer cancellations. These estimates involve inherent uncertainties and management judgment. | |||
Cost of Revenue | |||
Cost of revenue consists of costs related to our appliance and subscription revenue. Such costs include hardware, manufacturing, shipping and logistics, customer support, warranty, personnel costs, data center costs and amortization of intangible assets related to acquired technology. We jointly manage the cost of providing appliances and subscription services and, accordingly, we present aggregate cost of revenues. | |||
Deferred Revenue | |||
Deferred revenue represents amounts billed to customers or payments received from customers for which revenue has not yet been recognized. Deferred revenue that is expected to be recognized as revenue within one year is recorded as current deferred revenue and the remaining portion is recorded as noncurrent deferred revenue. | |||
Warranty and Instant Replacement Service | |||
We provide a standard one-year warranty on our appliances. We also offer separately priced extended warranty contracts on our appliances, which entitle customers to expedited replacement hardware, with next business day shipping, on our appliances. Such separately-priced extended warranty contracts are available to customers coterminous with the standard one-year warranty. Revenue from extended warranty contracts is recognized ratably over the contractual term. Costs associated with our standard warranty and extended warranty contracts are expensed as incurred. Total warranty costs, including costs incurred under our instant replacement extended warranty contracts and costs to support our standard one-year appliance warranty, in fiscal 2014, 2013 and 2012 were $5.2 million, $4.9 million and $2.8 million, respectively. | |||
Deferred Appliance Costs | |||
We receive an upfront fee from our customers related to the sale of our appliance. We defer the costs of the appliance, including shipping costs, as they are directly related to the revenues that we derive from the sale of the appliance. Such deferred costs are amortized ratably over the estimated average customer relationship period of three years. Amortization of deferred appliance costs is included in costs of revenues in the accompanying consolidated statements of operations. | |||
Deferred Commissions | |||
We capitalize commission costs that are incremental and directly related to the acquisition of customer contracts. Sales commissions are deferred when earned and amortized over the same period that revenues are recognized. Commission payments are paid in full after the customer has paid. Amortization of deferred commission costs is included in sales and marketing costs in the accompanying consolidated statements of operations. | |||
Income Taxes | |||
We account for income taxes using the liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or in our tax returns. Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe, based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected from each subsidiary and considering prudent and feasible tax planning strategies. | |||
We account for uncertainty in income taxes recognized in our financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon examination by the taxing authorities, based on the technical merits of the position. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. | |||
Software Development Costs | |||
Software development costs incurred prior to the establishment of technological feasibility are charged to research and development expense as incurred. Technological feasibility is established upon completion of a working model, which is typically demonstrated by initial beta shipment. Software development costs incurred subsequent to the time a product’s technological feasibility has been established through the time the product is available for general release to customers are capitalized if material. No software development costs have been capitalized in the periods presented. | |||
Advertising Costs | |||
We expense advertising costs as incurred. Advertising expense totaled $56.7 million, $52.9 million and $46.5 million for fiscal 2014, 2013 and 2012, respectively. | |||
Stock-Based Compensation | |||
We record stock-based compensation awards based on fair value as of the grant date. We use the Black-Scholes-Merton option-pricing model to estimate the fair value of our employee stock options on the dates of grant. The grant date fair value of restricted stock units is based on the fair value of our common stock, which is the closing market price of our common stock on the grant date. Prior to our IPO, our board of directors considered numerous objective and subjective factors to determine the fair value of our common stock at each grant date. These factors included, but were not limited to, (i) contemporaneous valuations of common stock performed by unrelated third-party specialists; (ii) the prices for our Preferred Stock sold to outside investors; (iii) the rights, preferences and privileges of our Preferred Stock relative to our common stock; (iv) the lack of marketability of our common stock; (v) developments in the business; and (vi) the likelihood of achieving a liquidity event, such as an IPO or a merger or acquisition of our Company, given prevailing market conditions. | |||
Given our limited history with employee grants, we use the “simplified” method in estimating the expected term for stock option awards. The “simplified” method, as permitted by the SEC, is calculated as the average of the contractual term and the average vesting period. Estimated volatility is based upon the historical volatility of similar entities whose share prices are publicly available, as we did not have sufficient trading history for our common stock. The risk-free interest rate is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the stock option award is granted, with a maturity equal to the expected term of the stock option award. The expected dividend assumption is based on our current expectations about our anticipated dividend policy. | |||
We amortize the fair value of an award expected to vest on a straight-line basis over the requisite service period of the award, which is generally the period from the grant date to the end of the vesting period. For awards with service only conditions and a graded vesting schedule, we elected to recognize costs on a straight-line basis. We use historical data to estimate the number of future forfeitures. | |||
Foreign Currency | |||
For those subsidiaries whose functional currency is not the U.S. dollar, assets and liabilities are translated into U.S. dollar equivalents at the exchange rate in effect on the balance sheet date and revenues and expenses are translated into U.S. dollars using the average exchange rate over the period. Resulting currency translation adjustments are recorded in accumulated other comprehensive income (loss) in the consolidated balance sheets. We record net gains and losses resulting from foreign exchange transactions in other income (expense), net in the consolidated statement of operations. | |||
Accumulated Other Comprehensive Income (Loss) | |||
The accumulated other comprehensive loss balance consists of unrealized gains and losses on available-for-sale securities and translation gains and losses related to our international subsidiaries with functional currencies other than the U.S. dollar, primarily the euro. | |||
Recent Accounting Pronouncements | |||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update which provided guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. This new standard requires the netting of unrecognized tax benefits (“UTBs”) against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. This standard can be applied prospectively or retrospectively and applies to annual or interim periods beginning after December 15, 2013, but early adoption is permitted. We are electing to apply the new standard prospectively. The adoption of this standard did not result in a material effect on our financial position. | |||
In February 2013, the FASB issued an accounting standards update which addressed the presentation of amounts reclassified from accumulated other comprehensive income (loss). This update does not change current financial reporting requirements, instead an entity is required to cross-reference to other required disclosures that provide additional detail about amounts reclassified out of accumulated other comprehensive income (loss). In addition, the guidance requires an entity to present significant amounts reclassified out of accumulated other comprehensive income (loss) by line item of net income (loss) if the amount reclassified is required to be reclassified to net income (loss) in its entirety in the same reporting period. This standard is effective prospectively for reporting periods beginning after December 15, 2012. We adopted this standard during the first quarter of fiscal 2014 and did not have material amounts reclassified in fiscal 2014. Since the standard impacts financial statement disclosure requirements only, we did not have material effects on our results of operations, financial position or liquidity. |
Balance_Sheet_Information
Balance Sheet Information | 12 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||||||
Balance Sheet Information | ' | ||||||||||||||||
2. Balance Sheet Information | |||||||||||||||||
Cash, Cash Equivalents and Marketable Securities | |||||||||||||||||
The following table summarizes our cash, cash equivalents and marketable securities (in thousands): | |||||||||||||||||
February 28, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 41,331 | $ | 20,812 | |||||||||||||
Money market funds | 94,548 | 9,283 | |||||||||||||||
Total | $ | 135,879 | $ | 30,095 | |||||||||||||
Marketable securities: | |||||||||||||||||
Equity securities | $ | — | $ | 1,550 | |||||||||||||
We did not have any marketable securities as of February 28, 2014. The following table summarizes our marketable securities as of February 28, 2013 (in thousands): | |||||||||||||||||
February 28, 2013 | |||||||||||||||||
Cost | Gross | Gross | Estimated | ||||||||||||||
Unrealized | Unrealized | Fair Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
Equity securities | $ | 1,458 | $ | 92 | $ | — | $ | 1,550 | |||||||||
Fair Value Measurements | |||||||||||||||||
We determine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value: | |||||||||||||||||
Level 1: | Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2: | Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. | ||||||||||||||||
Level 3: | Inputs are unobservable inputs based on our assumptions. | ||||||||||||||||
Cash equivalents and marketable securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. We have no financial assets or liabilities measured utilizing Level 2 or 3 inputs. | |||||||||||||||||
Financial assets measured at fair value on a recurring basis are summarized below (in thousands): | |||||||||||||||||
February 28, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Money market funds | $ | 94,548 | $ | — | $ | — | $ | 94,548 | |||||||||
28-Feb-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Money market funds | $ | 9,283 | $ | — | $ | — | $ | 9,283 | |||||||||
Equity securities | 1,550 | — | — | 1,550 | |||||||||||||
$ | 10,833 | $ | — | $ | — | $ | 10,833 | ||||||||||
Inventories | |||||||||||||||||
Inventories consisted of the following (in thousands): | |||||||||||||||||
February 28, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Raw materials | $ | 3,038 | $ | 3,042 | |||||||||||||
Finished goods | 3,759 | 2,789 | |||||||||||||||
Reserves | (1,149 | ) | (693 | ) | |||||||||||||
$ | 5,648 | $ | 5,138 | ||||||||||||||
Deferred Costs | |||||||||||||||||
Deferred costs consisted of the following (in thousands): | |||||||||||||||||
February 28, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Appliance | $ | 35,000 | $ | 27,751 | |||||||||||||
Commissions | 15,279 | 11,719 | |||||||||||||||
$ | 50,279 | $ | 39,470 | ||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment consisted of the following (in thousands): | |||||||||||||||||
February 28, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Land | $ | 5,100 | $ | 5,100 | |||||||||||||
Building | 6,549 | 6,549 | |||||||||||||||
Computer hardware and software | 11,711 | 8,656 | |||||||||||||||
Vehicles, machinery and equipment | 2,462 | 1,478 | |||||||||||||||
Leasehold improvements | 2,560 | 1,488 | |||||||||||||||
28,382 | 23,271 | ||||||||||||||||
Less: accumulated depreciation and amortization | 7,824 | 6,299 | |||||||||||||||
$ | 20,558 | $ | 16,972 | ||||||||||||||
Depreciation and amortization expense related to property and equipment was $3.8 million, $2.8 million and $2.1 million for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||||
Investment in Non-marketable Equity Security | |||||||||||||||||
In October 2011, we acquired stock in a privately held company for $750,000, which represents an ownership interest of approximately 24%. Under the equity method of accounting, we recognize our proportional share of earnings and losses of the investee in our financial statements and adjust the carrying amount of our investment accordingly. For fiscal 2014, 2013 and 2012, our proportionate share of the investee’s earnings and losses was not material. | |||||||||||||||||
The investment is classified in other noncurrent assets in the consolidated balance sheets. | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
The components of accumulated other comprehensive income (loss), net of tax, were as follows (in thousands): | |||||||||||||||||
Foreign | Unrealized Gains | Total | |||||||||||||||
Currency | (Losses) on | ||||||||||||||||
Translation | Available-for- | ||||||||||||||||
Adjustments | Sale Investments | ||||||||||||||||
Balance as of February 28, 2013 | $ | (1,169 | ) | $ | 57 | $ | (1,112 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 352 | (19 | ) | 333 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (38 | ) | (38 | ) | ||||||||||||
Other comprehensive income (loss) | 352 | (57 | ) | 295 | |||||||||||||
Balance as of February 28, 2014 | $ | (817 | ) | $ | — | $ | (817 | ) | |||||||||
The effects on net loss of amounts reclassified from accumulated other comprehensive income (loss) were as follows (in thousands): | |||||||||||||||||
Details about Accumulated Other | Year Ended | Affected Line Item in the | |||||||||||||||
Comprehensive Income (Loss) Components | February 28, 2014 | Consolidated Statement of Operations | |||||||||||||||
Unrealized gains on available-for-sale securities | $ | 61 | Other income (expense), net | ||||||||||||||
Tax effect | (23 | ) | Benefit for income taxes | ||||||||||||||
Total reclassifications for the period | $ | 38 | |||||||||||||||
Acquisitions
Acquisitions | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisitions | ' | ||||||||
3. Acquisitions | |||||||||
SignNow | |||||||||
In April, 2013, we completed our acquisition of SignNow, Inc. (“SignNow”), a privately-held provider of mobile eSignature applications located in California. The acquisition of SignNow will enable us to expand our cloud-based offerings. We acquired all outstanding stock of SignNow for aggregate consideration of $6.7 million. In addition, $4.5 million of cash consideration is contingent upon the continued employment of certain key employees of SignNow and is recognized as compensation expense over the requisite service period. We assumed $0.6 million of unvested SignNow stock options, which will be recorded as stock compensation expense over the weighted-average remaining service period of 3.0 years from the date of acquisition. | |||||||||
We recorded the assets acquired and liabilities assumed at their estimated fair value, with the difference between the fair value of the net assets acquired and the purchase consideration reflected as goodwill. The following table reflects the fair values of assets acquired and liabilities assumed as of the acquisition date (in thousands): | |||||||||
Cash | $ | 56 | |||||||
Accounts receivable | 110 | ||||||||
Developed technology | 4,780 | ||||||||
Customer relationships | 510 | ||||||||
Trade name | 390 | ||||||||
Goodwill | 1,825 | ||||||||
Accrued expenses | (340 | ) | |||||||
Deferred tax liability | (612 | ) | |||||||
Total value of assets acquired and liabilities assumed | $ | 6,719 | |||||||
As of the acquisition date, developed technology, customer relationships and trade name had weighted-average useful lives of 5.0 years, 7.0 years and 10.0 years, respectively. The total weighted-average useful life is 5.5 years. The goodwill is primarily attributed to the synergies expected to arise after the acquisition. No goodwill was deemed to be deductible for income tax purposes. | |||||||||
Included in our results of operations for the year ended February 28, 2014 are $0.6 million and $1.6 million of revenue and net loss, respectively, attributable to SignNow since the date of acquisition. The following table presents our unaudited pro forma revenue and net loss for periods presented, assuming the acquisition had occurred on March 1, 2012 (in thousands): | |||||||||
Year Ended February 28, | |||||||||
2014 | 2013 | ||||||||
Pro forma revenue | $ | 233,912 | $ | 199,006 | |||||
Pro forma net loss attributable to Barracuda Networks, Inc. | $ | (4,303 | ) | $ | (10,873 | ) | |||
BitLeap, LLC | |||||||||
In September 2008, we acquired BitLeap, LLC, a privately held company, and were required to pay contingent consideration in cash and stock based upon the attainment of certain earnings milestones over a period of four years ended September 2012. During fiscal 2013, we recorded $5.6 million of such consideration, which became due and was recorded as additional goodwill. No additional contingent consideration is due under this arrangement. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||
4. Goodwill and Intangible Assets | |||||||||||||
The changes in the carrying amount of goodwill are summarized as follows (in thousands): | |||||||||||||
February 28, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of fiscal year | $ | 33,778 | $ | 28,430 | |||||||||
Contingent consideration earned | — | 5,580 | |||||||||||
Goodwill acquired | 1,825 | — | |||||||||||
Effect of foreign exchange rates | 411 | (232 | ) | ||||||||||
Balance at end of fiscal year | $ | 36,014 | $ | 33,778 | |||||||||
Intangible assets subject to amortization are summarized as follows (in thousands): | |||||||||||||
February 28, 2014 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Value | ||||||||||||
Acquired developed technology | $ | 26,315 | $ | 21,111 | $ | 5,204 | |||||||
Software license | 400 | 400 | — | ||||||||||
Customer relationships | 7,463 | 5,794 | 1,669 | ||||||||||
Patents | 1,625 | 873 | 752 | ||||||||||
Trade name | 663 | 305 | 358 | ||||||||||
Acquired developed software | 200 | 200 | — | ||||||||||
$ | 36,666 | $ | 28,683 | $ | 7,983 | ||||||||
February 28, 2013 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Value | ||||||||||||
Acquired developed technology | $ | 21,403 | $ | 16,910 | $ | 4,493 | |||||||
Software license | 400 | 400 | — | ||||||||||
Customer relationships | 6,814 | 4,708 | 2,106 | ||||||||||
Patents | 1,625 | 687 | 938 | ||||||||||
Trade name | 273 | 259 | 14 | ||||||||||
Acquired developed software | 200 | 177 | 23 | ||||||||||
$ | 30,715 | $ | 23,141 | $ | 7,574 | ||||||||
In addition to the above, we maintain other intangible assets not subject to amortization, principally related to the domain name www.barracuda.com, of $437,000 and $409,000 as of February 28, 2014 and 2013, respectively. | |||||||||||||
Amortization expense for fiscal 2014, 2013 and 2012 was $5.4 million, $5.5 million and $6.0 million, respectively. | |||||||||||||
As of February 28, 2014, amortization expense for intangible assets for each of the next five years is as follows: $3.0 million in fiscal 2015, $1.7 million in fiscal 2016, $1.5 million in fiscal 2017, $1.2 million in fiscal 2018, $0.3 million in fiscal 2019 and $0.3 million thereafter. |
Recapitalization_Transaction
Recapitalization Transaction | 12 Months Ended |
Feb. 28, 2014 | |
Text Block [Abstract] | ' |
Recapitalization Transaction | ' |
5. Recapitalization Transaction | |
In October 2012, we completed our recapitalization pursuant to a recapitalization agreement entered into with our founders and their affiliates and certain of our existing investors. As part of the recapitalization agreement, we (i) declared $130.0 million of cash dividends, which was recorded as an increase to accumulated deficit, (ii) sold 7,575,973 shares of our Series B redeemable convertible preferred stock (“Series B Preferred Stock”) to certain of our existing investors at a price per share of approximately $16.84, for an aggregate purchase price of $127.5 million and (iii) repurchased 7,575,973 shares of common stock from our founders and their affiliates at a price per share of approximately $16.84, which was determined to be the fair value after giving consideration to the control premium, for an aggregate repurchase price of $127.5 million. The shares of our common stock which we repurchased were subsequently cancelled. |
Redeemable_Convertible_Preferr
Redeemable Convertible Preferred Stock | 12 Months Ended |
Feb. 28, 2014 | |
Equity [Abstract] | ' |
Redeemable Convertible Preferred Stock | ' |
6. Redeemable Convertible Preferred Stock | |
Prior to our initial public offering in November 2013, we had Series A and B redeemable convertible preferred stock (collectively “Convertible Preferred Stock”), all of which converted to 17,626,227 shares of common stock on a one-to-one basis in connection with our IPO. Significant terms were as follows: | |
Conversion—Each share of Convertible Preferred Stock was convertible at the option of the holder into common stock using a conversion rate of $3.98 and $16.84 per share, respectively, and would automatically convert into common stock in the event of an underwritten public offering of our common stock or upon the request of at least two thirds of the Preferred Stock then outstanding. | |
Voting—Convertible Preferred Stock had voting rights, on an as-if-converted basis, identical to common stock and should vote together with common stock, and not as separate classes. | |
Dividends—Any dividends declared or paid in any fiscal year would be made among the holders of Convertible Preferred Stock and common stock then outstanding in proportion to the greatest number of shares of common stock that would be held by each such holder if all Convertible Preferred Stock were converted at the then-effective conversion rate. | |
Liquidation—In the event of liquidation, the Series B holders were entitled to receive in preference to any distribution to Series A or common stock holders, a liquidation preference equal to the greater of (i) $21.04 and (ii) the amount to which such holder of Series B would be entitled to receive upon a liquidation if such holders of Series B were converted into common stock, plus any dividends declared but unpaid on such shares. The holders of Series A were entitled to receive in preference to any distribution to holders of common stock, a liquidation preference equal to the greater of (i) $5.97 and (ii) the amount to which such holder of Series A would be entitled to receive upon a liquidation if such holders of Series A were converted into common stock, plus any dividends declared but unpaid on such shares. Any surplus assets or funds would then be distributed ratably between the holders of common stock. | |
If assets and funds were insufficient to meet the liquidation preference of the Convertible Preferred Stock such assets and funds would first be distributed ratably between the holders of Series B in proportion to the full amounts they would otherwise be entitled to receive and then to holders of Series A in proportion to the full amounts they would otherwise be entitled to receive. | |
Redemption—In October 2017, all outstanding shares of Convertible Preferred Stock would be eligible to be redeemed for cash in full upon a written notice by at least two-thirds of the holders of the outstanding Convertible Preferred Stock. In the event of redemption, each holder of the Convertible Preferred Stock would be entitled to receive the original issue price per share ($3.98 for each share of Series A and $16.84 for each share of Series B), plus all unpaid dividends on such shares that were declared. | |
Costs related to the issuance of Convertible Preferred Stock have been accreted to additional paid-in capital. |
Stockholders_Deficit
Stockholders' Deficit | 12 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Stockholders' Deficit | ' | ||||||||||||||||
7. Stockholders’ Deficit | |||||||||||||||||
Authorized Stock | |||||||||||||||||
The Company is authorized to issue 1,020,000,000 shares, consisting of 1,000,000,000 shares of common stock, par value $0.001 per share, and 20,000,000 shares of preferred stock, par value $0.001 per share. Our board of directors is authorized, without stockholder approval, except as required by the listing standards of the New York Stock Exchange, to issue additional shares of our capital stock. | |||||||||||||||||
Common Stock | |||||||||||||||||
Dividend Rights—Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that our board of directors may determine. | |||||||||||||||||
Voting Rights—Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders. | |||||||||||||||||
Preemptive or Similar Rights—Our common stock is not entitled to preemptive rights, and is not subject to conversion, redemption or sinking fund provisions. | |||||||||||||||||
Liquidation Distributions—If we become subject to a liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock. | |||||||||||||||||
Preferred Stock | |||||||||||||||||
Our board of directors is authorized to issue preferred stock in one or more series, to establish the number of shares to be included in each series, and to fix the designation, powers, preferences and rights of the shares of each series and any of its qualifications, limitations or restrictions. Our board of directors may also authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock. | |||||||||||||||||
Stock Option Plan and Restricted Stock Units | |||||||||||||||||
Our 2004 Stock Option Plan (the “2004 Plan”) authorized the board of directors to grant incentive stock options and non-statutory stock options, as well as issue shares of restricted stock to employees, directors and consultants. In May 2012, our board of directors approved the termination of the 2004 Plan and the introduction of the 2012 Equity Incentive Plan (the “2012 Plan”), which provides for the grant of stock options, stock appreciation rights, restricted stock and restricted stock units (“RSUs”) to employees, directors and consultants. Options granted are exercisable for periods not to exceed 10 years. Options and RSUs granted vest over four years contingent upon employment or service with us on the vesting date. The following table presents shares authorized and available for grant: | |||||||||||||||||
Shares Available | |||||||||||||||||
for Grant | |||||||||||||||||
Balance at February 28, 2013 | 1,103,101 | ||||||||||||||||
Authorized | 4,418,137 | ||||||||||||||||
Granted | (908,940 | ) | |||||||||||||||
Canceled/forfeited | 575,084 | ||||||||||||||||
Balance at February 28, 2014 | 5,187,382 | ||||||||||||||||
The following weighted-average input assumptions were used to estimate the fair value of employee stock option grants: | |||||||||||||||||
Year Ended February 28/29, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected volatility | 46 | % | 44 | % | 41–46 | % | |||||||||||
Expected term (in years) | 6.25 | 6.25 | 6.25 | ||||||||||||||
Risk-free interest rate | 1.67 | % | 0.97 | % | 1.84 | % | |||||||||||
Dividend yield | — | — | — | ||||||||||||||
Estimated fair value of stock options granted during the year | $ | 9.48 | $ | 5.34 | $ | 5.04 | |||||||||||
The following table summarizes stock option activity under our plans: | |||||||||||||||||
Options Outstanding | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
(in years) | (in thousands) | ||||||||||||||||
Balance at February 28, 2013 | 4,868,974 | $ | 11.23 | ||||||||||||||
Granted | 741,357 | 17.9 | |||||||||||||||
Assumed from acquisition | 59,726 | 1.51 | |||||||||||||||
Exercised | (420,969 | ) | 7.86 | ||||||||||||||
Canceled/forfeited | (575,084 | ) | 12.83 | ||||||||||||||
Balance at February 28, 2014 | 4,674,004 | 12.27 | |||||||||||||||
As of February 28, 2014: | |||||||||||||||||
Vested and exercisable | 2,270,378 | $ | 10.42 | 6.41 | $ | 57,972 | |||||||||||
Vested and expected to vest | 4,457,458 | 12.06 | 7.5 | 106,491 | |||||||||||||
During fiscal 2014, 2013 and 2012, the total grant-date fair value of stock options vested was $6.0 million, $3.7 million and $1.5 million, respectively. During fiscal 2014, 2013 and 2012, the aggregate intrinsic value of stock option awards exercised, which is measured as the difference between the exercise price and the value of our common stock at the date of exercise, was $6.5 million, $10.3 million and $0.6 million, respectively. | |||||||||||||||||
As of February 28, 2014, there was $14.6 million of unrecognized compensation cost related to outstanding stock options, net of forecasted forfeitures, expected to be recognized over a weighted-average period of 2.69 years. To the extent the forfeiture rate is different from what management has anticipated, stock-based compensation related to these awards will be different from management’s expectations. | |||||||||||||||||
The following table summarizes RSU activity under our plan: | |||||||||||||||||
Unvested Restricted Stock Units | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Unvested at February 28, 2013 | 1,256,668 | $ | 12.64 | ||||||||||||||
Granted | 167,583 | 21.87 | |||||||||||||||
Vested | (348,234 | ) | 12.64 | ||||||||||||||
Unvested at February 28, 2014 | 1,076,017 | 14.08 | |||||||||||||||
Expected to vest after February 28, 2014 | 1,001,455 | $ | 14.08 | ||||||||||||||
As of February 28, 2014, there was $13.1 million of unrecognized compensation cost related to unvested RSUs, net of forecasted forfeitures. This amount is expected to be recognized over a weighted-average period of 2.65 years. To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation related to these awards will be different from our expectations. | |||||||||||||||||
Total stock-based compensation expense has been classified as follows in the accompanying consolidated statements of operations (in thousands): | |||||||||||||||||
Year Ended February 28/29, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Cost of revenue | $ | 201 | $ | 146 | $ | 51 | |||||||||||
Research and development | 2,374 | 2,059 | 766 | ||||||||||||||
Sales and marketing | 2,067 | 1,182 | 527 | ||||||||||||||
General and administrative | 6,195 | 5,400 | 527 | ||||||||||||||
$ | 10,837 | $ | 8,787 | $ | 1,871 | ||||||||||||
Change in Non-controlling Interest | |||||||||||||||||
During the fourth quarter of fiscal 2014, we obtained the remaining ownership interest in a subsidiary in which we had previously owned approximately 67%. As a result, the carrying amount of the non-controlling interest was adjusted and recognized in additional paid-in capital attributable to the Company. Prior to becoming wholly-owned, the non-controlling interest was reported in the consolidated balance sheet within stockholders’ deficit separately from the Company and its net income and loss were reported in the consolidated statement of operations, which included the amounts attributable to the Company and the non-controlling interest. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
8. Income Taxes | |||||||||||||
Income (loss) before income taxes and non-controlling interest consists of the following (in thousands): | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | (6,165 | ) | $ | (9,206 | ) | $ | 5,226 | |||||
Foreign | (4,787 | ) | (4,063 | ) | (5,933 | ) | |||||||
Total | $ | (10,952 | ) | $ | (13,269 | ) | $ | (707 | ) | ||||
The provision (benefit) for income taxes consists of the following (in thousands): | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 4,760 | $ | 6,824 | $ | 9,860 | |||||||
State | 574 | 940 | 537 | ||||||||||
Foreign | 734 | 526 | 517 | ||||||||||
Total | 6,068 | 8,290 | 10,914 | ||||||||||
Deferred: | |||||||||||||
Federal | (10,231 | ) | (11,507 | ) | (9,501 | ) | |||||||
State | (1,109 | ) | (617 | ) | (770 | ) | |||||||
Foreign | (1,293 | ) | (1,250 | ) | (1,096 | ) | |||||||
Total | (12,633 | ) | (13,374 | ) | (11,367 | ) | |||||||
Total benefit for income taxes | $ | (6,565 | ) | $ | (5,084 | ) | $ | (453 | ) | ||||
Deferred tax assets (liabilities) comprise the following (in thousands): | |||||||||||||
February 28, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Deferred revenue | $ | 53,619 | $ | 41,577 | |||||||||
Reserves and other | 6,227 | 6,159 | |||||||||||
Research and development credits | 2,419 | 2,003 | |||||||||||
Net operating losses | 6,675 | 6,389 | |||||||||||
Total deferred tax assets | 68,940 | 56,128 | |||||||||||
Valuation allowance | (6,685 | ) | (7,008 | ) | |||||||||
Total deferred tax assets, net of valuation allowance | 62,255 | 49,120 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | (2,899 | ) | (1,675 | ) | |||||||||
Prepaid expense and other | (569 | ) | (347 | ) | |||||||||
Other deferred tax liabilities | (460 | ) | (667 | ) | |||||||||
Total deferred tax liabilities | (3,928 | ) | (2,689 | ) | |||||||||
Net deferred tax assets | $ | 58,327 | $ | 46,431 | |||||||||
The following is a reconciliation of the statutory federal income tax to our reported income tax expense (benefit) (in thousands): | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax at federal statutory rate | $ | (3,833 | ) | $ | (4,644 | ) | $ | (247 | ) | ||||
State taxes, net of federal benefit | (713 | ) | (11 | ) | (423 | ) | |||||||
Non-deductible expenses | 736 | 289 | 146 | ||||||||||
Stock-based compensation | 1,227 | 910 | 461 | ||||||||||
Legal entity rationalization | (3,541 | ) | — | — | |||||||||
Change in valuation allowance | 346 | — | — | ||||||||||
Foreign rate differential | 790 | 535 | 1,373 | ||||||||||
Research and development credits | (933 | ) | (1,331 | ) | (726 | ) | |||||||
Domestic production activities deduction | (445 | ) | (760 | ) | (1,023 | ) | |||||||
Other | (199 | ) | (72 | ) | (14 | ) | |||||||
$ | (6,565 | ) | $ | (5,084 | ) | $ | (453 | ) | |||||
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of deferred assets will be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. | |||||||||||||
Based on the available objective evidence, management believes it is more likely than not that a portion of its net deferred tax assets may not be realized in the future. Accordingly, a valuation allowance of $6.7 million is provided against our deferred tax assets, primarily related to foreign net operating losses, state research credits and net operating losses acquired as part of our acquisitions. The net change in valuation allowance for fiscal 2014 was a decrease of approximately $0.3 million primarily related to expiration of foreign net operating losses previously subject to valuation allowance partially offset by a full valuation allowance placed against domestic subsidiary’s net deferred tax assets. | |||||||||||||
As of February 28, 2014, we had $3.3 million of federal and $9.0 million of state net operating loss carryforwards available. If not utilized, the federal net operating losses expire in various fiscal years ending between 2019 and 2029. The state net operating losses expire in various fiscal years ending between 2015 and 2029. We have foreign net operating losses of approximately $20.4 million. Of these, approximately $19.6 million of the net operating losses can be carried forward indefinitely. The remaining foreign net operating losses expire in various fiscal years, starting with fiscal 2016, if not utilized. | |||||||||||||
We had research and development credit carryforwards of approximately $0.3 million, $3.2 million and $0.1 million for federal, California and other state income tax purposes, respectively. If not utilized, the federal research and development credit begins to expire in 2028 while the California credit can be carried forward indefinitely. If not utilized, other state research and development credit begins to expire in 2021. | |||||||||||||
Utilization of our net operating loss and credit carryforwards may be subject to annual limitations due to ownership change provisions by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. | |||||||||||||
As of February 28, 2014, we had $5.0 million of cumulative undistributed earnings of its foreign subsidiaries. Deferred tax liabilities have not been recognized for undistributed earnings of foreign subsidiaries because we intend to permanently reinvest such undistributed earnings outside the United States. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability may be reduced by any foreign income taxes previously paid on these earnings. Determination of the amount of an unrecognized deferred tax liability related to these earnings is not practicable. | |||||||||||||
Our total unrecognized tax benefits as of February 28, 2014, February 28, 2013 and February 29, 2012 were $5.0 million, $4.0 million and $4.2 million, respectively. Total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $4.0 million, $3.1 million and $2.5 million as of February 28, 2014, February 28, 2013 and February 29, 2012, respectively. | |||||||||||||
The following table summarizes the activity related to our gross unrecognized tax benefits (in thousands): | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 3,971 | $ | 4,150 | $ | 3,026 | |||||||
Tax positions related to the current year: | |||||||||||||
Increases | 1,208 | 1,122 | 978 | ||||||||||
Tax positions related to prior years: | |||||||||||||
Increases | — | 76 | 1,009 | ||||||||||
Decreases | (1 | ) | (1,341 | ) | (528 | ) | |||||||
Settlements with taxing authorities: | |||||||||||||
Releases—statute of limitations expired | (198 | ) | (36 | ) | (335 | ) | |||||||
Balance at the end of the year | $ | 4,980 | $ | 3,971 | $ | 4,150 | |||||||
We recognize interest and/or penalties related to uncertain tax positions in income tax expense. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. During fiscal 2014, 2013 and 2012, interest and penalties recorded in the consolidated statements of operations were an increase of $229,000, $92,000 and $8,000, respectively. The amounts of accrued interest and penalties recorded on the consolidated balance sheets as of February 28, 2014 and February 28, 2013 were $675,000 and $446,000, respectively. We do not believe there will be material changes in our unrecognized tax positions over the next 12 months. | |||||||||||||
We file income tax returns in the U.S. federal jurisdiction, various states and certain foreign jurisdictions. The statute of limitations remains open to audit for fiscal 2010 through 2014 in the U.S federal and state jurisdictions, and for fiscal 2008 through 2014 in foreign jurisdictions. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
9. Segment Information | |||||||||||||
Our chief operating decision maker reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single reporting segment. | |||||||||||||
Revenue by geographic region is presented as follows (in thousands): | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
North America | $ | 169,896 | $ | 147,231 | $ | 113,934 | |||||||
United States | 159,036 | 138,879 | 106,760 | ||||||||||
Other | 10,860 | 8,352 | 7,174 | ||||||||||
Latin America | 3,380 | 3,290 | 3,183 | ||||||||||
Asia-Pacific | 16,245 | 14,497 | 12,475 | ||||||||||
EMEA | 44,266 | 33,913 | 31,328 | ||||||||||
Total | $ | 233,787 | $ | 198,931 | $ | 160,920 | |||||||
Revenue earned in any one foreign country did not exceed 10% of total revenue in fiscal 2014, 2013 or 2012. | |||||||||||||
Long-lived assets, excluding intercompany receivables, investments in subsidiaries, intangible assets and deferred tax assets, by geographic region are presented as follows (in thousands): | |||||||||||||
February 28, | |||||||||||||
2014 | 2013 | ||||||||||||
United States | $ | 42,836 | $ | 34,873 | |||||||||
International | 4,145 | 3,087 | |||||||||||
Total | $ | 46,981 | $ | 37,960 | |||||||||
Borrowings
Borrowings | 12 Months Ended | ||||
Feb. 28, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Borrowings | ' | ||||
10. Borrowings | |||||
Note Payable | |||||
In December 2011, as part of the purchase of land and buildings in California related to our headquarters, we assumed a note payable of $5.3 million with a financial institution bearing interest at 6.23% per annum. The estimated fair value of the note payable approximates its carrying value. The debt is repayable in equal monthly payments of principal and interest of $44,445, with a final payment of unpaid principal and interest in July 2017. Penalty interest of 0.0625% is due on default of payments, and prepayment of amounts owed are subject to a prepayment fee calculated as the greater of a) 1% of the principal being repaid and b) the present value of the future principal and interest payments less the principal repaid. Interest expense for fiscal 2014, 2013 and 2012, was $310,000, $357,000 and $28,000, respectively, and was recorded within other income (expense), net in the consolidated statement of operations. | |||||
Minimum principal payments for our note payable are as follows (in thousands): | |||||
Fiscal Years Ending February 28/29 | |||||
2015 | $ | 237 | |||
2016 | 252 | ||||
2017 | 268 | ||||
2018 | 4,115 | ||||
2019 | — | ||||
$ | 4,872 | ||||
Credit Facility | |||||
In connection with the recapitalization agreement (Note 5), we entered into a $40.0 million credit facility with Silicon Valley Bank (“SVB”) consisting of a revolving loan facility which included a letter of credit sub facility of up to $10.0 million. In December 2013, the credit facility was amended to reduce the amount to $25.0 million and to reduce the unused line fee to 0.200% per quarter of the unused portion. The credit facility remains set to expire in October 2014. The credit facility is secured by substantially all of our assets, and contains restrictive covenants as described in the agreement. On drawing on the credit facility, the covenants require us to maintain a minimum adjusted EBITDA, as defined in the credit facility, in excess of $25.0 million for any trailing four quarter period and a minimum adjusted quick ratio in excess of 0.5 as of the last day of each month. The minimum required adjusted quick ratio will increase to 1.1 over the term of the credit facility. The adjusted quick ratio is calculated as the ratio of qualified cash plus net billed accounts receivable to consolidated current liabilities plus revolving credit extensions under the credit facility, less (i) any deferred payments in connection with permitted acquisitions and (ii) the current portion of deferred revenue. ABR loans under the credit facility bear interest at a rate per annum equal to the highest of the prime rate, the federal funds effective rate plus 0.5% and the eurodollar rate for a one-month interest period plus 1%. Eurodollar loans under the credit facility bear interest at a rate per annum equal to the eurodollar rate plus 1.5%. The adjusted credit facility also sets forth specified events of default. No amounts had been drawn under the credit facility through February 28, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Feb. 28, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
11. Commitments and Contingencies | |||||
Lease Arrangements | |||||
We lease facilities and equipment under non-cancelable operating lease arrangements with various expiration dates through fiscal 2019. Certain of these arrangements provide for free or escalating rent payment provisions and for options to renew, which could increase future minimum lease payments if exercised. We account for rent of our facilities on a straight-line basis over the respective lease terms. Rent expense was approximately $2.9 million, $2.0 million and $2.6 million in fiscal 2014, 2013 and 2012, respectively. | |||||
Minimum payments under our operating leases agreements are as follows (in thousands): | |||||
Fiscal Years Ending February 28/29 | |||||
2015 | $ | 2,072 | |||
2016 | 1,741 | ||||
2017 | 1,707 | ||||
2018 | 1,295 | ||||
2019 | 415 | ||||
$ | 7,230 | ||||
Other Commitments | |||||
We purchase components from a variety of suppliers. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we place purchase orders with our suppliers to procure inventory. As of February 28, 2014, we had total non-cancelable purchase commitments for inventory of $3.0 million. Additionally, we had non-cancelable commitments for non-inventory purchases of $0.3 million as of February 28, 2014. | |||||
Legal Matters | |||||
In late 2011, following a voluntary internal review of our compliance with U.S. export control and sanctions laws, our management team became aware that certain of our physical appliances had been sold indirectly into embargoed countries via our distributors and resellers, potentially in violation of U.S. export control and | |||||
economic sanctions laws. In addition, certain of our solutions incorporate encryption components and may be exported from the U.S. only with the required approvals; in the past, we may have exported products prior to receiving these required authorizations. After completion of a comprehensive internal investigation conducted by outside counsel, we submitted voluntary disclosures regarding these matters to the U.S. Commerce Department, Bureau of Industry and Security (“BIS”), and to the U.S. Treasury Department, Office of Foreign Assets Control (“OFAC”). These disclosures summarized potential violations of export controls and economic sanctions laws, including reexports by third parties and provision of services to end users in embargoed countries including Iran, Sudan and Syria. If we are found to have violated U.S. export control laws, we may be subject to various penalties available under the laws, the amount of which is currently not estimable. | |||||
On August 13, 2013, Parallel Networks, LLC (“Parallel Networks”), which we believe is a non-practicing entity, filed a lawsuit against us in the U.S. District Court for the District of Delaware, Parallel Networks, LLC v. Barracuda Networks, Inc., Case No. 1:13-cv-01412-UNA, alleging that certain of our appliances infringe two of their U.S. patents: U.S. Pat. No. 7,571,217, titled “Method and System for Uniform Resource Locator Transformation,” and U.S. Pat. No. 8,352,570, titled “Method and System for Uniform Resource Locator Transformation.” Parallel Networks has asserted similar claims against other companies, including Array Networks, Inc., Brocade Communications Systems, Inc., Citrix Systems, Inc., Riverbed Technology, Inc. and SAP AG. This matter is in its early stages, but we intend to vigorously defend the lawsuit. Given the early stage of the litigation, we are unable to estimate a possible loss or range of possible loss. | |||||
On April 23, 2014, Selene Communication Technologies (“Selene”) filed a lawsuit against us in the U.S. District Court for the District of Delaware, Selene Communication Technologies, LLC v. Barracuda Networks, Inc., Case No. 1:99-mc-09999, alleging that certain of our appliances infringe U.S. patent number 7,143,444, titled “Application-Layer Anomaly and Misuse Detection.” Selene has asserted similar claims against other companies. This matter is in its early stages, but we intend to vigorously defend the lawsuit. Given the early stage of the litigation, we are unable to estimate a possible loss or range of possible loss. | |||||
From time to time, we are party to litigation and subject to claims that arise in the ordinary course of our business, including actions with respect to employment claims and other matters. Although the results of litigation and claims are inherently unpredictable, we believe that the final outcome of such matters will not have a material adverse effect on our business, consolidated financial position, results of operations or cash flows. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Feb. 28, 2014 | |
Postemployment Benefits [Abstract] | ' |
Employee Benefit Plan | ' |
12. Employee Benefit Plan | |
Our 401(k) tax-deferred savings plan (the “401(k) Plan”) permits eligible U.S. participants to make contributions by salary deduction pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended. Under the 401(k) Plan, participating employees may defer a portion of their pre-tax earnings, up to the IRS annual contribution limit. In April 2013, our board of directors approved our matching of employee contributions up to a limit of 1.25% of each employee’s eligible earnings (with a maximum payment of $1,000) or, if we meet certain performance objectives, up to a limit of 2.5% of each employee’s eligible earnings (with a maximum payment of $2,000). We have incurred 401(k) Plan contribution expenses of $836,000 in fiscal 2014. |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Net Income (Loss) Per Share | ' | ||||||||||||
13. Net Income (Loss) Per Share | |||||||||||||
Basic and diluted net income (loss) per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Prior to the date of our IPO, we considered our Series A and Series B redeemable convertible preferred stock as participating securities. In the event a dividend was declared or paid on our common stock, holders of Series A and Series B redeemable convertible preferred stock were entitled to a proportionate share of such dividend in proportion to the holders of common stock on an as-if converted basis. Immediately after the completion of our IPO in November 2013, all outstanding shares of redeemable convertible preferred stock converted to common stock. | |||||||||||||
Under the two-class method, basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Net income (loss) attributable to common stockholders is determined by allocating undistributed earnings between common and redeemable convertible preferred stockholders. Diluted net income (loss) per share attributable to common stockholders is computed by using the weighted-average number of shares of common stock outstanding, including potential dilutive common shares assuming the dilutive effect of outstanding stock options, restricted stock units, common stock subject to repurchase or forfeiture and redeemable convertible preferred stock using the treasury stock method. For periods in which there is a net loss, the number of shares used in the computation of diluted net loss per share is the same as that used for the computation of basic net loss per share, as the inclusion of dilutive securities would be anti-dilutive. Under the two-class method, the net loss attributable to common stockholders is not allocated to the convertible redeemable preferred stock as the convertible redeemable preferred stock do not have a contractual obligation to share in our losses. | |||||||||||||
The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stockholders under the two-class method (in thousands, except per share amounts): | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic: | |||||||||||||
Net income (loss) attributable to common stockholders: | |||||||||||||
Net income (loss) attributable to Barracuda Networks, Inc. | $ | (3,626 | ) | $ | (7,391 | ) | $ | 605 | |||||
Accretion to redemption value of redeemable convertible preferred stock | — | (1,812 | ) | — | |||||||||
Undistributed earnings allocated to redeemable convertible preferred stockholders | — | — | (139 | ) | |||||||||
Net income (loss) attributable to common stockholders | $ | (3,626 | ) | $ | (9,203 | ) | $ | 466 | |||||
Shares used to compute net income (loss) per share attributable to common stockholders: | |||||||||||||
Weighted-average common shares outstanding | 35,355 | 32,037 | 33,865 | ||||||||||
Less: Weighted-average shares subject to repurchase or forfeiture | — | (6 | ) | (36 | ) | ||||||||
Weighted-average shares used to compute net income (loss) per share, basic | 35,355 | 32,031 | 33,829 | ||||||||||
Diluted: | |||||||||||||
Net income (loss) attributable to Barracuda Networks, Inc. | $ | (3,626 | ) | $ | (7,391 | ) | $ | 605 | |||||
Accretion to redemption value of redeemable convertible preferred stock | — | (1,812 | ) | — | |||||||||
Net income (loss) attributable to common stockholders | $ | (3,626 | ) | $ | (9,203 | ) | $ | 605 | |||||
Weighted-average common shares used to compute net income (loss) per share, basic | 35,355 | 32,031 | 33,829 | ||||||||||
Add weighted-average effect of dilutive securities: | |||||||||||||
Stock options and restricted stock units | — | — | 1,440 | ||||||||||
Common stock subject to repurchase or forfeiture | — | — | 36 | ||||||||||
Redeemable convertible preferred stock | — | — | 10,050 | ||||||||||
Weighted-average shares used to compute net income (loss) per share, diluted | 35,355 | 32,031 | 45,355 | ||||||||||
Net income (loss) per share attributable to common stockholders: | |||||||||||||
Basic | $ | (0.10 | ) | $ | (0.29 | ) | $ | 0.01 | |||||
Diluted | $ | (0.10 | ) | $ | (0.29 | ) | $ | 0.01 | |||||
Schedule_IIValuation_and_Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||
Schedule II-Valuation and Qualifying Accounts | ' | ||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Allowance for doubtful accounts: | |||||||||||||
Beginning balance | $ | 1,252 | $ | 1,339 | $ | 924 | |||||||
Charged to costs and expenses | 885 | (77 | ) | 424 | |||||||||
Bad debt write-offs | (3 | ) | (10 | ) | (9 | ) | |||||||
Ending balance | $ | 2,134 | $ | 1,252 | $ | 1,339 | |||||||
Sales return reserve: | |||||||||||||
Beginning balance | $ | 2,371 | $ | 1,977 | $ | 1,724 | |||||||
Charged to deferred revenue | 16,901 | 13,072 | 11,347 | ||||||||||
Sales returns | (17,410 | ) | (12,678 | ) | (11,094 | ) | |||||||
Ending balance | $ | 1,862 | $ | 2,371 | $ | 1,977 | |||||||
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Feb. 28, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Nature of Operations | ' | ||
Nature of Operations | |||
Barracuda Networks, Inc., also referred to in this report as “we,” “our” or “us,” headquartered in Campbell, California, designs and delivers powerful yet easy-to-use security and storage solutions. We offer cloud-connected solutions that help our customers address security threats, improve network performance and protect and store their data. Our solutions are designed to simplify IT operations for our customers, allowing them to enhance their return on technology investment. We refer to the fiscal years ended February 28, 2014, February 28, 2013 and February 29, 2012 as fiscal 2014, fiscal 2013 and fiscal 2012, respectively. | |||
Initial Public Offering | ' | ||
Initial Public Offering | |||
In November, 2013, we completed our initial public offering (the “IPO”) in which we sold 4,761,000 shares of our common stock at a public offering price of $18.00 per share, which included 621,000 shares of common stock issued pursuant to the exercise in full of the over-allotment option by the underwriters. The IPO resulted in proceeds of $75.5 million, net of offering costs and underwriting discounts and commissions. In connection with the closing of the IPO, all of our outstanding redeemable convertible preferred stock automatically converted into 17,626,227 shares of common stock on a one-to-one basis. | |||
Reverse Stock Split | ' | ||
Reverse Stock Split | |||
On October 15, 2013, we effected a one-for-three reverse stock split and our board of directors (the “Board”) and stockholders approved an amendment of our certificate of incorporation such that, immediately prior to the completion of our IPO, our authorized capital stock consisted of 1,000,000,000 shares of common stock, $0.001 par value per share, and 20,000,000 shares of preferred stock, $0.001 par value per share. All information in this Annual Report on Form 10-K relating to the number of shares, price per share and per share amounts gives retroactive effect to the one-for-three reverse stock split of our capital stock. | |||
Basis of Presentation | ' | ||
Basis of Presentation | |||
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of Barracuda Networks, Inc. and our wholly and majority-owned subsidiaries. All significant intercompany accounts and transactions are eliminated. | |||
Use of Estimates | ' | ||
Use of Estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, valuation of stock-based awards, income taxes and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ from those estimates and such differences could be material to our consolidated financial position and results of operations. | |||
Reclassifications | ' | ||
Reclassifications | |||
We have reclassified certain immaterial prior period amounts within our consolidated financial statements and related notes to conform to our current year presentation. | |||
Cash and Cash Equivalents | ' | ||
Cash and Cash Equivalents | |||
Cash and cash equivalents consist of cash on deposit with banks and money market funds with an original maturity of three months or less. | |||
Marketable Securities | ' | ||
Marketable Securities | |||
Marketable securities have been classified as available-for-sale securities in the accompanying consolidated financial statements. Available-for-sale securities are carried at fair value, and realized gains and losses and declines in value determined to be other than temporary are included in other income (expense), net in the accompanying consolidated statements of operations. Interest income on securities classified as available-for-sale securities is also included in other income (expense), net. The cost of securities sold is based on the specific-identification method. | |||
Fair Value | ' | ||
Fair Value | |||
The carrying value of our financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximates fair value because of the short-term nature of such financial instruments. We measure certain other assets, including our non-marketable equity securities, at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. | |||
Concentration of Credit Risk and Significant Customers | ' | ||
Concentration of Credit Risk and Significant Customers | |||
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities and accounts receivable. | |||
We primarily invest only in high-quality credit instruments and maintain our cash, cash equivalents and marketable securities with high-quality institutions. Deposits held with banks, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. These deposits may be redeemed upon demand and bear minimal risk. We believe that the institutions that hold our instruments are financially sound and are subject to minimal credit risk. | |||
Our accounts receivable are derived from customers located in North America and certain foreign countries and regions, including Europe, the Middle East, Latin America and Asia-Pacific. Sales to foreign customers accounted for 27%, 26% and 29% of total revenue for fiscal 2014, 2013 and 2012, respectively. We perform ongoing credit evaluations of our customers’ financial condition and typically require no collateral from our customers. Credit risk with respect to accounts receivable is dispersed due to the large number of customers. One distribution partner accounted for 10% of receivables as of February 28, 2014, while no single customer or distribution partner accounted for over 10% of receivables as February 28, 2013. | |||
One distribution partner accounted for 18% and 13% of total revenue in fiscal 2014 and 2013, respectively. No single customer or distribution partner accounted for greater than 10% of total revenue in fiscal 2012. | |||
We currently depend on a single source or a limited number of sources for certain components used in the manufacture of our appliances. The inability of any supplier to fulfill our supply requirements could negatively impact future operating results. | |||
Accounts Receivable and Allowance for Doubtful Accounts | ' | ||
Accounts Receivable and Allowance for Doubtful Accounts | |||
Accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of accounts. We regularly review the adequacy of the allowance of doubtful accounts by considering the age of outstanding invoices, customers’ expected ability to pay, and collection history, when applicable, to determine whether a specific allowance is appropriate. Accounts receivable deemed uncollectible are charged against the allowance for doubtful accounts when identified. | |||
Inventories | ' | ||
Inventories | |||
Inventories are recorded at the lower of cost (using the first-in, first-out method) or market. | |||
Property and Equipment | ' | ||
Property and Equipment | |||
Property and equipment are stated at cost, less accumulated depreciation and amortization. Land is not depreciated. Depreciation is calculated using the straight-line method over the following estimated useful lives: | |||
Asset Classification | Estimated Useful Life | ||
Buildings | 39 years | ||
Computer equipment and software | 3 years | ||
Vehicles, machinery and equipment | 3 to 5 years | ||
Leasehold improvements | Lesser of the useful life of the asset, generally 5 years, or remaining lease term | ||
Intangible Assets and Impairment of Long-Lived Assets | ' | ||
Intangible Assets and Impairment of Long-Lived Assets | |||
Intangible assets consist of customer relationships, trade names, acquired technology, developed software, in-process research and development and patents. Intangible assets are recorded at fair values at the date of the acquisition and, for those assets having finite useful lives, are amortized using the straight-line method over their estimated useful lives, which generally range from three to ten years. In-process research and development is recorded as an indefinite-lived asset until the underlying project is completed, at which time the intangible asset is amortized over the estimated useful life. We periodically review our intangible and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. No impairment charges were recorded in fiscal 2014, 2013 and 2012. | |||
Goodwill | ' | ||
Goodwill | |||
Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed. We test goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that this asset may be impaired. We have elected to first assess the qualitative factors to determine whether it is more likely than not that the fair value of our single reporting operating unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If we determine that it is more likely than not that its fair value is less than its carrying amount, then the two-step goodwill impairment test will be performed. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step will be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the applied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. As of February 28, 2014, no impairment of goodwill has been identified. | |||
Revenue Recognition | ' | ||
Revenue Recognition | |||
We typically provide access to our solutions through appliances and related subscription agreements, whereby the customer is charged an upfront fee for the appliance and is required to purchase a related subscription agreement. The subscription agreements are subject to customer renewal at the end of each subscription period. Our appliances contain hardware and embedded proprietary software. The subscriptions, referred to as Barracuda Energize Updates, provide hourly spam, anti-malware and security updates, and are required to be purchased to access our solutions. The subscriptions also entitle customers to phone support and software updates on a when and if available basis. We have determined that the elements of our customer arrangements, including the appliance and subscription, do not qualify for treatment as a separate unit of accounting. Accordingly, all fees received under our customer agreements are accounted for as a single unit of accounting, and, except for any upfront fees for the appliance, such fees are recognized ratably on a daily basis over the term of the subscription agreement. Subscription revenue also includes revenue from fixed term licenses of our virtual appliance software support and maintenance. Recognition of revenue commences when there is persuasive evidence of an arrangement, the fee is fixed and determinable, collectability is deemed reasonably assured and the services have commenced. | |||
We receive an upfront fee from customers for delivery and transfer of title for their appliance. No further fees related to the appliance are required to be paid by the customer in subsequent periods. Because the appliance does not have value to the customer on a stand-alone basis and requires a subscription agreement to access our solutions, the delivery of the appliance does not represent the culmination of a separate earnings process associated with the payment of the upfront fee. Accordingly, the amount of the upfront fee is recorded as deferred revenue upon invoicing and the amount is recognized as revenue ratably on a daily basis over the estimated average customer relationship period of three years. | |||
Customers have a 30-day right to return, after which time the arrangement is non-cancelable. We make estimates and maintain a reserve for expected customer cancellations. These estimates involve inherent uncertainties and management judgment. | |||
Cost of Revenue | ' | ||
Cost of Revenue | |||
Cost of revenue consists of costs related to our appliance and subscription revenue. Such costs include hardware, manufacturing, shipping and logistics, customer support, warranty, personnel costs, data center costs and amortization of intangible assets related to acquired technology. We jointly manage the cost of providing appliances and subscription services and, accordingly, we present aggregate cost of revenues. | |||
Deferred Revenue | ' | ||
Deferred Revenue | |||
Deferred revenue represents amounts billed to customers or payments received from customers for which revenue has not yet been recognized. Deferred revenue that is expected to be recognized as revenue within one year is recorded as current deferred revenue and the remaining portion is recorded as noncurrent deferred revenue. | |||
Warranty and Instant Replacement Service | ' | ||
Warranty and Instant Replacement Service | |||
We provide a standard one-year warranty on our appliances. We also offer separately priced extended warranty contracts on our appliances, which entitle customers to expedited replacement hardware, with next business day shipping, on our appliances. Such separately-priced extended warranty contracts are available to customers coterminous with the standard one-year warranty. Revenue from extended warranty contracts is recognized ratably over the contractual term. Costs associated with our standard warranty and extended warranty contracts are expensed as incurred. Total warranty costs, including costs incurred under our instant replacement extended warranty contracts and costs to support our standard one-year appliance warranty, in fiscal 2014, 2013 and 2012 were $5.2 million, $4.9 million and $2.8 million, respectively. | |||
Deferred Appliance Costs | ' | ||
Deferred Appliance Costs | |||
We receive an upfront fee from our customers related to the sale of our appliance. We defer the costs of the appliance, including shipping costs, as they are directly related to the revenues that we derive from the sale of the appliance. Such deferred costs are amortized ratably over the estimated average customer relationship period of three years. Amortization of deferred appliance costs is included in costs of revenues in the accompanying consolidated statements of operations. | |||
Deferred Commissions | ' | ||
Deferred Commissions | |||
We capitalize commission costs that are incremental and directly related to the acquisition of customer contracts. Sales commissions are deferred when earned and amortized over the same period that revenues are recognized. Commission payments are paid in full after the customer has paid. Amortization of deferred commission costs is included in sales and marketing costs in the accompanying consolidated statements of operations. | |||
Income Taxes | ' | ||
Income Taxes | |||
We account for income taxes using the liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or in our tax returns. Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. We assess the likelihood that our deferred tax assets will be recovered from future taxable income and, to the extent we believe, based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected from each subsidiary and considering prudent and feasible tax planning strategies. | |||
We account for uncertainty in income taxes recognized in our financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon examination by the taxing authorities, based on the technical merits of the position. If the tax position is deemed more-likely-than-not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. | |||
Software Development Costs | ' | ||
Software Development Costs | |||
Software development costs incurred prior to the establishment of technological feasibility are charged to research and development expense as incurred. Technological feasibility is established upon completion of a working model, which is typically demonstrated by initial beta shipment. Software development costs incurred subsequent to the time a product’s technological feasibility has been established through the time the product is available for general release to customers are capitalized if material. No software development costs have been capitalized in the periods presented. | |||
Advertising Costs | ' | ||
Advertising Costs | |||
We expense advertising costs as incurred. Advertising expense totaled $56.7 million, $52.9 million and $46.5 million for fiscal 2014, 2013 and 2012, respectively. | |||
Stock-Based Compensation | ' | ||
Stock-Based Compensation | |||
We record stock-based compensation awards based on fair value as of the grant date. We use the Black-Scholes-Merton option-pricing model to estimate the fair value of our employee stock options on the dates of grant. The grant date fair value of restricted stock units is based on the fair value of our common stock, which is the closing market price of our common stock on the grant date. Prior to our IPO, our board of directors considered numerous objective and subjective factors to determine the fair value of our common stock at each grant date. These factors included, but were not limited to, (i) contemporaneous valuations of common stock performed by unrelated third-party specialists; (ii) the prices for our Preferred Stock sold to outside investors; (iii) the rights, preferences and privileges of our Preferred Stock relative to our common stock; (iv) the lack of marketability of our common stock; (v) developments in the business; and (vi) the likelihood of achieving a liquidity event, such as an IPO or a merger or acquisition of our Company, given prevailing market conditions. | |||
Given our limited history with employee grants, we use the “simplified” method in estimating the expected term for stock option awards. The “simplified” method, as permitted by the SEC, is calculated as the average of the contractual term and the average vesting period. Estimated volatility is based upon the historical volatility of similar entities whose share prices are publicly available, as we did not have sufficient trading history for our common stock. The risk-free interest rate is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the stock option award is granted, with a maturity equal to the expected term of the stock option award. The expected dividend assumption is based on our current expectations about our anticipated dividend policy. | |||
We amortize the fair value of an award expected to vest on a straight-line basis over the requisite service period of the award, which is generally the period from the grant date to the end of the vesting period. For awards with service only conditions and a graded vesting schedule, we elected to recognize costs on a straight-line basis. We use historical data to estimate the number of future forfeitures. | |||
Foreign Currency | ' | ||
Foreign Currency | |||
For those subsidiaries whose functional currency is not the U.S. dollar, assets and liabilities are translated into U.S. dollar equivalents at the exchange rate in effect on the balance sheet date and revenues and expenses are translated into U.S. dollars using the average exchange rate over the period. Resulting currency translation adjustments are recorded in accumulated other comprehensive income (loss) in the consolidated balance sheets. We record net gains and losses resulting from foreign exchange transactions in other income (expense), net in the consolidated statement of operations. | |||
Accumulated Other Comprehensive Income (Loss) | ' | ||
Accumulated Other Comprehensive Income (Loss) | |||
The accumulated other comprehensive loss balance consists of unrealized gains and losses on available-for-sale securities and translation gains and losses related to our international subsidiaries with functional currencies other than the U.S. dollar, primarily the euro. | |||
Recent Accounting Pronouncements | ' | ||
Recent Accounting Pronouncements | |||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update which provided guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. This new standard requires the netting of unrecognized tax benefits (“UTBs”) against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. This standard can be applied prospectively or retrospectively and applies to annual or interim periods beginning after December 15, 2013, but early adoption is permitted. We are electing to apply the new standard prospectively. The adoption of this standard did not result in a material effect on our financial position. | |||
In February 2013, the FASB issued an accounting standards update which addressed the presentation of amounts reclassified from accumulated other comprehensive income (loss). This update does not change current financial reporting requirements, instead an entity is required to cross-reference to other required disclosures that provide additional detail about amounts reclassified out of accumulated other comprehensive income (loss). In addition, the guidance requires an entity to present significant amounts reclassified out of accumulated other comprehensive income (loss) by line item of net income (loss) if the amount reclassified is required to be reclassified to net income (loss) in its entirety in the same reporting period. This standard is effective prospectively for reporting periods beginning after December 15, 2012. We adopted this standard during the first quarter of fiscal 2014 and did not have material amounts reclassified in fiscal 2014. Since the standard impacts financial statement disclosure requirements only, we did not have material effects on our results of operations, financial position or liquidity. | |||
Fair Value Measurements | ' | ||
Fair Value Measurements | |||
We determine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value: | |||
Level 1: | Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. | ||
Level 2: | Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. | ||
Level 3: | Inputs are unobservable inputs based on our assumptions. | ||
Cash equivalents and marketable securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. We have no financial assets or liabilities measured utilizing Level 2 or 3 inputs. | |||
Segment Information | ' | ||
Our chief operating decision maker reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single reporting segment. | |||
Net Income (Loss) Per Share | ' | ||
Basic and diluted net income (loss) per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Prior to the date of our IPO, we considered our Series A and Series B redeemable convertible preferred stock as participating securities. In the event a dividend was declared or paid on our common stock, holders of Series A and Series B redeemable convertible preferred stock were entitled to a proportionate share of such dividend in proportion to the holders of common stock on an as-if converted basis. Immediately after the completion of our IPO in November 2013, all outstanding shares of redeemable convertible preferred stock converted to common stock. | |||
Under the two-class method, basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Net income (loss) attributable to common stockholders is determined by allocating undistributed earnings between common and redeemable convertible preferred stockholders. Diluted net income (loss) per share attributable to common stockholders is computed by using the weighted-average number of shares of common stock outstanding, including potential dilutive common shares assuming the dilutive effect of outstanding stock options, restricted stock units, common stock subject to repurchase or forfeiture and redeemable convertible preferred stock using the treasury stock method. For periods in which there is a net loss, the number of shares used in the computation of diluted net loss per share is the same as that used for the computation of basic net loss per share, as the inclusion of dilutive securities would be anti-dilutive. Under the two-class method, the net loss attributable to common stockholders is not allocated to the convertible redeemable preferred stock as the convertible redeemable preferred stock do not have a contractual obligation to share in our losses. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Feb. 28, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Schedule of Useful Lives of Assets | ' | ||
Depreciation is calculated using the straight-line method over the following estimated useful lives: | |||
Asset Classification | Estimated Useful Life | ||
Buildings | 39 years | ||
Computer equipment and software | 3 years | ||
Vehicles, machinery and equipment | 3 to 5 years | ||
Leasehold improvements | Lesser of the useful life of the asset, generally 5 years, or remaining lease term |
Balance_Sheet_Information_Tabl
Balance Sheet Information (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||||||
Cash, Cash Equivalents and Marketable Securities | ' | ||||||||||||||||
The following table summarizes our cash, cash equivalents and marketable securities (in thousands): | |||||||||||||||||
February 28, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 41,331 | $ | 20,812 | |||||||||||||
Money market funds | 94,548 | 9,283 | |||||||||||||||
Total | $ | 135,879 | $ | 30,095 | |||||||||||||
Marketable securities: | |||||||||||||||||
Equity securities | $ | — | $ | 1,550 | |||||||||||||
Marketable Securities | ' | ||||||||||||||||
The following table summarizes our marketable securities as of February 28, 2013 (in thousands): | |||||||||||||||||
February 28, 2013 | |||||||||||||||||
Cost | Gross | Gross | Estimated | ||||||||||||||
Unrealized | Unrealized | Fair Value | |||||||||||||||
Gains | Losses | ||||||||||||||||
Equity securities | $ | 1,458 | $ | 92 | $ | — | $ | 1,550 | |||||||||
Financial Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
Financial assets measured at fair value on a recurring basis are summarized below (in thousands): | |||||||||||||||||
February 28, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Money market funds | $ | 94,548 | $ | — | $ | — | $ | 94,548 | |||||||||
February 28, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Money market funds | $ | 9,283 | $ | — | $ | — | $ | 9,283 | |||||||||
Equity securities | 1,550 | — | — | 1,550 | |||||||||||||
$ | 10,833 | $ | — | $ | — | $ | 10,833 | ||||||||||
Inventories | ' | ||||||||||||||||
Inventories consisted of the following (in thousands): | |||||||||||||||||
February 28, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Raw materials | $ | 3,038 | $ | 3,042 | |||||||||||||
Finished goods | 3,759 | 2,789 | |||||||||||||||
Reserves | (1,149 | ) | (693 | ) | |||||||||||||
$ | 5,648 | $ | 5,138 | ||||||||||||||
Deferred Costs | ' | ||||||||||||||||
Deferred costs consisted of the following (in thousands): | |||||||||||||||||
February 28, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Appliance | $ | 35,000 | $ | 27,751 | |||||||||||||
Commissions | 15,279 | 11,719 | |||||||||||||||
$ | 50,279 | $ | 39,470 | ||||||||||||||
Property and Equipment | ' | ||||||||||||||||
Property and equipment consisted of the following (in thousands): | |||||||||||||||||
February 28, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Land | $ | 5,100 | $ | 5,100 | |||||||||||||
Building | 6,549 | 6,549 | |||||||||||||||
Computer hardware and software | 11,711 | 8,656 | |||||||||||||||
Vehicles, machinery and equipment | 2,462 | 1,478 | |||||||||||||||
Leasehold improvements | 2,560 | 1,488 | |||||||||||||||
28,382 | 23,271 | ||||||||||||||||
Less: accumulated depreciation and amortization | 7,824 | 6,299 | |||||||||||||||
$ | 20,558 | $ | 16,972 | ||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | ' | ||||||||||||||||
The components of accumulated other comprehensive income (loss), net of tax, were as follows (in thousands): | |||||||||||||||||
Foreign | Unrealized Gains | Total | |||||||||||||||
Currency | (Losses) on | ||||||||||||||||
Translation | Available-for- | ||||||||||||||||
Adjustments | Sale Investments | ||||||||||||||||
Balance as of February 28, 2013 | $ | (1,169 | ) | $ | 57 | $ | (1,112 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 352 | (19 | ) | 333 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (38 | ) | (38 | ) | ||||||||||||
Other comprehensive income (loss) | 352 | (57 | ) | 295 | |||||||||||||
Balance as of February 28, 2014 | $ | (817 | ) | $ | — | $ | (817 | ) | |||||||||
Effects on Net Loss of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The effects on net loss of amounts reclassified from accumulated other comprehensive income (loss) were as follows (in thousands): | |||||||||||||||||
Details about Accumulated Other | Year Ended | Affected Line Item in the | |||||||||||||||
Comprehensive Income (Loss) Components | February 28, | Consolidated Statement of Operations | |||||||||||||||
2014 | |||||||||||||||||
Unrealized gains on available-for-sale securities | $ | 61 | Other income (expense), net | ||||||||||||||
Tax effect | (23 | ) | Benefit for income taxes | ||||||||||||||
Total reclassifications for the period | $ | 38 | |||||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Schedule of Fair Values of Assets Acquired and Liabilities Assumed | ' | ||||||||
The following table reflects the fair values of assets acquired and liabilities assumed as of the acquisition date (in thousands): | |||||||||
Cash | $ | 56 | |||||||
Accounts receivable | 110 | ||||||||
Developed technology | 4,780 | ||||||||
Customer relationships | 510 | ||||||||
Trade name | 390 | ||||||||
Goodwill | 1,825 | ||||||||
Accrued expenses | (340 | ) | |||||||
Deferred tax liability | (612 | ) | |||||||
Total value of assets acquired and liabilities assumed | $ | 6,719 | |||||||
Schedule of Pro Forma Revenue and Net Loss | ' | ||||||||
The following table presents our unaudited pro forma revenue and net loss for periods presented, assuming the acquisition had occurred on March 1, 2012 (in thousands): | |||||||||
Year Ended February 28, | |||||||||
2014 | 2013 | ||||||||
Pro forma revenue | $ | 233,912 | $ | 199,006 | |||||
Pro forma net loss attributable to Barracuda Networks, Inc. | $ | (4,303 | ) | $ | (10,873 | ) | |||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Schedule of Changes in Carrying Amount of Goodwill | ' | ||||||||||||
The changes in the carrying amount of goodwill are summarized as follows (in thousands): | |||||||||||||
February 28, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of fiscal year | $ | 33,778 | $ | 28,430 | |||||||||
Contingent consideration earned | — | 5,580 | |||||||||||
Goodwill acquired | 1,825 | — | |||||||||||
Effect of foreign exchange rates | 411 | (232 | ) | ||||||||||
Balance at end of fiscal year | $ | 36,014 | $ | 33,778 | |||||||||
Schedule of Intangible Assets Subject to Amortization | ' | ||||||||||||
Intangible assets subject to amortization are summarized as follows (in thousands): | |||||||||||||
February 28, 2014 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Value | ||||||||||||
Acquired developed technology | $ | 26,315 | $ | 21,111 | $ | 5,204 | |||||||
Software license | 400 | 400 | — | ||||||||||
Customer relationships | 7,463 | 5,794 | 1,669 | ||||||||||
Patents | 1,625 | 873 | 752 | ||||||||||
Trade name | 663 | 305 | 358 | ||||||||||
Acquired developed software | 200 | 200 | — | ||||||||||
$ | 36,666 | $ | 28,683 | $ | 7,983 | ||||||||
February 28, 2013 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Value | ||||||||||||
Acquired developed technology | $ | 21,403 | $ | 16,910 | $ | 4,493 | |||||||
Software license | 400 | 400 | — | ||||||||||
Customer relationships | 6,814 | 4,708 | 2,106 | ||||||||||
Patents | 1,625 | 687 | 938 | ||||||||||
Trade name | 273 | 259 | 14 | ||||||||||
Acquired developed software | 200 | 177 | 23 | ||||||||||
$ | 30,715 | $ | 23,141 | $ | 7,574 | ||||||||
Stockholders_Deficit_Tables
Stockholders' Deficit (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Schedule of Shares Authorized and Available for Grant | ' | ||||||||||||||||
The following table presents shares authorized and available for grant: | |||||||||||||||||
Shares Available | |||||||||||||||||
for Grant | |||||||||||||||||
Balance at February 28, 2013 | 1,103,101 | ||||||||||||||||
Authorized | 4,418,137 | ||||||||||||||||
Granted | (908,940 | ) | |||||||||||||||
Canceled/forfeited | 575,084 | ||||||||||||||||
Balance at February 28, 2014 | 5,187,382 | ||||||||||||||||
Summary of Weighted-Average Input Assumptions Used to Estimate Fair Value of Employee Stock Option Grants | ' | ||||||||||||||||
The following weighted-average input assumptions were used to estimate the fair value of employee stock option grants: | |||||||||||||||||
Year Ended February 28/29, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected volatility | 46 | % | 44 | % | 41–46 | % | |||||||||||
Expected term (in years) | 6.25 | 6.25 | 6.25 | ||||||||||||||
Risk-free interest rate | 1.67 | % | 0.97 | % | 1.84 | % | |||||||||||
Dividend yield | — | — | — | ||||||||||||||
Estimated fair value of stock options granted during the year | $ | 9.48 | $ | 5.34 | $ | 5.04 | |||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
The following table summarizes stock option activity under our plans: | |||||||||||||||||
Options Outstanding | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
(in years) | (in thousands) | ||||||||||||||||
Balance at February 28, 2013 | 4,868,974 | $ | 11.23 | ||||||||||||||
Granted | 741,357 | 17.9 | |||||||||||||||
Assumed from acquisition | 59,726 | 1.51 | |||||||||||||||
Exercised | (420,969 | ) | 7.86 | ||||||||||||||
Canceled/forfeited | (575,084 | ) | 12.83 | ||||||||||||||
Balance at February 28, 2014 | 4,674,004 | 12.27 | |||||||||||||||
As of February 28, 2014: | |||||||||||||||||
Vested and exercisable | 2,270,378 | $ | 10.42 | 6.41 | $ | 57,972 | |||||||||||
Vested and expected to vest | 4,457,458 | 12.06 | 7.5 | 106,491 | |||||||||||||
Summary of Restricted Stock Units Activity | ' | ||||||||||||||||
The following table summarizes RSU activity under our plan: | |||||||||||||||||
Unvested Restricted Stock Units | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Unvested at February 28, 2013 | 1,256,668 | $ | 12.64 | ||||||||||||||
Granted | 167,583 | 21.87 | |||||||||||||||
Vested | (348,234 | ) | 12.64 | ||||||||||||||
Unvested at February 28, 2014 | 1,076,017 | 14.08 | |||||||||||||||
Expected to vest after February 28, 2014 | 1,001,455 | $ | 14.08 | ||||||||||||||
Schedule of Total Stock-Based Compensation Expense | ' | ||||||||||||||||
Total stock-based compensation expense has been classified as follows in the accompanying consolidated statements of operations (in thousands): | |||||||||||||||||
Year Ended February 28/29, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Cost of revenue | $ | 201 | $ | 146 | $ | 51 | |||||||||||
Research and development | 2,374 | 2,059 | 766 | ||||||||||||||
Sales and marketing | 2,067 | 1,182 | 527 | ||||||||||||||
General and administrative | 6,195 | 5,400 | 527 | ||||||||||||||
$ | 10,837 | $ | 8,787 | $ | 1,871 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Income (Loss) Before Income Taxes and Non-Controlling Interest | ' | ||||||||||||
Income (loss) before income taxes and non-controlling interest consists of the following (in thousands): | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | (6,165 | ) | $ | (9,206 | ) | $ | 5,226 | |||||
Foreign | (4,787 | ) | (4,063 | ) | (5,933 | ) | |||||||
Total | $ | (10,952 | ) | $ | (13,269 | ) | $ | (707 | ) | ||||
Schedule of Provision (Benefit) for Income Taxes | ' | ||||||||||||
The provision (benefit) for income taxes consists of the following (in thousands): | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 4,760 | $ | 6,824 | $ | 9,860 | |||||||
State | 574 | 940 | 537 | ||||||||||
Foreign | 734 | 526 | 517 | ||||||||||
Total | 6,068 | 8,290 | 10,914 | ||||||||||
Deferred: | |||||||||||||
Federal | (10,231 | ) | (11,507 | ) | (9,501 | ) | |||||||
State | (1,109 | ) | (617 | ) | (770 | ) | |||||||
Foreign | (1,293 | ) | (1,250 | ) | (1,096 | ) | |||||||
Total | (12,633 | ) | (13,374 | ) | (11,367 | ) | |||||||
Total benefit for income taxes | $ | (6,565 | ) | $ | (5,084 | ) | $ | (453 | ) | ||||
Components of Deferred Tax Assets (Liabilities) | ' | ||||||||||||
Deferred tax assets (liabilities) comprise the following (in thousands): | |||||||||||||
February 28, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Deferred revenue | $ | 53,619 | $ | 41,577 | |||||||||
Reserves and other | 6,227 | 6,159 | |||||||||||
Research and development credits | 2,419 | 2,003 | |||||||||||
Net operating losses | 6,675 | 6,389 | |||||||||||
Total deferred tax assets | 68,940 | 56,128 | |||||||||||
Valuation allowance | (6,685 | ) | (7,008 | ) | |||||||||
Total deferred tax assets, net of valuation allowance | 62,255 | 49,120 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | (2,899 | ) | (1,675 | ) | |||||||||
Prepaid expense and other | (569 | ) | (347 | ) | |||||||||
Other deferred tax liabilities | (460 | ) | (667 | ) | |||||||||
Total deferred tax liabilities | (3,928 | ) | (2,689 | ) | |||||||||
Net deferred tax assets | $ | 58,327 | $ | 46,431 | |||||||||
Reconciliation of Statutory Federal Income Tax to Reported Income Tax Expense (Benefit) | ' | ||||||||||||
The following is a reconciliation of the statutory federal income tax to our reported income tax expense (benefit) (in thousands): | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax at federal statutory rate | $ | (3,833 | ) | $ | (4,644 | ) | $ | (247 | ) | ||||
State taxes, net of federal benefit | (713 | ) | (11 | ) | (423 | ) | |||||||
Non-deductible expenses | 736 | 289 | 146 | ||||||||||
Stock-based compensation | 1,227 | 910 | 461 | ||||||||||
Legal entity rationalization | (3,541 | ) | — | — | |||||||||
Change in valuation allowance | 346 | — | — | ||||||||||
Foreign rate differential | 790 | 535 | 1,373 | ||||||||||
Research and development credits | (933 | ) | (1,331 | ) | (726 | ) | |||||||
Domestic production activities deduction | (445 | ) | (760 | ) | (1,023 | ) | |||||||
Other | (199 | ) | (72 | ) | (14 | ) | |||||||
$ | (6,565 | ) | $ | (5,084 | ) | $ | (453 | ) | |||||
Summary of Gross Unrecognized Tax Benefits | ' | ||||||||||||
The following table summarizes the activity related to our gross unrecognized tax benefits (in thousands): | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 3,971 | $ | 4,150 | $ | 3,026 | |||||||
Tax positions related to the current year: | |||||||||||||
Increases | 1,208 | 1,122 | 978 | ||||||||||
Tax positions related to prior years: | |||||||||||||
Increases | — | 76 | 1,009 | ||||||||||
Decreases | (1 | ) | (1,341 | ) | (528 | ) | |||||||
Settlements with taxing authorities: | |||||||||||||
Releases—statute of limitations expired | (198 | ) | (36 | ) | (335 | ) | |||||||
Balance at the end of the year | $ | 4,980 | $ | 3,971 | $ | 4,150 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule of Revenue by Geographic Region | ' | ||||||||||||
Revenue by geographic region is presented as follows (in thousands): | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
North America | $ | 169,896 | $ | 147,231 | $ | 113,934 | |||||||
United States | 159,036 | 138,879 | 106,760 | ||||||||||
Other | 10,860 | 8,352 | 7,174 | ||||||||||
Latin America | 3,380 | 3,290 | 3,183 | ||||||||||
Asia-Pacific | 16,245 | 14,497 | 12,475 | ||||||||||
EMEA | 44,266 | 33,913 | 31,328 | ||||||||||
Total | $ | 233,787 | $ | 198,931 | $ | 160,920 | |||||||
Schedule of Long Lived Assets | ' | ||||||||||||
Long-lived assets, excluding intercompany receivables, investments in subsidiaries, intangible assets and deferred tax assets, by geographic region are presented as follows (in thousands): | |||||||||||||
February 28, | |||||||||||||
2014 | 2013 | ||||||||||||
United States | $ | 42,836 | $ | 34,873 | |||||||||
International | 4,145 | 3,087 | |||||||||||
Total | $ | 46,981 | $ | 37,960 | |||||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||
Feb. 28, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Schedule of Minimum Principal Payments of Note Payable | ' | ||||
Minimum principal payments for our note payable are as follows (in thousands): | |||||
Fiscal Years Ending February 28/29 | |||||
2015 | $ | 237 | |||
2016 | 252 | ||||
2017 | 268 | ||||
2018 | 4,115 | ||||
2019 | — | ||||
$ | 4,872 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Feb. 28, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Minimum Payments under Operating Leases Agreements | ' | ||||
Minimum payments under our operating leases agreements are as follows (in thousands): | |||||
Fiscal Years Ending February 28/29 | |||||
2015 | $ | 2,072 | |||
2016 | 1,741 | ||||
2017 | 1,707 | ||||
2018 | 1,295 | ||||
2019 | 415 | ||||
$ | 7,230 | ||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Calculation of Basic and Diluted Net Loss Per Share of Common Stock | ' | ||||||||||||
The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stockholders under the two-class method (in thousands, except per share amounts): | |||||||||||||
Year Ended February 28/29, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic: | |||||||||||||
Net income (loss) attributable to common stockholders: | |||||||||||||
Net income (loss) attributable to Barracuda Networks, Inc. | $ | (3,626 | ) | $ | (7,391 | ) | $ | 605 | |||||
Accretion to redemption value of redeemable convertible preferred stock | — | (1,812 | ) | — | |||||||||
Undistributed earnings allocated to redeemable convertible preferred stockholders | — | — | (139 | ) | |||||||||
Net income (loss) attributable to common stockholders | $ | (3,626 | ) | $ | (9,203 | ) | $ | 466 | |||||
Shares used to compute net income (loss) per share attributable to common stockholders: | |||||||||||||
Weighted-average common shares outstanding | 35,355 | 32,037 | 33,865 | ||||||||||
Less: Weighted-average shares subject to repurchase or forfeiture | — | (6 | ) | (36 | ) | ||||||||
Weighted-average shares used to compute net income (loss) per share, basic | 35,355 | 32,031 | 33,829 | ||||||||||
Diluted: | |||||||||||||
Net income (loss) attributable to Barracuda Networks, Inc. | $ | (3,626 | ) | $ | (7,391 | ) | $ | 605 | |||||
Accretion to redemption value of redeemable convertible preferred stock | — | (1,812 | ) | — | |||||||||
Net income (loss) attributable to common stockholders | $ | (3,626 | ) | $ | (9,203 | ) | $ | 605 | |||||
Weighted-average common shares used to compute net income (loss) per share, basic | 35,355 | 32,031 | 33,829 | ||||||||||
Add weighted-average effect of dilutive securities: | |||||||||||||
Stock options and restricted stock units | — | — | 1,440 | ||||||||||
Common stock subject to repurchase or forfeiture | — | — | 36 | ||||||||||
Redeemable convertible preferred stock | — | — | 10,050 | ||||||||||
Weighted-average shares used to compute net income (loss) per share, diluted | 35,355 | 32,031 | 45,355 | ||||||||||
Net income (loss) per share attributable to common stockholders: | |||||||||||||
Basic | $ | (0.10 | ) | $ | (0.29 | ) | $ | 0.01 | |||||
Diluted | $ | (0.10 | ) | $ | (0.29 | ) | $ | 0.01 | |||||
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
Nov. 12, 2013 | Oct. 15, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Issuance of stock, net of offering costs, Shares | 4,761,000 | ' | ' | ' | ' |
Initial public offering, share price | $18 | ' | ' | ' | ' |
Proceeds from IPO | $75,490,000 | ' | $75,490,000 | ' | ' |
Number of redeemable convertible preferred stock converted to common stock | 17,626,227 | ' | 17,626,227 | ' | ' |
Conversion of outstanding redeemable convertible preferred stock into common stock | ' | ' | 'One-to-one basis | ' | ' |
Reverse stock split | ' | 'One-for-three | ' | ' | ' |
Common stock, shares authorized | ' | 1,000,000,000 | 1,000,000,000 | 53,333,334 | ' |
Common stock, par value | ' | $0.00 | $0.00 | $0.00 | ' |
Preferred stock, shares authorized | ' | 20,000,000 | 20,000,000 | 0 | ' |
Preferred stock, par value | ' | $0.00 | $0.00 | $0.00 | ' |
Impairment of long-lived assets | ' | ' | 0 | 0 | 0 |
Goodwill impairment | ' | ' | 0 | ' | ' |
Estimated average customer relationship period | ' | ' | '3 years | ' | ' |
Standard product warranty | ' | ' | 'We provide a standard one-year warranty on our appliances. | ' | ' |
Extended product warranty | ' | ' | 'We also offer separately priced extended warranty contracts on our appliances, which entitle customers to expedited replacement hardware, with next business day shipping, on our appliances. | ' | ' |
Product warranty expense | ' | ' | 5,200,000 | 4,900,000 | 2,800,000 |
Income tax expense benefit realized upon ultimate settlement | ' | ' | 50.00% | ' | ' |
Advertising expense | ' | ' | $56,700,000 | $52,900,000 | $46,500,000 |
Distribution partner [Member] | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Percent of sales in total revenue | ' | ' | 18.00% | 13.00% | 10.00% |
Number of customer accounted over 10% of total revenue | ' | ' | 1 | 1 | 0 |
Foreign customers [Member] | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Percent of sales in total revenue | ' | ' | 27.00% | 26.00% | 29.00% |
Maximum [Member] | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Amortization periods for identifiable intangible assets | ' | ' | '10 years | ' | ' |
Maximum [Member] | Distribution partner [Member] | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Credit risk, percentage | ' | ' | 10.00% | 10.00% | ' |
Number of customer accounted over 10% of receivable | ' | ' | 1 | 0 | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Amortization periods for identifiable intangible assets | ' | ' | '3 years | ' | ' |
Underwriters [Member] | ' | ' | ' | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Issuance of stock, net of offering costs, Shares | 621,000 | ' | ' | ' | ' |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies - Schedule of Useful Lives of Assets (Detail) | 12 Months Ended |
Feb. 28, 2014 | |
Building [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment, net | '39 years |
Computer equipment and software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment, net | '3 years |
Leasehold improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment, net | 'Lesser of the useful life of the asset, generally 5 years, or remaining lease term |
Minimum [Member] | Vehicles, machinery and equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment, net | '3 years |
Maximum [Member] | Vehicles, machinery and equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment, net | '5 years |
Balance_Sheet_Information_Cash
Balance Sheet Information - Cash, Cash Equivalents and Marketable Securities (Detail) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2011 |
In Thousands, unless otherwise specified | ||||
Investment Holdings [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents | $135,879 | $30,095 | $126,507 | $98,742 |
Marketable securities | ' | 1,550 | ' | ' |
Cash [Member] | ' | ' | ' | ' |
Investment Holdings [Line Items] | ' | ' | ' | ' |
Cash | 41,331 | 20,812 | ' | ' |
Money Market Funds [Member] | ' | ' | ' | ' |
Investment Holdings [Line Items] | ' | ' | ' | ' |
Money market funds | 94,548 | 9,283 | ' | ' |
Equity Securities [Member] | ' | ' | ' | ' |
Investment Holdings [Line Items] | ' | ' | ' | ' |
Marketable securities | ' | $1,550 | ' | ' |
Balance_Sheet_Information_Addi
Balance Sheet Information - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Oct. 31, 2011 | |
Balance Sheet Components [Line Items] | ' | ' | ' | ' |
Depreciation and amortization expense related to property and equipment | $3,800,000 | $2,800,000 | $2,100,000 | ' |
Ownership interest | ' | ' | ' | 24.00% |
Stock acquired in a privately held company | ' | ' | ' | 750,000 |
Equity Securities [Member] | ' | ' | ' | ' |
Balance Sheet Components [Line Items] | ' | ' | ' | ' |
Marketable securities | $0 | $1,550,000 | ' | ' |
Balance_Sheet_Information_Mark
Balance Sheet Information - Marketable Securities (Detail) (Equity Securities [Member], USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||
Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Marketable securities, Cost | ' | $1,458 |
Marketable securities, Gross Unrealized Gains | ' | 92 |
Marketable securities, Gross Unrealized Losses | ' | ' |
Marketable securities, Estimated Fair Value | $0 | $1,550 |
Balance_Sheet_Information_Fina
Balance Sheet Information - Financial Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial assets measured at fair value | ' | $10,833 |
Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial assets measured at fair value | 94,548 | 9,283 |
Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial assets measured at fair value | ' | 1,550 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial assets measured at fair value | ' | 10,833 |
Level 1 [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial assets measured at fair value | 94,548 | 9,283 |
Level 1 [Member] | Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial assets measured at fair value | ' | 1,550 |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial assets measured at fair value | ' | ' |
Level 2 [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial assets measured at fair value | ' | ' |
Level 2 [Member] | Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial assets measured at fair value | ' | ' |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial assets measured at fair value | ' | ' |
Level 3 [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial assets measured at fair value | ' | ' |
Level 3 [Member] | Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial assets measured at fair value | ' | ' |
Balance_Sheet_Information_Inve
Balance Sheet Information - Inventories (Detail) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $3,038 | $3,042 |
Finished goods | 3,759 | 2,789 |
Reserves | -1,149 | -693 |
Total inventories | $5,648 | $5,138 |
Balance_Sheet_Information_Defe
Balance Sheet Information - Deferred Costs (Detail) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Cost [Line Items] | ' | ' |
Total deferred costs | $50,279 | $39,470 |
Appliance [Member] | ' | ' |
Deferred Cost [Line Items] | ' | ' |
Total deferred costs | 35,000 | 27,751 |
Commissions [Member] | ' | ' |
Deferred Cost [Line Items] | ' | ' |
Total deferred costs | $15,279 | $11,719 |
Balance_Sheet_Information_Prop
Balance Sheet Information - Property and Equipment (Detail) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $28,382 | $23,271 |
Less: accumulated depreciation and amortization | 7,824 | 6,299 |
Property and equipment, net | 20,558 | 16,972 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 5,100 | 5,100 |
Building [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 6,549 | 6,549 |
Computer hardware and software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 11,711 | 8,656 |
Vehicles, machinery and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 2,462 | 1,478 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $2,560 | $1,488 |
Balance_Sheet_Information_Comp
Balance Sheet Information - Components of Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Feb. 28, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance | ($1,112) |
Other comprehensive income (loss) before reclassifications | 333 |
Amounts reclassified from accumulated other comprehensive income (loss) | -38 |
Other comprehensive income (loss) | 295 |
Ending balance | -817 |
Foreign Currency Translation Adjustments [Member] | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance | -1,169 |
Other comprehensive income (loss) before reclassifications | 352 |
Other comprehensive income (loss) | 352 |
Ending balance | -817 |
Unrealized Gains (Losses) on Available-for-Sale Investments [Member] | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance | 57 |
Other comprehensive income (loss) before reclassifications | -19 |
Amounts reclassified from accumulated other comprehensive income (loss) | -38 |
Other comprehensive income (loss) | -57 |
Ending balance | ' |
Balance_Sheet_Information_Effe
Balance Sheet Information - Effects on Net Loss of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Other income (expense), net | ($51) | $839 | ($476) |
Benefit for income taxes | -6,565 | -5,084 | -453 |
Total reclassifications for the period | 38 | 14 | -528 |
Reclassification out of accumulated other comprehensive loss [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Benefit for income taxes | -23 | ' | ' |
Total reclassifications for the period | 38 | ' | ' |
Reclassification out of accumulated other comprehensive loss [Member] | Unrealized Gains (Losses) on Available-for-Sale Investments [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Other income (expense), net | $61 | ' | ' |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | Feb. 28, 2013 | Feb. 28, 2013 | Apr. 30, 2013 | Nov. 30, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 |
BitLeap, LLC [Member] | SignNow, Inc. [Member] | SignNow, Inc. [Member] | SignNow, Inc. [Member] | SignNow, Inc. [Member] | SignNow, Inc. [Member] | SignNow, Inc. [Member] | ||
Acquired developed technology [Member] | Customer relationships [Member] | Trade name [Member] | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition date | ' | ' | ' | 24-Apr-13 | ' | ' | ' | ' |
Consideration | ' | ' | $6,700,000 | ' | ' | ' | ' | ' |
Contingent cash consideration upon continued employment | ' | ' | 4,500,000 | ' | ' | ' | ' | ' |
Unvested stock options assumed | ' | ' | 600,000 | ' | ' | ' | ' | ' |
Unvested stock options assumed, weighted-average remaining service period | ' | ' | '3 years | ' | ' | ' | ' | ' |
Weighted-average useful lives | ' | ' | ' | ' | '5 years 6 months | '5 years | '7 years | '10 years |
Goodwill deductible for income tax purpose | ' | ' | ' | ' | 0 | ' | ' | ' |
Revenue included in results of operations | ' | ' | ' | ' | 600,000 | ' | ' | ' |
Net loss included in results of operations | ' | ' | ' | ' | 1,600,000 | ' | ' | ' |
Additional goodwill out of consideration amount | ' | 5,600,000 | ' | ' | ' | ' | ' | ' |
Additional contingent consideration | $0 | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_Schedule_of_Fair_
Acquisitions - Schedule of Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 |
In Thousands, unless otherwise specified | SignNow, Inc. [Member] | Acquired developed technology [Member] | Customer relationships [Member] | Trade name [Member] | |||
SignNow, Inc. [Member] | SignNow, Inc. [Member] | SignNow, Inc. [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $56 | ' | ' | ' |
Accounts receivable | ' | ' | ' | 110 | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | 4,780 | 510 | 390 |
Goodwill | 36,014 | 33,778 | 28,430 | 1,825 | ' | ' | ' |
Accrued expenses | ' | ' | ' | -340 | ' | ' | ' |
Deferred tax liability | ' | ' | ' | -612 | ' | ' | ' |
Total value of assets acquired and liabilities assumed | ' | ' | ' | $6,719 | ' | ' | ' |
Acquisitions_Schedule_of_Pro_F
Acquisitions - Schedule of Pro Forma Revenue and Net Loss (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 |
Business Combinations [Abstract] | ' | ' |
Pro forma revenue | $233,912 | $199,006 |
Pro forma net loss attributable to Barracuda Networks, Inc. | ($4,303) | ($10,873) |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
Balance at beginning of fiscal period | $33,778 | $28,430 |
Contingent consideration earned | ' | 5,580 |
Goodwill acquired | 1,825 | ' |
Effect of foreign exchange rates | 411 | -232 |
Balance at end of fiscal period | $36,014 | $33,778 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Detail) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $36,666 | $30,715 |
Accumulated Amortization | 28,683 | 23,141 |
Net Carrying Value | 7,983 | 7,574 |
Acquired developed technology [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 26,315 | 21,403 |
Accumulated Amortization | 21,111 | 16,910 |
Net Carrying Value | 5,204 | 4,493 |
Software license [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 400 | 400 |
Accumulated Amortization | 400 | 400 |
Net Carrying Value | 0 | 0 |
Customer relationships [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 7,463 | 6,814 |
Accumulated Amortization | 5,794 | 4,708 |
Net Carrying Value | 1,669 | 2,106 |
Patents [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 1,625 | 1,625 |
Accumulated Amortization | 873 | 687 |
Net Carrying Value | 752 | 938 |
Trade name [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 663 | 273 |
Accumulated Amortization | 305 | 259 |
Net Carrying Value | 358 | 14 |
Acquired developed software [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 200 | 200 |
Accumulated Amortization | 200 | 177 |
Net Carrying Value | ' | $23 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Other intangible assets not subject to amortization | $437,000 | $409,000 | ' |
Amortization expense | 5,400,000 | 5,500,000 | 6,000,000 |
Amortization expense for fiscal 2015 | 3,000,000 | ' | ' |
Amortization expense for fiscal 2016 | 1,700,000 | ' | ' |
Amortization expense for fiscal 2017 | 1,500,000 | ' | ' |
Amortization expense for fiscal 2018 | 1,200,000 | ' | ' |
Amortization expense for fiscal 2019 | 300,000 | ' | ' |
Amortization expense thereafter | $300,000 | ' | ' |
Recapitalization_Transaction_A
Recapitalization Transaction - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||
Nov. 12, 2013 | Oct. 31, 2012 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Cash dividend declared | ' | $130,000,000 | ' | ' | ' |
Issuance of stock, net of offering costs, Shares | 4,761,000 | ' | ' | ' | ' |
Repurchase of common stock | ' | ' | 723,000 | 127,613,000 | 1,186,000 |
Series B Redeemable Convertible Preferred Stock [Member] | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Issuance of stock, net of offering costs, Shares | ' | 7,575,973 | ' | ' | ' |
Shares sold price per share | ' | $16.84 | ' | ' | ' |
Issuance of stock, net of offering costs | ' | 127,500,000 | ' | ' | ' |
Common Stock [Member] | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Repurchase of common stock, shares | ' | 7,575,973 | 44,254 | 7,581,638 | 85,635 |
Shares repurchased price per share | ' | $16.84 | ' | ' | ' |
Repurchase of common stock | ' | $127,500,000 | ' | $8,000 | ' |
Redeemable_Convertible_Preferr1
Redeemable Convertible Preferred Stock - Additional Information (Detail) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Nov. 12, 2013 | |
Class of Stock [Line Items] | ' | ' |
Number of redeemable convertible preferred stock converted to common stock | 17,626,227 | 17,626,227 |
Conversion ratio | 'One-to-one basis | ' |
Series A and Series B Redeemable Convertible Preferred Stock [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Conversion rate of convertible preferred stock to common stock | 3.98 | ' |
Series B Redeemable Convertible Preferred Stock [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Conversion rate of convertible preferred stock to common stock | 16.84 | ' |
Liquidation preference price per share | 5.97 | ' |
Redemption price per share | 16.84 | ' |
Series A Redeemable Convertible Preferred Stock [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Liquidation preference price per share | 21.04 | ' |
Redemption price per share | 3.98 | ' |
Stockholders_Deficit_Additiona
Stockholders' Deficit - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Nov. 30, 2013 | Oct. 15, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Common and preferred shares authorized | 1,020,000,000 | ' | ' | ' | ' |
Common stock, shares authorized | 1,000,000,000 | 53,333,334 | ' | ' | 1,000,000,000 |
Common stock, par value | $0.00 | $0.00 | ' | ' | $0.00 |
Preferred stock, shares authorized | 20,000,000 | 0 | ' | ' | 20,000,000 |
Preferred stock, par value | $0.00 | $0.00 | ' | ' | $0.00 |
Common stock voting rights | 'Voting Rights-Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders | ' | ' | ' | ' |
Options granted are exercisable for periods | '10 years | ' | ' | ' | ' |
Grant-date fair value of stock options vested | $6 | $3.70 | $1.50 | ' | ' |
Aggregate intrinsic value of stock option awards exercised | 6.5 | 10.3 | 0.6 | ' | ' |
Non-controlling interest, ownership percentage | ' | ' | ' | 67.00% | ' |
Stock Option [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to outstanding stock options | 14.6 | ' | ' | ' | ' |
Expected period for recognizing compensation expense | '2 years 8 months 9 days | ' | ' | ' | ' |
Restricted Stock Units [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Expected period for recognizing compensation expense | '2 years 7 months 24 days | ' | ' | ' | ' |
Unrecognized compensation cost related to unvested RSUs | $13.10 | ' | ' | ' | ' |
Stockholders_Deficit_Schedule_
Stockholders' Deficit - Schedule of Shares Authorized and Available for Grant (Detail) | 12 Months Ended |
Feb. 28, 2014 | |
Compensation Related Costs [Abstract] | ' |
Shares Available for Grant, Beginning balance | 1,103,101 |
Shares Available for Grant, Authorized, | 4,418,137 |
Shares Available for Grant, Granted | -908,940 |
Shares Available for Grant, Cancelled/forfeited, | 575,084 |
Shares Available for Grant, Ending balance | 5,187,382 |
Stockholders_Deficit_Summary_o
Stockholders' Deficit - Summary of Weighted-Average Input Assumptions Used to Estimate Fair Value of Employee Stock Option Grants (Detail) (USD $) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Compensation Related Costs [Abstract] | ' | ' | ' |
Expected volatility | 46.00% | 44.00% | ' |
Expected volatility, minimum | ' | ' | 41.00% |
Expected volatility, maximum | ' | ' | 46.00% |
Expected term (in years) | '6 years 3 months | '6 years 3 months | '6 years 3 months |
Risk-free interest rate | 1.67% | 0.97% | 1.84% |
Dividend yield | ' | ' | ' |
Estimated fair value of stock options granted during the year | $9.48 | $5.34 | $5.04 |
Stockholders_Deficit_Summary_o1
Stockholders' Deficit - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2014 |
Compensation Related Costs [Abstract] | ' |
Shares, Beginning balance | 4,868,974 |
Shares, Granted | 741,357 |
Shares, Assumed from acquisition | 59,726 |
Shares, Exercised | -420,969 |
Shares, Canceled/forfeited | -575,084 |
Shares, Ending balance | 4,674,004 |
Shares, Vested and exercisable | 2,270,378 |
Shares, Vested and expected to vest | 4,457,458 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $11.23 |
Weighted-Average Exercise Price, Granted | $17.90 |
Weighted-Average Exercise Price, Assumed from acquisition | $1.51 |
Weighted-Average Exercise Price, Exercised | $7.86 |
Weighted-Average Exercise Price, Canceled/Forfeited | $12.83 |
Weighted-Average Exercise price, Outstanding, Ending Balance | $12.27 |
Weighted-Average Exercise Price, Vested and exercisable | $10.42 |
Weighted-Average Exercise Price, Vested and expected to vest | $12.06 |
Weighted-Average Remaining Contractual Term, Vested and exercisable, Ending Balance | '6 years 4 months 28 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest, Ending Balance | '7 years 6 months |
Aggregate Intrinsic Value, Vested and Exercisable, Ending Balance | $57,972 |
Aggregate Intrinsic Value, Vested and expected to vest | $106,491 |
Stockholders_Deficit_Summary_o2
Stockholders' Deficit - Summary of Restricted Stock Units Activity (Detail) (Restricted Stock Units [Member], USD $) | 12 Months Ended |
Feb. 28, 2014 | |
Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unvested Restricted Stock Units, Beginning Balance | 1,256,668 |
Unvested Restricted Stock Units, Granted | 167,583 |
Unvested Restricted Stock Units, Vested | -348,234 |
Unvested Restricted Stock Units, Ending Balance | 1,076,017 |
Unvested Restricted Stock Units, Expected to vest | 1,001,455 |
Unvested Restricted Stock Units, Weighted Average Grant Date Fair Value, Beginning Balance | $12.64 |
Unvested Restricted Stock Units, Granted, Weighted Average Grant Date Fair Value | $21.87 |
Unvested Restricted Stock Units, Vested, Weighted Average Grant Date Fair Value | $12.64 |
Unvested Restricted Stock Units, Weighted Average Grant Date Fair Value, Ending Balance | $14.08 |
Unvested Restricted Stock Units, Expected to vest, Weighted Average Grant Date Fair Value | $14.08 |
Stockholders_Deficit_Schedule_1
Stockholders' Deficit - Schedule of Total Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $10,837 | $8,787 | $1,871 |
Cost of revenue [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 201 | 146 | 51 |
Research and development [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 2,374 | 2,059 | 766 |
Sales and marketing [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 2,067 | 1,182 | 527 |
General and administrative [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $6,195 | $5,400 | $527 |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income (Loss) Before Income Taxes and Non-Controlling Interest (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
United States | ($6,165) | ($9,206) | $5,226 |
Foreign | -4,787 | -4,063 | -5,933 |
Loss before income taxes and non-controlling interest | ($10,952) | ($13,269) | ($707) |
Income_Taxes_Schedule_of_Provi
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Current: | ' | ' | ' |
Federal | $4,760 | $6,824 | $9,860 |
State | 574 | 940 | 537 |
Foreign | 734 | 526 | 517 |
Total | 6,068 | 8,290 | 10,914 |
Deferred: | ' | ' | ' |
Federal | -10,231 | -11,507 | -9,501 |
State | -1,109 | -617 | -770 |
Foreign | -1,293 | -1,250 | -1,096 |
Total | -12,633 | -13,374 | -11,367 |
Total benefit for income taxes | ($6,565) | ($5,084) | ($453) |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets (Liabilities) (Detail) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Deferred revenue | $53,619 | $41,577 |
Reserves and other | 6,227 | 6,159 |
Research and development credits | 2,419 | 2,003 |
Net operating losses | 6,675 | 6,389 |
Total deferred tax assets | 68,940 | 56,128 |
Valuation allowance | -6,685 | -7,008 |
Total deferred tax assets, net of valuation allowance | 62,255 | 49,120 |
Depreciation and amortization | -2,899 | -1,675 |
Prepaid expense and other | -569 | -347 |
Other deferred tax liabilities | -460 | -667 |
Total deferred tax liabilities | -3,928 | -2,689 |
Net deferred tax assets | $58,327 | $46,431 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory Federal Income Tax to Reported Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Tax at federal statutory rate | ($3,833) | ($4,644) | ($247) |
State taxes, net of federal benefit | -713 | -11 | -423 |
Non-deductible expenses | 736 | 289 | 146 |
Stock-based compensation | 1,227 | 910 | 461 |
Legal entity rationalization | -3,541 | ' | ' |
Change in valuation allowance | 346 | ' | ' |
Foreign rate differential | 790 | 535 | 1,373 |
Research and development credits | -933 | -1,331 | -726 |
Domestic production activities deduction | -445 | -760 | -1,023 |
Other | -199 | -72 | -14 |
Total benefit for income taxes | ($6,565) | ($5,084) | ($453) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2011 | |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Valuation allowance | $6,685,000 | $7,008,000 | ' | ' |
Change in valuation allowance | 346,000 | ' | ' | ' |
Federal net operating loss carryforwards | 3,300,000 | ' | ' | ' |
Federal operating losses expiration, beginning period | '2019 | ' | ' | ' |
Federal operating losses expiration, ending period | '2029 | ' | ' | ' |
State net operating loss carryforwards | 9,000,000 | ' | ' | ' |
State operating losses expiration, beginning period | '2015 | ' | ' | ' |
State operating losses expiration, ending period | '2029 | ' | ' | ' |
Foreign net operating loss carryforwards | 20,400,000 | ' | ' | ' |
Operating losses can be carried forward indefinitely | 19,600,000 | ' | ' | ' |
Remaining foreign net operating losses expiration period | '2016 | ' | ' | ' |
Research and development credit carryforwards | 2,419,000 | 2,003,000 | ' | ' |
Federal research and development credit expiration beginning period | '2028 | ' | ' | ' |
Other state research and development credit expiration beginning period | '2021 | ' | ' | ' |
Undistributed earnings of its foreign subsidiaries | 5,000,000 | ' | ' | ' |
Total unrecognized tax benefits | 4,980,000 | 3,971,000 | 4,150,000 | 3,026,000 |
Unrecognized tax benefits that, if recognized, would affect our effective tax rate | 4,000,000 | 3,100,000 | 2,500,000 | ' |
Accrued interest and penalties recorded on the consolidated balance sheets | 675,000 | 446,000 | ' | ' |
Increase of interest and penalties recorded in the consolidated statements of operations | 229,000 | 92,000 | 8,000 | ' |
Federal [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Research and development credit carryforwards | 300,000 | ' | ' | ' |
California [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Research and development credit carryforwards | 3,200,000 | ' | ' | ' |
Other state [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Research and development credit carryforwards | $100,000 | ' | ' | ' |
Income_Taxes_Summary_of_Gross_
Income Taxes - Summary of Gross Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance at beginning of year | $3,971 | $4,150 | $3,026 |
Tax positions related to the current year, Increases | 1,208 | 1,122 | 978 |
Tax positions related to prior years, Increases | ' | 76 | 1,009 |
Tax positions related to prior years, Decreases | -1 | -1,341 | -528 |
Releases-statute of limitations expired | -198 | -36 | -335 |
Balance at the end of the year | $4,980 | $3,971 | $4,150 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of reporting segment | 1 | ' | ' |
Sales [Member] | Maximum [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of revenue | 10.00% | 10.00% | 10.00% |
Segment_Information_Schedule_o
Segment Information - Schedule of Revenue by Geographic Region (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | $233,787 | $198,931 | $160,920 |
North America [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 169,896 | 147,231 | 113,934 |
United States [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 159,036 | 138,879 | 106,760 |
Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 10,860 | 8,352 | 7,174 |
Latin America [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 3,380 | 3,290 | 3,183 |
Asia-Pacific [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 16,245 | 14,497 | 12,475 |
EMEA [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | $44,266 | $33,913 | $31,328 |
Segment_Information_Schedule_o1
Segment Information - Schedule of Long Lived Asset (Detail) (USD $) | Feb. 28, 2014 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long Lived Assets | $46,981 | $37,960 |
United States [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long Lived Assets | 42,836 | 34,873 |
International [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long Lived Assets | $4,145 | $3,087 |
Borrowings_Additional_Informat
Borrowings - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2011 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2014 | Feb. 28, 2014 | Oct. 31, 2012 | Feb. 28, 2014 | |
Prime Rate [Member] | Eurodollar [Member] | Revolving loan facility [Member] | Letter of credit [Member] | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumed a note payable | ' | $5,300,000 | ' | ' | ' | ' | ' | ' | ' |
Note payable, interest rate | ' | 6.23% | ' | ' | ' | ' | ' | ' | ' |
Debt repayable principal and interest | ' | 44,445 | ' | ' | ' | ' | ' | ' | ' |
Note payable payment terms | ' | 'The debt is repayable in equal monthly payments of principal and interest of $44,445, with a final payment of unpaid principal and interest in July 2017. Penalty interest of 0.0625% is due on default of payments, and prepayment of amounts owed are subject to a prepayment fee calculated as the greater of a) 1% of the principal being repaid and b) the present value of the future principal and interest payments less the principal repaid. | ' | ' | ' | ' | ' | ' | ' |
Penalty interest rate | ' | 0.06% | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | 310,000 | 357,000 | 28,000 | ' | ' | ' | ' |
Credit facility maximum borrowing capacity | 25,000,000 | ' | ' | ' | ' | ' | ' | 40,000,000 | 10,000,000 |
Unused line fee reduce | 0.20% | ' | ' | ' | ' | ' | ' | ' | ' |
Description of adjusted quick ratio | ' | ' | 'Excess of 0.5 | ' | ' | ' | ' | ' | ' |
Adjusted quick ratio | ' | ' | 1.10% | ' | ' | ' | ' | ' | ' |
Minimum adjusted EBITDA for trailing for four quarters | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' |
Line of credit facility expiration period | ' | ' | 'October 2014 | ' | ' | ' | ' | ' | ' |
Debt instrument interest rate variable | ' | ' | ' | ' | ' | 1.00% | 1.50% | ' | ' |
Interest rate federal funds effective rate plus | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' |
Amount drawn under credit facility | ' | ' | $0 | ' | ' | ' | ' | ' | ' |
Borrowings_Schedule_of_Minimum
Borrowings - Schedule of Minimum Principal Payments of Note Payable (Detail) (USD $) | Feb. 28, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2015 | $237 |
2016 | 252 |
2017 | 268 |
2018 | 4,115 |
2019 | ' |
Total | $4,872 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Commitment And Contingencies [Line Items] | ' | ' | ' |
Operating lease arrangements expiration period | '2019 | ' | ' |
Rent expense | $2.90 | $2 | $2.60 |
Purchase Commitments [Member] | ' | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' | ' |
Non-cancelable purchase commitments | 0.3 | ' | ' |
Inventory [Member] | Purchase Commitments [Member] | ' | ' | ' |
Commitment And Contingencies [Line Items] | ' | ' | ' |
Non-cancelable purchase commitments | $3 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Minimum Payments under Operating Leases Agreements (Detail) (USD $) | Feb. 28, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2015 | $2,072 |
2016 | 1,741 |
2017 | 1,707 |
2018 | 1,295 |
2019 | 415 |
Total | $7,230 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended |
Feb. 28, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' |
Contribution of employee's eligible earnings under 401(k) Plan | $836,000 |
Employer Match 1.25% [Member] | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' |
Maximum contribution percentage of employee's eligible earnings | 1.25% |
Maximum contribution of employee's eligible earnings | 1,000 |
Performance Objective 2.5% [Member] | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ' |
Maximum contribution percentage of employee's eligible earnings | 2.50% |
Maximum contribution of employee's eligible earnings | $2,000 |
Net_Income_Loss_Per_Share_Calc
Net Income (Loss) Per Share - Calculation of Basic and Diluted Net Loss Per Share of Common Stock (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Basic: | ' | ' | ' |
Net income (loss) attributable to common stockholders | ($3,626) | ($7,391) | $605 |
Accretion to redemption value of redeemable convertible preferred stock | ' | -1,812 | ' |
Undistributed earnings allocated to redeemable convertible preferred stockholders | ' | ' | -139 |
Net income (loss) attributable to common stockholders | -3,626 | -9,203 | 466 |
Shares used to compute net income (loss) per share attributable to common stockholders: | ' | ' | ' |
Weighted average common shares outstanding | 35,355 | 32,037 | 33,865 |
Less: Weighted average shares subject to repurchase or forfeiture | ' | -6 | -36 |
Weighted average shares used to compute net income (loss) per share, basic | 35,355 | 32,031 | 33,829 |
Diluted: | ' | ' | ' |
Net income (loss) attributable to Barracuda Networks, Inc. | -3,626 | -7,391 | 605 |
Accretion to redemption value of redeemable convertible preferred stock | ' | -1,812 | ' |
Net income (loss) attributable to common stockholders | ($3,626) | ($9,203) | $605 |
Basic | 35,355 | 32,031 | 33,829 |
Add weighted average effect of dilutive securities: | ' | ' | ' |
Stock options and restricted stock units | ' | ' | 1,440 |
Common stock subject to repurchase or forfeiture | ' | ' | 36 |
Redeemable convertible preferred stock, shares issued | ' | ' | 10,050 |
Diluted | 35,355 | 32,031 | 45,355 |
Net income (loss) per share attributable to common stockholders: | ' | ' | ' |
Basic | ($0.10) | ($0.29) | $0.01 |
Diluted | ($0.10) | ($0.29) | $0.01 |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Beginning balance | $1,252 | $1,339 | $924 |
Charged to costs and expenses | 885 | -77 | 424 |
Bad debt write-offs | -3 | -10 | -9 |
Ending balance | 2,134 | 1,252 | 1,339 |
Sales Return Reserve [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Beginning balance | 2,371 | 1,977 | 1,724 |
Charged to deferred revenue | 16,901 | 13,072 | 11,347 |
Sales returns | -17,410 | -12,678 | -11,094 |
Ending balance | $1,862 | $2,371 | $1,977 |