Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Feb. 28, 2015 | Mar. 31, 2015 | Aug. 29, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 28-Feb-15 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CUDA | ||
Entity Registrant Name | BARRACUDA NETWORKS INC | ||
Entity Central Index Key | 1348334 | ||
Current Fiscal Year End Date | -26 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 52,915,183 | ||
Entity Public Float | $238.30 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $151,373 | $135,879 |
Marketable securities | 40,754 | |
Accounts receivable, net of allowance for doubtful accounts of $1,531 and $2,134 as of February 28, 2015 and 2014, respectively | 40,725 | 27,836 |
Inventories, net | 4,454 | 5,648 |
Prepaid income taxes | 8,245 | 1,147 |
Deferred costs | 30,221 | 25,707 |
Deferred income taxes | 479 | 30,156 |
Other current assets | 4,015 | 3,753 |
Total current assets | 280,266 | 230,126 |
Property and equipment, net | 27,839 | 20,558 |
Deferred costs, non-current | 27,715 | 24,572 |
Deferred income taxes, non-current | 443 | 28,515 |
Other non-current assets | 4,123 | 1,851 |
Intangible assets, net | 9,217 | 8,420 |
Goodwill | 39,742 | 36,014 |
Total assets | 389,345 | 350,056 |
Current liabilities: | ||
Accounts payable | 16,356 | 13,743 |
Accrued payroll and related benefits | 11,656 | 8,494 |
Other accrued liabilities | 12,465 | 9,374 |
Deferred revenue | 209,904 | 167,562 |
Deferred income taxes | 563 | 260 |
Note payable | 252 | 237 |
Total current liabilities | 251,196 | 199,670 |
Long-term liabilities: | ||
Deferred revenue, non-current | 163,253 | 145,595 |
Deferred income taxes, non-current | 2,396 | 84 |
Note payable, non-current | 4,383 | 4,635 |
Other long-term liabilities | 7,201 | 5,727 |
Commitments and contingencies (Note 11) | ||
Stockholders' deficit: | ||
Preferred stock, $0.001 par value; 20,000,000 shares authorized; zero shares issued and outstanding as of February 28, 2015 and 2014 | ||
Common stock, $0.001 par value; 1,000,000,000 shares authorized; 52,881,002 and 51,045,196 shares issued and outstanding as of February 28, 2015 and 2014, respectively | 53 | 52 |
Additional paid-in capital | 316,035 | 278,551 |
Accumulated other comprehensive loss | -4,233 | -817 |
Accumulated deficit | -350,939 | -283,441 |
Total stockholders' deficit | -39,084 | -5,655 |
Total liabilities and stockholders' deficit | $389,345 | $350,056 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $1,531 | $2,134 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
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 | 1,000,000,000 |
Common stock, shares issued | 52,881,002 | 51,045,196 |
Common stock, shares outstanding | 52,881,002 | 51,045,196 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Revenue: | |||
Appliance | $83,146 | $71,914 | $59,528 |
Subscription | 194,300 | 161,873 | 139,403 |
Total revenue: | 277,446 | 233,787 | 198,931 |
Cost of revenue | 58,667 | 53,768 | 45,088 |
Gross profit | 218,779 | 180,019 | 153,843 |
Operating expenses: | |||
Research and development | 58,737 | 47,142 | 35,167 |
Sales and marketing | 125,526 | 114,024 | 102,329 |
General and administrative | 35,438 | 29,856 | 28,777 |
Total operating expenses | 219,701 | 191,022 | 166,273 |
Loss from operations | -922 | -11,003 | -12,430 |
Other income (expense), net | -3,674 | 51 | -839 |
Loss before income taxes and non-controlling interest | -4,596 | -10,952 | -13,269 |
Benefit from (provision for) income taxes | -62,902 | 6,565 | 5,084 |
Consolidated net loss | -67,498 | -4,387 | -8,185 |
Net loss attributable to non-controlling interest | 761 | 794 | |
Net loss attributable to Barracuda Networks, Inc. | -67,498 | -3,626 | -7,391 |
Net loss attributable to common stockholders (Note 13) | ($67,498) | ($3,626) | ($9,203) |
Net loss per share attributable to common stockholders: | |||
Basic and diluted | ($1.30) | ($0.10) | ($0.29) |
Weighted-average shares used to compute net loss per share attributable to common stockholders: | |||
Basic and diluted | 51,898 | 35,355 | 32,031 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Net loss attributable to Barracuda Networks, Inc. | ($67,498) | ($3,626) | ($7,391) |
Other comprehensive income (loss), net of tax: | |||
Change in net foreign currency translation adjustment | -3,408 | 352 | -511 |
Available-for-sale investments: | |||
Change in net unrealized losses (net of tax effect of $5, $13 and $40) | -8 | -19 | -66 |
Less: reclassification adjustment for net gains included in net loss (net of tax effect of $0, $23 and $8) | -38 | -14 | |
Net change | -8 | -57 | -80 |
Other comprehensive income (loss) | -3,416 | 295 | -591 |
Comprehensive loss attributable to Barracuda Networks, Inc. | ($70,914) | ($3,331) | ($7,982) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Change in net unrealized losses, tax | $5 | $13 | $40 |
Reclassification adjustment for net gains included in net loss, tax | $0 | $23 | $8 |
Consolidated_Statements_of_Red
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Total Stockholders' Deficit Controlling Interest [Member] | Total Stockholders' Deficit Non-controlling Interest [Member] | Initial Public Offering [Member] | Initial Public Offering [Member] | Initial Public Offering [Member] | Initial Public Offering [Member] | Series A Redeemable Convertible Preferred Stock [Member] | Series B Redeemable Convertible Preferred Stock [Member] |
In Thousands, except Share data | Common Stock [Member] | Additional Paid-In Capital [Member] | Total Stockholders' Deficit Controlling Interest [Member] | ||||||||||
Redeemable convertible preferred stock, Beginning balance at Feb. 29, 2012 | $40,010 | $0 | |||||||||||
Beginning balance at Feb. 29, 2012 | -7,583 | 34 | 13,445 | -521 | -19,219 | -6,261 | -1,322 | ||||||
Redeemable convertible preferred stock, Beginning balance, Shares at Feb. 29, 2012 | 10,050,254 | 0 | |||||||||||
Beginning balance, Shares at Feb. 29, 2012 | 33,809,402 | ||||||||||||
Issuance of common stock | 9,366 | 2 | 9,364 | 9,366 | |||||||||
Issuance of common stock, Shares | 1,912,021 | ||||||||||||
Tax withholding related to net share settlement of equity awards | -615 | -615 | -615 | ||||||||||
Tax withholding related to net share settlement of equity awards, Shares | -48,704 | ||||||||||||
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 | 8,787 | 8,787 | 8,787 | ||||||||||
Excess tax benefits from equity compensation plans | 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 (loss) on available-for-sale securities, net of tax effect | -80 | -80 | -80 | ||||||||||
Foreign currency translation adjustment | -511 | -511 | -511 | ||||||||||
Net loss | -8,185 | -7,391 | -7,391 | -794 | |||||||||
Redeemable convertible preferred stock, Ending balance at Feb. 28, 2013 | 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 | 10,050,254 | 7,575,973 | |||||||||||
Ending balance, Shares at Feb. 28, 2013 | 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 | 18 | 167,536 | 167,554 | -40,010 | -127,544 | |||||||
Conversion of convertible preferred stock to common stock in connection with initial public offering, Shares | 17,626,227 | -10,050,254 | -7,575,973 | ||||||||||
Issuance of common stock | 3,310 | 1 | 3,309 | 3,310 | |||||||||
Issuance of common stock, Shares | 769,191 | ||||||||||||
Tax withholding related to net share settlement of equity awards | -3,101 | -3,101 | -3,101 | ||||||||||
Tax withholding related to net share settlement of equity awards, Shares | -158,049 | ||||||||||||
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 | 10,837 | 10,837 | 10,837 | ||||||||||
Excess tax benefits from equity compensation plans | 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 (loss) on available-for-sale securities, net of tax effect | -57 | -57 | -57 | ||||||||||
Foreign currency translation adjustment | 352 | 352 | 352 | ||||||||||
Net loss | -4,387 | -3,626 | -3,626 | -761 | |||||||||
Ending balance at Feb. 28, 2014 | -5,655 | 52 | 278,551 | -817 | -283,441 | -5,655 | |||||||
Ending balance, Shares at Feb. 28, 2014 | 51,045,196 | 51,045,196 | |||||||||||
Issuance of common stock | 16,476 | 1 | 16,475 | 16,476 | |||||||||
Issuance of common stock, Shares | 1,604,307 | 2,012,749 | |||||||||||
Tax withholding related to net share settlement of equity awards | -5,369 | -5,369 | -5,369 | ||||||||||
Tax withholding related to net share settlement of equity awards, Shares | -176,943 | ||||||||||||
(Purchase) Repayment of Employee loans for purchase of stock | 373 | 373 | 373 | ||||||||||
Stock-based compensation | 17,058 | 17,058 | 17,058 | ||||||||||
Excess tax benefits from equity compensation plans | 8,947 | 8,947 | 8,947 | ||||||||||
Change in unrealized gain (loss) on available-for-sale securities, net of tax effect | -8 | -8 | -8 | ||||||||||
Foreign currency translation adjustment | -3,408 | -3,408 | -3,408 | ||||||||||
Net loss | -67,498 | -67,498 | -67,498 | ||||||||||
Ending balance at Feb. 28, 2015 | ($39,084) | $53 | $316,035 | ($4,233) | ($350,939) | ($39,084) | |||||||
Ending balance, Shares at Feb. 28, 2015 | 52,881,002 | 52,881,002 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Operating activities | |||
Consolidated net loss | ($67,498) | ($4,387) | ($8,185) |
Adjustments to reconcile consolidated net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 8,631 | 9,109 | 8,333 |
Stock-based compensation | 17,058 | 10,837 | 8,787 |
Excess tax benefits from equity compensation plans | -8,947 | -1,513 | -1,687 |
Loss on disposal of property and equipment | 158 | 304 | 60 |
Deferred income taxes | 59,261 | -12,633 | -13,374 |
Other | 328 | -61 | 25 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | -12,945 | -3,631 | -1,582 |
Inventories, net | 1,189 | -509 | 278 |
Income taxes, net | -485 | 2,696 | 4,403 |
Deferred costs | -8,189 | -10,809 | -10,214 |
Other current assets | -887 | -456 | -60 |
Other non-current assets | -1,271 | 108 | -61 |
Accounts payable | 2,835 | 1,183 | 3,206 |
Accrued payroll and related benefits | 1,959 | -212 | 2,791 |
Other accrued liabilities | 3,478 | -18 | 2,349 |
Other long-term liabilities | 88 | 405 | 114 |
Deferred revenue | 59,341 | 51,797 | 44,192 |
Net cash provided by operating activities | 54,104 | 42,210 | 39,375 |
Investing activities | |||
Purchase of marketable securities | -41,977 | ||
Proceeds from the sale of marketable securities | 249 | 1,516 | 575 |
Proceeds from maturity of marketable securities | 735 | ||
Purchase of investment in non-marketable equity and debt securities | -1,200 | -310 | |
Purchase of property and equipment | -12,517 | -7,616 | -4,722 |
Purchase of intangible assets | -38 | -28 | 0 |
Business combinations, net of cash acquired | -4,791 | -8,475 | -4,357 |
Net cash used in investing activities | -59,539 | -14,913 | -8,504 |
Financing activities | |||
Net proceeds from initial public offering | 75,490 | ||
Proceeds from issuance of common stock | 16,476 | 3,310 | 5,679 |
Taxes paid related to net share settlement of equity awards | -5,369 | -3,101 | -615 |
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 | |
Excess tax benefits from equity compensation plans | 8,947 | 1,513 | 1,687 |
Repayment of employee loans, net of loans extended | 1,921 | 3,655 | -2,861 |
Repayment of note payable | -237 | -222 | -222 |
Purchase of non-controlling interest | -200 | ||
Other | -34 | ||
Net cash provided by (used in) financing activities | 21,704 | 78,503 | -127,111 |
Effect of exchange rate changes on cash and cash equivalents | -775 | -16 | -172 |
Net increase (decrease) in cash and cash equivalents | 15,494 | 105,784 | -96,412 |
Cash and cash equivalents at beginning of period | 135,879 | 30,095 | 126,507 |
Cash and cash equivalents at end of period | 151,373 | 135,879 | 30,095 |
Cash paid during the period for: | |||
Interest | 326 | 447 | 485 |
Income taxes, net of tax refunds | 3,191 | 2,565 | 3,408 |
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 | ||
Accretion of issuance costs | $1,812 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended | ||
Feb. 28, 2015 | |||
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,” “us,” “Barracuda” or “the Company,” is headquartered in Campbell, California, and 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 investments. We refer to the fiscal years ended February 28, 2015, February 28, 2014 and February 28, 2013 as fiscal 2015, fiscal 2014 and fiscal 2013, respectively. | |||
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 have been 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 liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We evaluate our estimates on an ongoing basis, including those related to the fair values of stock-based awards, income taxes and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. 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 prior period amounts between line items to conform to our current fiscal 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. | |||
We periodically review our marketable securities for other-than-temporary impairment. We consider factors such as the duration, severity and the reason for the decline in value, the potential recovery period and whether we intend to sell. For marketable debt securities, we also consider whether (i) it is more likely than not that we will be required to sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses. | |||
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 the United States and certain foreign countries and regions, including Europe, the Middle East, Latin America and Asia-Pacific. Sales to foreign customers accounted for 32%, 32% and 30% of total revenue in fiscal 2015, 2014 and 2013, 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 13% and 10% of receivables as of February 28, 2015 and 2014, respectively. | |||
One distribution partner accounted for 20%, 18% and 13% of total revenue in fiscal 2015, 2014 and 2013, respectively. | |||
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 | 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 2015, 2014 and 2013. | |||
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, 2015, 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 2015, 2014 and 2013 were $4.6 million, $5.2 million and $4.9 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 $58.7 million, $56.7 million and $52.9 million for fiscal 2015, 2014 and 2013, 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 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. | |||
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 (losses) gains resulting from foreign exchange transactions of $(3.6) million, $0.1 million and $(0.7) million for fiscal 2015, 2014 and 2013, respectively, in other income (expense), net in the consolidated statement of operations. | |||
We have foreign subsidiaries that operate and sell our products in various markets around the world. As a result, we are exposed to foreign exchange risks. We utilize foreign exchange forward contracts to manage foreign currency risk associated with foreign currency denominated monetary assets and liabilities, primarily trade receivables, and to reduce the volatility of earnings and cash flows related to foreign currency transactions. The fair value of our contracts as of February 28, 2015 is not significant. The change in the fair value of these foreign currency forward contracts is recorded as gain (loss) in other income (expense), net in the consolidated statement of operations. | |||
Accumulated Other Comprehensive 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 April 2015, the Financial Accounting Standards Board (the “FASB”) issued an accounting standard providing guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. The standard update is effective for fiscal years beginning after December 15, 2015 and interim periods within those years and early adoption is permitted. The standard allows for adoption retrospectively or prospectively to all arrangements entered into or materially modified after the effective date. We are currently evaluating the impact of adopting this update on our consolidated financial statements. | |||
In February 2015, the FASB issued an accounting standard to improve consolidation guidance for legal entities and affect the consolidation evaluation for reporting organizations. The standard update is effective for fiscal years beginning after December 15, 2015 and interim periods within those years and early adoption is permitted. The standard allows for adoption retrospectively or with a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. We are currently evaluating the impact of adopting this update on our consolidated financial statements. | |||
In May 2014, the FASB issued an accounting standard which completes the joint effort by the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. The core principle of this update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As currently issued, we intend to adopt this update in the first quarter of fiscal year 2018 at which point it will begin to affect us. The standard allows for full retrospective adoption applied to all periods presented or retrospective adoption with the cumulative effect of initially applying this update recognized at the date of initial application. We are currently evaluating the impact of adopting this update on our consolidated financial statements. |
Balance_Sheet_Information
Balance Sheet Information | 12 Months Ended | ||||||||||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||||||||||
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 and cash equivalents by category (in thousands): | |||||||||||||||||||||||||
February 28, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||
Cash | $ | 97,187 | $ | 41,331 | |||||||||||||||||||||
Money market funds | 54,186 | 94,548 | |||||||||||||||||||||||
$ | 151,373 | $ | 135,879 | ||||||||||||||||||||||
The following table summarizes our marketable securities by category (in thousands): | |||||||||||||||||||||||||
As of February 28, 2015 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Asset-backed securities | $ | 4,846 | $ | 3 | $ | (4 | ) | $ | 4,845 | ||||||||||||||||
Corporate debt securities | 21,241 | 17 | (13 | ) | 21,245 | ||||||||||||||||||||
Equity securities | 1,211 | 37 | (32 | ) | 1,216 | ||||||||||||||||||||
Foreign government bonds | 201 | — | — | 201 | |||||||||||||||||||||
Mortgage-backed securities | 2,716 | 4 | (10 | ) | 2,710 | ||||||||||||||||||||
U.S. government agency securities | 7,310 | 8 | (24 | ) | 7,294 | ||||||||||||||||||||
U.S. government notes | 3,242 | 1 | — | 3,243 | |||||||||||||||||||||
$ | 40,767 | $ | 70 | $ | (83 | ) | $ | 40,754 | |||||||||||||||||
We had no marketable securities as of February 28, 2014. | |||||||||||||||||||||||||
The following table presents gross unrealized losses and fair values for those marketable securities that were in an unrealized loss position as of February 28, 2015 aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
Value | Losses | Losses | Losses | ||||||||||||||||||||||
Asset-backed securities | $ | 2,385 | $ | (4 | ) | $ | — | $ | — | $ | 2,385 | $ | (4 | ) | |||||||||||
Corporate debt securities | 11,346 | (13 | ) | — | — | 11,346 | (13 | ) | |||||||||||||||||
Equity securities | 978 | (32 | ) | — | — | 978 | (32 | ) | |||||||||||||||||
Mortgage-backed securities | 1,923 | (10 | ) | — | — | 1,923 | (10 | ) | |||||||||||||||||
U.S. government agency securities | 4,331 | (24 | ) | — | — | 4,331 | (24 | ) | |||||||||||||||||
$ | 20,963 | $ | (83 | ) | $ | — | $ | — | $ | 20,963 | $ | (83 | ) | ||||||||||||
Unrealized losses related to these investments are due to interest rate fluctuations as opposed to changes in credit quality. We do not intend to sell and it is not more likely than not that we would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. As of February 28, 2015, we have recognized no other-than-temporary impairment loss. | |||||||||||||||||||||||||
The following table classifies our marketable debt securities by contractual maturities (in thousands): | |||||||||||||||||||||||||
As of | |||||||||||||||||||||||||
February 28, | |||||||||||||||||||||||||
2015 | |||||||||||||||||||||||||
Due in 1 year | $ | 8,694 | |||||||||||||||||||||||
Due in 1 year through 5 years | 24,850 | ||||||||||||||||||||||||
Due in 5 years through 10 years | 1,607 | ||||||||||||||||||||||||
Due after 10 years | 4,387 | ||||||||||||||||||||||||
$ | 39,538 | ||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
We determine fair value 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 equity securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Marketable debt securities and derivative assets are classified within Level 2 if the investments are valued using model driven valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Our marketable securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models. | |||||||||||||||||||||||||
We estimated the fair value of our Level 3 contingent consideration liability based on a weighted probability assessment of achieving the milestones associated with the contingent consideration related to our acquisition of C2C Systems Limited (“C2C”). Significant increases (decreases) in the probability assumptions in isolation would result in a significantly higher (lower) fair value measurement. In developing these estimates, we considered unobservable inputs that are supported by little or no market activity and reflect our own assumptions. Refer to Note 3 to Consolidated Financial Statements for further information. | |||||||||||||||||||||||||
Financial assets measured at fair value on a recurring basis are summarized below (in thousands): | |||||||||||||||||||||||||
February 28, 2015 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||
Money market funds | $ | 54,186 | $ | — | $ | — | $ | 54,186 | |||||||||||||||||
Marketable securities: | |||||||||||||||||||||||||
Asset-backed securities | $ | — | $ | 4,845 | $ | — | $ | 4,845 | |||||||||||||||||
Corporate debt securities | $ | — | $ | 21,245 | $ | — | $ | 21,245 | |||||||||||||||||
Equity securities | $ | 1,216 | $ | — | $ | — | $ | 1,216 | |||||||||||||||||
Foreign government bonds | $ | — | $ | 201 | $ | — | $ | 201 | |||||||||||||||||
Mortgage-backed securities | $ | — | $ | 2,710 | $ | — | $ | 2,710 | |||||||||||||||||
U.S. government agency securities | $ | — | $ | 7,294 | $ | — | $ | 7,294 | |||||||||||||||||
U.S. government notes | $ | — | $ | 3,243 | $ | — | $ | 3,243 | |||||||||||||||||
Derivative assets not designated (current): | |||||||||||||||||||||||||
Foreign exchange contracts | $ | — | $ | 31 | $ | — | $ | 31 | |||||||||||||||||
Other accrued liabilities (current): | |||||||||||||||||||||||||
Contingent consideration liability | $ | — | $ | — | $ | 1,150 | $ | 1,150 | |||||||||||||||||
Other long-term liabilities: | |||||||||||||||||||||||||
Contingent consideration liability | $ | — | $ | — | $ | 1,878 | $ | 1,878 | |||||||||||||||||
28-Feb-14 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||
Money market funds | $ | 94,548 | $ | — | $ | — | $ | 94,548 | |||||||||||||||||
The change in fair value of our Level 3 contingent consideration liability is summarized as follows (in thousands): | |||||||||||||||||||||||||
Fiscal 2015 | |||||||||||||||||||||||||
Balance at beginning of fiscal year | $ | — | |||||||||||||||||||||||
At acquisition date | 2,924 | ||||||||||||||||||||||||
Total losses recognized in earnings | 104 | ||||||||||||||||||||||||
Balance at end of fiscal year | $ | 3,028 | |||||||||||||||||||||||
Inventories, Net | |||||||||||||||||||||||||
Inventories, net consisted of the following (in thousands): | |||||||||||||||||||||||||
February 28, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Raw materials | $ | 2,455 | $ | 3,038 | |||||||||||||||||||||
Finished goods | 2,729 | 3,759 | |||||||||||||||||||||||
Reserves | (730 | ) | (1,149 | ) | |||||||||||||||||||||
$ | 4,454 | $ | 5,648 | ||||||||||||||||||||||
Deferred Costs | |||||||||||||||||||||||||
Deferred costs consisted of the following (in thousands): | |||||||||||||||||||||||||
February 28, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Appliance | $ | 41,052 | $ | 35,000 | |||||||||||||||||||||
Commissions | 16,884 | 15,279 | |||||||||||||||||||||||
$ | 57,936 | $ | 50,279 | ||||||||||||||||||||||
Property and Equipment, Net | |||||||||||||||||||||||||
Property and equipment, net consisted of the following (in thousands): | |||||||||||||||||||||||||
February 28, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Land | $ | 9,354 | $ | 5,100 | |||||||||||||||||||||
Building | 6,549 | 6,549 | |||||||||||||||||||||||
Computer hardware and software | 17,860 | 11,711 | |||||||||||||||||||||||
Vehicles, machinery and equipment | 3,546 | 2,462 | |||||||||||||||||||||||
Leasehold improvements | 2,965 | 2,560 | |||||||||||||||||||||||
40,274 | 28,382 | ||||||||||||||||||||||||
Accumulated depreciation and amortization | (12,435 | ) | (7,824 | ) | |||||||||||||||||||||
$ | 27,839 | $ | 20,558 | ||||||||||||||||||||||
Depreciation and amortization expense related to property and equipment was $5.2 million, $3.8 million and $2.8 million for fiscal 2015, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Investment in Non-marketable Equity Security | |||||||||||||||||||||||||
In October 2011, we acquired stock in a privately held company for $750,000, which represented an ownership interest of 24%. In October 2014, we acquired additional shares of stock in the privately held company for $500,000 to maintain our 24% ownership interest. 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 2015, 2014 and 2013, our proportionate share of the investee’s earnings and losses was not material. The investment is classified in other non-current assets in our consolidated balance sheets. | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss | |||||||||||||||||||||||||
The components of accumulated other comprehensive loss, net of tax, were as follows (in thousands): | |||||||||||||||||||||||||
Foreign | Unrealized | Total | |||||||||||||||||||||||
Currency | Losses on | ||||||||||||||||||||||||
Translation | Available-for- | ||||||||||||||||||||||||
Adjustments | Sale Investments | ||||||||||||||||||||||||
Balance as of February 28, 2014 | $ | (817 | ) | $ | — | $ | (817 | ) | |||||||||||||||||
Other comprehensive loss before reclassifications | (3,408 | ) | (8 | ) | (3,416 | ) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | — | ||||||||||||||||||||||
Other comprehensive loss | (3,408 | ) | (8 | ) | (3,416 | ) | |||||||||||||||||||
Balance as of February 28, 2015 | $ | (4,225 | ) | $ | (8 | ) | $ | (4,233 | ) | ||||||||||||||||
Acquisitions
Acquisitions | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Acquisitions | 3. Acquisitions | ||||||||
C2C Systems Limited | |||||||||
In August 2014, we completed our acquisition of C2C, a provider of personal storage table file management, email archiving and information management solutions based in the United Kingdom. The acquisition of C2C will better position us to offer customers a more complete archiving and information management product portfolio to simplify IT and control storage costs. We acquired all of the issued and outstanding stock of C2C for aggregate consideration of $9.6 million. In connection with the acquisition, contingent consideration is payable up to $4.9 million upon the attainment of certain billings levels and performance integration targets through August 2017. At the acquisition date, we estimated fair value for contingent consideration to be $2.9 million. Changes in the fair value of the contingent consideration liability subsequent to the acquisition date, such as changes in the probability assessment, are recognized in the period when the change in the estimated fair value occurs. | |||||||||
We recorded the assets acquired and liabilities assumed from C2C, 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 | $ | 1,355 | |||||||
Net other tangible assets | 290 | ||||||||
Developed technology | 2,990 | ||||||||
Customer relationships | 1,340 | ||||||||
Trade name | 30 | ||||||||
Goodwill | 5,376 | ||||||||
Deferred revenue | (1,015 | ) | |||||||
Deferred tax liability | (736 | ) | |||||||
Total value of assets acquired and liabilities assumed | $ | 9,630 | |||||||
As of the acquisition date, developed technology, customer relationships and the C2C trade name had weighted-average useful lives of 6.4 years, 7.3 years and 2.0 years, respectively. The total weighted-average useful life of these acquired intangible assets is 6.7 years. The goodwill is primarily attributed to the synergies expected to be realized following the acquisition. No goodwill was deemed to be deductible for income tax purposes. C2C’s results of operations, since the acquisition date, were not material to our consolidated results of operations for the year ended February 28, 2015. Pro forma results of operations for C2C have not been presented because they are not material to our consolidated results of operations. | |||||||||
CudaSign (formerly SignNow, Inc.) | |||||||||
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 | ) | |||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
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, | |||||||||||||
2015 | 2014 | ||||||||||||
Balance at beginning of fiscal year | $ | 36,014 | $ | 33,778 | |||||||||
Goodwill acquired | 5,376 | 1,825 | |||||||||||
Effect of foreign exchange rates | (1,648 | ) | 411 | ||||||||||
Balance at end of fiscal year | $ | 39,742 | $ | 36,014 | |||||||||
Intangible assets subject to amortization are summarized as follows (in thousands): | |||||||||||||
February 28, 2015 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Value | ||||||||||||
Acquired developed technology | $ | 28,799 | $ | (22,987 | ) | $ | 5,812 | ||||||
Software license | 400 | (400 | ) | — | |||||||||
Customer relationships | 8,233 | (6,032 | ) | 2,201 | |||||||||
Patents | 1,625 | (1,058 | ) | 567 | |||||||||
Trade name | 513 | (172 | ) | 341 | |||||||||
Acquired developed software | 200 | (200 | ) | — | |||||||||
$ | 39,770 | $ | (30,849 | ) | $ | 8,921 | |||||||
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 | |||||||
In addition to the above, we maintain other intangible assets not subject to amortization of $296,000 and $437,000 as of February 28, 2015 and 2014, respectively. | |||||||||||||
Amortization expense for fiscal 2015, 2014 and 2013 was $3.4 million, $5.4 million and $5.5 million, respectively. | |||||||||||||
As of February 28, 2015, amortization expense for intangible assets for each of the next five years is as follows: $2.3 million in fiscal 2016, $2.2 million in fiscal 2017, $1.9 million in fiscal 2018, $0.9 million in fiscal 2019, $0.7 million in fiscal 2020 and $0.9 million thereafter. |
Recapitalization_Transaction
Recapitalization Transaction | 12 Months Ended |
Feb. 28, 2015 | |
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, 2015 | |
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 initial public offering (the “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, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [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 contractors. 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 contractors. Options granted are exercisable for periods not to exceed 10 years. Options and RSUs granted typically 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, 2014 | 5,187,382 | ||||||||||||||||
Authorized | 2,472,573 | ||||||||||||||||
Granted | (2,056,949 | ) | |||||||||||||||
Canceled/forfeited | 165,985 | ||||||||||||||||
Balance at February 28, 2015 | 5,768,991 | ||||||||||||||||
The following weighted-average input assumptions were used to estimate the fair value of employee stock option grants: | |||||||||||||||||
Year Ended February 28, | |||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Expected volatility | 45 | % | 46 | % | 44 | % | |||||||||||
Expected term (in years) | 6.25 | 6.25 | 6.25 | ||||||||||||||
Risk-free interest rate | 1.87 | % | 1.67 | % | 0.97 | % | |||||||||||
Dividend yield | — | — | — | ||||||||||||||
Estimated fair value of stock options granted during the year | $ | 13.98 | $ | 9.48 | $ | 5.34 | |||||||||||
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, 2014 | 4,674,004 | $ | 12.27 | ||||||||||||||
Granted | 1,136,758 | $ | 30.39 | ||||||||||||||
Exercised | (1,604,307 | ) | $ | 10.27 | |||||||||||||
Canceled/forfeited | (154,551 | ) | $ | 16.71 | |||||||||||||
Balance at February 28, 2015 | 4,051,904 | $ | 17.98 | ||||||||||||||
As of February 28, 2015: | |||||||||||||||||
Vested and exercisable | 1,696,859 | $ | 13.35 | 7.04 | $ | 41,985 | |||||||||||
Vested and expected to vest | 3,849,905 | $ | 17.54 | 7.83 | $ | 79,125 | |||||||||||
During fiscal 2015, 2014 and 2013, the total grant-date fair value of stock options vested was $7.5 million, $6.0 million and $3.7 million, respectively. During fiscal 2015, 2014 and 2013, 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 $33.1 million, $6.5 million and $10.3 million, respectively. | |||||||||||||||||
As of February 28, 2015, there was $20.2 million of unrecognized compensation cost related to outstanding stock options, net of forecasted forfeitures, expected to be recognized over a weighted-average period of 2.75 years. To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation related to these options will be different from our 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, 2014 | 1,076,017 | $ | 14.08 | ||||||||||||||
Granted | 920,191 | $ | 29.81 | ||||||||||||||
Vested | (408,442 | ) | $ | 13.98 | |||||||||||||
Canceled/forfeited | (11,434 | ) | $ | 32.44 | |||||||||||||
Unvested at February 28, 2015 | 1,576,332 | $ | 23.16 | ||||||||||||||
Expected to vest after February 28, 2015 | 1,411,996 | $ | 23.16 | ||||||||||||||
As of February 28, 2015, there was $28.5 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 3.02 years. To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation related to these RSUs 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, | |||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Cost of revenue | $ | 389 | $ | 201 | $ | 146 | |||||||||||
Research and development | 4,410 | 2,374 | 2,059 | ||||||||||||||
Sales and marketing | 3,811 | 2,067 | 1,182 | ||||||||||||||
General and administrative | 8,448 | 6,195 | 5,400 | ||||||||||||||
$ | 17,058 | $ | 10,837 | $ | 8,787 | ||||||||||||
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, 2015 | |||||||||||||
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, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
United States | $ | (7,326 | ) | $ | (6,165 | ) | $ | (9,206 | ) | ||||
Foreign | 2,730 | (4,787 | ) | (4,063 | ) | ||||||||
$ | (4,596 | ) | $ | (10,952 | ) | $ | (13,269 | ) | |||||
The provision for (benefit from) income taxes consists of the following (in thousands): | |||||||||||||
Year Ended February 28, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Current: | |||||||||||||
Federal | $ | 2,479 | $ | 4,760 | $ | 6,824 | |||||||
State | 299 | 574 | 940 | ||||||||||
Foreign | 863 | 734 | 526 | ||||||||||
3,641 | 6,068 | 8,290 | |||||||||||
Deferred: | |||||||||||||
Federal | 51,820 | (10,231 | ) | (11,507 | ) | ||||||||
State | 4,674 | (1,109 | ) | (617 | ) | ||||||||
Foreign | 2,767 | (1,293 | ) | (1,250 | ) | ||||||||
59,261 | (12,633 | ) | (13,374 | ) | |||||||||
$ | 62,902 | $ | (6,565 | ) | $ | (5,084 | ) | ||||||
Deferred tax assets (liabilities) comprise the following (in thousands): | |||||||||||||
February 28, | |||||||||||||
2015 | 2014 | ||||||||||||
Deferred tax assets: | |||||||||||||
Deferred revenue | $ | 58,886 | $ | 53,619 | |||||||||
Reserves and other | 7,638 | 6,227 | |||||||||||
Research and development credits | 4,935 | 2,419 | |||||||||||
Net operating losses | 5,431 | 6,675 | |||||||||||
Total deferred tax assets | 76,890 | 68,940 | |||||||||||
Valuation allowance | (74,357 | ) | (6,685 | ) | |||||||||
Total deferred tax assets, net of valuation allowance | 2,533 | 62,255 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | (3,622 | ) | (2,899 | ) | |||||||||
Prepaid expense and other | (717 | ) | (569 | ) | |||||||||
Other deferred tax liabilities | (231 | ) | (460 | ) | |||||||||
Total deferred tax liabilities | (4,570 | ) | (3,928 | ) | |||||||||
Net deferred tax assets (liabilities) | $ | (2,037 | ) | $ | 58,327 | ||||||||
The following is a reconciliation of the statutory federal income tax rate to our effective tax rate (in thousands): | |||||||||||||
Year Ended February 28, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Tax expense (benefit) at federal statutory rate | $ | (1,608 | ) | $ | (3,833 | ) | $ | (4,644 | ) | ||||
State taxes, net of federal benefit | 4,845 | (713 | ) | (11 | ) | ||||||||
Non-deductible expenses | 823 | 736 | 289 | ||||||||||
Stock-based compensation | 520 | 1,227 | 910 | ||||||||||
Legal entity rationalization | — | (3,541 | ) | — | |||||||||
Transaction costs | (1,454 | ) | — | — | |||||||||
Change in valuation allowance | 58,685 | 346 | — | ||||||||||
Foreign rate differential | 2,730 | 790 | 535 | ||||||||||
Research and development credits | (1,792 | ) | (933 | ) | (1,331 | ) | |||||||
Domestic production activities deduction | — | (445 | ) | (760 | ) | ||||||||
Other | 153 | (199 | ) | (72 | ) | ||||||||
$ | 62,902 | $ | (6,565 | ) | $ | (5,084 | ) | ||||||
We regularly assess the need for a valuation allowance against our deferred tax assets. In making that assessment, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more-likely-than-not that some or all of the deferred tax assets will not be realized. In evaluating the need for a valuation allowance, we considered our recent cumulative losses in the United States and certain foreign jurisdictions as a significant piece of negative evidence. Therefore, in fiscal 2015, we established a valuation allowance against a significant portion of our deferred tax assets, including U.S. federal and state deferred tax assets, as well as certain foreign deferred tax assets, and our valuation allowance increased by $67.7 million. We will continue to assess the realizability of the deferred tax assets in each of the applicable jurisdictions going forward and adjust the valuation allowance accordingly. | |||||||||||||
Net excess tax benefits resulting from our equity compensation plans are recorded as an increase in stockholders’ equity and were $8.9 million, $1.5 million and $1.7 million in fiscal 2015, 2014 and 2013, respectively. | |||||||||||||
As of February 28, 2015, we had $3.1 million of federal and $15.3 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 2033. The state net operating losses expire in various fiscal years ending between 2016 and 2035. We have foreign net operating losses of $15.7 million. Of these, $15.4 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. Approximately $6.4 million of state net operating losses relate to stock-based compensation deductions in excess of book expense, the tax effect of which will be recorded to equity when realized. | |||||||||||||
We had research and development credit carryforwards of $1.8 million, $4.4 million and $0.2 million for federal, California and other state income tax purposes, respectively. If not utilized, the federal research and development credit begins to expire in fiscal 2031 while the California credit can be carried forward indefinitely. If not utilized, other state research and development credit begins to expire in fiscal 2021. We have a California Enterprise Zone credit of $0.2 million, which will begin to expire in fiscal 2024, if not utilized. | |||||||||||||
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, 2015, we had $7.1 million of cumulative undistributed earnings of our 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, 2015, February 28, 2014 and February 28, 2013 were $5.3 million, $5.0 million and $4.0 million, respectively. Total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $4.3 million, $4.0 million and $3.1 million as of February 28, 2015, February 28, 2014 and February 28, 2013, respectively. | |||||||||||||
The following table summarizes the activity related to our gross unrecognized tax benefits (in thousands): | |||||||||||||
Year Ended February 28, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Balance at beginning of year | $ | 4,980 | $ | 3,971 | $ | 4,150 | |||||||
Tax positions related to the current year: | |||||||||||||
Increases | 1,050 | 1,208 | 1,122 | ||||||||||
Tax positions related to prior years: | |||||||||||||
Increases | 58 | — | 76 | ||||||||||
Decreases | (53 | ) | (1 | ) | (1,341 | ) | |||||||
Settlements with taxing authorities: | |||||||||||||
Releases—statute of limitations expired | (713 | ) | (198 | ) | (36 | ) | |||||||
Balance at the end of the year | $ | 5,322 | $ | 4,980 | $ | 3,971 | |||||||
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 2015, 2014 and 2013, interest and penalties recorded in the consolidated statements of operations were $111,000, $229,000 and $92,000, respectively. The amounts of accrued interest and penalties recorded on the consolidated balance sheets as of February 28, 2015 and February 28, 2014 were $786,000 and $675,000, 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 has not run for audits for fiscal 2012 through 2015 and fiscal 2011 through 2015 in the U.S federal and state jurisdictions, respectively, and for fiscal 2008 through 2015 in foreign jurisdictions. Fiscal 2012 and 2013 are currently being audited by the Internal Revenue Service in the U.S. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
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, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
North America | $ | 201,724 | $ | 169,896 | $ | 147,231 | |||||||
United States | 189,640 | 159,036 | 138,879 | ||||||||||
Other | 12,084 | 10,860 | 8,352 | ||||||||||
Latin America | 3,345 | 3,380 | 3,290 | ||||||||||
Asia-Pacific | 18,158 | 16,245 | 14,497 | ||||||||||
EMEA | 54,219 | 44,266 | 33,913 | ||||||||||
$ | 277,446 | $ | 233,787 | $ | 198,931 | ||||||||
Revenue earned in any one foreign country did not exceed 10% of total revenue in fiscal 2015, 2014 or 2013. | |||||||||||||
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, | |||||||||||||
2015 | 2014 | ||||||||||||
United States | $ | 54,772 | $ | 42,836 | |||||||||
International | 4,905 | 4,145 | |||||||||||
$ | 59,677 | $ | 46,981 | ||||||||||
Borrowings
Borrowings | 12 Months Ended | ||||
Feb. 28, 2015 | |||||
Debt Disclosure [Abstract] | |||||
Borrowings | 10. Borrowings | ||||
Note Payable | |||||
We have a note payable with a financial institution which bears 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 2015, 2014 and 2013, was $296,000, $310,000 and $357,000, respectively, and was recorded within other income (expense), net in the consolidated statement of operations. | |||||
Future principal and interest payments for our note payable are as follows (in thousands): | |||||
Fiscal Years Ending February 28/29 | |||||
2016 | $ | 533 | |||
2017 | 533 | ||||
2018 | 4,220 | ||||
$ | 5,286 | ||||
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. Subsequently, we entered into a second amendment agreement in January 2015 to extend the expiration to November 2015 and provide an option to request an increase to $50.0 million. 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, and a minimum adjusted quick ratio. No amounts had been drawn under the credit facility through February 28, 2015. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Feb. 28, 2015 | |||||
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 2020. 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 $3.1 million, $2.9 million and $2.0 million in fiscal 2015, 2014 and 2013, respectively. | |||||
Future minimum payments under our operating leases agreements are as follows (in thousands): | |||||
Fiscal Years Ending February 28/29 | |||||
2016 | $ | 2,229 | |||
2017 | 2,068 | ||||
2018 | 1,586 | ||||
2019 | 735 | ||||
2020 | 406 | ||||
$ | 7,024 | ||||
Unrecognized Purchase Commitments | |||||
We have future unrecognized contractual obligations, primarily for purchase commitments of goods and services related to inventory, advertising and marketing, royalty and licensing arrangements and data center operations. Future minimum payments for these unrecognized purchase commitments are as follows (in thousands): | |||||
Fiscal Years Ending February 28/29 | |||||
2016 | $ | 14,094 | |||
2017 | 7,662 | ||||
2018 | 2,414 | ||||
2019 | 445 | ||||
$ | 24,615 | ||||
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. | |||||
We received a Proposed Charging Letter from BIS on August 21, 2014 (the “Letter”), which asserts certain export violations against us and our UK subsidiary. Based on discussions with BIS, we expect a one-time monetary penalty to be imposed, and do not currently expect any criminal charges, denial of export privileges or ongoing monitoring actions. As requested in the Letter, we have provided BIS with additional information regarding the proposed violations. We intend to continue cooperating with BIS in an effort to resolve this matter. However, at this time, we are unable at this time to estimate the timing or amount of any final resolution. | |||||
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. We and Parallel Networks jointly filed a stipulated dismissal (with prejudice) of the matter, which was granted on April 28, 2015. | |||||
On April 23, 2014, Selene Communication Technologies, LLC (“Selene”) filed a complaint for patent infringement of U.S. Patent Number 7,143,444 against us in the U.S. District Court for the District of Delaware, captioned, Selene Communication Technologies LLC v. Barracuda Networks, Inc. On October 3, 2014, we were notified by RPX Corporation (“RPX”) that it had entered into a settlement and license agreement with Selene for the patents in the lawsuit. As a result the lawsuit was dismissed with prejudice and we did not pay any fees associated with the settlement and license. | |||||
On December 31, 2014, Adaptive Data LLC (“Adaptive”) filed a lawsuit against us in the U.S. District Court for the District of Delaware, Adaptive Data LLC v. Barracuda Networks, Inc., Case No. 1:99-mc-09999/1164, alleging that certain of our appliances infringe U.S. patent numbers 6,108,347 and 6,243,391. On January 23, 2015, we were notified by RPX that it had entered into a settlement and license agreement with Adaptive for the patents in the lawsuit. As a result the lawsuit was dismissed with prejudice and we did not pay any fees associated with the settlement and license. | |||||
On January 23, 2015, Wetro Lan LLC (“Wetro Lan”) filed a lawsuit against us in the U.S. District Court for the Eastern District of Texas, Marshall Division, Wetro Lan LLC v. Barracuda Networks, Inc., Case No. 2:15-CV-46, alleging that certain of our products infringe U.S. patent number 6,795,918. Wetro Lan 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, if any. | |||||
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, 2015 | |
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. We began to match our employees’ contributions in fiscal 2014 up to a certain amount of each employee’s eligible earnings. We incurred 401(k) Plan contribution expenses of $978,000 and $836,000 in fiscal 2015 and 2014, respectively. |
Net_Loss_Per_Share
Net Loss Per Share | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Net Loss Per Share | 13. Net Loss Per Share | ||||||||||||
Basic and diluted net income (loss) per share attributable to common stockholders was 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 were converted into common stock. | |||||||||||||
Through the date of our IPO, we utilized the two-class method to compute net income (loss) per share. Under the two-class method, basic net income (loss) per share attributable to common stockholders was 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 was determined by allocating undistributed earnings between common and redeemable convertible preferred stockholders. Diluted net income (loss) per share attributable to common stockholders was 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 and RSUs using the treasury stock method. For periods in which there was a net loss, the number of shares used in the computation of diluted net loss per share was the same as that used for the computation of basic net loss per share, as the inclusion of dilutive common shares would be anti-dilutive. Under the two-class method, the net income (loss) attributable to common stockholders was not allocated to the convertible redeemable preferred stock as the convertible redeemable preferred stock did not have a contractual obligation to share in our losses. | |||||||||||||
The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders under the two-class method (in thousands, except per share amounts): | |||||||||||||
Year Ended February 28, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Net loss attributable to common stockholders: | |||||||||||||
Net loss attributable to Barracuda Networks, Inc. | $ | (67,498 | ) | $ | (3,626 | ) | $ | (7,391 | ) | ||||
Accretion to redemption value of redeemable convertible preferred stock | — | — | (1,812 | ) | |||||||||
Net loss attributable to common stockholders | $ | (67,498 | ) | $ | (3,626 | ) | $ | (9,203 | ) | ||||
Shares used to compute net loss per share attributable to common stockholders: | |||||||||||||
Weighted-average common shares outstanding | 51,898 | 35,355 | 32,037 | ||||||||||
Less: Weighted-average shares subject to repurchase or forfeiture | — | — | (6 | ) | |||||||||
Weighted-average shares used to compute net loss per share, basic and diluted | 51,898 | 35,355 | 32,031 | ||||||||||
Net loss per share attributable to common stockholders: | |||||||||||||
Basic and diluted | $ | (1.30 | ) | $ | (0.10 | ) | $ | (0.29 | ) |
Schedule_IIValuation_and_Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||
Schedule II-Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||
Year Ended February 28, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
(in thousands) | |||||||||||||
Allowance for doubtful accounts: | |||||||||||||
Beginning balance | $ | 2,134 | $ | 1,252 | $ | 1,339 | |||||||
Charged to costs and expenses | 289 | 885 | (77 | ) | |||||||||
Bad debt write-offs | (892 | ) | (3 | ) | (10 | ) | |||||||
Ending balance | $ | 1,531 | $ | 2,134 | $ | 1,252 | |||||||
Sales return reserve: | |||||||||||||
Beginning balance | $ | 1,862 | $ | 2,371 | $ | 1,977 | |||||||
Charged to deferred revenue | 18,151 | 16,901 | 13,072 | ||||||||||
Sales returns | (18,164 | ) | (17,410 | ) | (12,678 | ) | |||||||
Ending balance | $ | 1,849 | $ | 1,862 | $ | 2,371 | |||||||
All other schedules have been omitted because the information called for is not required or is shown either in the consolidated financial statements or in the notes thereto. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Feb. 28, 2015 | |||
Accounting Policies [Abstract] | |||
Nature of Operations | Nature of Operations | ||
Barracuda Networks, Inc., also referred to in this report as “we,” “our,” “us,” “Barracuda” or “the Company,” is headquartered in Campbell, California, and 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 investments. We refer to the fiscal years ended February 28, 2015, February 28, 2014 and February 28, 2013 as fiscal 2015, fiscal 2014 and fiscal 2013, respectively. | |||
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 have been 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 liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. We evaluate our estimates on an ongoing basis, including those related to the fair values of stock-based awards, income taxes and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. 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 prior period amounts between line items to conform to our current fiscal 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. | |||
We periodically review our marketable securities for other-than-temporary impairment. We consider factors such as the duration, severity and the reason for the decline in value, the potential recovery period and whether we intend to sell. For marketable debt securities, we also consider whether (i) it is more likely than not that we will be required to sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses. | |||
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 the United States and certain foreign countries and regions, including Europe, the Middle East, Latin America and Asia-Pacific. Sales to foreign customers accounted for 32%, 32% and 30% of total revenue in fiscal 2015, 2014 and 2013, 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 13% and 10% of receivables as of February 28, 2015 and 2014, respectively. | |||
One distribution partner accounted for 20%, 18% and 13% of total revenue in fiscal 2015, 2014 and 2013, respectively. | |||
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 | 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 2015, 2014 and 2013. | |||
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, 2015, 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 2015, 2014 and 2013 were $4.6 million, $5.2 million and $4.9 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 $58.7 million, $56.7 million and $52.9 million for fiscal 2015, 2014 and 2013, 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 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. | |||
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 (losses) gains resulting from foreign exchange transactions of $(3.6) million, $0.1 million and $(0.7) million for fiscal 2015, 2014 and 2013, respectively, in other income (expense), net in the consolidated statement of operations. | |||
We have foreign subsidiaries that operate and sell our products in various markets around the world. As a result, we are exposed to foreign exchange risks. We utilize foreign exchange forward contracts to manage foreign currency risk associated with foreign currency denominated monetary assets and liabilities, primarily trade receivables, and to reduce the volatility of earnings and cash flows related to foreign currency transactions. The fair value of our contracts as of February 28, 2015 is not significant. The change in the fair value of these foreign currency forward contracts is recorded as gain (loss) in other income (expense), net in the consolidated statement of operations. | |||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive 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 April 2015, the Financial Accounting Standards Board (the “FASB”) issued an accounting standard providing guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. The standard update is effective for fiscal years beginning after December 15, 2015 and interim periods within those years and early adoption is permitted. The standard allows for adoption retrospectively or prospectively to all arrangements entered into or materially modified after the effective date. We are currently evaluating the impact of adopting this update on our consolidated financial statements. | |||
In February 2015, the FASB issued an accounting standard to improve consolidation guidance for legal entities and affect the consolidation evaluation for reporting organizations. The standard update is effective for fiscal years beginning after December 15, 2015 and interim periods within those years and early adoption is permitted. The standard allows for adoption retrospectively or with a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. We are currently evaluating the impact of adopting this update on our consolidated financial statements. | |||
In May 2014, the FASB issued an accounting standard which completes the joint effort by the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. The core principle of this update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As currently issued, we intend to adopt this update in the first quarter of fiscal year 2018 at which point it will begin to affect us. The standard allows for full retrospective adoption applied to all periods presented or retrospective adoption with the cumulative effect of initially applying this update recognized at the date of initial application. We are currently evaluating the impact of adopting this update on our consolidated financial statements. | |||
Fair Value Measurements | Fair Value Measurements | ||
We determine fair value 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 equity securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Marketable debt securities and derivative assets are classified within Level 2 if the investments are valued using model driven valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Our marketable securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models. | |||
We estimated the fair value of our Level 3 contingent consideration liability based on a weighted probability assessment of achieving the milestones associated with the contingent consideration related to our acquisition of C2C Systems Limited (“C2C”). Significant increases (decreases) in the probability assumptions in isolation would result in a significantly higher (lower) fair value measurement. In developing these estimates, we considered unobservable inputs that are supported by little or no market activity and reflect our own assumptions. Refer to Note 3 to Consolidated Financial Statements for further information. | |||
Investment in Non-marketable Equity Security | Investment in Non-marketable Equity Security | ||
In October 2011, we acquired stock in a privately held company for $750,000, which represented an ownership interest of 24%. In October 2014, we acquired additional shares of stock in the privately held company for $500,000 to maintain our 24% ownership interest. 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. | |||
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 Loss Per Share | Basic and diluted net income (loss) per share attributable to common stockholders was 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 were converted into common stock. | ||
Through the date of our IPO, we utilized the two-class method to compute net income (loss) per share. Under the two-class method, basic net income (loss) per share attributable to common stockholders was 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 was determined by allocating undistributed earnings between common and redeemable convertible preferred stockholders. Diluted net income (loss) per share attributable to common stockholders was 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 and RSUs using the treasury stock method. For periods in which there was a net loss, the number of shares used in the computation of diluted net loss per share was the same as that used for the computation of basic net loss per share, as the inclusion of dilutive common shares would be anti-dilutive. Under the two-class method, the net income (loss) attributable to common stockholders was not allocated to the convertible redeemable preferred stock as the convertible redeemable preferred stock did 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, 2015 | |||
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 | 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, 2015 | |||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||
Cash and Cash Equivalents | The following table summarizes our cash and cash equivalents by category (in thousands): | ||||||||||||||||||||||||
February 28, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||
Cash | $ | 97,187 | $ | 41,331 | |||||||||||||||||||||
Money market funds | 54,186 | 94,548 | |||||||||||||||||||||||
$ | 151,373 | $ | 135,879 | ||||||||||||||||||||||
Marketable Securities | The following table summarizes our marketable securities by category (in thousands): | ||||||||||||||||||||||||
As of February 28, 2015 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Asset-backed securities | $ | 4,846 | $ | 3 | $ | (4 | ) | $ | 4,845 | ||||||||||||||||
Corporate debt securities | 21,241 | 17 | (13 | ) | 21,245 | ||||||||||||||||||||
Equity securities | 1,211 | 37 | (32 | ) | 1,216 | ||||||||||||||||||||
Foreign government bonds | 201 | — | — | 201 | |||||||||||||||||||||
Mortgage-backed securities | 2,716 | 4 | (10 | ) | 2,710 | ||||||||||||||||||||
U.S. government agency securities | 7,310 | 8 | (24 | ) | 7,294 | ||||||||||||||||||||
U.S. government notes | 3,242 | 1 | — | 3,243 | |||||||||||||||||||||
$ | 40,767 | $ | 70 | $ | (83 | ) | $ | 40,754 | |||||||||||||||||
Summary of Securities with Gross Unrealized Loss Positions and Fair Values | The following table presents gross unrealized losses and fair values for those marketable securities that were in an unrealized loss position as of February 28, 2015 aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
Value | Losses | Losses | Losses | ||||||||||||||||||||||
Asset-backed securities | $ | 2,385 | $ | (4 | ) | $ | — | $ | — | $ | 2,385 | $ | (4 | ) | |||||||||||
Corporate debt securities | 11,346 | (13 | ) | — | — | 11,346 | (13 | ) | |||||||||||||||||
Equity securities | 978 | (32 | ) | — | — | 978 | (32 | ) | |||||||||||||||||
Mortgage-backed securities | 1,923 | (10 | ) | — | — | 1,923 | (10 | ) | |||||||||||||||||
U.S. government agency securities | 4,331 | (24 | ) | — | — | 4,331 | (24 | ) | |||||||||||||||||
$ | 20,963 | $ | (83 | ) | $ | — | $ | — | $ | 20,963 | $ | (83 | ) | ||||||||||||
Schedule of Marketable Debt Securities | The following table classifies our marketable debt securities by contractual maturities (in thousands): | ||||||||||||||||||||||||
As of | |||||||||||||||||||||||||
February 28, | |||||||||||||||||||||||||
2015 | |||||||||||||||||||||||||
Due in 1 year | $ | 8,694 | |||||||||||||||||||||||
Due in 1 year through 5 years | 24,850 | ||||||||||||||||||||||||
Due in 5 years through 10 years | 1,607 | ||||||||||||||||||||||||
Due after 10 years | 4,387 | ||||||||||||||||||||||||
$ | 39,538 | ||||||||||||||||||||||||
Summary of Assets or Liabilities Measured at Fair Value | Financial assets measured at fair value on a recurring basis are summarized below (in thousands): | ||||||||||||||||||||||||
February 28, 2015 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||
Money market funds | $ | 54,186 | $ | — | $ | — | $ | 54,186 | |||||||||||||||||
Marketable securities: | |||||||||||||||||||||||||
Asset-backed securities | $ | — | $ | 4,845 | $ | — | $ | 4,845 | |||||||||||||||||
Corporate debt securities | $ | — | $ | 21,245 | $ | — | $ | 21,245 | |||||||||||||||||
Equity securities | $ | 1,216 | $ | — | $ | — | $ | 1,216 | |||||||||||||||||
Foreign government bonds | $ | — | $ | 201 | $ | — | $ | 201 | |||||||||||||||||
Mortgage-backed securities | $ | — | $ | 2,710 | $ | — | $ | 2,710 | |||||||||||||||||
U.S. government agency securities | $ | — | $ | 7,294 | $ | — | $ | 7,294 | |||||||||||||||||
U.S. government notes | $ | — | $ | 3,243 | $ | — | $ | 3,243 | |||||||||||||||||
Derivative assets not designated (current): | |||||||||||||||||||||||||
Foreign exchange contracts | $ | — | $ | 31 | $ | — | $ | 31 | |||||||||||||||||
Other accrued liabilities (current): | |||||||||||||||||||||||||
Contingent consideration liability | $ | — | $ | — | $ | 1,150 | $ | 1,150 | |||||||||||||||||
Other long-term liabilities: | |||||||||||||||||||||||||
Contingent consideration liability | $ | — | $ | — | $ | 1,878 | $ | 1,878 | |||||||||||||||||
28-Feb-14 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||
Money market funds | $ | 94,548 | $ | — | $ | — | $ | 94,548 | |||||||||||||||||
Summary of Change in Fair Value of Level 3 Contingent Consideration Liability | The change in fair value of our Level 3 contingent consideration liability is summarized as follows (in thousands): | ||||||||||||||||||||||||
Fiscal 2015 | |||||||||||||||||||||||||
Balance at beginning of fiscal year | $ | — | |||||||||||||||||||||||
At acquisition date | 2,924 | ||||||||||||||||||||||||
Total losses recognized in earnings | 104 | ||||||||||||||||||||||||
Balance at end of fiscal year | $ | 3,028 | |||||||||||||||||||||||
Inventories, Net | Inventories, net consisted of the following (in thousands): | ||||||||||||||||||||||||
February 28, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Raw materials | $ | 2,455 | $ | 3,038 | |||||||||||||||||||||
Finished goods | 2,729 | 3,759 | |||||||||||||||||||||||
Reserves | (730 | ) | (1,149 | ) | |||||||||||||||||||||
$ | 4,454 | $ | 5,648 | ||||||||||||||||||||||
Deferred Costs | Deferred costs consisted of the following (in thousands): | ||||||||||||||||||||||||
February 28, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Appliance | $ | 41,052 | $ | 35,000 | |||||||||||||||||||||
Commissions | 16,884 | 15,279 | |||||||||||||||||||||||
$ | 57,936 | $ | 50,279 | ||||||||||||||||||||||
Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): | ||||||||||||||||||||||||
February 28, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Land | $ | 9,354 | $ | 5,100 | |||||||||||||||||||||
Building | 6,549 | 6,549 | |||||||||||||||||||||||
Computer hardware and software | 17,860 | 11,711 | |||||||||||||||||||||||
Vehicles, machinery and equipment | 3,546 | 2,462 | |||||||||||||||||||||||
Leasehold improvements | 2,965 | 2,560 | |||||||||||||||||||||||
40,274 | 28,382 | ||||||||||||||||||||||||
Accumulated depreciation and amortization | (12,435 | ) | (7,824 | ) | |||||||||||||||||||||
$ | 27,839 | $ | 20,558 | ||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss, Net of Tax | The components of accumulated other comprehensive loss, net of tax, were as follows (in thousands): | ||||||||||||||||||||||||
Foreign | Unrealized | Total | |||||||||||||||||||||||
Currency | Losses on | ||||||||||||||||||||||||
Translation | Available-for- | ||||||||||||||||||||||||
Adjustments | Sale Investments | ||||||||||||||||||||||||
Balance as of February 28, 2014 | $ | (817 | ) | $ | — | $ | (817 | ) | |||||||||||||||||
Other comprehensive loss before reclassifications | (3,408 | ) | (8 | ) | (3,416 | ) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | — | ||||||||||||||||||||||
Other comprehensive loss | (3,408 | ) | (8 | ) | (3,416 | ) | |||||||||||||||||||
Balance as of February 28, 2015 | $ | (4,225 | ) | $ | (8 | ) | $ | (4,233 | ) | ||||||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
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 | ) | |||
C2C Systems Limited [Member] | |||||||||
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 | $ | 1,355 | |||||||
Net other tangible assets | 290 | ||||||||
Developed technology | 2,990 | ||||||||
Customer relationships | 1,340 | ||||||||
Trade name | 30 | ||||||||
Goodwill | 5,376 | ||||||||
Deferred revenue | (1,015 | ) | |||||||
Deferred tax liability | (736 | ) | |||||||
Total value of assets acquired and liabilities assumed | $ | 9,630 | |||||||
CudaSign [Member] | |||||||||
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 | |||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
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, | |||||||||||||
2015 | 2014 | ||||||||||||
Balance at beginning of fiscal year | $ | 36,014 | $ | 33,778 | |||||||||
Goodwill acquired | 5,376 | 1,825 | |||||||||||
Effect of foreign exchange rates | (1,648 | ) | 411 | ||||||||||
Balance at end of fiscal year | $ | 39,742 | $ | 36,014 | |||||||||
Schedule of Intangible Assets Subject to Amortization | Intangible assets subject to amortization are summarized as follows (in thousands): | ||||||||||||
February 28, 2015 | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | Carrying | |||||||||||
Amount | Value | ||||||||||||
Acquired developed technology | $ | 28,799 | $ | (22,987 | ) | $ | 5,812 | ||||||
Software license | 400 | (400 | ) | — | |||||||||
Customer relationships | 8,233 | (6,032 | ) | 2,201 | |||||||||
Patents | 1,625 | (1,058 | ) | 567 | |||||||||
Trade name | 513 | (172 | ) | 341 | |||||||||
Acquired developed software | 200 | (200 | ) | — | |||||||||
$ | 39,770 | $ | (30,849 | ) | $ | 8,921 | |||||||
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 | |||||||
Stockholders_Deficit_Tables
Stockholders' Deficit (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [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, 2014 | 5,187,382 | ||||||||||||||||
Authorized | 2,472,573 | ||||||||||||||||
Granted | (2,056,949 | ) | |||||||||||||||
Canceled/forfeited | 165,985 | ||||||||||||||||
Balance at February 28, 2015 | 5,768,991 | ||||||||||||||||
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, | |||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Expected volatility | 45 | % | 46 | % | 44 | % | |||||||||||
Expected term (in years) | 6.25 | 6.25 | 6.25 | ||||||||||||||
Risk-free interest rate | 1.87 | % | 1.67 | % | 0.97 | % | |||||||||||
Dividend yield | — | — | — | ||||||||||||||
Estimated fair value of stock options granted during the year | $ | 13.98 | $ | 9.48 | $ | 5.34 | |||||||||||
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, 2014 | 4,674,004 | $ | 12.27 | ||||||||||||||
Granted | 1,136,758 | $ | 30.39 | ||||||||||||||
Exercised | (1,604,307 | ) | $ | 10.27 | |||||||||||||
Canceled/forfeited | (154,551 | ) | $ | 16.71 | |||||||||||||
Balance at February 28, 2015 | 4,051,904 | $ | 17.98 | ||||||||||||||
As of February 28, 2015: | |||||||||||||||||
Vested and exercisable | 1,696,859 | $ | 13.35 | 7.04 | $ | 41,985 | |||||||||||
Vested and expected to vest | 3,849,905 | $ | 17.54 | 7.83 | $ | 79,125 | |||||||||||
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, 2014 | 1,076,017 | $ | 14.08 | ||||||||||||||
Granted | 920,191 | $ | 29.81 | ||||||||||||||
Vested | (408,442 | ) | $ | 13.98 | |||||||||||||
Canceled/forfeited | (11,434 | ) | $ | 32.44 | |||||||||||||
Unvested at February 28, 2015 | 1,576,332 | $ | 23.16 | ||||||||||||||
Expected to vest after February 28, 2015 | 1,411,996 | $ | 23.16 | ||||||||||||||
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, | |||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Cost of revenue | $ | 389 | $ | 201 | $ | 146 | |||||||||||
Research and development | 4,410 | 2,374 | 2,059 | ||||||||||||||
Sales and marketing | 3,811 | 2,067 | 1,182 | ||||||||||||||
General and administrative | 8,448 | 6,195 | 5,400 | ||||||||||||||
$ | 17,058 | $ | 10,837 | $ | 8,787 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
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, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
United States | $ | (7,326 | ) | $ | (6,165 | ) | $ | (9,206 | ) | ||||
Foreign | 2,730 | (4,787 | ) | (4,063 | ) | ||||||||
$ | (4,596 | ) | $ | (10,952 | ) | $ | (13,269 | ) | |||||
Schedule of Provision for (Benefit from) Income Taxes | The provision for (benefit from) income taxes consists of the following (in thousands): | ||||||||||||
Year Ended February 28, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Current: | |||||||||||||
Federal | $ | 2,479 | $ | 4,760 | $ | 6,824 | |||||||
State | 299 | 574 | 940 | ||||||||||
Foreign | 863 | 734 | 526 | ||||||||||
3,641 | 6,068 | 8,290 | |||||||||||
Deferred: | |||||||||||||
Federal | 51,820 | (10,231 | ) | (11,507 | ) | ||||||||
State | 4,674 | (1,109 | ) | (617 | ) | ||||||||
Foreign | 2,767 | (1,293 | ) | (1,250 | ) | ||||||||
59,261 | (12,633 | ) | (13,374 | ) | |||||||||
$ | 62,902 | $ | (6,565 | ) | $ | (5,084 | ) | ||||||
Components of Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) comprise the following (in thousands): | ||||||||||||
February 28, | |||||||||||||
2015 | 2014 | ||||||||||||
Deferred tax assets: | |||||||||||||
Deferred revenue | $ | 58,886 | $ | 53,619 | |||||||||
Reserves and other | 7,638 | 6,227 | |||||||||||
Research and development credits | 4,935 | 2,419 | |||||||||||
Net operating losses | 5,431 | 6,675 | |||||||||||
Total deferred tax assets | 76,890 | 68,940 | |||||||||||
Valuation allowance | (74,357 | ) | (6,685 | ) | |||||||||
Total deferred tax assets, net of valuation allowance | 2,533 | 62,255 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | (3,622 | ) | (2,899 | ) | |||||||||
Prepaid expense and other | (717 | ) | (569 | ) | |||||||||
Other deferred tax liabilities | (231 | ) | (460 | ) | |||||||||
Total deferred tax liabilities | (4,570 | ) | (3,928 | ) | |||||||||
Net deferred tax assets (liabilities) | $ | (2,037 | ) | $ | 58,327 | ||||||||
Reconciliation of Statutory Federal Income Tax Rate to Effective Tax Rate | The following is a reconciliation of the statutory federal income tax rate to our effective tax rate (in thousands): | ||||||||||||
Year Ended February 28, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Tax expense (benefit) at federal statutory rate | $ | (1,608 | ) | $ | (3,833 | ) | $ | (4,644 | ) | ||||
State taxes, net of federal benefit | 4,845 | (713 | ) | (11 | ) | ||||||||
Non-deductible expenses | 823 | 736 | 289 | ||||||||||
Stock-based compensation | 520 | 1,227 | 910 | ||||||||||
Legal entity rationalization | — | (3,541 | ) | — | |||||||||
Transaction costs | (1,454 | ) | — | — | |||||||||
Change in valuation allowance | 58,685 | 346 | — | ||||||||||
Foreign rate differential | 2,730 | 790 | 535 | ||||||||||
Research and development credits | (1,792 | ) | (933 | ) | (1,331 | ) | |||||||
Domestic production activities deduction | — | (445 | ) | (760 | ) | ||||||||
Other | 153 | (199 | ) | (72 | ) | ||||||||
$ | 62,902 | $ | (6,565 | ) | $ | (5,084 | ) | ||||||
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, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Balance at beginning of year | $ | 4,980 | $ | 3,971 | $ | 4,150 | |||||||
Tax positions related to the current year: | |||||||||||||
Increases | 1,050 | 1,208 | 1,122 | ||||||||||
Tax positions related to prior years: | |||||||||||||
Increases | 58 | — | 76 | ||||||||||
Decreases | (53 | ) | (1 | ) | (1,341 | ) | |||||||
Settlements with taxing authorities: | |||||||||||||
Releases—statute of limitations expired | (713 | ) | (198 | ) | (36 | ) | |||||||
Balance at the end of the year | $ | 5,322 | $ | 4,980 | $ | 3,971 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Schedule of Revenue by Geographic Region | Revenue by geographic region is presented as follows (in thousands): | ||||||||||||
Year Ended February 28, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
North America | $ | 201,724 | $ | 169,896 | $ | 147,231 | |||||||
United States | 189,640 | 159,036 | 138,879 | ||||||||||
Other | 12,084 | 10,860 | 8,352 | ||||||||||
Latin America | 3,345 | 3,380 | 3,290 | ||||||||||
Asia-Pacific | 18,158 | 16,245 | 14,497 | ||||||||||
EMEA | 54,219 | 44,266 | 33,913 | ||||||||||
$ | 277,446 | $ | 233,787 | $ | 198,931 | ||||||||
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, | |||||||||||||
2015 | 2014 | ||||||||||||
United States | $ | 54,772 | $ | 42,836 | |||||||||
International | 4,905 | 4,145 | |||||||||||
$ | 59,677 | $ | 46,981 | ||||||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||
Feb. 28, 2015 | |||||
Debt Disclosure [Abstract] | |||||
Schedule of Future Principal and Interest Payments of Note Payable | Future principal and interest payments for our note payable are as follows (in thousands): | ||||
Fiscal Years Ending February 28/29 | |||||
2016 | $ | 533 | |||
2017 | 533 | ||||
2018 | 4,220 | ||||
$ | 5,286 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Feb. 28, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Payments under Operating Leases Agreements | Future minimum payments under our operating leases agreements are as follows (in thousands): | ||||
Fiscal Years Ending February 28/29 | |||||
2016 | $ | 2,229 | |||
2017 | 2,068 | ||||
2018 | 1,586 | ||||
2019 | 735 | ||||
2020 | 406 | ||||
$ | 7,024 | ||||
Schedule of Future Minimum Payments for Unrecognized Purchase Commitments | Future minimum payments for these unrecognized purchase commitments are as follows (in thousands): | ||||
Fiscal Years Ending February 28/29 | |||||
2016 | $ | 14,094 | |||
2017 | 7,662 | ||||
2018 | 2,414 | ||||
2019 | 445 | ||||
$ | 24,615 | ||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders under the two-class method (in thousands, except per share amounts): | ||||||||||||
Year Ended February 28, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Net loss attributable to common stockholders: | |||||||||||||
Net loss attributable to Barracuda Networks, Inc. | $ | (67,498 | ) | $ | (3,626 | ) | $ | (7,391 | ) | ||||
Accretion to redemption value of redeemable convertible preferred stock | — | — | (1,812 | ) | |||||||||
Net loss attributable to common stockholders | $ | (67,498 | ) | $ | (3,626 | ) | $ | (9,203 | ) | ||||
Shares used to compute net loss per share attributable to common stockholders: | |||||||||||||
Weighted-average common shares outstanding | 51,898 | 35,355 | 32,037 | ||||||||||
Less: Weighted-average shares subject to repurchase or forfeiture | — | — | (6 | ) | |||||||||
Weighted-average shares used to compute net loss per share, basic and diluted | 51,898 | 35,355 | 32,031 | ||||||||||
Net loss per share attributable to common stockholders: | |||||||||||||
Basic and diluted | $ | (1.30 | ) | $ | (0.10 | ) | $ | (0.29 | ) |
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
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 | 4,600,000 | 5,200,000 | 4,900,000 |
Advertising expense | 58,700,000 | 56,700,000 | 52,900,000 |
Gains and losses from foreign exchange transactions | ($3,600,000) | $100,000 | ($700,000) |
Distribution partner [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Number of customer accounted over 10% of total revenue | 1 | 1 | 1 |
Sales revenue, net [Member] | Geographic Concentration Risk [Member] | Distribution partner [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Credit risk, percentage | 20.00% | 18.00% | 13.00% |
Sales revenue, net [Member] | Geographic Concentration Risk [Member] | Foreign customers [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Credit risk, percentage | 32.00% | 32.00% | 30.00% |
Minimum [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Amortization periods for identifiable intangible assets | 3 years | ||
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] | |||
Number of customer accounted over 10% of receivable | 1 | 1 | |
Maximum [Member] | Sales revenue, net [Member] | Geographic Concentration Risk [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Credit risk, percentage | 10.00% | 10.00% | 10.00% |
Maximum [Member] | Accounts receivable [Member] | Credit Concentration Risk [Member] | Distribution partner [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Credit risk, percentage | 13.00% | 10.00% |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies - Schedule of Useful Lives of Assets (Detail) | 12 Months Ended |
Feb. 28, 2015 | |
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 |
Vehicles, Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 5 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 |
Balance_Sheet_Information_Cash
Balance Sheet Information - Cash and Cash Equivalents (Detail) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
In Thousands, unless otherwise specified | ||||
Cash and cash equivalents: | ||||
Cash | $97,187 | $41,331 | ||
Money market funds | 54,186 | 94,548 | ||
Total cash and cash equivalents | $151,373 | $135,879 | $30,095 | $126,507 |
Balance_Sheet_Information_Mark
Balance Sheet Information - Marketable Securities (Detail) (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Marketable securities, Amortized Cost | $40,767 |
Marketable securities, Gross Unrealized Gains | 70 |
Marketable securities, Gross Unrealized Losses | -83 |
Marketable securities, Fair Value | 40,754 |
Asset-backed securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Marketable securities, Amortized Cost | 4,846 |
Marketable securities, Gross Unrealized Gains | 3 |
Marketable securities, Gross Unrealized Losses | -4 |
Marketable securities, Fair Value | 4,845 |
Corporate debt securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Marketable securities, Amortized Cost | 21,241 |
Marketable securities, Gross Unrealized Gains | 17 |
Marketable securities, Gross Unrealized Losses | -13 |
Marketable securities, Fair Value | 21,245 |
Equity securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Marketable securities, Amortized Cost | 1,211 |
Marketable securities, Gross Unrealized Gains | 37 |
Marketable securities, Gross Unrealized Losses | -32 |
Marketable securities, Fair Value | 1,216 |
Foreign government bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Marketable securities, Amortized Cost | 201 |
Marketable securities, Fair Value | 201 |
Mortgage-backed securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Marketable securities, Amortized Cost | 2,716 |
Marketable securities, Gross Unrealized Gains | 4 |
Marketable securities, Gross Unrealized Losses | -10 |
Marketable securities, Fair Value | 2,710 |
U.S. government agency securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Marketable securities, Amortized Cost | 7,310 |
Marketable securities, Gross Unrealized Gains | 8 |
Marketable securities, Gross Unrealized Losses | -24 |
Marketable securities, Fair Value | 7,294 |
U.S. government notes [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Marketable securities, Amortized Cost | 3,242 |
Marketable securities, Gross Unrealized Gains | 1 |
Marketable securities, Fair Value | $3,243 |
Balance_Sheet_Information_Addi
Balance Sheet Information - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2014 | Oct. 31, 2011 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Property, Plant and Equipment [Line Items] | |||||
Available for sale securities equity securities current | $0 | ||||
Available-for-sale investments in unrealized loss position | 83,000 | ||||
Depreciation and amortization | 8,631,000 | 9,109,000 | 8,333,000 | ||
Investment to acquire equity | 500,000 | 750,000 | |||
Percentage of ownership interest | 24.00% | 24.00% | |||
Property and equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization | $5,200,000 | $3,800,000 | $2,800,000 |
Balance_Sheet_Information_Summ
Balance Sheet Information - Summary of Securities with Gross Unrealized Loss Positions and Fair Values (Detail) (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Less Than 12 Months, Fair Value | $20,963 |
Less Than 12 Months, Unrealized Losses | -83 |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 20,963 |
Total, Unrealized Losses | -83 |
Asset-backed securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less Than 12 Months, Fair Value | 2,385 |
Less Than 12 Months, Unrealized Losses | -4 |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 2,385 |
Total, Unrealized Losses | -4 |
Corporate debt securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less Than 12 Months, Fair Value | 11,346 |
Less Than 12 Months, Unrealized Losses | -13 |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 11,346 |
Total, Unrealized Losses | -13 |
Equity securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less Than 12 Months, Fair Value | 978 |
Less Than 12 Months, Unrealized Losses | -32 |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 978 |
Total, Unrealized Losses | -32 |
Mortgage-backed securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less Than 12 Months, Fair Value | 1,923 |
Less Than 12 Months, Unrealized Losses | -10 |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 1,923 |
Total, Unrealized Losses | -10 |
U.S. government agency securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Less Than 12 Months, Fair Value | 4,331 |
Less Than 12 Months, Unrealized Losses | -24 |
12 Months or Greater, Fair Value | 0 |
12 Months or Greater, Unrealized Losses | 0 |
Total, Fair Value | 4,331 |
Total, Unrealized Losses | ($24) |
Balance_Sheet_Information_Sche
Balance Sheet Information - Schedule of Marketable Debt Securities (Detail) (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Available-for-sale Securities [Abstract] | |
Due in 1 year | $8,694 |
Due in 1 year through 5 years | 24,850 |
Due in 5 years through 10 years | 1,607 |
Due after 10 years | 4,387 |
Total | $39,538 |
Balance_Sheet_Information_Summ1
Balance Sheet Information - Summary of Assets or Liabilities Measured at Fair Value (Detail) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $39,538 | |
Marketable securities | 40,754 | |
Contingent consideration liability (current) | 1,150 | |
Contingent consideration liability | 1,878 | |
Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 54,186 | 94,548 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4,845 | |
Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 21,245 | |
Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 1,216 | |
Foreign government bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 201 | |
Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,710 | |
U.S. government agency securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 7,294 | |
U.S. government notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,243 | |
Foreign exchange contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets not designated (current) | 31 | |
Level 1 [Member] | Money market funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 54,186 | 94,548 |
Level 1 [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 1,216 | |
Level 2 [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4,845 | |
Level 2 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 21,245 | |
Level 2 [Member] | Foreign government bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 201 | |
Level 2 [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,710 | |
Level 2 [Member] | U.S. government agency securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 7,294 | |
Level 2 [Member] | U.S. government notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,243 | |
Level 2 [Member] | Foreign exchange contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets not designated (current) | 31 | |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability (current) | 1,150 | |
Contingent consideration liability | $1,878 |
Balance_Sheet_Information_Summ2
Balance Sheet Information - Summary of Change in Fair Value of Level 3 Contingent Consideration Liability (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Feb. 28, 2015 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at beginning of fiscal year | $0 |
At acquisition date | 2,924 |
Total losses recognized in earnings | 104 |
Balance at end of fiscal year | $3,028 |
Balance_Sheet_Information_Inve
Balance Sheet Information - Inventories, Net (Detail) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $2,455 | $3,038 |
Finished goods | 2,729 | 3,759 |
Reserves | -730 | -1,149 |
Total inventories, net | $4,454 | $5,648 |
Balance_Sheet_Information_Defe
Balance Sheet Information - Deferred Costs (Detail) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Deferred Cost [Line Items] | ||
Total deferred costs | $57,936 | $50,279 |
Appliance [Member] | ||
Deferred Cost [Line Items] | ||
Total deferred costs | 41,052 | 35,000 |
Commissions [Member] | ||
Deferred Cost [Line Items] | ||
Total deferred costs | $16,884 | $15,279 |
Balance_Sheet_Information_Prop
Balance Sheet Information - Property and Equipment, Net (Detail) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $40,274 | $28,382 |
Accumulated depreciation and amortization | -12,435 | -7,824 |
Property and equipment, net | 27,839 | 20,558 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,354 | 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 | 17,860 | 11,711 |
Vehicles, Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,546 | 2,462 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $2,965 | $2,560 |
Balance_Sheet_Information_Comp
Balance Sheet Information - Components of Accumulated Other Comprehensive Loss, Net of Tax (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | ($817) | ||
Other comprehensive loss before reclassifications | -3,416 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||
Other comprehensive income (loss) | -3,416 | 295 | -591 |
Ending balance | -4,233 | -817 | |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -817 | ||
Other comprehensive loss before reclassifications | -3,408 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||
Other comprehensive income (loss) | -3,408 | ||
Ending balance | -4,225 | ||
Unrealized Losses on Available-for-Sale Investments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive loss before reclassifications | -8 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||
Other comprehensive income (loss) | -8 | ||
Ending balance | ($8) |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended |
Aug. 31, 2014 | Feb. 28, 2015 | Apr. 30, 2013 | Feb. 28, 2014 | |
C2C Systems Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | 31-Aug-14 | |||
Consideration | $9,600,000 | |||
Contingent cash consideration upon continued employment | 4,900,000 | |||
Estimated fair value of contingent consideration | 2,900,000 | |||
Contingent consideration payable description | Upon the attainment of certain billings levels and performance integration targets through August 2017. | |||
Weighted-average useful lives | 6 years 8 months 12 days | |||
Goodwill deductible for income tax purpose | 0 | |||
C2C Systems Limited [Member] | Acquired Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted-average useful lives | 6 years 4 months 24 days | |||
C2C Systems Limited [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted-average useful lives | 7 years 3 months 18 days | |||
C2C Systems Limited [Member] | Trade Name [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted-average useful lives | 2 years | |||
CudaSign [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition date | 30-Apr-13 | |||
Consideration | 6,700,000 | |||
Contingent cash consideration upon continued employment | 4,500,000 | |||
Weighted-average useful lives | 5 years 6 months | |||
Goodwill deductible for income tax purpose | 0 | |||
Unvested stock options assumed | 600,000 | |||
Unvested stock options assumed, weighted-average remaining service period | 3 years | |||
Revenue included in results of operations | 600,000 | |||
Net loss included in results of operations | $1,600,000 | |||
CudaSign [Member] | Acquired Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted-average useful lives | 5 years | |||
CudaSign [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted-average useful lives | 7 years | |||
CudaSign [Member] | Trade Name [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted-average useful lives | 10 years |
Acquisitions_Schedule_of_Fair_
Acquisitions - Schedule of Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Aug. 31, 2014 | Apr. 30, 2013 |
In Thousands, unless otherwise specified | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $39,742 | $36,014 | $33,778 | ||
C2C Systems Limited [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | 1,355 | ||||
Net other tangible assets | 290 | ||||
Goodwill | 5,376 | ||||
Deferred revenue | -1,015 | ||||
Deferred tax liability | -736 | ||||
Total value of assets acquired and liabilities assumed | 9,630 | ||||
CudaSign [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | 56 | ||||
Accounts receivable | 110 | ||||
Goodwill | 1,825 | ||||
Accrued expenses | -340 | ||||
Deferred tax liability | -612 | ||||
Total value of assets acquired and liabilities assumed | 6,719 | ||||
Acquired Developed Technology [Member] | C2C Systems Limited [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 2,990 | ||||
Acquired Developed Technology [Member] | CudaSign [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 4,780 | ||||
Customer Relationships [Member] | C2C Systems Limited [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 1,340 | ||||
Customer Relationships [Member] | CudaSign [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 510 | ||||
Trade Name [Member] | C2C Systems Limited [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 30 | ||||
Trade Name [Member] | CudaSign [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $390 |
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, 2015 | Feb. 28, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of fiscal year | $36,014 | $33,778 |
Goodwill acquired | 5,376 | 1,825 |
Effect of foreign exchange rates | -1,648 | 411 |
Balance at end of fiscal year | $39,742 | $36,014 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Schedule of Intangible Assets Subject to Amortization (Detail) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $39,770 | $36,666 |
Accumulated Amortization | -30,849 | -28,683 |
Net Carrying Value | 8,921 | 7,983 |
Acquired Developed Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 28,799 | 26,315 |
Accumulated Amortization | -22,987 | -21,111 |
Net Carrying Value | 5,812 | 5,204 |
Software License [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 400 | 400 |
Accumulated Amortization | -400 | -400 |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,233 | 7,463 |
Accumulated Amortization | -6,032 | -5,794 |
Net Carrying Value | 2,201 | 1,669 |
Patents [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,625 | 1,625 |
Accumulated Amortization | -1,058 | -873 |
Net Carrying Value | 567 | 752 |
Trade Name [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 513 | 663 |
Accumulated Amortization | -172 | -305 |
Net Carrying Value | 341 | 358 |
Acquired Developed Software [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 200 | 200 |
Accumulated Amortization | ($200) | ($200) |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Other intangible assets not subject to amortization | $296,000 | $437,000 | |
Amortization expense | 3,400,000 | 5,400,000 | 5,500,000 |
Amortization expense for the remainder of fiscal year 2016 | 2,300,000 | ||
Amortization expense for fiscal year 2017 | 2,200,000 | ||
Amortization expense for fiscal year 2018 | 1,900,000 | ||
Amortization expense for fiscal year 2019 | 900,000 | ||
Amortization expense for fiscal year 2020 | 700,000 | ||
Amortization expense thereafter | $900,000 |
Recapitalization_Transaction_A
Recapitalization Transaction - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2012 | Feb. 28, 2014 | Feb. 28, 2013 |
Class of Stock [Line Items] | |||
Cash dividend declared | $130,000 | $130,000 | |
Repurchase of common stock | 723 | 127,613 | |
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 | ||
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Repurchase of common stock, shares | 7,575,973 | ||
Shares repurchased price per share | $16.84 | ||
Repurchase of common stock | $127,500 |
Redeemable_Convertible_Preferr1
Redeemable Convertible Preferred Stock - Additional Information (Detail) (USD $) | 12 Months Ended | |
Feb. 28, 2015 | Nov. 30, 2013 | |
Class of Stock [Line Items] | ||
Number of redeemable convertible preferred stock converted to common stock | 17,626,227 | |
Conversion ratio | One-to-one basis | |
Series A Redeemable Convertible Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Conversion rate of convertible preferred stock to common stock | 3.98 | |
Liquidation preference price per share | 5.97 | |
Redemption price per share | 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 | 21.04 | |
Redemption price per share | 16.84 |
Stockholders_Deficit_Additiona
Stockholders' Deficit - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Nov. 30, 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 | 1,000,000,000 | ||
Common stock, par value | $0.00 | $0.00 | ||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | ||
Preferred stock, par value | $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 | $7.50 | $6 | $3.70 | |
Aggregate intrinsic value of stock option awards exercised | 33.1 | 6.5 | 10.3 | |
Non-controlling interest, ownership percentage | 67.00% | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options and RSUs granted vesting period | 4 years | |||
Unrecognized compensation cost related to outstanding stock options | 20.2 | |||
Expected period for recognizing compensation expense | 2 years 9 months | |||
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options and RSUs granted vesting period | 4 years | |||
Expected period for recognizing compensation expense | 3 years 7 days | |||
Unrecognized compensation cost related to unvested RSUs | $28.50 |
Stockholders_Deficit_Schedule_
Stockholders' Deficit - Schedule of Shares Authorized and Available for Grant (Detail) | 12 Months Ended |
Feb. 28, 2015 | |
Compensation Related Costs [Abstract] | |
Shares Available for Grant, Beginning balance | 5,187,382 |
Shares Available for Grant, Authorized | 2,472,573 |
Shares Available for Grant, Granted | -2,056,949 |
Shares Available for Grant, Canceled/forfeited | 165,985 |
Shares Available for Grant, Ending balance | 5,768,991 |
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, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Compensation Related Costs [Abstract] | |||
Expected volatility | 45.00% | 46.00% | 44.00% |
Expected term (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Risk-free interest rate | 1.87% | 1.67% | 0.97% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Estimated fair value of stock options granted during the year | $13.98 | $9.48 | $5.34 |
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, 2015 |
Compensation Related Costs [Abstract] | |
Shares, Beginning balance | 4,674,004 |
Shares, Granted | 1,136,758 |
Shares, Exercised | -1,604,307 |
Shares, Canceled/forfeited | -154,551 |
Shares, Ending balance | 4,051,904 |
Shares, Vested and exercisable | 1,696,859 |
Shares, Vested and expected to vest | 3,849,905 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $12.27 |
Weighted-Average Exercise Price, Granted | $30.39 |
Weighted-Average Exercise Price, Exercised | $10.27 |
Weighted-Average Exercise Price, Canceled/Forfeited | $16.71 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $17.98 |
Weighted-Average Exercise Price, Vested and exercisable | $13.35 |
Weighted-Average Exercise Price, Vested and expected to vest | $17.54 |
Weighted-Average Remaining Contractual Term, Vested and exercisable, Ending Balance | 7 years 15 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest, Ending Balance | 7 years 9 months 29 days |
Aggregate Intrinsic Value, Vested and Exercisable, Ending Balance | $41,985 |
Aggregate Intrinsic Value, Vested and expected to vest | $79,125 |
Stockholders_Deficit_Summary_o2
Stockholders' Deficit - Summary of Restricted Stock Units Activity (Detail) (Restricted Stock Units [Member], USD $) | 12 Months Ended |
Feb. 28, 2015 | |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Restricted Stock Units, Beginning Balance | 1,076,017 |
Unvested Restricted Stock Units, Granted | 920,191 |
Unvested Restricted Stock Units, Vested | -408,442 |
Unvested Restricted Stock Units, Canceled/forfeited | -11,434 |
Unvested Restricted Stock Units, Ending Balance | 1,576,332 |
Unvested Restricted Stock Units, Expected to vest | 1,411,996 |
Unvested Restricted Stock Units, Weighted Average Grant Date Fair Value, Beginning Balance | $14.08 |
Unvested Restricted Stock Units, Granted, Weighted Average Grant Date Fair Value | $29.81 |
Unvested Restricted Stock Units, Vested, Weighted Average Grant Date Fair Value | $13.98 |
Unvested Restricted Stock Units, Canceled/forfeited, Weighted Average Grant Date Fair Value | $32.44 |
Unvested Restricted Stock Units, Weighted Average Grant Date Fair Value, Ending Balance | $23.16 |
Unvested Restricted Stock Units, Expected to vest, Weighted Average Grant Date Fair Value | $23.16 |
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, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $17,058 | $10,837 | $8,787 |
Cost of Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 389 | 201 | 146 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 4,410 | 2,374 | 2,059 |
Selling and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 3,811 | 2,067 | 1,182 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $8,448 | $6,195 | $5,400 |
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, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Income Tax Disclosure [Abstract] | |||
United States | ($7,326) | ($6,165) | ($9,206) |
Foreign | 2,730 | -4,787 | -4,063 |
Loss before income taxes and non-controlling interest | ($4,596) | ($10,952) | ($13,269) |
Income_Taxes_Schedule_of_Provi
Income Taxes - Schedule of Provision for (Benefit from) Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Current: | |||
Federal | $2,479 | $4,760 | $6,824 |
State | 299 | 574 | 940 |
Foreign | 863 | 734 | 526 |
Total | 3,641 | 6,068 | 8,290 |
Deferred: | |||
Federal | 51,820 | -10,231 | -11,507 |
State | 4,674 | -1,109 | -617 |
Foreign | 2,767 | -1,293 | -1,250 |
Total | 59,261 | -12,633 | -13,374 |
Provision for (benefit from) income taxes | $62,902 | ($6,565) | ($5,084) |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets (Liabilities) (Detail) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Deferred revenue | $58,886 | $53,619 |
Reserves and other | 7,638 | 6,227 |
Research and development credits | 4,935 | 2,419 |
Net operating losses | 5,431 | 6,675 |
Total deferred tax assets | 76,890 | 68,940 |
Valuation allowance | -74,357 | -6,685 |
Total deferred tax assets, net of valuation allowance | 2,533 | 62,255 |
Depreciation and amortization | -3,622 | -2,899 |
Prepaid expense and other | -717 | -569 |
Other deferred tax liabilities | -231 | -460 |
Total deferred tax liabilities | -4,570 | -3,928 |
Net deferred tax assets (liabilities) | ($2,037) | $58,327 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate to Effective Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Income Tax Disclosure [Abstract] | |||
Tax expense (benefit) at federal statutory rate | ($1,608) | ($3,833) | ($4,644) |
State taxes, net of federal benefit | 4,845 | -713 | -11 |
Non-deductible expenses | 823 | 736 | 289 |
Stock-based compensation | 520 | 1,227 | 910 |
Legal entity rationalization | -3,541 | ||
Transaction costs | -1,454 | ||
Change in valuation allowance | 58,685 | 346 | |
Foreign rate differential | 2,730 | 790 | 535 |
Research and development credits | -1,792 | -933 | -1,331 |
Domestic production activities deduction | -445 | -760 | |
Other | 153 | -199 | -72 |
Provision for (benefit from) income taxes | $62,902 | ($6,565) | ($5,084) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Income Tax Examination [Line Items] | ||||
Increase in valuation allowance | $67,700,000 | |||
Excess tax benefits from equity compensation plans | 8,947,000 | 1,513,000 | 1,687,000 | |
Federal net operating loss carryforwards | 3,100,000 | |||
Federal operating losses expiration, beginning period | 2019 | |||
Federal operating losses expiration, ending period | 2033 | |||
State net operating loss carryforwards | 15,300,000 | |||
State operating losses expiration, beginning period | 2016 | |||
State operating losses expiration, ending period | 2035 | |||
Foreign net operating loss carryforwards | 15,700,000 | |||
Operating losses can be carried forward indefinitely | 15,400,000 | |||
Remaining foreign net operating losses expiration period | 2016 | |||
Net operating losses | 6,400,000 | |||
Research and development credit carryforwards | 4,935,000 | 2,419,000 | ||
Federal research and development credit expiration beginning period | 2031 | |||
Other state research and development credit expiration beginning period | 2021 | |||
Undistributed earnings of its foreign subsidiaries | 7,100,000 | |||
Total unrecognized tax benefits | 5,322,000 | 4,980,000 | 3,971,000 | 4,150,000 |
Unrecognized tax benefits that, if recognized, would affect our effective tax rate | 4,300,000 | 4,000,000 | 3,100,000 | |
Accrued interest and penalties recorded on the consolidated balance sheets | 786,000 | 675,000 | ||
Interest and penalties recorded in the consolidated statements of operations | 111,000 | 229,000 | 92,000 | |
Federal [Member] | ||||
Income Tax Examination [Line Items] | ||||
Research and development credit carryforwards | 1,800,000 | |||
California [Member] | ||||
Income Tax Examination [Line Items] | ||||
Research and development credit carryforwards | 4,400,000 | |||
Enterprise zone tax credit carryforwards | 200,000 | |||
Tax credit expiration beginning period | 2024 | |||
Other state [Member] | ||||
Income Tax Examination [Line Items] | ||||
Research and development credit carryforwards | $200,000 |
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, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $4,980 | $3,971 | $4,150 |
Tax positions related to the current year, Increases | 1,050 | 1,208 | 1,122 |
Tax positions related to prior years, Increases | 58 | 76 | |
Tax positions related to prior years, Decreases | -53 | -1 | -1,341 |
Releases-statute of limitations expired | -713 | -198 | -36 |
Balance at the end of the year | $5,322 | $4,980 | $3,971 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Segment Reporting Information [Line Items] | |||
Number of reporting segment | 1 | ||
Sales revenue, net [Member] | Maximum [Member] | Geographic Concentration Risk [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, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Segment Reporting Information [Line Items] | |||
Revenue | $277,446 | $233,787 | $198,931 |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 201,724 | 169,896 | 147,231 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 189,640 | 159,036 | 138,879 |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 12,084 | 10,860 | 8,352 |
Latin America [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,345 | 3,380 | 3,290 |
Asia-Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 18,158 | 16,245 | 14,497 |
EMEA [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | $54,219 | $44,266 | $33,913 |
Segment_Information_Schedule_o1
Segment Information - Schedule of Long Lived Asset (Detail) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long Lived Assets | $59,677 | $46,981 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long Lived Assets | 54,772 | 42,836 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long Lived Assets | $4,905 | $4,145 |
Borrowings_Additional_Informat
Borrowings - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Dec. 31, 2013 | Oct. 31, 2012 | |
Debt Instrument [Line Items] | |||||
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 | 296,000 | 310,000 | 357,000 | ||
Credit facility maximum borrowing capacity | 25,000,000 | ||||
Line of credit facility expiration period | Nov-15 | ||||
Revolving loan facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing capacity | 40,000,000 | ||||
Letter of credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing capacity | 10,000,000 | ||||
Second amendment agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowing capacity | 50,000,000 | ||||
Second amendment agreement date | 2015-01 | ||||
Amount drawn under credit facility | $0 |
Borrowings_Schedule_of_Future_
Borrowings - Schedule of Future Principal and Interest Payments of Note Payable (Detail) (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Maturities of Long-term Debt [Abstract] | |
2016 | $533 |
2017 | 533 |
2018 | 4,220 |
Total | $5,286 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease arrangements expiration period | 2020 | ||
Rent expense | $3.10 | $2.90 | $2 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments under Operating Leases Agreements (Detail) (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $2,229 |
2017 | 2,068 |
2018 | 1,586 |
2019 | 735 |
2020 | 406 |
Total | $7,024 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Payments for Unrecognized Purchase Commitments (Detail) (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $14,094 |
2017 | 7,662 |
2018 | 2,414 |
2019 | 445 |
Total | $24,615 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Contribution of employee's eligible earnings under 401(k) Plan | $978,000 | $836,000 |
Net_Loss_Per_Share_Calculation
Net Loss Per Share - Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Net loss attributable to common stockholders: | |||
Net loss attributable to Barracuda Networks, Inc. | ($67,498) | ($3,626) | ($7,391) |
Accretion to redemption value of redeemable convertible preferred stock | -1,812 | ||
Net loss attributable to common stockholders | ($67,498) | ($3,626) | ($9,203) |
Shares used to compute net loss per share attributable to common stockholders: | |||
Weighted-average common shares outstanding | 51,898 | 35,355 | 32,037 |
Less: Weighted-average shares subject to repurchase or forfeiture | -6 | ||
Weighted-average shares used to compute net loss per share, basic and diluted | 51,898 | 35,355 | 32,031 |
Net loss per share attributable to common stockholders: | |||
Basic and diluted | ($1.30) | ($0.10) | ($0.29) |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning balance | $2,134 | $1,252 | $1,339 |
Charged to costs and expenses | 289 | 885 | -77 |
Bad debt write-offs | -892 | -3 | -10 |
Ending balance | 1,531 | 2,134 | 1,252 |
Sales Return Reserve [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning balance | 1,862 | 2,371 | 1,977 |
Charged to deferred revenue | 18,151 | 16,901 | 13,072 |
Sales returns | -18,164 | -17,410 | -12,678 |
Ending balance | $1,849 | $1,862 | $2,371 |