Carbonite's evolution from a consumer backup company into an SMB business continuity provider is accelerating far faster than Wall Street expected.
Indeed, Carbonite's Q2 2016 revenues grew 57 percent to $53.4 million -- a healthy $9.25 million more than investors were expecting. The company's SMB business grew roughly 150 percent, and the EVault buyout is "exceeding expectations, yielding faster and better-than-expected synergies," said President and CEO Mohamad Ali.
Moreover, Carbonite's SMB business now represents the majority of total bookings, CFO Anthony Folger noted -- basically confirming that SMB now outpaces the company's consumer business.
Carbonite's stock is up nearly 14 percent today on the earnings announcement.
Behind Carbonite's Momentum: EVault, Executive Recruits
Carbonite acquired EVault from Seagate in December 2015 as part of a push toward midmarket business continuity services. At the same time, the company has been building and evolving its executive team and channel leadership team -- recruiting leaders like Chris Doggett to drive sales.
The new recruits and EVault acquisition began to show momentum in May 2015.
Still, plenty of competition looms. Although Carbonite has a growing channel partner program, the business continuity market is now flooded with vendors that specifically target MSPs.
So what's next for Carbonite? Stay tuned to this blog entry. We'll likely add a few additional twists later today...