Carbon Black (CBLK) to be acquired by VMware (VMW) for $26/share

• Carbon Black went public less than a month after Pivotal, and is similar in that it offers cloud software that focuses on securing other companies’ usage of cloud software. Carbon Black sold IPO shares at $19 apiece, but had been trading lower than that level for months before a strong earnings report in May sent shares higher. 

   

VMware (VMW) to acquire Carbon Black for $26/share in cash - representing an enterprise value of $2.1 bln
Under the terms of the Carbon Black merger agreement, Carbon Black stockholders will receive $26 per share cash for each share held, resulting in a net cash payout for VMware of $1.9 billion. The transaction will be funded through cash on the balance sheet and access to short-term borrowing capacity. Closing is expected in the second half of VMware's fiscal year 2020, which ends January 31, 2020.

** charts before  ** 

 

VMware (VMW) reported earnings on Thur 22 Aug 2019 (a/h)

** charts before earnings **

 

** charts after earnings **

VMware beats by $0.05, reports revs in-line, guides on the call; co also announces it will acquire Pivotal Software (PVTL) and Carbon Black (CBLK)

Reports Q2 (Jul) earnings of $1.60 per share, excluding non-recurring items, $0.05 better than the S&P Capital IQ Consensus of $1.55; revenues rose 12.2% year/year to $2.44 bln vs the $2.43 bln S&P Capital IQ Consensus.

• License revenue for Q2 rose 12% yr/yr to $1.01 bln.

Co also announces it will acquire Pivotal Software (PVTL) and Carbon Black (CBLK).

VMware will acquire Pivotal for a blended price per share of $11.71, comprised of $15 per share in cash to Pivotal Class A stockholders, and VMware's Class B shares exchanged for Pivotal Class B shares held by Dell Technologies at an exchange ratio of 0.0550 shares of VMware Class B common Stock for each share of Pivotal Class B common stock. The transaction has an enterprise value of $2.7 billion.

VMware will also acquire Carbon Black (CBLK) through a cash tender offer for $26 per share, representing an enterprise value of $2.1 bln.

"These companies address key strategic IT priorities - building apps with a modern approach and protecting enterprise workloads and clients. With Pivotal, VMware will be able to deliver an integrated modern apps portfolio combining Pivotal's next-generation developer platform and VMware's Kubernetes portfolio. With Carbon Black, VMware will be able to provide a next generation security cloud with Carbon Black's protection suite and VMware's intrinsic security assets."

Carbon Black (CBLK) reported earnings on Wed 20 Feb 2019 (a/h)

** charts before earnings **

 

** charts after earnings **

 

Carbon Black beats by $0.04, beats on revs; guides Q1 EPS below consensus, revs below consensus; guides FY19 EPS above consensus, revs below consensus

• Reports Q4 (Dec) loss of $0.20 per share, $0.04 better than the S&P Capital IQ Consensus of ($0.24); revenues rose 27.6% year/year to $56.9 mln vs the $55.59 mln S&P Capital IQ Consensus.
• During the three months ended December 31, 2018, CBLK used ($9.2) million of cash in operations and ($1.1) million in capital expenditures and capitalized software development costs, leading to negative free cash flow of ($10.3) million, compared to positive free cash flow of $3.6 million in the year-ago period.
• Co issues downside guidance for Q1, sees EPS of ($0.23)-($0.22) vs. ($0.21) S&P Capital IQ Consensus; sees Q1 revs of $56.5-$57.5 mln vs. $58.77 mln S&P Capital IQ Consensus.
• Co issues mixed guidance for FY19, sees EPS of ($0.64)-($0.61) vs. ($0.69) S&P Capital IQ Consensus; sees FY19 revs of $240-$244 mln vs. $257.25 mln S&P Capital IQ Consensus.

Earnings this week : Feb. 18 - 22, 2019 (wk 8)

Earnings confirmed to report this week:

Monday (Feb 18) 

• (Holiday) U.S. Market Closed

Tuesday (Feb 19)

• Morning: AAP ALLE WTR AAWW CLR CTB CEQP ECL FELE FDP GDI GPC HLX HIMX HEP HOLI JELD LDOS DOOR MDT NEO NBL SAGE SCI SITE TTS TSEM RIG USAC WMT
• Afternoon: ACC AWK CDNS CRMT CXW DVN  FIVN HLF HST HSTM HVT INST KAR KRG LC LMAT LNTH LZB NTB NVTA RARE SSTI TILE TVTY TXRH VRSK WIRE

Wednesday (Feb 20)

• Morning: ADI AROC BHC BDC CNDT CVS ETR FMS GCI GRMN GEL GVA HSIC HFC IPHS I LAMR NI OMI OC QUAD SAH SO TRGP VNTR VPG WIX WWW
• Afternoon: A ALB ATR AXTI CAI CAKE CAR  CBLK CDE CECO CHE CLI CONE CUTR CYH FLS FTI GDDY GDOT GHDX IAG ICLR INOV IVR JACK KALU LASR LOPE MANT MMI NDSN NE NTES NUVA O OR PAAS PEGA PI QEP RGR ROG RPT SAM SEDG TMST TRN TSLX TYL UFPI VIPS VMI WK WPG WPX WRI XEC Y

Thursday (Feb 21)

• Morning:  BRC DIN DLPH DPZ FND GIL GOGO HL HRL ITGR NCLH NEM PLAB PWR RGEN ROCK RS SFM SGMs STOR TFX VG WEN
• Afternoon:  AAOI ACIA ADSW AL AMH ANIK APPN ATUS BEAT BIDU BJRI BMRN BOOM BYD CASA CATM CBPX CENX CHSP COLD CUBE CWST CZR DBX DXCM EBS ECOL ED EGO  ENV EVRG EXAS FIX FLR FSLR GMED HALO HCC HPE HTGC INFN INT INTU IQ KEYS KHC LNT LPSN MATX MDRX NCMI NVRO OLED PAGS PBA PE PRA RMAX ROKU SBAC SEM SSRM STMP SWM TGH TTD TXMD UCTT VERI VLRS XOG

Friday (Feb 22)

• Morning: AN ASIX B CNK COG COT ERF ETM HMSY ITT MGA MNTA PNW RCM RUTH RY TDS TVPT USM W WPC

Carbon Black (CBLK) reported earnings on Thur 25 Oct 2018 (a/h)

** charts before earnings **

 

** charts after earnings **

Carbon Black beats by $0.05, beats on revs; guides Q4 EPS in-line, revs in-line 

• Reports Q3 (Sep) loss of $0.20 per share, $0.05 better than the S&P Capital IQ Consensus of ($0.25); revenues rose 28.7% year/year to $53.4 mln vs the $52.64 mln S&P Capital IQ Consensus.
• Non-GAAP gross profit was $42.1 million, representing a 79% non-GAAP gross margin.
• During the three months ended September 30, 2018, CBLK used ($13.4) million of cash in operations and ($2.1) million in capital expenditures and capitalized software development costs, leading to negative free cash flow of ($15.4) million, compared to free cash flow of $11,000 in the year-ago period.
• Co issues in-line guidance for Q4, sees EPS of (0.25)-(0.24) vs. ($0.25) S&P Capital IQ Consensus; sees Q4 revs of 55.3-55.8 mln vs. $54.94 mln S&P Capital IQ Consensus.

Carbon Black (CBLK) reported earnings on Thur 7 June 2018 (a/h)

** charts before earnings **

 

** charts after earnings **

 

 ** 11 days later **

Carbon Black beats by $0.29, reports revs in-line with pre-announcement; guides Q2 above consensus; guides FY18 EPS above consensus, revs above consensus 

• Reports Q1 (Mar) loss of $0.98 per share, excluding non-recurring items, $0.29 better than the Capital IQ Consensus of ($1.27); revenues rose 34.8% year/year to $48.4 mln vs the $47.99 mln Capital IQ Consensus. Co preannounced rev of $47.5-48.0 mln in the IPO prospectus.
• Ended the quarter with 4,006 total customers, up from 2,648 in the year-ago period and from 3,739 at the end of the previous quarter. Growth was driven by strong demand across the entire product portfolio and customer acquisition across a broad range of industries. Growth of customers who licensed at least one cloud product increased to 1,870 at the end of the first quarter, compared to 552 in the year-ago period and 1,605 at the end of the previous quarter.
• Co issues upside guidance for Q2, sees EPS of ($0.41-0.42) vs. ($0.43) Capital IQ Consensus Estimate; sees Q2 revs of $48.5-49.0 mln vs. $48.21 mln Capital IQ Consensus Estimate.
• Co issues upside guidance for FY18, sees EPS of ($1.32-1.35) vs. ($1.38) Capital IQ Consensus Estimate; sees FY18 revs of $203.0-204.5 mln vs. $202.01 mln Capital IQ Consensus Estimate.