October 10 Earnings: Barracuda - The Security Growth Story

Barracuda Networks has been on a stellar trend since they revamped their storage and SMB offerings in 2015.
The company's share price has gained over 250% since lows.

Barracuda's latest offering, Barracuda Sentinel, is helping boost subscribers to over 335K as of its latest release.
The company is expected to grow 2018 sales over 7% and 2019 at over 9%, with conservative estimates.

Cloud Security services are expected to grow at over 25% CAGR through 2022, allowing Barracuda to capitalize on subscriber growth.
Email Security, the company's strong suit is expected to grow around 7% through 2020, retaining consumers.

The number 1 risk is competition. The market is an incredibly dense one with the likes of:
Proofpoint
Cisco Systems
Microsoft
Symantec
Mimecast
Among others, all expected to grow security and cloud offering in double digits through FY 2019.

I believe the reward outweighs the risk for the to-be-reported quarter and start Barracuda with a $30.00 PT.
PT is 2-3 months, allowing for greater price flexibility.

註釋

Barracuda Netoworks reports EPS of $0.17 and Revenue of $94.3M, beating sales expectations and meeting the former.

註釋

Swing position remains.