Investing.com -- Shares in Barracuda Networks plunged more than 17% in after-hours trading, even as the California-based Cloud security and storage company posted better than expected quarterly earnings on Thursday afternoon.
For the Barracuda Networks' first quarter of fiscal year 2016 that ended in late-May, the company saw its total revenue grow by 18% on a year-over year basis to $78 million. The company's non-GAAP earnings per share also surged by 39% to 0.09, as its level of total active subscribers exceeded 252,000 – a spike of 18% from the same period in 2014.
As a result, Barracuda Networks CEO B.J. Jenkins appeared extremely pleased with his company's performance over the quarter.
"We delivered revenue and non-GAAP EPS at the top end of our targeted range," Jenkins said. "During the quarter, we grew total active subscribers, increased gross margin and maintained a 92.5% dollar-based renewal rate, speaking to the underlying strength of our business model."
Analysts, however, appeared concerned with a slowdown in the company's growth in gross billings, an indication of future demand. For the quarter, billings increased by 7.6% on a year-over-year basis compared with 17% during the fourth quarter of 2015. CFO David Faguno partly blamed the negative impacts from currency fluctuations over the quarter for the slower growth in billing.
"Total billings grew by 12% year-over-year on a constant currency basis," Faguno said in a statement. "In the quarter, non-GAAP operating income grew 40% year-over-year to $7.4 million, or 9.5% of total revenue."
Barracuda Networks shares plummeted 6.70 or 17.14% to 32.38 in after-hours trading.