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Carbonite IPO Shows Good Business Gets Rewarded

08/12/2011

Back Up….Get Rewarded. Perhaps that’s the new mantra of the newly public company Carbonite.

Shares of Boston-based Carbonite Inc. jumped more than 23 percent yesterday in the company’s first day of trading after its initial public offering. The online computer backup service priced its shares late Wednesday at $10 per share. The stock closed yesterday at $12.35.

The company, founded in 2005, lets consumers and small businesses back up computer files by transmitting them over the Internet to a remote data center. I use the product both on PC and Mac. It is terrific.

A dozen other IPOs had been scheduled to trade this week; by Wednesday night, all but two had been postponed or withdrawn, spooked by the unstable stock market. As it turned out, Carbonite picked a good day to go public. The Dow Jones industrial average rose 423 points yesterday.

Independent of the market investors are responding to the perceived need of Carbonite’s product – which may be amplified by economic volatility and general global unrest.

I particularly like the brand’s positioning on the site’s home page, “Back Up. Move Forward”. In four words the company’s product, mission and brand promise are stated. Perfect! As a fan of the 8 Word Mission Statement I appreciate how difficult it is to distill all that comprises a brand into such a concise statement. Carbonite’s ability to do so also speaks well for the company’s potential.

My instinct tells me Carbonite’s stock will continue to move forward…even in this roller-coaster market.

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