1. No category

Constant Contact - Financial Results and Operating Metrics
10/23/2014
($000s, except per share data and operating metrics)
Revenue
Cost of revenue
Gross profit
$
Q1
50,015
14,683
35,332
$
2011
Q2
52,527 $
15,233
37,294
Q3
54,346
15,679
38,667
$
Q4+
57,532
15,896
41,636
Operating expenses:
Research and development
Sales and marketing
General and administrative
Acquisition costs and other related charges
Total operating expenses
7,438
24,234
5,577
201
37,450
7,549
22,515
5,855
63
35,982
7,338
19,455
6,191
32,984
7,153
23,007
6,356
36,516
Income (loss) from operations
(2,118)
1,312
5,683
5,120
Interest income and other income (expense), net
Income (loss) before taxes
Income tax expense (benefit)
Net income (loss)
89
(2,029)
(186)
(1,843) $
95
1,407
133
1,274
80
5,763
410
5,353
(2)
5,118
(13,564)
18,682
(0.06) $
29,310
0.04
30,770
GAAP income (loss) per share diluted
Diluted weighted average shares outstanding for GAAP
$
$
Depreciation and amortization
Stock-based compensation expense
Net income (loss)
Income tax expense /(minus income tax benefit)
Interest income and other (income) expense, net
Depreciation and amortization
Stock-based compensation expense
Litigation contingency accrual
Contingent consideration adjustment
Non-GAAP Adjusted EBITDA***
Divide by revenue
Non-GAAP Adjusted EBITDA margin***
Net income (loss)
Non-cash portion of income tax expense (benefit)
Stock based compensation expense
Litigation contingency accrual
Contingent consideration adjustment
Non-GAAP net income (loss)***
Non-GAAP net income (loss) per share diluted***
$
$
$
0.18
30,399
$
$
0.61
30,646
Q1+
59,938
17,599
42,339
$
9,471
25,718
7,415
149
42,753
$
$
2012
Q2+
62,072 $
18,434
43,638
9,804
25,836
7,830
574
44,044
Q3+
63,846
18,722
45,124
$
Q4+
66,298
18,792
47,506
$
Q1+
68,205
19,908
48,297
9,776
24,881
7,956
(6,020)
36,593
9,736
28,092
7,931
(6,058)
39,701
10,268
30,802
9,840
50,910
$
(414)
(406)
8,531
7,805
(2,613)
71
(343)
(538)
195 $
62
(344)
128
(472) $
68
8,599
1,978
6,621
30
7,835
1,613
6,222
(29)
(2,642)
(1,988)
(654) $
(0.02) $
30,380
0.21
30,957
0.01
31,118
$
$
$
0.20
30,886
$
$
(0.02) $
30,630
2013
Q2+
70,208 $
20,578
49,630
11,999
27,804
9,925
49,728
(98)
12
(86)
(118)
32 $
0.00
31,074
$
Q3+
72,039
20,478
51,561
$
Q4
74,931
20,652
54,279
$
Q1
78,874
21,727
57,147
$
2014
Q2
81,256
22,100
59,156
$
Q3
83,494
23,223
60,271
$
12,133
24,608
9,312
46,053
11,167
28,160
9,454
48,781
13,074
32,800
10,120
55,994
12,850
33,113
10,186
56,149
13,417
28,406
10,365
52,188
5,508
5,498
1,153
3,007
8,083
133
5,641
2,321
3,320
59
5,557
1,041
4,516
23
1,176
328
848
25
3,032
1,011
2,021
339
8,422
3,224
5,198
$
0.16
33,180
$
0.11
31,324
$
$
0.14
31,998
$
$
0.03
32,442
$
$
0.06
32,620
$
$
$
FY
2010
174,231
50,825
123,406
$
FY
2011+
214,420
61,491
152,929
23,985
78,881
18,028
120,894
29,478
89,211
23,979
264
142,932
2,512
9,997
341 $
2,853
(61)
2,914 $
0.10
29,945
$
$
$
38,787
104,527
31,132
(11,355)
163,091
$
FY
2013
285,383
81,616
203,767
45,567
111,374
38,531
195,472
15,516
262 $
10,259
(13,207)
23,466 $
0.77
30,671
FY
2012+
252,154
73,547
178,607
8,295
231
15,747
3,181
12,566
$
0.41
31,003
$
$
175
8,470
1,256
7,214
0.23
31,356
3,540
2,609
3,492
3,242
3,535
2,792
3,842
3,065
4,285
3,299
4,684
3,776
5,044
3,772
4,990
3,427
5,115
3,541
5,636
4,130
5,687
3,473
5,753
3,587
5,911
3,914
5,896
4,410
6,234
3,810
11,897
8,552
14,409
11,708
19,003
14,274
22,191
14,731
(1,843)
(186)
(89)
3,540
2,609
4,031
50,015
8.1%
1,274
133
(95)
3,492
3,242
8,046
52,527
15.3%
5,353
410
(80)
3,535
2,792
12,010
54,346
22.1%
18,682
(13,564)
2
3,842
3,065
12,027
57,532
20.9%
195
(538)
(71)
4,285
3,299
7,170
59,938
12.0%
(472)
128
(62)
4,684
3,776
8,054
62,072
13.0%
6,621
1,978
(68)
5,044
3,772
(6,094)
11,253
63,846
17.6%
6,222
1,613
(30)
4,990
3,427
(6,058)
10,164
66,298
15.3%
(654)
(1,988)
29
5,115
3,541
820
6,863
68,205
10.1%
32
(118)
(12)
5,636
4,130
9,668
70,208
13.8%
3,320
2,321
(133)
5,687
3,473
14,668
72,039
20.4%
4,516
1,041
(59)
5,753
3,587
14,838
74,931
19.8%
848
328
(23)
5,911
3,914
10,978
78,874
13.9%
2,021
1,011
(25)
5,896
4,410
13,313
81,256
16.4%
5,198
3,224
(339)
6,234
3,810
18,127
83,494
21.7%
2,914
(61)
(341)
11,897
8,552
23,643
174,231
13.6%
23,466
(13,207)
(262)
14,409
11,708
36,114
214,420
16.8%
12,566
3,181
(231)
19,003
14,274
(12,152)
36,641
252,154
14.5%
7,214
1,256
(175)
22,191
14,731
820
46,037
285,383
16.1%
6,621 $
1,870
3,772
(6,094)
6,169
0.20 $
6,222 $
1,522
3,427
(6,058)
5,113
0.17 $
(654) $
(2,238)
3,541
820
1,469
0.05 $
23,466 $
(13,384)
11,708
21,790
0.71 $
12,566 $
2,767
14,274
(12,152)
17,455
0.56 $
30,957
30,886
31,020
(1,843) $
79
2,609
845
0.03 $
30,874
Diluted weighted average shares outstanding for non-GAAP calculation
$
$
1,274
79
3,242
4,595
0.15
$
$
30,770
5,353
63
2,792
8,208
0.27
$
$
30,399
18,682
(13,605)
3,065
8,142
0.27
$
$
30,646
195 $
(646)
3,299
2,848
0.09 $
31,118
(472) $
20
3,776
3,324
0.11 $
31,053
32 $
(368)
4,130
3,794
0.12 $
31,074
3,320
2,071
3,473
8,864
0.28
$
$
31,324
4,516
1,406
3,587
9,509
0.30
$
$
31,998
848
277
3,914
5,039
0.16
$
$
32,442
2,021
846
4,410
7,277
0.22
$
$
32,620
5,198
2,773
3,810
11,781
0.36
$
$
33,180
2,914 $
(180)
8,552
11,286
0.38 $
29,945
30,671
31,003
7,214
871
14,731
820
23,636
0.75
31,356
As a percentage of revenue:
Cost of revenue
Gross profit
29.4%
70.6%
29.0%
71.0%
28.9%
71.1%
27.6%
72.4%
29.4%
70.6%
29.7%
70.3%
29.3%
70.7%
28.3%
71.7%
29.2%
70.8%
29.3%
70.7%
28.4%
71.6%
27.6%
72.4%
27.5%
72.5%
27.2%
72.8%
27.8%
72.2%
29.2%
70.8%
28.7%
71.3%
29.2%
70.8%
28.6%
71.4%
Operating expenses:
Research and development
Sales and marketing
General and administrative
Total operating expenses
14.9%
48.5%
11.2%
74.9%
14.4%
42.9%
11.1%
68.5%
13.5%
35.8%
11.4%
60.7%
12.4%
40.0%
11.0%
63.5%
15.8%
42.9%
12.4%
71.3%
15.8%
41.6%
12.6%
71.0%
15.3%
39.0%
12.5%
57.3%
14.7%
42.4%
12.0%
59.9%
15.1%
45.2%
14.4%
74.6%
17.1%
39.6%
14.1%
70.8%
16.8%
34.2%
12.9%
63.9%
14.9%
37.6%
12.6%
65.1%
16.6%
41.6%
12.8%
71.0%
15.8%
40.8%
12.5%
69.1%
16.1%
34.0%
12.4%
62.5%
13.8%
45.3%
10.3%
69.4%
13.7%
41.6%
11.2%
66.7%
15.4%
41.5%
12.3%
64.7%
16.0%
39.0%
13.5%
68.5%
8,222 $
4,288 $
3,934 $
8.6%
8,424 $
4,541 $
3,883 $
8.6%
9,008 $
4,744 $
4,264 $
7.0%
7,422 $
4,945 $
2,477 $
7.0%
Net cash provided from operating activities
Less acquisition of property and equipment
Non-GAAP free cash flow***
Acquisition of property and equipment as percentage of revenue
Operating metrics:
Gross unique customer additions(1)
Ending unique customer count(1)
Net unique customer additions (as calculated)(2)
Average unique customer count per period (as calculated)(3)
Average monthly revenue per unique customer (ARPU)(4)
$
$
$
11,600 $
4,092 $
7,508 $
7.5%
13,408
5,185
8,223
9.0%
$
$
$
10,901 $
5,473 $
5,428 $
9.1%
5,248 $
5,171 $
77 $
8.3%
10,931 $
4,432 $
6,499 $
6.9%
11,617 $
6,846 $
4,771 $
10.3%
13,665 $
4,445 $
9,220 $
6.2%
12,963 $
4,757 $
8,206 $
6.3%
11,091 $
5,929 $
5,162 $
7.5%
11,869 $
8,126 $
3,743 $
10.0%
18,347
6,958
11,389
8.3%
$
$
$
25,048 $
17,158 $
7,890 $
9.8%
41,654 $
18,106 $
23,548 $
8.4%
38,697 $
21,922 $
16,775 $
8.7%
43,058
18,891
24,167
6.6%
50,000
455,000
20,000
45,000
470,000
15,000
40,000
485,000
15,000
45,000
500,000
15,000
45,000
510,000
10,000
45,000
535,000
15,000
35,000
540,000
5,000
45,000
555,000
15,000
50,000
565,000
10,000
50,000
575,000
10,000
45,000
585,000
10,000
50,000
595,000
10,000
50,000
605,000
10,000
50,000
615,000
10,000
50,000
625,000
10,000
185,000
435,000
85,000
180,000
500,000
65,000
170,000
555,000
45,000
195,000
595,000
40,000
445,000
$37.46
462,500
$37.86
477,500
$37.94
492,500
$38.94
505,000
$39.56
522,500
$39.60
537,500
$39.59
547,500
$40.36
560,000
$40.60
570,000
$41.06
580,000
$41.40
590,000
$42.33
600,000
$43.82
610,000
$44.40
620,000
$44.89
392,500
$36.99
467,500
$38.22
527,500
$39.83
575,000
$41.36
(1) Unique customers are rounded to the nearest 5,000. We define unique customers as customers of all of our products and services, inclusive of both subscription and transaction-based products. Transactional customers are included in the customer count for the period if they transacted within the prior 12month period. A customer of multiple products and services is counted as one unique customer.
(2) Prior quarter ending unique paying customer count minus current quarter ending balance of unique paying customer count.
(3) As calculated by taking prior period ending unique customer count plus current period unique customer count, divided by number of months in that period
(4) As calculated by taking total revenue per period divided by average unique customer count per period as calculated, divided by number of months in that period.
(+) The results above have been revised to correct a non-cash expense associated with income taxes, which was immaterial to the company’s prior financial statements. Previously reported income tax expense for the first quarter of 2013, the second quarter of 2013, and the third quarter of 2013 was increased $194 thousand, $181 thousand, and $106
thousand, respectively. Previously reported income tax expense for the three months ended December 31, 2012 and the year ended December 31, 2012 was increased $156 thousand and $190 thousand, respectively. Previously reported income tax expense for the three months ended December 31, 2011 and the year ended December 31, 2011 was
increased $213 thousand. Sales tax expense within G&A operating expenses previously reported for the first quarter of 2013 and the second quarter of 2013 was decreased by $54 thousand and $123 thousand, respectively and increased by $176 thousand in the third quarter of 2013.
*** In addition to the results prepared in accordance with generally accepted accounting principles (GAAP), the company reports certain non-GAAP financial measures and other defined financial metrics. Management of the Company does not consider non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with
GAAP. The principal limitation of non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded from
these non-GAAP financial measures. In order to compensate for these limitations, management of the Company presents its non-GAAP financial measures in connection with its GAAP results and urges investors not to rely on any single financial measure to evaluate the Company's business. Notwithstanding the foregoing, these measures may not be
comparable to similarly titled measures used by other companies. Adjusted EBITDA (loss) is a non-GAAP financial measure that is defined as GAAP net income (loss) before income taxes, interest income and other income (expense), net, depreciation and amortization, stock-based compensation, litigation contingency accruals and contingent consideration
adjustments. Adjusted EBITDA margin is a non-GAAP financial measure that is calculated by dividing adjusted EBITDA (loss) by revenue. Non-GAAP net income (loss) is a non-GAAP financial measure that is defined as GAAP net income (loss) before the non-cash portion of income taxes, stock-based compensation expense, litigation contingency accruals
and contingent consideration adjustments. Non-GAAP net income (loss) per share is a non-GAAP financial measure that is calculated by dividing non-GAAP net income (loss) by the weighted average shares outstanding. Estimated cash tax rate is calculated by dividing estimated taxes to-be-paid by estimated annual profit before taxes. Free cash flow is
calculated by subtracting acquisition of property and equipment from net cash provided by operating activities.