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Fourth quarter revenue and profitability exceed high end of Web.com's guidance
Successful integration of Network Solutions acquisition with accelerating revenue growth
Achieved three million subscriber milestone with low churn rates and increasing average revenue per user (ARPU)
Generated cash from operations of $26.6 million in the fourth quarter
Reduced debt balance by $9.6 million in the fourth quarter and $70.1 million since closing the Network Solutions acquisition
JACKSONVILLE, Fla., Feb. 7, 2013 (GLOBE NEWSWIRE) -- Web.com Group, Inc. (Nasdaq:WWWW), a leading provider of internet services and online marketing solutions for small businesses, today announced results for the fourth quarter and full year ended December 31, 2012.
"2012 was a pivotal year for Web.com as our successful integration of Network Solutions has created a company with an annualized non-GAAP revenue run rate of more than $500 million, an accelerating revenue growth profile, and best-in-class profitability margins and strong cash flow from operations," said David Brown, chairman and chief executive officer of Web.com.
The Company achieved a significant milestone by exceeding three million subscribers at year end. Web.com's pro forma revenue growth rate accelerated from the low single digits in 2011 to 7.2% in 2012. Also during the fourth quarter, Web.com refinanced its debt to more attractive rates and further reduced its debt balance ahead of the prescribed schedule.
Mr. Brown added, "Our strategy of using our domain name business as a lead generation source and cross-sell opportunity for our broad suite of online marketing solutions is working. We believe we are well-positioned to continue delivering consistent net subscriber growth, improving ARPU gains with new products and services, and best in class churn rates to meet our longer-term target of low-teens revenue growth, consistently high profitability margins and even faster growth in earnings through continued deleveraging."