This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here Reports First Quarter 2013 Financial Results

  • First quarter revenue and profitability exceed high end of guidance
  • Added 21,000 net new subscribers, ending the quarter at 3.03 million subscribers
  • Average Revenue Per User of $13.89 grew $0.12 sequentially
  • Completed second debt re-financing increasing total annualized interest savings to $18 million

JACKSONVILLE, Fla., May 2, 2013 (GLOBE NEWSWIRE) -- Group, Inc. (Nasdaq:WWWW), a leading provider of internet services and online marketing solutions for small businesses, today announced results for the first quarter ended March 31, 2013.

" delivered a strong performance to start 2013, with first quarter revenue and profitability exceeding the high end of our guidance," said David Brown, Chairman and CEO of "The successful expansion of our average revenue per user and 3 million plus subscriber base is improving the long-term growth profile of We also remain focused on maintaining our strong margins and looking for opportunities to further enhance profitability, such as our recent debt re-financings that are expected to drive annualized interest savings of more than $18 million."

Brown added, "We continue to invest in initiatives that will expand adoption of our higher value-added products and services. During 2013, we have already added eight new geographic markets with our Feet on the Street program and kicked off our series of Small Business Forums in conjunction with our PGA sponsorship of the Tour. In addition, the roll out of new services such as FaceBook Boost and Full-Service Search Engine Optimization further enhances our broad suite of solutions."

Summary of First Quarter 2013 Financial Results:
  • Total revenue, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $115.5 million for the first quarter of 2013, compared to $91.5 million for the first quarter of 2012. Non-GAAP revenue was $128.1 million for the first quarter of 2013, up 7% on a year-over-year basis and above the high end of the company's guidance range of $126.5 million to $128.0 million.
  • GAAP operating loss was $2.5 million for the first quarter of 2013. For the first quarter of 2012, the company reported a GAAP operating loss of $18.5 million. Non-GAAP operating income was $34.2 million for the first quarter of 2013, an increase from $32.0 million for the first quarter of 2012, and representing a non-GAAP operating margin of 27%.
  • GAAP net loss from continuing operations was $46.5 million, or ($0.97) per diluted share, for the first quarter of 2013, including a $19.5 million charge for a loss related to debt extinguishment. GAAP net loss from continuing operations was $29.8 million, or ($0.65) per diluted share, in the first quarter of 2012. Non-GAAP net income from continuing operations was $24.5 million for the first quarter of 2013, or $0.48 per diluted share, up 37% on a year-over-year basis and above the company's guidance of $0.44 to $0.46 per diluted share. The Company had non-GAAP net income of $17.2 million, or $0.35 per diluted share, for the first quarter of 2012.
  • Adjusted EBITDA was $36.9 million for the first quarter of 2013, an increase from $34.0 million for the first quarter of 2012, and representing a 29% adjusted EBITDA margin.
  • The Company generated cash from operations of $11.0 million for the first quarter of 2013, or $18.2 million excluding a $7.2 million one-time prepayment penalty paid as part of its recent debt refinancing. This compared to $14.8 million of cash flow from operations for the first quarter of 2012. 

First Quarter and Recent Business Highlights:
  •'s total net subscribers were approximately 3,030,000, at the end of the first quarter of 2013, up more than 21,000 from the end of the fourth quarter. 
  •'s average revenue per user (ARPU) was $13.89 for the first quarter of 2013, representing a sequential increase of $0.12 from $13.77 for the fourth quarter of 2012.
  • Customer churn was approximately 1% for the first quarter of 2013, consistent with the previous record low levels of recent quarters.

Conference Call Information

Management will host a conference call today May 2, 2013, at 5:00 p.m. (Eastern Time), to discuss's first quarter financial results and other matters related to the Company's business and forward looking guidance on selected financial metrics. A live webcast of the call will be available at the "Investor Relations" page of's website, To access the call, dial 877-407-3982 (domestic) or 201-493-6780 (international). A replay of this conference call will be available for a limited time at 877-870-5176 (domestic) or 858-384-5517 (international). The replay conference ID is 411129. A replay of the webcast will also be available for a limited time at

About Group, Inc. (Nasdaq:WWWW) is a leading provider of online marketing for small businesses. meets the needs of small businesses anywhere along their lifecycle by offering a full range of online services and support, including domain name registration services, website design, logo design, search engine optimization, search engine marketing and local sales leads, email marketing, general contractor leads, franchise and homeowner association websites, shopping cart software, eCommerce website design and call center services. For more information on the company, please visit .

Note to Editors: is a registered trademark of Group, Inc.

Use of Non-GAAP Financial Measures

Some of the measures in this press release are non-GAAP financial measures within the meaning of the SEC Regulation G. believes presenting non-GAAP measures is useful to investors, because it describes the operating performance of the company, excluding some recurring charges that are included in the most directly comparable measures calculated and presented in accordance with GAAP.'s management uses these non-GAAP measures as important indicators of the Company's past performance and in planning and forecasting performance in future periods. The non-GAAP financial information presents may not be comparable to similarly-titled financial measures used by other companies, and investors should not consider non-GAAP financial measures in isolation from, or in substitution for, financial information presented in compliance with GAAP. You are encouraged to review the reconciliation of non-GAAP financial measures to GAAP financial measures included elsewhere in this press release.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs