- Second quarter revenue and profitability exceeded high end of guidance
- Added 25,700 net new subscribers
- Average Revenue Per User of $14.09 grew $0.20 sequentially
- Deployed strong cash flow to reduce debt balance by $31.5 million in second quarter
JACKSONVILLE, Fla., Aug. 1, 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 second quarter ended June 30, 2013.
"Web.com posted strong results for the second quarter, with both revenue and profitability exceeding the high end of our guidance," said David Brown, Chairman and CEO of Web.com. "We are delivering on our strategy of consistently and profitably adding net subscribers, generating average revenue per user expansion across our three million plus subscribers and achieving best-in-class customer retention levels."
Brown added, "We see a long runway of opportunity in cross-selling and up-selling our substantial installed base of domain name customers with our higher value-added services. We believe that Web.com is well positioned to accelerate revenue growth as we exit 2013, making progress toward our longer-term target of low-teens revenue growth. We also continue to generate substantial profitability and cash flow, enabling the company to continue investing in growth initiatives and at the same time de-leveraging our balance sheet."Summary of Second Quarter 2013 Financial Results:
- Total revenue, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $120.4 million for the second quarter of 2013, compared to $98.9 million for the second quarter of 2012. Non-GAAP revenue was $131.4 million for the second quarter of 2013, up 8% on a year-over-year basis and above the high end of the company's guidance range of $130.0 million to $131.0 million.
- GAAP operating income was $1.9 million for the second quarter of 2013, compared to an operating loss of $11.2 million for the second quarter of 2012. Non-GAAP operating income was $34.4 million for the second quarter of 2013, an increase from $33.7 million for the second quarter of 2012 and representing a non-GAAP operating margin of 26%.
- GAAP net loss from continuing operations was $9.7 million, or ($0.20) per diluted share, for the second quarter of 2013. GAAP net loss from continuing operations was $19.1 million, or ($0.41) per diluted share, in the second quarter of 2012. Non-GAAP net income from continuing operations was $26.4 million for the second quarter of 2013, or $0.51 per diluted share, up 34% on a year-over-year basis and above the company's guidance of $0.48 to $0.49 per diluted share. The Company had non-GAAP net income of $19.1 million, or $0.38 per diluted share, for the second quarter of 2012.
- Adjusted EBITDA was $37.5 million for the second quarter of 2013, an increase from $35.7 million for the second quarter of 2012, and representing a 29% adjusted EBITDA margin.
- The Company generated cash from operations of $33.4 million for the second quarter of 2013, an increase of more than 100% compared to $16.4 million of cash flow from operations for the second quarter of 2012.
- Web.com's total net subscribers were approximately 3,056,000, at the end of the second quarter of 2013, up approximately 25,700 from the end of the first quarter.
- Web.com's average revenue per user (ARPU) was $14.09 for the second quarter of 2013, representing a sequential increase of $0.20 from $13.89 for the first quarter of 2013.
- Customer churn was approximately 1% for the second quarter of 2013, consistent with record low levels.
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