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Web.com – WWWW – Delivered a strong performance to start 2012

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Web.com Group, Inc. (Nasdaq:WWWW), a leading provider of internet services and online marketing solutions for small- and medium-sized businesses, today announced results for the first quarter ended March 31, 2012.

  • WWWW First quarter revenue and profitability exceed high end of guidance
  • WWWW Added 1,600 net new subscribers, returning to positive net adds earlier than expected
  • WWWW Average Revenue Per User grew 2% sequentially in 1Q
  • Customer attrition remains at record low level

“Web.com delivered a strong performance to start 2012, with first quarter revenue and profitability exceeding the high-end of our guidance,” said David Brown, Chairman and CEO of Web.com. “Our return to positive net subscriber additions is both earlier than we previously anticipated and a significant accomplishment considering that Register.com and Network Solutions were losing approximately 20,000 and 15,000 subscribers per quarter, respectively, prior to their acquisitions by Web.com. We believe that Web.com is now well positioned to benefit from a powerful combination of growing subscribers, increasing ARPU off of a much larger subscriber base, and best-in-class churn levels for a company serving the small business market.”

WWWW First Quarter and Recent Business Highlights:


  • Web.com’s total net subscribers were approximately 2,959,000 at the end of the first quarter of 2012, up approximately 1,600 from the end of the fourth quarter.
  • Web.com’s average revenue per user (ARPU) was $13.15 for the first quarter of 2012, representing a sequential increase of 2% from a pro forma level of $12.86 for the fourth quarter of 2011.
  • Customer churn was approximately 1% for the first quarter of 2012, consistent with the previous record low level after including the contribution from Network Solutions.
  • Web.com used $11.5 million in cash to reduce its debt balance during the quarter. Since announcing the acquisition of Network Solutions, Web.com has already reduced its debt balance by $29.5 million as of the end of the first quarter. The Company intends to continue using its strong cash flow to reduce its debt balance.

Brown added, “We are pleased with our progress of driving cost synergies as we integrate the Network Solutions acquisition. We continue to be on plan or ahead of our expectations in this important area, which provides us with the opportunity to increase investments in sales and marketing programs focused on accelerating our long-term revenue growth. Our strategy is working, and we believe we have the opportunity to build a company with a very attractive financial profile characterized by significant scale, attractive growth, a high level of revenue visibility and best-in-class profitability and cash flow.”

About Web.com

Web.com Group, Inc. (Nasdaq:WWWW) is a leading provider of internet services and online marketing solutions for small- and medium-sized businesses (SMB’s). Web.com meets the needs of SMBs 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, general contractor leads, franchise and homeowner association websites, shopping cart software, eCommerce web site design and call center services.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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