2016-05-05

Web.com $WEB Q1 2016 Financial Results Webcast, May 5, 5pm ET

Web.com 1-year chart; $WEB is DOWN 10% in the past year (source: google.com)
Domain name registrar and technology company, Web.com Group, Inc., will release Q1 2016 earnings after market close on May 5, followed by a conference call/webcast to discuss the financial results.

Web.com conference call: May 5, 2016, at 5:00 p.m. ET - Listen to webcast - Presentation (pdf) - Web.com Press Release: First Quarter 2016 Financial Results
Q1 2016 Results as provided by Web.com in presentation and press release (see links above):

Summary of First Quarter 2016 Financial Results:

Total revenue, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $144.8 million for the first quarter of 2016, compared to $132.6 million for the first quarter of 2015. Non-GAAP revenue was $153.4 million for the first quarter of 2016, compared to $137.7 million in the year-ago quarter, and at the high end of the Company's guidance range of $150.5 million to $153.5 million. The year over year increase in revenue is primarily due to the acquisition of Yodle.

GAAP operating income was $6.9 million for the first quarter of 2016, compared to $11.1 million for the first quarter of 2015. Non-GAAP operating income was $35.1 million for the first quarter of 2016, representing a 23% non-GAAP operating margin, compared to $32.2 million for the first quarter of 2015, representing a 23% non-GAAP operating margin.

GAAP net income was $0.3 million, or $0.01 per diluted share, for the first quarter of 2016. GAAP net income was $2.3 million, or $0.04 per diluted share, for the first quarter of 2015. Non-GAAP net income was $32.2 million for the first quarter of 2016, or $0.63 per diluted share, exceeding the high end of the Company's net income guidance of $30 million to $32 million, and at the high end of the Company's earnings per share guidance of $0.59 to $0.63 per diluted share. The Company had non-GAAP net income of $29.5 million, or $0.56 per diluted share, for the first quarter of 2015.

Adjusted EBITDA was $39.7 million for the first quarter of 2016, compared to $36.1 million for the first quarter of 2015, representing a 26% adjusted EBITDA margin during each of the three months ended March 31, 2016 and 2015.

The Company generated cash from operations of $14.5 million for the first quarter of 2016, compared to $31.9 million of cash flow from operations for the first quarter of 2015. The decline in cash from operations is due to costs related to closing the Yodle acquisition and changes in the incentive payout.

First Quarter and Recent Business Highlights:

  • Closed on the acquisition of Yodle on March 9, 2016.
  • Web.com's total net subscribers were approximately 3,423,000 at the end of the first quarter of 2016, up approximately 70,000 from the end of the fourth quarter of 2015. This includes approximately 53,000 subscribers from the acquisition of Yodle.
  • Web.com's average revenue per user (ARPU) was $15.10 for the first quarter of 2016 compared to $13.75 for the first quarter of 2015. ARPU was up sequentially during the first quarter of 2016 from $13.92 during the fourth quarter of 2015. ARPU during the first quarter included the partial period impact of Yodle. 
  • Web.com's trailing twelve month customer retention rate was 87.1% for the first quarter of 2016. 
  • Web.com borrowed $315 million during the first quarter of 2016 primarily to fund the Yodle acquisition and used $12.5 million in cash to reduce debt during the quarter.
  • Repurchased 617,000 shares for $11.2 million in the first quarter of 2016.

Web.com Group, Inc. provides services to small businesses, offering subscription-based solutions including domains, hosting, website design and management, search engine optimization, online marketing campaigns, local sales leads, social media, mobile products and eCommerce solutions. Brands include Network Solutions (networksolutions.com), Registry.com, and Yodle (Yodle.com).

Stock exchange & symbol:  NASDAQ: WEB
Principal domain: web.com
Investor Relations: ir.web.com

WEB.com management will present at two upcoming investor conferences in May:
  • May 10, 2016 9:50 AM PT SunTrust Robinson Humphrey 2016 Internet & Digital Media Conference Listen to webcast
  • May 25, 2016 9:20 AM ET J.P. Morgan Global Technology, Media and Telecom Conference Listen to webcast
An audio of the presentations will be accessible in the Investor Relations section of the Company's website (ir.web.com) for a limited period of time after each event.



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