[January 31, 2013] |
|
Constant Contact Announces Fourth Quarter and Full Year 2012 Financial Results
WALTHAM, Mass. --(Business Wire)--
Constant
Contact®, Inc. (Nasdaq: CTCT), which helps more than half a million
small organizations connect with their customers through a suite of
online engagement marketing tools, today announced its financial results
for the fourth quarter and full year ended December 31, 2012.
"We had a good finish to the year and are pleased with our fourth
quarter results. We delivered better than expected revenue and
profitability in-line with expectations. We also finished the year with
positive momentum across our core metrics, including new customer
additions," said Gail Goodman, chief executive officer of Constant
Contact. "2012 was an important year as we expanded our product suite
and began the transformation of Constant Contact into a true
multi-product company. We now have a robust suite of six online
marketing tools for our small business customers, and 2013 is the year
that we bring them all together for small businesses."
"Looking forward, social media marketing and mobile marketing will
require small businesses to dramatically adapt their marketing efforts,"
continued Goodman. "More than ever they need a partner to help them
navigate this changing marketing landscape and to provide a single,
integrated engagement marketing platform to create, manage and measure
all of their marketing campaigns. Constant Contact will be that resource
for small businesses and build upon our role as the trusted marketing
provider to more than half a million small businesses. The opportunity
is expansive, and we believe that we have the right strategy, products
and team to execute on our vision."
Fourth Quarter 2012 Financial Metrics
-
Revenue was $66.3 million, an increase of 15.2% compared to revenue of
$57.5 million for the comparable period in 2011.
-
Gross margin in the fourth quarter was 71.7%, compared to 72.4% for
the comparable period in 2011.
-
GAAP net income was $6.4 million, compared to GAAP net income of $18.9
million for the fourth quarter of 2011. GAAP net income per diluted
share was $0.21, based on diluted weighted average shares outstanding
of 30.9 million, compared to GAAP net income of $0.62 per diluted
share, based on diluted weighted average shares outstanding of 30.6
million, for the comparable period in 2011. GAAP net income and GAAP
net income per share for the fourth quarter of 2012 included a $6.1
million non-cash benefit, or $0.20 per diluted share, from a change to
the fair value of a contingent consideration liability associated with
the acquisition of SinglePlatform. GAAP net income and GAAP net income
per share for the fourth quarter of 2011 included a $13.8 million, or
$0.45 per diluted share, tax benefit primarily associated with the
release of the deferred tax asset valuation allowance.
-
Adjusted EBITDA was $10.2 million compared to adjusted EBITDA of $12.0
million for the comparable period in 2011. Adjusted EBITDA margin was
15.3%, compared to 20.9% for the comparable period in 2011. Adjusted
EBITDA and adjusted EBITDA margin for the fourth quarter of 2012
excluded a $6.1 million non-cash benefit from a change to the fair
value of a contingent consideration liability associated with the
acquisition of SinglePlatform.
-
Non-GAAP net income was $5.1 million, compared to non-GAAP net income
of $8.1 million for the fourth quarter of 2011. Non-GAAP net income
per diluted share was $0.17, based on diluted weighted average shares
outstanding of 30.9 million, compared to non-GAAP net income per
diluted share of $0.27, based on diluted weighted average shares
outstanding of 30.6 million, for the comparable period in 2011.
Non-GAAP net income and non-GAAP net income per share for the fourth
quarter of 2012 excluded a $6.1 million non-cash benefit, or $0.20 per
diluted share, from a change to the fair value of a contingent
consideration liability associated with the acquisition of
SinglePlatform. Non-GAAP net income and non-GAAP net income per share
for the fourth quarter of 2011 excluded a $13.8 million, or $0.45 per
diluted share, tax benefit primarily associated with the release of
the deferred tax asset valuation allowance.
-
Cash flow from operations was $11.7 million, compared to $13.4 million
for the fourth quarter of 2011.
-
Capital expenditures were $6.8 million, compared to $5.2 million for
the fourth quarter of 2011.
-
Free cash flow was $4.8 million, compared to $8.2 million for the
fourth quarter of 2011.
-
The company had $93.5 million in cash, cash equivalents and short-term
marketable securities at December 31, 2012, compared to $88.2 million
at September 30, 2012.
Full Year 2012 Financial Metrics
-
Revenue was $252.2 million, an increase of 17.6% compared to $214.4
million for 2011.
-
Gross margin was 70.8%, compared to 71.3% for 2011.
-
GAAP net income was $12.8 million for 2012, compared to GAAP net
income of $23.7 million. GAAP net income per diluted share was $0.41,
based on diluted weighted average shares outstanding of 31.0 million,
compared to GAAP net income of $0.77 per diluted share for 2011, based
on diluted weighted average shares outstanding of 30.7 million. GAAP
net income and net income per share for 2012 included a $12.2 million,
or $0.39 per diluted share, non-cash benefit from a change to the fair
value of a contingent consideration liability associated with the
acquisition of SinglePlatform. GAAP net income and GAAP net income per
share for 2011 included a $13.4 million, or $0.44 per diluted share,
tax benefit primarily associated with the release of the deferred tax
asset valuation allowance.
-
Adjusted EBITDA for 2012 was $36.6 million compared to adjusted EBITDA
of $36.1 million for 2011. Adjusted EBITDA margin for 2012 was 14.5%
compared to 16.8% for 2011. Adjusted EBITDA and adjusted EBITDA margin
excluded a $12.2 million non-cash benefit from a change to the fair
value of a contingent consideration liability associated with the
acquisition of SinglePlatform.
-
Non-GAAP net income was $17.5 million for 2012, compared to $21.8
million for 2011. Non-GAAP net income per diluted share was $0.56,
based on diluted weighted average shares outstanding of 31.0 million,
compared to non-GAAP income of $0.71 per diluted share for 2011, based
on diluted weighted average shares outstanding of 30.7 million.
Non-GAAP net income and non-GAAP net income per share for 2012
excluded a $12.2 million, or $0.39 per diluted share, non-cash benefit
from a change to the fair value of a contingent consideration
liability associated with the acquisition of SinglePlatform. Non-GAAP
net income and non-GAAP net income per share for 2011 excluded a $13.6
million, or $0.44 per diluted share, tax benefit primarily associated
with the release of the deferred tax asset valuation allowance.
-
Cash flow from operations was $38.7 million for the full year of 2012
compared to $41.7 million in 2011.
-
Capital expenditures were $21.9 million for the full year of 2012
compared to $18.1 million in 2011.
-
Free cash flow was $16.8 million for the full year of 2012, compared
to $23.5 million in 2011.
Operating Metrics
-
Added 45,000 gross new unique customers in the fourth quarter compared
to 35,000 in the third quarter of 2012. (*)
-
Ended the fourth quarter with 555,000 unique customers, an increase
from 540,000 unique customers at the end of the third quarter of 2012
and 500,000 unique customers at the end of the fourth quarter of 2011.
This includes the approximately 10,000 existing SinglePlatform
customers at the time of the acquisition in June 2012. (*)
-
Average monthly revenue per unique customer (ARPU) for the fourth
quarter was $41.12, up from $40.35 in the third quarter of 2012, and
up from $38.94 in the comparable period in 2011. (**)
-
Monthly retention rate of unique paying customers remained in its
historical range of 97.8%, plus or minus 0.5%, for each month during
the fourth quarter.
(*) Figures are rounded to nearest
5,000. (**) The ARPU calculation includes SinglePlatform
revenue for the fourth quarter of 2012 and excludes the approximately
10,000 existing SinglePlatform customers at the time of the
acquisition in June 2012.
Other Recent Highlights
-
Announced the addition of four major new publishers, including The
Washington Post, WhitePages™, Infogroup®, and Acxiom
Corporation to the SinglePlatform publishing partner network. The
publisher network continues to expand, extending the reach of
SinglePlatform's small business customers, giving them an even greater
opportunity to be found at the critical moment a consumer is making a
purchase decision.
-
Launched the new Constant Contact Solution Provider Program with an
accredited curriculum that delivers education and training on
engagement marketing tools, marketing best practices and business
development to help Constant Contact Solution Providers market and
grow their own business. The program is focused on driving business
results for solution provider partners by supplying them with the
sales tools, marketing resources and KnowHow® to accelerate
demand generation.
-
Achieved growth across the portfolio of engagement marketing products,
including reaching the following milestones during 2012:
-
Sent out more than 45 billion emails on behalf of more than
500,000 email marketing customers
-
Managed more than 315,000 events via EventSpot for more than 5
million event registrants
-
SinglePlatform's digital storefronts had more than 100 million
consumer views, with monthly views surpassing 20 million in
December
-
Social Campaigns generated more than 120,000 users since its
launch in February
-
SaveLocal launched more than 9,500 deals in 2012, with more than
20% of the deals purchased by new consumers
"We took steps to refocus the organization on operating discipline and
reverse the trends that contributed to our weak performance in the third
quarter," said Harpreet Grewal, chief financial officer of Constant
Contact. "We have made good progress and are pleased with the fourth
quarter results. For 2013, our guidance remains largely unchanged. We
expect to deliver approximately 13% - 15% annual revenue growth and
approximately 100 basis points of annual adjusted EBITDA margin
improvement," continued Grewal. "Our 2013 priorities focus on
accelerating customer growth and transforming Constant Contact into a
true multi-product company. We expect to continue making investments in
product integration, branding and positioning, pricing and packaging,
and will maintain our renewed focus on operational discipline and
analytical rigor to drive the desired results."
Business Outlook
Based on information available as of January 31, 2013, Constant Contact
is issuing guidance for the first quarter and full year 2013 as follows:
First Quarter 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Guidance (1/31/2013)
|
Total revenue
|
|
|
|
|
|
$67.9 m - $68.2 m
|
Adjusted EBITDA margin
|
|
|
|
|
|
5.9% - 6.6%
|
Adjusted EBITDA
|
|
|
|
|
|
$4.0 m - $4.5 m
|
Stock-based compensation expense
|
|
|
|
|
|
$3.8 m
|
GAAP net income (loss)
|
|
|
|
|
|
($2.7 m - $3.0 m)
|
GAAP net income (loss) per share
|
|
|
|
|
|
($0.09 - $0.10)
|
Non-GAAP net income (loss) per share*
|
|
|
|
|
|
($0.03 - $0.04)
|
Diluted weighted average shares outstanding
|
|
|
|
|
|
31.2 m
|
|
|
|
|
|
|
|
Full Year 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Guidance (10/25/2012)
|
|
|
|
|
|
Current Guidance (1/31/2013)
|
Total revenue
|
|
|
|
|
|
Approximately 13% - 15% revenue growth
|
|
|
|
|
|
$284.0 m - $289.0 m
|
Adjusted EBITDA margin
|
|
|
|
|
|
~100 basis points of annual Adjusted EBITDA margin expansion
|
|
|
|
|
|
15.1% - 15.6%
|
Adjusted EBITDA
|
|
|
|
|
|
-
|
|
|
|
|
|
$43.0 m - $45.0 m
|
Stock-based compensation expense
|
|
|
|
|
|
-
|
|
|
|
|
|
$15.3 m
|
GAAP net income
|
|
|
|
|
|
-
|
|
|
|
|
|
$3.1 m - $4.3 m
|
GAAP net income per share
|
|
|
|
|
|
-
|
|
|
|
|
|
$0.10 - $0.13
|
Non-GAAP net income per share*
|
|
|
|
|
|
-
|
|
|
|
|
|
$0.62 - $0.69
|
Diluted weighted average shares outstanding
|
|
|
|
|
|
-
|
|
|
|
|
|
31.6 m
|
Estimated effective tax rate
|
|
|
|
|
|
-
|
|
|
|
|
|
~40%
|
Estimated cash tax rate
|
|
|
|
|
|
-
|
|
|
|
|
|
~10%
|
* non-GAAP net income per share calculated using an estimated cash
tax rate
|
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures:
Adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP
net income per share, estimated cash tax rate and free cash flow.
Adjusted EBITDA is calculated by taking GAAP net income, adding
depreciation and amortization, stock-based compensation, adjusting for
taxes and contingent consideration adjustment, then subtracting interest
and other income, net. Adjusted EBITDA margin is equal to adjusted
EBITDA divided by revenue.
Non-GAAP net income is calculated by taking GAAP net income adding back
stock-based compensation expense and then adjusting for the non-cash
portion of income taxes and contingent consideration adjustment.
Non-GAAP net income per share is calculated by dividing Non-GAAP net
income by the diluted weighted average shares outstanding.
Estimated cash tax rate is calculated by dividing estimated taxes
to-be-paid by estimated full year income before taxes.
Free cash flow is calculated by subtracting cash paid for the
acquisition of property and equipment from net cash provided by
operating activities.
Constant Contact believes that these non-GAAP measures of financial
results provide useful information to management and investors regarding
certain financial and business trends relating to Constant Contact's
financial condition and results of operations. The company's management
uses these non-GAAP measures to compare the company's performance to
that of prior periods for trend analyses, for purposes of determining
executive and senior management incentive compensation and for budgeting
and planning purposes. These measures are used in monthly financial
reports prepared for management and in monthly and quarterly financial
reports presented to the company's board of directors. The company
believes that the use of these non-GAAP financial measures provides an
additional tool for investors to use in evaluating ongoing operating
results and trends and in comparing the company's financial measures
with other software-as-a-service companies, many of which present
similar non-GAAP financial measures to investors.
Management of the company does not consider these non-GAAP measures in
isolation or as an alternative to financial measures determined in
accordance with GAAP. The principal limitation of these non-GAAP
financial measures is that they exclude significant expenses and income
that are required by GAAP to be recorded in the company's financial
statements. In addition, they are subject to inherent limitations as
they reflect the exercise of judgments by management about which
expenses and income are excluded or included in determining these
non-GAAP financial measures. In order to compensate for these
limitations, management presents non-GAAP financial measures in
connection with GAAP results. Constant Contact urges investors to review
the reconciliation of its non-GAAP financial measures to the comparable
GAAP financial measures, which it includes in press releases announcing
quarterly financial results, including this press release, and not to
rely on any single financial measure to evaluate the company's business.
Reconciliation tables of the most comparable GAAP financial measures to
the non-GAAP financial measures used in this press release are included
with the financial tables at the end of this release.
Conference Call Information
What:
|
|
|
|
|
|
Constant Contact fourth quarter and full year 2012 financial results
conference call
|
When:
|
|
|
|
|
|
Thursday, January 31, 2013
|
Time:
|
|
|
|
|
|
5:00 p.m. ET
|
Live Call:
|
|
|
|
|
|
(877) 334-1974, domestic
|
|
|
|
|
|
|
(760) 666-3590, international
|
Replay:
|
|
|
|
|
|
(855) 859-2056, domestic
|
|
|
|
|
|
|
(404) 537-3406, international
|
Webcast:
|
|
|
|
|
|
http://investor.constantcontact.com/
(live and replay)
|
|
|
|
|
|
|
|
Live and replay conference ID code: 85688346
The webcast will be archived on Constant Contact's website for a period
of three months.
About Constant Contact, Inc.
Constant
Contact wrote the book on Engagement Marketing™ - the new marketing
success formula that helps small organizations create and grow customer
relationships in today's socially connected world. More than half a
million small businesses, nonprofits and associations worldwide use the
company's online marketing tools to generate new customers, repeat
business, and referrals through email marketing, social media marketing,
event marketing, local deals, digital storefronts, and online surveys.
Only Constant Contact offers the proven combination of affordable tools
and free KnowHow®, including local seminars, personal
coaching and award-winning product support. The company further supports
small organizations through its extensive network of
consultants/resellers, technology providers, franchises and national
associations.
Constant Contact and the Constant Contact Logo are registered
trademarks of Constant Contact, Inc. All Constant Contact product names
and other brand names mentioned herein are trademarks or registered
trademarks of Constant Contact, Inc. All other company and product names
may be trademarks or service marks of their respective owners.
Cautionary Language Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, including but not limited to, statements
regarding the recent positive momentum related to Constant Contact's
core operating metrics, the company's transformation to a multi-product
company, the company's future opportunity, management's ability to
execute on the company's strategy, revenue growth and expanding
profitability, management's focus on operational discipline and
analytical rigor and the financial guidance for the first quarter of
2013 and full year 2013. These forward-looking statements are made as of
the date they were first issued and were based on current expectations,
estimates, forecasts and projections as well as the beliefs and
assumptions of management. Words such as "expect," "anticipate,"
"should," "believe," "hope," "target," "project," "goals," "estimate,"
"potential," "predict," "may," "will," "might," "could," "intend,"
variations of these terms or the negative of these terms and similar
expressions are intended to identify these forward-looking statements.
Forward-looking statements are subject to a number of risks and
uncertainties, many of which involve factors or circumstances that are
beyond Constant Contact's control. Constant Contact's actual results
could differ materially from those stated or implied in forward-looking
statements due to a number of factors, including but not limited to, the
company's ability to attract new customers and retain existing
customers, the company's dependence on the market for email marketing
services for small organizations, adverse economic conditions in general
and adverse economic conditions specifically affecting the markets in
which the company operates, the company's ability to successfully
develop and introduce new products and add-ons or enhancements to
existing products, including the Social Campaigns and SaveLocal
products, the successful integration of SinglePlatform, adverse
regulatory or legal developments, litigation risk and expense, the
company's ability to continue to promote and maintain its brand in a
cost-effective manner, changes in the competitive environment, the
company's ability to compete effectively, the company's ability to
attract and retain key personnel, the company's ability to protect its
intellectual property and other proprietary rights, and other risks
detailed in Constant Contact's most recent Quarterly Report on Form 10-Q
filed with the Securities and Exchange Commission as well as other
documents that may be filed by the company from time to time with the
Securities and Exchange Commission. Past performance is not necessarily
indicative of future results. The forward-looking statements included in
this press release represent Constant Contact's views as of the date of
this press release. The company anticipates that subsequent events and
developments will cause its views to change. Constant Contact undertakes
no intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. These forward-looking statements should not be relied upon as
representing Constant Contact's views as of any date subsequent to the
date of this press release.
(CTCT-F)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
Consolidated Condensed Statements of Operations (unaudited)
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
$
|
66,298
|
|
|
$
|
57,532
|
|
|
$
|
252,154
|
|
|
$
|
214,420
|
|
Cost of revenue
|
|
|
|
|
|
18,792
|
|
|
|
15,896
|
|
|
|
73,547
|
|
|
$
|
61,491
|
|
Gross profit
|
|
|
|
|
|
47,506
|
|
|
|
41,636
|
|
|
|
178,607
|
|
|
|
152,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
|
|
9,736
|
|
|
|
7,153
|
|
|
|
38,787
|
|
|
|
29,478
|
|
Sales and marketing
|
|
|
|
|
|
28,092
|
|
|
|
23,007
|
|
|
|
104,527
|
|
|
|
89,211
|
|
General and administrative
|
|
|
|
|
|
7,931
|
|
|
|
6,356
|
|
|
|
31,132
|
|
|
|
23,979
|
|
Acquisition costs and other related charges
|
|
|
|
|
|
(6,058
|
)
|
|
|
-
|
|
|
|
(11,355
|
)
|
|
|
264
|
|
Total operating expenses
|
|
|
|
|
|
39,701
|
|
|
|
36,516
|
|
|
|
163,091
|
|
|
|
142,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
|
|
7,805
|
|
|
|
5,120
|
|
|
|
15,516
|
|
|
|
9,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and other income
|
|
|
|
|
|
35
|
|
|
|
82
|
|
|
|
224
|
|
|
|
346
|
|
Other (expense) income
|
|
|
|
|
|
(5
|
)
|
|
|
(84
|
)
|
|
|
7
|
|
|
|
(84
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
|
7,835
|
|
|
|
5,118
|
|
|
|
15,747
|
|
|
|
10,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) benefit
|
|
|
|
|
|
(1,456
|
)
|
|
|
13,777
|
|
|
|
(2,991
|
)
|
|
|
13,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
6,379
|
|
|
$
|
18,895
|
|
|
$
|
12,756
|
|
|
$
|
23,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
0.21
|
|
|
$
|
0.63
|
|
|
$
|
0.42
|
|
|
$
|
0.80
|
|
Diluted
|
|
|
|
|
$
|
0.21
|
|
|
$
|
0.62
|
|
|
$
|
0.41
|
|
|
$
|
0.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding used in computing per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
30,526
|
|
|
|
29,819
|
|
|
|
30,386
|
|
|
|
29,566
|
|
Diluted
|
|
|
|
|
|
30,886
|
|
|
|
30,646
|
|
|
|
31,003
|
|
|
|
30,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
Calculation of Adjusted EBITDA and Adjusted EBITDA Margin
(unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
6,379
|
|
|
$
|
18,895
|
|
|
$
|
12,756
|
|
|
$
|
23,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
|
|
|
Contingent consideration adjustment
|
|
|
|
|
|
6,058
|
|
|
|
-
|
|
|
|
12,152
|
|
|
|
-
|
|
Interest and other income
|
|
|
|
|
|
35
|
|
|
|
82
|
|
|
|
224
|
|
|
|
346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
4,990
|
|
|
|
3,842
|
|
|
|
19,003
|
|
|
|
14,409
|
|
Stock-based compensation expense
|
|
|
|
|
|
3,427
|
|
|
|
3,065
|
|
|
|
14,274
|
|
|
|
11,708
|
|
Income tax expense (benefit)
|
|
|
|
|
|
1,456
|
|
|
|
(13,777
|
)
|
|
|
2,991
|
|
|
|
(13,420
|
)
|
Other expense (income)
|
|
|
|
|
|
5
|
|
|
|
84
|
|
|
|
(7
|
)
|
|
|
84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
$
|
10,164
|
|
|
$
|
12,027
|
|
|
$
|
36,641
|
|
|
$
|
36,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Divide by:
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
$
|
66,298
|
|
|
$
|
57,532
|
|
|
$
|
252,154
|
|
|
$
|
214,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
|
|
|
|
15.3
|
%
|
|
|
20.9
|
%
|
|
|
14.5
|
%
|
|
|
16.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
Calculation of Non-GAAP Net Income and Non-GAAP Net Income per
Share (unaudited)
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
6,379
|
|
|
$
|
18,895
|
|
|
$
|
12,756
|
|
|
$
|
23,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjust:
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash portion of income tax expense (benefit)
|
|
|
|
|
|
1,365
|
|
|
|
(13,818
|
)
|
|
|
2,577
|
|
|
|
(13,597
|
)
|
Contingent consideration adjustment
|
|
|
|
|
|
(6,058
|
)
|
|
|
-
|
|
|
|
(12,152
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
|
3,427
|
|
|
|
3,065
|
|
|
|
14,274
|
|
|
|
11,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
|
|
|
$
|
5,113
|
|
|
$
|
8,142
|
|
|
$
|
17,455
|
|
|
$
|
21,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share: diluted
|
|
|
|
|
$
|
0.17
|
|
|
$
|
0.27
|
|
|
$
|
0.56
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding used in computing per share
amounts
|
|
|
|
|
|
30,886
|
|
|
|
30,646
|
|
|
|
31,003
|
|
|
|
30,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
Calculation of Free Cash Flow (unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
$
|
11,673
|
|
$
|
13,408
|
|
$
|
38,697
|
|
$
|
41,654
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment
|
|
|
|
|
|
6,846
|
|
|
5,185
|
|
|
21,922
|
|
|
18,106
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
|
$
|
4,827
|
|
$
|
8,223
|
|
$
|
16,775
|
|
$
|
23,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
Consolidated Condensed Statements of Cash Flows (unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
12,756
|
|
|
$
|
23,679
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
19,003
|
|
|
|
14,409
|
|
Amortization of premiums on investments
|
|
|
|
|
|
539
|
|
|
|
660
|
|
Stock-based compensation expense
|
|
|
|
|
|
14,274
|
|
|
|
11,708
|
|
Provision for bad debts
|
|
|
|
|
|
11
|
|
|
|
3
|
|
Loss on sale of equipment
|
|
|
|
|
|
-
|
|
|
|
79
|
|
Gain on sales of marketable securities
|
|
|
|
|
|
-
|
|
|
|
(13
|
)
|
Deferred income taxes
|
|
|
|
|
|
2,465
|
|
|
|
(13,827
|
)
|
Contingent consideration adjustment
|
|
|
|
|
|
(12,152
|
)
|
|
|
-
|
|
Taxes paid related to net share settlement of restricted stock units
|
|
|
|
|
|
(598
|
)
|
|
|
(319
|
)
|
Change in operating assets & liabilities, net of effects from
acquisitions:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
|
3
|
|
|
|
(17
|
)
|
Prepaid expenses and other current assets
|
|
|
|
|
|
1,770
|
|
|
|
(2,462
|
)
|
Other assets
|
|
|
|
|
|
(254
|
)
|
|
|
(1,149
|
)
|
Accounts payable
|
|
|
|
|
|
(787
|
)
|
|
|
1,462
|
|
Accrued expenses
|
|
|
|
|
|
(1,398
|
)
|
|
|
3,791
|
|
Deferred revenue
|
|
|
|
|
|
3,107
|
|
|
|
3,880
|
|
Other long-term liabilities
|
|
|
|
|
|
(42
|
)
|
|
|
(230
|
)
|
Net cash provided by operating activities
|
|
|
|
|
|
38,697
|
|
|
|
41,654
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Purchases of marketable securities
|
|
|
|
|
|
(40,254
|
)
|
|
|
(130,702
|
)
|
Proceeds from maturities of marketable securities
|
|
|
|
|
|
59,867
|
|
|
|
46,313
|
|
Proceeds from sales of marketable securities
|
|
|
|
|
|
44,600
|
|
|
|
84,727
|
|
Acquisition of businesses, net of cash acquired
|
|
|
|
|
|
(68,296
|
)
|
|
|
(15,600
|
)
|
Proceeds from sale of equipment
|
|
|
|
|
|
-
|
|
|
|
81
|
|
Purchases of intangible assets
|
|
|
|
|
|
-
|
|
|
|
(685
|
)
|
Acquisition of property and equipment
|
|
|
|
|
|
(21,922
|
)
|
|
|
(18,106
|
)
|
Net cash used in investing activities
|
|
|
|
|
|
(26,005
|
)
|
|
|
(33,972
|
)
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock pursuant to exercise of stock
options
|
|
|
|
|
|
4,356
|
|
|
|
7,926
|
|
Income tax benefit from the exercise of stock options
|
|
|
|
|
|
84
|
|
|
|
229
|
|
Proceeds from issuance of common stock pursuant to employee stock
purchase plan
|
|
|
|
|
|
1,053
|
|
|
|
859
|
|
Net cash provided by financing activities
|
|
|
|
|
|
5,493
|
|
|
|
9,014
|
|
Effects of exchange rates on cash
|
|
|
|
|
|
1
|
|
|
|
1
|
|
Net increase in cash and cash equivalents
|
|
|
|
|
|
18,186
|
|
|
|
16,697
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
|
49,589
|
|
|
|
32,892
|
|
Cash and cash equivalents, end of period
|
|
|
|
|
$
|
67,775
|
|
|
$
|
49,589
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash investing and financing
activities
|
|
|
|
|
|
|
|
Capitalization of stock-based compensation
|
|
|
|
|
|
785
|
|
|
|
670
|
|
Fair value of contingent consideration in connection with
acquisition included in accrued expenses and other long-term
liabilities
|
|
|
|
|
|
12,152
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
Consolidated Condensed Balance Sheets (unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
67,775
|
|
|
$
|
49,589
|
|
Marketable securities
|
|
|
|
|
|
25,732
|
|
|
|
90,523
|
|
Accounts receivable, net
|
|
|
|
|
|
92
|
|
|
|
58
|
|
Prepaid expenses and other current assets
|
|
|
|
|
|
6,912
|
|
|
|
8,891
|
|
Total current assets
|
|
|
|
|
|
100,511
|
|
|
|
149,061
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
|
39,653
|
|
|
|
34,263
|
|
Restricted cash
|
|
|
|
|
|
750
|
|
|
|
750
|
|
Goodwill
|
|
|
|
|
|
95,505
|
|
|
|
18,935
|
|
Acquired intangible assets, net
|
|
|
|
|
|
6,758
|
|
|
|
3,046
|
|
Deferred tax assets
|
|
|
|
|
|
11,377
|
|
|
|
12,960
|
|
Other assets
|
|
|
|
|
|
2,708
|
|
|
|
2,363
|
|
Total assets
|
|
|
|
|
$
|
257,262
|
|
|
$
|
221,378
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
8,167
|
|
|
$
|
8,906
|
|
Accrued expenses
|
|
|
|
|
|
10,803
|
|
|
|
10,515
|
|
Deferred revenue
|
|
|
|
|
|
32,700
|
|
|
|
28,983
|
|
Total current liabilities
|
|
|
|
|
|
51,670
|
|
|
|
48,404
|
|
|
|
|
|
|
|
|
|
Other long-term liabilities
|
|
|
|
|
|
2,010
|
|
|
|
2,052
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
53,680
|
|
|
|
50,456
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
307
|
|
|
|
301
|
|
Additional paid-in capital
|
|
|
|
|
|
209,987
|
|
|
|
190,039
|
|
Accumulated other comprehensive income
|
|
|
|
|
|
11
|
|
|
|
61
|
|
Accumulated deficit
|
|
|
|
|
|
(6,723
|
)
|
|
|
(19,479
|
)
|
Total stockholders' equity
|
|
|
|
|
|
203,582
|
|
|
|
170,922
|
|
Total liabilities and stockholders' equity
|
|
|
|
|
$
|
257,262
|
|
|
$
|
221,378
|
|
[ Back To TMCnet.com's Homepage ]
|