Delaware | 001- 33707 | 04-3285398 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
1601 Trapelo Road Waltham, Massachusetts |
02451 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition | ||||||||
Item 9.01. Financial Statements and Exhibits | ||||||||
SIGNATURE | ||||||||
EXHIBIT INDEX | ||||||||
EX-99.1 |
(d) | Exhibits | ||
The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed: |
99.1 | Press release entitled Constant Contact Announces First Quarter 2011 Financial Results, issued by the Company on April 28, 2011. |
CONSTANT CONTACT, INC. |
||||
Date: April 28, 2011 | By: | /s/ Robert P. Nault | ||
Robert P. Nault | ||||
Vice President, General Counsel and Secretary | ||||
| Revenue for the first quarter, ended March 31, 2011, was $50.0 million, an increase of 27% compared to revenue of $39.5 million for the comparable period in 2010. | ||
| Gross margin in the first quarter was 70.6%, compared to 70.3% for the comparable period in 2010. | ||
| GAAP net loss was $1.8 million for the first quarter of 2011, compared to a GAAP net loss of $0.8 million for the comparable period in 2010. First quarter 2011 GAAP net loss reflects the impact of Constant Contacts acquisition of Bantam Live, which closed on February 15, 2011. | ||
| GAAP net loss per share was $0.06 for the first quarter of 2011, based on weighted average shares outstanding of 29.3 million, compared to a GAAP net loss per share of $0.03 for the comparable period in 2010. | ||
| Adjusted EBITDA for the first quarter of 2011 was $4.0 million, an increase compared to adjusted EBITDA of $3.5 million for the comparable period in 2010. | ||
| Adjusted EBITDA margin for the first quarter of 2011 was 8.1%, compared to 8.9% for the comparable period in 2010. | ||
| Non-GAAP net income per diluted share was $0.02 for the first quarter of 2011, based on diluted weighted average shares outstanding of 30.8 million, compared to $0.03 for the comparable period in 2010. | ||
| Cash flow from operations was $8.2 million for the three months ended March 31, 2011, as compared to $6.5 million for the comparable period in 2010, and capital expenditures for both periods were $4.3 million, resulting in free cash flow of $3.9 million for the three months ended March 31, 2011 as compared to $2.2 million for the comparable period in 2010. | ||
| The company had $114 million in cash, cash equivalents and short-term marketable securities at March 31, 2011, compared to $124 million as of December 31, 2010. The company used $15 million in cash to acquire Bantam Live during the first quarter of 2011. |
| Added 50,000 gross new unique paying customers in the first quarter, up from 45,000 gross new unique paying customers added in the fourth quarter of 2010 and consistent with the year ago period. (*) | ||
| Ended the first quarter with 455,000 unique paying customers, an increase from 435,000 unique paying customers at the end of the fourth quarter of 2010 and 375,000 unique paying customers at the end of the first quarter of 2010.(*) | ||
| Average monthly revenue per unique customer, ARPU, for the first quarter was $37.46, up from $37.23 in the fourth quarter of 2010, and up from $36.30 in the comparable period in 2010. | ||
| 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 first quarter. (*) Figures are rounded to nearest 5,000. |
| Announced that Rick W. Jensen will be joining Constant Contact as Chief Sales and Marketing Officer. Jensen, a former executive at Intuit, GE Capital, and U.S. Bancorp, brings more than 20 years of consumer and small business marketing and sales experience to Constant Contacts executive team. His responsibilities included direct P&L responsibility for Intuits Small Business Group in addition to the Consumer Tax Group. | ||
| Received validation from Aberdeen Group that Constant Contact customers achieve better results and achieve more success with email marketing than users of other email marketing solutions. According to a recent study by the Aberdeen Group, Constant Contact customers have a 36% higher open rate, 60% better click through rate and generate 29% more revenue as compared to users of other email marketing solutions. We believe that delivering great customer success is a result of Constant Contacts highly differentiated success model: great affordable products, coaching with a personal touch, KnowHow, education and support to small business. | ||
| Acquired Bantam Live, a pioneering contact management and social CRM provider. Bantam Live provides Constant Contact a social CRM platform and technology that will serve as the foundation for all of Constant Contacts solutions, plus an experienced and talented team focused on developing products for small businesses. | ||
| Constant Contact Event Marketing surpassed 25,000 customers in the first quarter. | ||
| Trained the 1,000th Constant Contact expert during the quarter. More than 1,000 experts around the world are now trained on how to coach and teach small businesses about the power of email marketing and social media marketing. | ||
| Named a top ten business-to-business brand by The Business Journals, in its annual survey of 1,800 small businesses. Constant Contact moved up 17 spots in 2011 and now ranks number eight in the top business-to-business brands. For the full results of the survey, please click here. | ||
| Expanded our award-winning customer support hours. Constant Contact now offers all customers free and unlimited phone based support from 7am to 11pm ET Monday Thursday and 7am to 9pm ET on Fridays. |
Page 2
Current Guidance (4/28/2011) | ||
Total revenue
|
$52.6 m to $53.0 m | |
Adjusted EBITDA
|
$6.7 m to $7.0 m | |
Stock-based compensation expense
|
$3.0 m | |
GAAP net income
|
$150,000 to $450,000 | |
GAAP net income per share
|
$0.00 to $0.01 | |
Non-GAAP net income per share
|
$0.10 to $0.11 | |
Diluted weighted average shares outstanding
|
31.1 m shares |
Prior Guidance (2/16/2011) | Current Guidance (4/28/2011) | |||
Total revenue |
$217 m to $219 m | $217 m to $219 m | ||
Adjusted EBITDA |
$34.3 m to $35.7 m | $34.3 m to $35.7 m | ||
Stock-based compensation expense |
$13.3 m | $12.5 m | ||
GAAP net income |
$5.9 m to $7.4 m | $6.3 m to $7.7 m | ||
GAAP net income per share |
$0.20 to $0.25 | $0.20 to $0.25 | ||
Non-GAAP net income per share |
$0.61 to $0.66 | $0.60 to $0.65 | ||
Diluted weighted average shares outstanding |
31.0 m shares | 31.2 m shares |
Page 3
What:
|
Constant Contact first quarter 2011 financial results conference call | |
When:
|
Thursday, April 28, 2011 | |
Time:
|
5:00 p.m. ET | |
Live Call:
|
(877) 334-1974, domestic | |
(760) 666-3590, international | ||
Replay:
|
(800) 642-1687, passcode 58179947, domestic | |
(706) 645-9291, passcode 58179947, international | ||
Webcast:
|
http://investor.constantcontact.com/(live and replay) |
Page 4
Page 5
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Revenue |
$ | 50,015 | $ | 39,481 | ||||
Cost of revenue |
14,683 | 11,716 | ||||||
Gross profit |
35,332 | 27,765 | ||||||
Operating expenses: |
||||||||
Research and development |
7,438 | 5,621 | ||||||
Sales and marketing |
24,234 | 18,704 | ||||||
General and administrative |
5,778 | 4,299 | ||||||
Total operating expenses |
37,450 | 28,624 | ||||||
Loss from operations |
(2,118 | ) | (859 | ) | ||||
Interest and other income |
89 | 83 | ||||||
Loss before income taxes |
(2,029 | ) | (776 | ) | ||||
Benefit for income taxes |
186 | | ||||||
Net loss |
$ | (1,843 | ) | $ | (776 | ) | ||
Net loss per share: |
||||||||
Basic |
$ | (0.06 | ) | $ | (0.03 | ) | ||
Diluted |
$ | (0.06 | ) | $ | (0.03 | ) | ||
Weighted average shares outstanding used in
computing per share amounts: |
||||||||
Basic |
29,310 | 28,455 | ||||||
Diluted |
29,310 | 28,455 |
Page 6
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Net loss |
$ | (1,843 | ) | $ | (776 | ) | ||
Subtract: |
||||||||
Interest and other income |
89 | 83 | ||||||
Benefit for income taxes |
186 | | ||||||
Add back: |
||||||||
Depreciation and amortization |
3,540 | 2,624 | ||||||
Stock-based compensation expense |
2,609 | 1,735 | ||||||
Adjusted EBITDA |
$ | 4,031 | $ | 3,500 | ||||
Divide by: |
||||||||
Revenue |
$ | 50,015 | $ | 39,481 | ||||
Adjusted EBITDA margin |
8.1 | % | 8.9 | % |
Page 7
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Net loss |
$ | (1,843 | ) | $ | (776 | ) | ||
Add back: |
||||||||
Stock-based compensation expense |
2,609 | 1,735 | ||||||
Non-GAAP net income |
$ | 766 | $ | 959 | ||||
Non-GAAP net income per share: diluted |
$ | 0.02 | $ | 0.03 | ||||
Weighted average shares outstanding used in
computing per share amounts |
30,874 | 29,585 |
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Net cash provided by operating activities |
$ | 8,222 | $ | 6,452 | ||||
Subtract: |
||||||||
Acquisition of property and equipment |
4,288 | 4,288 | ||||||
Free cash flow |
$ | 3,934 | $ | 2,164 | ||||
Page 8
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 17,085 | $ | 32,892 | ||||
Marketable securities |
97,174 | 91,461 | ||||||
Accounts receivable, net |
33 | 44 | ||||||
Prepaid expenses and other current assets |
6,445 | 5,562 | ||||||
Total current assets |
120,737 | 129,959 | ||||||
Property and equipment, net |
30,658 | 29,723 | ||||||
Restricted cash |
750 | 750 | ||||||
Goodwill |
18,448 | 5,248 | ||||||
Acquired intangible assets, net |
2,501 | 781 | ||||||
Other assets |
1,750 | 1,214 | ||||||
Total assets |
$ | 174,844 | $ | 167,675 | ||||
Liabilities and Stockholders Equity |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ | 6,100 | $ | 7,444 | ||||
Accrued expenses |
10,703 | 6,724 | ||||||
Deferred revenue |
27,608 | 25,103 | ||||||
Total current liabilities |
44,411 | 39,271 | ||||||
Other long-term liabilities |
2,298 | 2,282 | ||||||
Total liabilities |
46,709 | 41,553 | ||||||
Common stock |
295 | 293 | ||||||
Additional paid-in capital |
172,828 | 168,974 | ||||||
Accumulated other comprehensive income |
13 | 13 | ||||||
Accumulated deficit |
(45,001 | ) | (43,158 | ) | ||||
Total stockholders equity |
128,135 | 126,122 | ||||||
Total liabilities and stockholders equity |
$ | 174,844 | $ | 167,675 | ||||
Page 9
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Cash flows from operating activities |
||||||||
Net loss |
$ | (1,843 | ) | $ | (776 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
3,540 | 2,624 | ||||||
Amortization of premiums on investments |
168 | 6 | ||||||
Stock-based compensation expense |
2,609 | 1,735 | ||||||
Recovery of bad debts |
(1 | ) | (3 | ) | ||||
Deferred income taxes |
79 | | ||||||
Change in operating assets & liabilities, net of effects from acquisition: |
||||||||
Accounts receivable |
12 | 1 | ||||||
Prepaid expenses and other current assets |
(883 | ) | (1,373 | ) | ||||
Other assets |
(536 | ) | (77 | ) | ||||
Accounts payable |
(1,344 | ) | 95 | |||||
Accrued expenses |
3,979 | 2,037 | ||||||
Deferred revenue |
2,505 | 2,461 | ||||||
Other long-term liabilities |
(63 | ) | (278 | ) | ||||
Net cash provided by operating activities |
8,222 | 6,452 | ||||||
Cash flows from investing activities |
||||||||
Purchases of marketable securities |
(45,025 | ) | (43,782 | ) | ||||
Proceeds from maturities of marketable securities |
10,144 | 14,700 | ||||||
Proceeds from sales of marketable securities |
29,000 | | ||||||
Payment for acquisition, net of cash acquired |
(15,000 | ) | | |||||
Acquisition of property and equipment |
(4,288 | ) | (4,288 | ) | ||||
Net cash used in investing activities |
(25,169 | ) | (33,370 | ) | ||||
Cash flows from financing activities |
||||||||
Proceeds from issuance of common stock pursuant to exercise of stock options |
1,140 | 559 | ||||||
Net cash provided by financing activities |
1,140 | 559 | ||||||
Net decrease in cash and cash equivalents |
(15,807 | ) | (26,359 | ) | ||||
Cash and cash equivalents, beginning of period |
32,892 | 59,822 | ||||||
Cash and cash equivalents, end of period |
$ | 17,085 | $ | 33,463 | ||||
Supplemental disclosure of non-cash investing activities |
||||||||
Capitalization of stock-based compensation |
107 | 19 |
Page 10
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