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Exhibit 99.1
Endurance International Group Reports 2018 Third Quarter Results
| GAAP revenue of $283.8 million |
| Net loss of $6.3 million |
| Adjusted EBITDA of $87.5 million |
| Cash flow from operations of $51.3 million |
| Free cash flow of $40.7 million |
| Total subscribers on platform were approximately 4.852 million at September 30, 2018 |
BURLINGTON, MA (October 25, 2018) Endurance International Group Holdings, Inc. (NASDAQ: EIGI), a leading provider of cloud-based platform solutions designed to help small and medium-sized businesses succeed online, today reported financial results for its third quarter ended September 30, 2018.
We are pleased with our third quarter results and the operational progress we have made year to date, commented Jeffrey H. Fox, president and chief executive officer of Endurance International Group. Our investment plans for 2018 were designed to simplify the business and deliver increased value to our customers. We believe we are positioned to transition back to revenue growth in 2019 as we deliver expanded solution value to customers of our key strategic brands.
Third Quarter 2018 Financial Highlights
| Revenue for the third quarter of 2018 was $283.8 million, a decrease of 3.9 percent compared to $295.2 million for the third quarter of 2017. |
| Net loss for the third quarter of 2018 was $6.3 million compared to net loss of $40.3 million for the third quarter of 2017. |
| Net loss attributable to Endurance International Group Holdings, Inc. for the third quarter of 2018 was $6.3 million, or $(0.04) per diluted share, compared to net loss of $40.3 million, or $(0.29) per diluted share, for the third quarter of 2017. |
| Adjusted EBITDA for the third quarter of 2018 was $87.5 million, a decrease of 6.7 percent compared to $93.8 million for the third quarter of 2017. |
| Cash flow from operations for the third quarter of 2018 was $51.3 million, an increase of 10.5 percent compared to $46.4 million for the third quarter of 2017. |
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This decrease in net loss was primarily related to a $13.9 million decrease in stock-based compensation expense, a $4.3 million decrease due to the impact of the SEC investigations reserve recorded in the three months ended September 30, 2017, a $3.4 million reduction in restructuring costs, a $2.9 million decrease in amortization expense, a net reduction of $2.3 million in costs impacting operating expense, a net reduction of $2.0 million in costs impacting cost of revenue, a $1.0 million decrease in depreciation expense, and a $0.8 million decrease in our shareholder litigation reserve.
This decrease was primarily due to a $3.2 million reduction in stock-based compensation expense; a $2.8 million reduction in labor costs; a $2.8 million reduction in marketing program spend; a $1.5 million reduction in restructuring charges; and a $0.5 million net reduction of other marketing costs.
This decrease was primarily due to a reduction in amortization expense of $16.0 million, lower data center costs of $2.3 million and lower restructuring costs of $0.8 million.
This decrease was primarily due to the following factors: lower amortization expense of $2.9 million; lower support costs of $2.3 million, primarily due to cost savings from the consolidation of our U.S. support centers and other gains in customer support efficiencies; lower data center costs of $1.7 million, primarily due to vendor pricing concessions; lower stock-based compensation expense of $1.7 million; and lower depreciation of $0.8 million.
This decrease was primarily related to lower stock-based compensation expense of $19.6 million; lower labor costs of $4.4 million; lower restructuring costs of $3.5 million; and reduced integration costs of $1.0 million.
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Financial Statements, Disclosures and Schedules
Inside this 10-Q Quarterly Report
Material Contracts, Statements, Certifications & more
Endurance International Group Holdings, Inc. provided additional information to their SEC Filing as exhibits
Ticker: EIGI
CIK: 1237746
Form Type: 10-Q Quarterly Report
Accession Number: 0001628280-18-013456
Submitted to the SEC: Fri Nov 02 2018 12:04:15 PM EST
Accepted by the SEC: Fri Nov 02 2018
Period: Sunday, September 30, 2018
Industry: Prepackaged Software