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Web.com Reports Record Fourth Quarter and Full Year 2011 Financial Results
|·||Fourth quarter revenue and profitability exceed high end of Web.com’s guidance|
|·||Average Revenue Per User (ARPU) grew 4% sequentially in 4Q (excluding Network Solutions), increased 13% in FY11|
|·||Customer retention improves to new record level|
|·||Net debt reduction of $23 million since Network Solutions acquisition; repayment ahead of schedule|
JACKSONVILLE, FL – February 16, 2012 – Web.com Group, Inc. (NASDAQ: WWWW), a leading provider of internet services and online marketing solutions for small businesses, today announced results for the fourth quarter and full year ended December 31, 2011.
“Web.com delivered revenue and profitability that were above our expectations for the fourth quarter, representing a strong finish to a record year and a great start to Web.com’s future following the Network Solutions acquisition,” said David Brown, Chairman and CEO of Web.com. “During 2011, we completed the integration of Register.com and delivered on each of our key objectives, including accelerated revenue growth, ARPU expansion, reduced customer churn and strong profitability and cash flow generation.”
“We are excited about Web.com’s outlook as we begin 2012. By replicating integration and growth strategies that have been successful in the past, we are making excellent progress incorporating the Network Solutions organization, and are quite pleased with the contribution our joint teams are already making in just this short period of time. In addition to building on our track record of driving ARPU growth, we believe that we are well positioned to stabilize and grow our much larger subscriber base as we proceed through 2012. With far greater resources, we believe we have the opportunity to drive shareholder value as we use the combined company’s strong cash flow to invest in growth initiatives as well as rapidly de-lever our balance sheet.”
Summary of Fourth Quarter 2011 Financial Results:
|·||Total revenue, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $73.6 million for the fourth quarter of 2011, compared to $37.6 million for the fourth quarter of 2010. Non-GAAP revenue, which adds back the impact of the fair value adjustment to acquired deferred revenue, was $96.5 million for the fourth quarter of 2011, above the company’s guidance range of $93.0 million to $95.0 million.|
|·||Operating loss, calculated in accordance with GAAP, was $32.8 million for the fourth quarter of 2011 and included a $23.4 million negative impact related to the fair value adjustment to acquired deferred revenue and prepaid registry fees, and $17.0 million of restructuring charges and corporate development expenses. For the fourth quarter of 2010, the company reported a GAAP operating loss of $4.4 million which included a $7.6 million negative impact from the fair value adjustment to acquired deferred revenue and prepaid registry fees.|
The following information was filed by Web.Com Group, Inc. (WEB) on Thursday, February 16, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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