[July 24, 2014] |
|
Constant Contact Announces Second Quarter 2014 Financial Results
WALTHAM, Mass. --(Business Wire)--
Constant
Contact®, Inc. (Nasdaq: CTCT), which helps more than 600,000 small
organizations create and grow customer relationships through a suite of
online marketing tools, today announced its financial results for the
second quarter ended June 30, 2014.
"We are pleased with our second quarter results, which represented
another solid quarter of revenue growth and increased profitability,"
said Gail Goodman, chief executive officer of Constant Contact. "We are
raising our revenue guidance for the year and are on target to deliver
accelerated revenue growth, expanded profitability and increased free
cash flow for 2014. Our confidence in our ability to achieve our
long-term growth objectives is reflected in the $30 million share
repurchase program we announced today."
"With the introduction of Constant Contact Toolkit™ in April, we
continue to successfully transition from an email marketing provider to
a company offering small business marketing solutions through a robust,
integrated marketing suite," continued Goodman. "Initial customer
response has been positive and we continue to test and optimize. Toolkit
offers small businesses and nonprofits the marketing tools they need to
acquire new customers and grow their relationships with existing
customers."
Second Quarter 2014 Financial Metrics
-
Revenue was $81.3 million, an increase of 15.7% compared to revenue of
$70.2 million for the comparable period in 2013.
-
Gross margin was 72.8%, compared to 70.7% for the comparable period in
2013.
-
Adjusted EBITDA was $13.3 million, compared to adjusted EBITDA of $9.7
million for the comparable period in 2013. Adjusted EBITDA margin was
16.4%, compared to 13.8% for the comparable period in 2013.
-
GAAP net income was $2.0 million, or $0.06 per diluted share, compared
to GAAP net income of $32 thousand, or $0.00 per diluted share, for
the comparable period in 2013.
-
Non-GAAP net income was $7.3 million, compared to non-GAAP net income
of $3.8 million for the comparable period in 2013. Non-GAAP net income
per diluted share was $0.22 per share, compared to $0.12 per share for
the comparable period in 2013.
-
Cash flow from operations was $11.9 million, compared to $7.4 million
for the comparable period in 2013.
-
Capital expenditures were $8.1 million, compared to $4.9 million for
the comparable period in 2013.
-
Free cash flow was $3.7 million, compared to $2.5 million for the
comparable period in 2013.
-
The company had $140 million in cash, cash equivalents and marketable
securities at June 30, 2014, compared to $131 million at March 31,
2014.
Second Quarter 2014 Operating Metrics
-
Added 50,000 gross new unique customers in the second quarter,
compared to 50,000 in the first quarter of 2014 and 50,000 in the
second quarter of 2013. (*)
-
Ended the second quarter with 615,000 unique customers, an increase
from 605,000 unique customers at the end of the first quarter of 2014
and 575,000 unique customers at the end of the second quarter of 2013.
(*)
-
Average monthly revenue per unique customer (ARPU) in the second
quarter was $44.40, up from $43.82 in the first quarter of 2014 and up
from $41.06 in the second quarter of 2013.
-
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 second quarter.
(*) Figures are rounded to nearest
5,000.
Other Recent Highlights
-
Facebook® announced the introduction of new Facebook® pages
for the display of restaurant location, hours of operation and menus.
In the U.S. and Canada, SinglePlatform will provide the menus,
products, services, and specials which will automatically be displayed
on the customer's Facebook® page.
-
Educated thousands of small businesses on how to comply with changing
legislation related to Canada's Anti-Spam Legislation (CASL), which
became effective on July 1, 2014. Constant Contact sponsored a recent
survey of small businesses across Canada that indicated only 29% of
small businesses had begun preparations to be CASL compliant. Constant
Contact's efforts, which included press, social media, blog posts,
videos and phone and local, in-person education, teach small
businesses how to comply with CASL. Efforts also consisted of
enhancing product features, including providing a customizable
template to better document consent from consumers as part of CASL
compliance.
-
Announced the inaugural class of the Small Business Innovation
Program, a four-month accelerator program designed to support
entrepreneurs working to scale solutions for small business and
nonprofit organizations. Hosted in the new Innovation Loft (InnoLoft)
space at Constant Contact's Waltham, Massachusetts headquarters, the
program provides participants with resources and mentoring from
marketing and technology experts, as well as access to the angel and
venture financing communities. Featuring a broad array of small
business solutions and entrepreneurs, the initial class includes:
mosaicHub, a B2B community marketplace; point of sale data provider
OmniLync; social data technology solutions predictor Sidewalk; and The
High Bar, a custom SaaS solution for nonprofits to engage with board
members.
"Our results for the second quarter were consistent with our
expectations - accelerating revenue growth, expanding margins and strong
free cash flow," said Harpreet Grewal, chief financial officer of
Constant Contact. "I am pleased with our ability to successfully execute
to near-term targets while navigating our transformation from an email
marketing company to a leading provider of online marketing tools. We
are raising our revenue guidance for 2014 and are increasingly confident
about our ability to deliver on our stated goal of sustained revenue
growth greater than 20% with margins greater than 20%."
Business Outlook
Based on information available as of July 24, 2014, Constant Contact is
issuing guidance for the third quarter and full year 2014 as follows:
|
|
|
|
Third Quarter 2014:
|
|
|
|
|
|
|
|
|
|
|
Current Guidance (7/24/2014)
|
Total revenue
|
|
|
$83.4 m - $83.7 m
|
Adjusted EBITDA margin
|
|
|
21.0% - 21.5%
|
Adjusted EBITDA
|
|
|
$17.5 m - $18.0 m
|
Stock-based compensation expense
|
|
|
~$3.9 m
|
GAAP net income
|
|
|
$4.3 m - $4.6 m
|
GAAP net income per share
|
|
|
$0.13 - $0.14
|
Non-GAAP net income per share*
|
|
|
$0.32 - $0.33
|
Diluted weighted average shares outstanding
|
|
|
32.9 m
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Guidance (5/1/2014)
|
|
|
Current Guidance (7/24/2014)
|
Total revenue
|
|
|
~$330 m
|
|
|
~$331 m
|
Adjusted EBITDA margin
|
|
|
~18.2%
|
|
|
~18.2%
|
Adjusted EBITDA
|
|
|
~$60 m
|
|
|
~$60 m
|
Stock-based compensation expense
|
|
|
~$17 m
|
|
|
~$16.5 m
|
GAAP net income
|
|
|
~$10.9 m
|
|
|
~$11.4 m
|
GAAP net income per share
|
|
|
~$0.34
|
|
|
~$0.35
|
Non-GAAP net income per share*
|
|
|
~$1.02
|
|
|
~$1.02
|
Diluted weighted average shares outstanding
|
|
|
32.7 m
|
|
|
32.7 m
|
Estimated effective tax rate
|
|
|
40%
|
|
|
40%
|
Estimated cash tax rate
|
|
|
10%
|
|
|
10%
|
* Non-GAAP net income per share calculated using an estimated cash
tax rate (10%).
|
|
Share Repurchase Program
Under the share repurchase program, Constant Contact is authorized to
repurchase up to $30 million of the company's common stock. The company
intends to purchase shares pursuant to a 10b5-1 trading plan through
July 2015. Shares may also be repurchased from time-to-time in privately
negotiated transactions or in the open market in accordance with
applicable securities laws and stock exchange rules. The timing and
amount of any share repurchases will be determined by Constant Contact's
management based on its evaluation of market conditions, share price and
other factors. The share repurchase program does not obligate Constant
Contact to acquire any particular amount of common stock and may be
suspended, modified or discontinued at any time at the company's
discretion without prior notice. The company expects to fund the share
repurchase program from its cash and cash equivalents.
Non-GAAP Financial Measures and Other Financial Information
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 a non-GAAP financial measure that is defined as GAAP
net income (loss) before income taxes, interest and other income
(expense), net, depreciation and amortization, stock-based compensation,
litigation contingency accruals and contingent consideration
adjustments. Adjusted EBITDA margin is a non-GAAP financial measure that
is calculated by dividing adjusted EBITDA by revenue.
Non-GAAP net income is a non-GAAP financial measure that is defined as
GAAP net income (loss) before the non-cash portion of income taxes,
stock-based compensation expense, litigation contingency accruals and
contingent consideration adjustments. Non-GAAP net income per share is a
non-GAAP financial measure that is calculated by dividing non-GAAP net
income (loss) by the 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 Adjusted EBITDA,
adjusted EBITDA margin and non-GAAP net income is that these non-GAAP
financial measures exclude significant expenses and income that are
required by GAAP to be recorded in the company's financial statements.
In addition, these non-GAAP financial measures 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 these 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 second quarter 2014 financial results conference
call
|
When:
|
Thursday, July 24, 2014
|
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: 68994303
The webcast will be archived on Constant Contact's website for a period
of three months.
About Constant Contact, Inc.
Constant Contact helps small businesses do more business. We have been
revolutionizing the success formula for small businesses, nonprofits,
and associations since 1998, and today work with more than 600,000
customers worldwide. The company offers the only all-in-one online
marketing platform that helps small businesses drive repeat business and
find new customers. It features multi-channel marketing campaigns
(newsletters/announcements, offers/promotions, online listings,
events/registration, and feedback) combined with shared content,
contacts, and reporting; free award-winning coaching and product
support; and integrations with critical business tools - all from a
single login. The company's extensive network of educators,
consultants/resellers, technology providers, franchises, and national
associations offer further support to help small organizations succeed
and grow. Through its Innovation Loft, Constant Contact is fueling the
next generation of small business technology.
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 company's accelerating revenue growth, expanding
profitability and increasing cash flow, the company's evolution from an
email marketing company to a robust, integrated marketing suite for
small businesses, the company's Toolkit offering, the company's
long-term growth opportunity, management's strategic vision, the
company's ability to deliver sustained revenue growth greater than 20%
with margins greater than 20%, the company's share repurchase program
and the financial guidance for the third quarter of 2014 and the full
year 2014. 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, the success of Constant Contact Toolkit, 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 offerings or
enhancements to existing products and integrate its products in an
effective manner, 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
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
81,256
|
|
|
|
$
|
70,208
|
|
|
|
$
|
160,130
|
|
|
|
$
|
138,413
|
|
Cost of revenue
|
|
|
|
22,100
|
|
|
|
|
20,578
|
|
|
|
|
43,827
|
|
|
|
|
40,486
|
|
Gross profit
|
|
|
|
59,156
|
|
|
|
|
49,630
|
|
|
|
|
116,303
|
|
|
|
|
97,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
12,850
|
|
|
|
|
11,999
|
|
|
|
|
25,924
|
|
|
|
|
22,267
|
|
Sales and marketing
|
|
|
|
33,113
|
|
|
|
|
27,804
|
|
|
|
|
65,913
|
|
|
|
|
58,606
|
|
General and administrative
|
|
|
|
10,186
|
|
|
|
|
9,925
|
|
|
|
|
20,306
|
|
|
|
|
19,765
|
|
Total operating expenses
|
|
|
|
56,149
|
|
|
|
|
49,728
|
|
|
|
|
112,143
|
|
|
|
|
100,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
|
3,007
|
|
|
|
|
(98
|
)
|
|
|
|
4,160
|
|
|
|
|
(2,711
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and other income (expense), net
|
|
|
|
25
|
|
|
|
|
12
|
|
|
|
|
48
|
|
|
|
|
(17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
3,032
|
|
|
|
|
(86
|
)
|
|
|
|
4,208
|
|
|
|
|
(2,728
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) benefit
|
|
|
|
(1,011
|
)
|
|
|
|
118
|
|
|
|
|
(1,339
|
)
|
|
|
|
2,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
2,021
|
|
|
|
$
|
32
|
|
|
|
$
|
2,869
|
|
|
|
$
|
(622
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.06
|
|
|
|
$
|
0.00
|
|
|
|
$
|
0.09
|
|
|
|
$
|
(0.02
|
)
|
Diluted
|
|
|
$
|
0.06
|
|
|
|
$
|
0.00
|
|
|
|
$
|
0.09
|
|
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding used in computing per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
31,484
|
|
|
|
|
30,689
|
|
|
|
|
31,387
|
|
|
|
|
30,660
|
|
Diluted
|
|
|
|
32,620
|
|
|
|
|
31,074
|
|
|
|
|
32,532
|
|
|
|
|
30,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
|
Calculation of Adjusted EBITDA and Adjusted EBITDA Margin
(unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
2,021
|
|
|
|
$
|
32
|
|
|
|
$
|
2,869
|
|
|
|
$
|
(622
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
|
|
1,011
|
|
|
|
|
(118
|
)
|
|
|
|
1,339
|
|
|
|
|
(2,106
|
)
|
Interest income and other (income) expense, net
|
|
|
|
(25
|
)
|
|
|
|
(12
|
)
|
|
|
|
(48
|
)
|
|
|
|
17
|
|
Depreciation and amortization
|
|
|
|
5,896
|
|
|
|
|
5,636
|
|
|
|
|
11,807
|
|
|
|
|
10,751
|
|
Stock-based compensation expense
|
|
|
|
4,410
|
|
|
|
|
4,130
|
|
|
|
|
8,324
|
|
|
|
|
7,671
|
|
Litigation contingency accrual
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
13,313
|
|
|
|
$
|
9,668
|
|
|
|
$
|
24,291
|
|
|
|
$
|
16,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Divide by:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
81,256
|
|
|
|
$
|
70,208
|
|
|
|
$
|
160,130
|
|
|
|
$
|
138,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
|
|
16.4
|
%
|
|
|
|
13.8
|
%
|
|
|
|
15.2
|
%
|
|
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
2,021
|
|
|
$
|
32
|
|
|
|
$
|
2,869
|
|
|
$
|
(622
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash portion of income tax expense (benefit)
|
|
|
|
846
|
|
|
|
(368
|
)
|
|
|
|
1,123
|
|
|
|
(2,606
|
)
|
Stock-based compensation expense
|
|
|
|
4,410
|
|
|
|
4,130
|
|
|
|
|
8,324
|
|
|
|
7,671
|
|
Litigation contingency accrual
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
|
$
|
7,277
|
|
|
$
|
3,794
|
|
|
|
$
|
12,316
|
|
|
$
|
5,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share: diluted
|
|
|
$
|
0.22
|
|
|
$
|
0.12
|
|
|
|
$
|
0.38
|
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding used in computing per share
amounts
|
|
|
|
32,620
|
|
|
|
31,074
|
|
|
|
|
32,532
|
|
|
|
31,047
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
|
Calculation of Free Cash Flow (unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
11,869
|
|
|
$
|
7,422
|
|
|
$
|
22,960
|
|
|
$
|
16,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment
|
|
|
|
8,126
|
|
|
|
4,945
|
|
|
|
14,055
|
|
|
|
9,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
$
|
3,743
|
|
|
$
|
2,477
|
|
|
$
|
8,905
|
|
|
$
|
6,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
|
Consolidated Condensed Statements of Cash Flows (unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
2,869
|
|
|
|
$
|
(622
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
11,807
|
|
|
|
|
10,751
|
|
Amortization of premiums on investments
|
|
|
|
107
|
|
|
|
|
102
|
|
Stock-based compensation expense
|
|
|
|
8,324
|
|
|
|
|
7,671
|
|
Provision for bad debts
|
|
|
|
10
|
|
|
|
|
2
|
|
Gain on sales of marketable securities
|
|
|
|
(1
|
)
|
|
|
|
-
|
|
Deferred income taxes
|
|
|
|
-
|
|
|
|
|
(2,100
|
)
|
Income tax benefit from the exercise of stock options
|
|
|
|
(605
|
)
|
|
|
|
(12
|
)
|
Taxes paid related to net share settlement of restricted stock units
|
|
|
|
(1,841
|
)
|
|
|
|
(1,020
|
)
|
Change in operating assets & liabilities, net of effects from
acquisitions:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
13
|
|
|
|
|
(10
|
)
|
Prepaid expenses and other current assets
|
|
|
|
(1,224
|
)
|
|
|
|
(2,831
|
)
|
Other assets
|
|
|
|
185
|
|
|
|
|
206
|
|
Accounts payable
|
|
|
|
685
|
|
|
|
|
42
|
|
Accrued expenses
|
|
|
|
814
|
|
|
|
|
2,221
|
|
Deferred revenue
|
|
|
|
1,401
|
|
|
|
|
2,018
|
|
Other long-term liabilities
|
|
|
|
416
|
|
|
|
|
12
|
|
Net cash provided by operating activities
|
|
|
|
22,960
|
|
|
|
|
16,430
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Purchases of marketable securities
|
|
|
|
(25,759
|
)
|
|
|
|
(1,909
|
)
|
Proceeds from maturities of marketable securities
|
|
|
|
13,265
|
|
|
|
|
10,534
|
|
Proceeds from sales of marketable securities
|
|
|
|
633
|
|
|
|
|
4,000
|
|
Increase in restricted cash
|
|
|
|
-
|
|
|
|
|
(550
|
)
|
Acquisition of property and equipment
|
|
|
|
(14,055
|
)
|
|
|
|
(9,689
|
)
|
Net cash provided by (used in) investing activities
|
|
|
|
(25,916
|
)
|
|
|
|
2,386
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Proceeds from issuance of common stock pursuant to exercise of stock
options
|
|
|
|
6,616
|
|
|
|
|
807
|
|
Income tax benefit from the exercise of stock options
|
|
|
|
605
|
|
|
|
|
6
|
|
Proceeds from issuance of common stock pursuant to employee stock
purchase plan
|
|
|
|
831
|
|
|
|
|
484
|
|
Repurchases of common stock
|
|
|
|
-
|
|
|
|
|
(1,618
|
)
|
Net cash provided by (used in) financing activities
|
|
|
|
8,052
|
|
|
|
|
(321
|
)
|
Effects of exchange rates on cash
|
|
|
|
4
|
|
|
|
|
(2
|
)
|
Net increase in cash and cash equivalents
|
|
|
|
5,100
|
|
|
|
|
18,493
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
82,478
|
|
|
|
|
67,775
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
87,578
|
|
|
|
$
|
86,268
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash investing and financing
activities
|
|
|
|
|
|
|
Capitalization of stock-based compensation
|
|
|
$
|
100
|
|
|
|
$
|
223
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
|
Consolidated Condensed Balance Sheets (unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
87,578
|
|
|
$
|
82,478
|
Marketable securities
|
|
|
|
52,480
|
|
|
|
40,723
|
Accounts receivable, net
|
|
|
|
157
|
|
|
|
180
|
Prepaid expenses and other current assets
|
|
|
|
10,912
|
|
|
|
9,175
|
Total current assets
|
|
|
|
151,127
|
|
|
|
132,556
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
42,707
|
|
|
|
39,238
|
Restricted cash
|
|
|
|
1,300
|
|
|
|
1,300
|
Goodwill
|
|
|
|
95,505
|
|
|
|
95,505
|
Acquired intangible assets, net
|
|
|
|
3,234
|
|
|
|
4,355
|
Deferred tax assets
|
|
|
|
9,574
|
|
|
|
9,574
|
Other assets
|
|
|
|
2,160
|
|
|
|
2,345
|
Total assets
|
|
|
$
|
305,607
|
|
|
$
|
284,873
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
7,469
|
|
|
$
|
6,783
|
Accrued expenses
|
|
|
|
11,717
|
|
|
|
10,903
|
Deferred revenue
|
|
|
|
36,657
|
|
|
|
35,256
|
Total current liabilities
|
|
|
|
55,843
|
|
|
|
52,942
|
|
|
|
|
|
|
|
Other long-term liabilities
|
|
|
|
2,476
|
|
|
|
2,060
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
58,319
|
|
|
|
55,002
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
Common stock
|
|
|
|
317
|
|
|
|
312
|
Additional paid-in capital
|
|
|
|
243,993
|
|
|
|
229,457
|
Accumulated other comprehensive income
|
|
|
|
21
|
|
|
|
14
|
Retained earnings
|
|
|
|
2,957
|
|
|
|
88
|
Total stockholders' equity
|
|
|
|
247,288
|
|
|
|
229,871
|
Total liabilities and stockholders' equity
|
|
|
$
|
305,607
|
|
|
$
|
284,873
|
|
|
|
|
|
|
|
[ Back To Homepage ]
|