[January 29, 2015] |
|
Constant Contact Announces Fourth Quarter and Full Year 2014 Financial Results
Constant
Contact®, Inc. (Nasdaq: CTCT), which helps more than 600,000 small
organizations find and grow customer relationships through a suite of
online marketing tools, today announced its financial results for the
fourth quarter and fiscal year ended December 31, 2014.
"2014 was a year of great achievement for Constant Contact, marked by a
meaningful acceleration in revenue growth and profitability," said Gail
Goodman, chief executive officer of Constant Contact. "Our business
continues to show strength and we are making great strides in our
evolution into an integrated marketing suite (the Constant Contact
Toolkit™). We made considerable progress on several multi-year growth
initiatives this past year, putting us on the path to achieve sustained
revenue growth greater than 20% and expanding profitability margins
greater than 20%.
"We are revolutionizing the success formula for small businesses by
developing great, easy-to-use online marketing tools and combining them
with our marketing expertise, know how and coaching with a personal
touch," continued Goodman. "We will continue to leverage our strong
brand and market leadership to deliver success to our customers, giving
us the means to capitalize on the large and growing small business
market opportunity."
Fourth Quarter 2014 Financial Metrics
-
Revenue was $88.1 million, an increase of 17.6% compared to revenue of
$74.9 million for the comparable period in 2013.
-
Gross margin was 72.7%, compared to 72.4% for the comparable period in
2013.
-
Adjusted EBITDA was $18.2 million, compared to adjusted EBITDA of
$14.8 million for the comparable period in 2013. Adjusted EBITDA
margin was 20.7%, compared to 19.8% for the comparable period in 2013.
-
GAAP net income was $6.2 million, or $0.19 per diluted share, compared
to GAAP net income of $4.5 million, or $0.14 per diluted share, for
the fourth quarter of 2013.
-
Non-GAAP net income was $11.5 million, or $0.35 per diluted share,
compared to non-GAAP net income of $9.5 million, or $0.30 per diluted
share, for the fourth quarter of 2013.
-
Cash flow from operations was $16.1 million, compared to $13.0 million
for the fourth quarter of 2013.
-
Capital expenditures were $3.3 million, compared to $4.8 million for
the fourth quarter of 2013.
-
Free cash flow was $12.8 million, compared to $8.2 million for the
fourth quarter of 2013.
-
The company had $162.6 million in cash, cash equivalents and
marketable securities at December 31, 2014, compared to $154.5 million
at September 30, 2014.
Full Year 2014 Financial Metrics
-
Revenue was $331.7 million, an increase of 16.2% compared to $285.4
million for 2013.
-
Gross margin was 72.5%, compared to 71.4% for 2013.
-
Adjusted EBITDA was $60.6 million compared to adjusted EBITDA of $46.0
million for 2013. Adjusted EBITDA margin was 18.3% compared to 16.1%
for 2013.
-
GAAP net income was $14.3 million, compared to $7.2 million for 2013.
GAAP net income per diluted share was $0.44, based on diluted weighted
average shares outstanding of 32.8 million, compared to GAAP net
income per diluted share of $0.23 for 2013, based on diluted weighted
average shares outstanding of 31.4 million.
-
Non-GAAP net income was $35.5 million, compared to $23.6 million for
2013. Non-GAAP net income per diluted share was $1.08, based on
diluted weighted average shares outstanding of 32.8 million, compared
to non-GAAP net income per diluted share of $0.75 for 2013, based on
diluted weighted average shares outstanding of 31.4 million.
-
Cash flow from operations was $57.4 million for the full year of 2014
compared to $43.1 million in 2013.
-
Capital expenditures were $24.3 million for the full year of 2014,
compared to $18.9 million in 2013.
-
Free cash flow was $33.1 million for the full year of 2014, compared
to $24.2 million in 2013.
Operating Metrics
-
Added 55,000 gross new unique customers in the fourth quarter compared
to 50,000 in the fourth quarter of 2013 and 50,000 in the third
quarter of 2014. (*)
-
Added 205,000 gross unique customers in the full year 2014, up from
195,000 for the full year 2013.
-
Ended the fourth quarter with 635,000 unique customers, an increase
from 595,000 unique customers at the end of the fourth quarter of 2013
and 625,000 unique customers at the end of the third quarter of 2014.
(*)
-
Average monthly revenue per unique customer (ARPU) in the fourth
quarter was $46.59, up from $42.33 in the comparable period in 2013,
and $44.89 in the third quarter of 2014, which represented the highest
year-over-year growth in ARPU in the company's history.
-
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.
(*) Unique customers are rounded to
the nearest 5,000. We define unique customers as customers of all of
our products and services, inclusive of both subscription and
transaction-based products. Transactional customers are
included in the customer count for the period if they transacted
within the prior 12-month period. A customer of multiple
products and services is counted as one unique customer.
Other Recent Highlights
-
Released a donations offering for Canadian customers as part of the
Constant Contact Toolkit. The new campaign type will help Canadian
nonprofit organizations promote their cause, collect credit card
donations, and attract new donors online. Along with enhanced CASL
(Canadian Anti-Spam Law) functionality and new holiday campaigns, the
new donations campaign type further enhances product features designed
to help Canadian small businesses and nonprofits achieve marketing
success.
-
The partner channel continued to represent an increasing part of the
overall business with new customer accounts up 23 percent
year-over-year, driven by the success of both solution providers and
strategic partners.
-
Under the company's previously announced $30 million share repurchase
program, in the fourth quarter of 2014 the company repurchased
approximately 307,000 shares of common stock at an average price of
approximately $29.32 per share for a total cost of approximately $9.0
million. To date, the company has repurchased approximately 554,000
shares of common stock at an average price of $29.55 for a total cost
of approximately $16.4 million.
"We are pleased to announce another quarter consistent with or better
than expectations," said Harpreet Grewal, chief financial officer of
Constant Contact. "2014 was marked by year-over-year improvements in
gross new customer additions and a record increase in average revenue
per user. Combined, they contributed to a meaningful acceleration in
revenue growth for the full year and enabled us to deliver substantially
higher profit margins and significantly higher free cash flow.
"Looking ahead to 2015, we look to deliver another year of accelerating
revenue growth on our path to sustained revenue growth greater than 20%
and expanding profitability margins greater than 20%. The increasing
scale and leverage of our business, along with our disciplined approach
to balancing growth and profitability, provides the opportunity for
continued margin expansion and cash flow."
Business Outlook
Based on information available as of January 29, 2015, Constant Contact
is issuing guidance for the first quarter and full year 2015 as follows:
First Quarter 2015:
|
|
|
|
|
|
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Current Guidance (1/29/2015)
|
Total revenue
|
|
|
$90.7 m - $91.3 m
|
Adjusted EBITDA margin
|
|
|
14.0% - 14.4%
|
Adjusted EBITDA
|
|
|
$12.7 m - $13.1 m
|
Stock-based compensation expense
|
|
|
~$4.5 m
|
GAAP net income
|
|
|
$1.1 m - $1.3 m
|
GAAP net income per share
|
|
|
$0.03 - $0.04
|
Non-GAAP net income per share*
|
|
|
$0.18 - $0.19
|
Diluted weighted average shares outstanding
|
|
|
33.3 m
|
|
|
|
|
Full Year 2015:
|
|
|
|
|
|
|
|
|
|
Prior Guidance (10/24/2014)
|
|
|
Current Guidance (1/29/2015)
|
Total revenue
|
|
|
~17% annual revenue growth
|
|
|
~$388 m
|
Adjusted EBITDA margin
|
|
|
~150 basis points of annual Adjusted EBITDA margin expansion
|
|
|
~19.6%
|
Adjusted EBITDA
|
|
|
-
|
|
|
~$75.9 m
|
Stock-based compensation expense
|
|
|
-
|
|
|
~$18.5 m
|
GAAP net income
|
|
|
-
|
|
|
~$19.3 m
|
GAAP net income per share
|
|
|
-
|
|
|
~$0.58
|
Non-GAAP net income per share*
|
|
|
-
|
|
|
~$1.38
|
Diluted weighted average shares outstanding
|
|
|
-
|
|
|
33.5 m
|
Estimated effective tax rate
|
|
|
-
|
|
|
40%
|
Estimated cash tax rate
|
|
|
-
|
|
|
12% - 15%
|
* Non-GAAP net income per share calculated using an estimated cash
tax rate.
|
|
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 before income taxes, interest and other income (expense),
net, depreciation and amortization, stock-based compensation, and
litigation contingency accruals. 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 before the non-cash portion of income taxes, stock-based
compensation expense, and litigation contingency accruals. Non-GAAP net
income per share is a non-GAAP financial measure that is calculated by
dividing non-GAAP net income 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
certain components of 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:
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|
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Constant Contact fourth quarter and full year 2014 financial results
conference call
|
When:
|
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Thursday, January 29, 2015
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Time:
|
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5:00 p.m. ET
|
Live Call:
|
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(877) 334-1974, domestic
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(760) 666-3590, international
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Replay:
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(855) 859-2056, domestic
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(404) 537-3406, international
|
Webcast:
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http://investor.constantcontact.com/
(live and replay)
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Live and replay conference ID code: 58915504
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 evolution into an integrated marketing suite,
ability to deliver sustained revenue growth greater than 20% and
expanding profitability margins greater than 20%, ability to leverage
its strong brand and market leadership, ability to leverage the large
and growing small business market opportunity, expanding cash flow and
the financial guidance for the first quarter of 2015 and the full year
2015. 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," "suggest," "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
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
88,054
|
|
|
|
$
|
74,931
|
|
|
|
$
|
331,678
|
|
|
|
$
|
285,383
|
|
Cost of revenue
|
|
|
|
24,013
|
|
|
|
|
20,652
|
|
|
|
|
91,063
|
|
|
|
|
81,616
|
|
Gross profit
|
|
|
|
64,041
|
|
|
|
|
54,279
|
|
|
|
|
240,615
|
|
|
|
|
203,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
13,745
|
|
|
|
|
11,167
|
|
|
|
|
53,086
|
|
|
|
|
45,567
|
|
Sales and marketing
|
|
|
|
31,490
|
|
|
|
|
28,160
|
|
|
|
|
125,809
|
|
|
|
|
111,374
|
|
General and administrative
|
|
|
|
11,248
|
|
|
|
|
9,454
|
|
|
|
|
41,919
|
|
|
|
|
38,531
|
|
Total operating expenses
|
|
|
|
56,483
|
|
|
|
|
48,781
|
|
|
|
|
220,814
|
|
|
|
|
195,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
7,558
|
|
|
|
|
5,498
|
|
|
|
|
19,801
|
|
|
|
|
8,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and other income (expense), net
|
|
|
|
(71
|
)
|
|
|
|
59
|
|
|
|
|
316
|
|
|
|
|
175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
7,487
|
|
|
|
|
5,557
|
|
|
|
|
20,117
|
|
|
|
|
8,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
(1,239
|
)
|
|
|
|
(1,041
|
)
|
|
|
|
(5,802
|
)
|
|
|
|
(1,256
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
6,248
|
|
|
|
$
|
4,516
|
|
|
|
$
|
14,315
|
|
|
|
$
|
7,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.20
|
|
|
|
$
|
0.15
|
|
|
|
$
|
0.45
|
|
|
|
$
|
0.23
|
|
Diluted
|
|
|
$
|
0.19
|
|
|
|
$
|
0.14
|
|
|
|
$
|
0.44
|
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding used in computing per share
amounts:
|
|
|
|
Basic
|
|
|
|
31,802
|
|
|
|
|
30,901
|
|
|
|
|
31,619
|
|
|
|
|
30,730
|
|
Diluted
|
|
|
|
33,092
|
|
|
|
|
31,998
|
|
|
|
|
32,836
|
|
|
|
|
31,356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
|
Calculation of Adjusted EBITDA and Adjusted EBITDA Margin
(unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
6,248
|
|
|
|
$
|
4,516
|
|
|
|
$
|
14,315
|
|
|
|
$
|
7,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
1,239
|
|
|
|
|
1,041
|
|
|
|
|
5,802
|
|
|
|
|
1,256
|
|
Interest income and other (income) expense, net
|
|
|
|
71
|
|
|
|
|
(59
|
)
|
|
|
|
(316
|
)
|
|
|
|
(175
|
)
|
Depreciation and amortization
|
|
|
|
6,123
|
|
|
|
|
5,753
|
|
|
|
|
24,164
|
|
|
|
|
22,191
|
|
Stock-based compensation expense
|
|
|
|
4,516
|
|
|
|
|
3,587
|
|
|
|
|
16,650
|
|
|
|
|
14,731
|
|
Litigation contingency accrual
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
18,197
|
|
|
|
$
|
14,838
|
|
|
|
$
|
60,615
|
|
|
|
$
|
46,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Divide by:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
88,054
|
|
|
|
$
|
74,931
|
|
|
|
$
|
331,678
|
|
|
|
$
|
285,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
|
|
20.7
|
%
|
|
|
|
19.8
|
%
|
|
|
|
18.3
|
%
|
|
|
|
16.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
6,248
|
|
|
$
|
4,516
|
|
|
$
|
14,315
|
|
|
$
|
7,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash portion of income tax expense
|
|
|
|
686
|
|
|
|
1,406
|
|
|
|
4,582
|
|
|
|
871
|
Stock-based compensation expense
|
|
|
|
4,516
|
|
|
|
3,587
|
|
|
|
16,650
|
|
|
|
14,731
|
Litigation contingency accrual
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
|
$
|
11,450
|
|
|
$
|
9,509
|
|
|
$
|
35,547
|
|
|
$
|
23,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share: diluted
|
|
|
$
|
0.35
|
|
|
$
|
0.30
|
|
|
$
|
1.08
|
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding used in computing per share
amounts
|
|
|
|
33,092
|
|
|
|
31,998
|
|
|
|
32,836
|
|
|
|
31,356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
|
Calculation of Free Cash Flow (unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
16,107
|
|
|
$
|
12,963
|
|
|
$
|
57,414
|
|
|
$
|
43,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of property and equipment
|
|
|
|
3,334
|
|
|
|
4,757
|
|
|
|
24,347
|
|
|
|
18,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
$
|
12,773
|
|
|
$
|
8,206
|
|
|
$
|
33,067
|
|
|
$
|
24,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
|
Consolidated Condensed Statements of Cash Flows (unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net income
|
|
|
$
|
14,315
|
|
|
|
$
|
7,214
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
Depreciation and amortization
|
|
|
|
24,164
|
|
|
|
|
22,191
|
|
Amortization of premiums on investments
|
|
|
|
262
|
|
|
|
|
210
|
|
Stock-based compensation expense
|
|
|
|
16,650
|
|
|
|
|
14,731
|
|
Provision for bad debts
|
|
|
|
-
|
|
|
|
|
14
|
|
Gain on sales of marketable securities
|
|
|
|
(1
|
)
|
|
|
|
-
|
|
Deferred income taxes
|
|
|
|
4,094
|
|
|
|
|
885
|
|
Income tax benefit from the exercise of stock options
|
|
|
|
(984
|
)
|
|
|
|
(123
|
)
|
Taxes paid related to net share settlement of restricted stock units
|
|
|
|
(3,024
|
)
|
|
|
|
(1,592
|
)
|
Loss on sublease
|
|
|
|
259
|
|
|
|
|
-
|
|
Change in operating assets & liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(85
|
)
|
|
|
|
(102
|
)
|
Prepaid expenses and other current assets
|
|
|
|
(59
|
)
|
|
|
|
(2,454
|
)
|
Other assets
|
|
|
|
452
|
|
|
|
|
762
|
|
Accounts payable
|
|
|
|
(3,138
|
)
|
|
|
|
(1,384
|
)
|
Accrued expenses
|
|
|
|
404
|
|
|
|
|
100
|
|
Deferred revenue
|
|
|
|
2,582
|
|
|
|
|
2,556
|
|
Other long-term liabilities
|
|
|
|
1,523
|
|
|
|
|
50
|
|
Net cash provided by operating activities
|
|
|
|
57,414
|
|
|
|
|
43,058
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Purchases of marketable securities
|
|
|
|
(36,582
|
)
|
|
|
|
(30,739
|
)
|
Proceeds from maturities of marketable securities
|
|
|
|
18,065
|
|
|
|
|
11,534
|
|
Proceeds from sales of marketable securities
|
|
|
|
633
|
|
|
|
|
4,000
|
|
Increase in restricted cash
|
|
|
|
-
|
|
|
|
|
(550
|
)
|
Acquisition of property and equipment
|
|
|
|
(24,347
|
)
|
|
|
|
(18,891
|
)
|
Net cash used in investing activities
|
|
|
|
(42,231
|
)
|
|
|
|
(34,646
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Exercise of stock options and warrants
|
|
|
|
20,162
|
|
|
|
|
10,447
|
|
Income tax benefit from the exercise of stock options
|
|
|
|
984
|
|
|
|
|
119
|
|
Proceeds from issuance of common stock pursuant to employee stock
purchase plan
|
|
|
|
1,864
|
|
|
|
|
1,089
|
|
Repurchase of common stock
|
|
|
|
(16,361
|
)
|
|
|
|
(5,366
|
)
|
Net cash provided by financing activities
|
|
|
|
6,649
|
|
|
|
|
6,289
|
|
Effects of exchange rates on cash and cash equivalents
|
|
|
|
(9
|
)
|
|
|
|
2
|
|
Net increase in cash and cash equivalents
|
|
|
|
21,823
|
|
|
|
|
14,703
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
82,478
|
|
|
|
|
67,775
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
104,301
|
|
|
|
$
|
82,478
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash investing and financing
activities
|
|
|
|
Capitalization of stock-based compensation
|
|
|
$
|
200
|
|
|
|
$
|
482
|
|
Acquisition of property and equipment included in accounts payable
and accrued expenses
|
|
|
|
1,923
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Contact, Inc.
|
Consolidated Condensed Balance Sheets (unaudited)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
104,301
|
|
|
|
$
|
82,478
|
Marketable securities
|
|
|
|
58,321
|
|
|
|
|
40,723
|
Accounts receivable, net
|
|
|
|
265
|
|
|
|
|
180
|
Prepaid expenses and other current assets
|
|
|
|
10,723
|
|
|
|
|
9,175
|
Total current assets
|
|
|
|
173,610
|
|
|
|
|
132,556
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
43,739
|
|
|
|
|
39,238
|
Restricted cash
|
|
|
|
1,300
|
|
|
|
|
1,300
|
Goodwill
|
|
|
|
95,505
|
|
|
|
|
95,505
|
Acquired intangible assets, net
|
|
|
|
2,160
|
|
|
|
|
4,355
|
Deferred tax assets
|
|
|
|
4,658
|
|
|
|
|
9,574
|
Other assets
|
|
|
|
1,893
|
|
|
|
|
2,345
|
Total assets
|
|
|
$
|
322,865
|
|
|
|
$
|
284,873
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
4,703
|
|
|
|
$
|
6,783
|
Accrued expenses
|
|
|
|
12,230
|
|
|
|
|
10,903
|
Deferred revenue
|
|
|
|
37,838
|
|
|
|
|
35,256
|
Total current liabilities
|
|
|
|
54,771
|
|
|
|
|
52,942
|
|
|
|
|
|
|
|
Other long-term liabilities
|
|
|
|
3,783
|
|
|
|
|
2,060
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
58,554
|
|
|
|
|
55,002
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
Common stock
|
|
|
|
319
|
|
|
|
|
312
|
Additional paid-in capital
|
|
|
|
249,599
|
|
|
|
|
229,457
|
Accumulated other comprehensive income (loss)
|
|
|
|
(10
|
)
|
|
|
|
14
|
Retained earnings
|
|
|
|
14,403
|
|
|
|
|
88
|
Total stockholders' equity
|
|
|
|
264,311
|
|
|
|
|
229,871
|
Total liabilities and stockholders' equity
|
|
|
$
|
322,865
|
|
|
|
$
|
284,873
|
|
|
|
|
|
|
|
|
|
|
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