Atlanta, Georgia – (The Hosting News) – May 5, 2006 – Web hosting provider, Web.com, Inc., has reported financial results for its first quarter ending March 31, 2006.
A Summary of First Quarter 2006 Results includes:
— Total revenues for the quarter were $12.3 million, up from $12.1 million in the November 2005 quarter.
— Net income was negative $5.5 million, or $(0.34) per share, including $5.3 million of stock-based compensation and income tax benefits of $0.9 million, versus a negative $2.6 million, or $(0.16) per share, in the November 2005 quarter.
— Adjusted net income(1) was positive $0.1 million, or $0.01 per share, up from negative $0.9 million, or $(.05) per share, in the November 2005 quarter.
— Net subscriber growth for the quarter was approximately 12,000, or 9%, up from approximately 137,000 in the November 2005 quarter to approximately 149,000. This increase includes record organic growth of approximately 4,000 accounts.
Jeff Stibel, President and CEO of Web.com explained, ” The results from this quarter demonstrate our progress in stabilizing the business, diversifying into web services and building a business model that drives subscriber growth. Notably, Web.com achieved record organic subscriber growth and generated positive adjusted net income, a key financial milestone. I am proud of our team and what we’ve been able to accomplish in a very short time.”
Gonzalo Troncoso, Executive Vice President and Chief Financial Officer of Web.com added, ”Web.com reported improved financial results, highlighted by positive adjusted net income, by focusing on core competencies, forging partnerships and executing the company’s turn-around strategy. We continued to maintain a firm grasp on cost controls, improve customer acquisition and build a strong infrastructure for growth.”
Web.com will host a conference call to discuss its quarterly results. A live webcast of the call can be accessed on the investors section of the company’s website. A replay of the call will be available on the site for seven days.
Adjusted net income is a non-GAAP financial measure and is defined as net income from continuing operations before interest, taxes, depreciation, amortization of intangibles and stock-based compensation.
The non-GAAP financial measures such as adjusted net income are different from those otherwise presented under GAAP as the non-GAAP measures exclude certain charges. Web.com has provided these measures in addition to GAAP financial results because management believes these non-GAAP measures provide a consistent basis for comparison between quarters and of growth rates period-over-period that are not influenced by certain charges and therefore are helpful in understanding Web.com’s underlying operating results.
To learn more about
the live webcast, please visit: www.web.com/ir.
For more information about Web.com, please visit: www.web.com.