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Milind Paradkar works as a Research associate at Gridstone Research (http://www.gridstoneresearch.com/).
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Gridstone Research
  • Constant Contact (CTCT): Strong net customer adds drive better-than-expected performance 0 comments
    May 11, 2009 02:25 AM | about stocks: CTCT, DIA, QQQQ

    Constant Contact (CTCT), a leading Email Marketing Solutions provider announced its results for Q1 FY09 last week. Revenues were $28.1 M, up 55% y/y and above the high-end revenue guidance of $27.9 M. Revenues were primarily driven by record net email customer adds of over 27,500, up 11% sequentially and 29% on a year-on-year basis.

     

     

     

     

     

     

     

     

     

    Source: Gridstone Research

     
    Seasonally, net customer adds are up modestly compared to the prior quarter. The strong performance in net adds was primarily due to the National radio program launched in Q3 FY08, which continued in Q1 FY09.

     

     

     

     

     

     

     

     

      Source: Gridstone Research

     
    Average revenue per email marketing customer (ARPU) dipped slightly to $35.15 from $35.22 in the prior quarter. The decrease in ARPU was primarily due to the faster growth in Survey customer adds compared to email customer adds. Survey customers for the quarter stood at over 20,000 compared to over 17,500 in the prior quarter. Other key customer metrics, email marketing invoice and churn rate remained in the historical ranges.
     
    Adjusted EBITDA of $1.7 M was above the guided range of $0.9-1.1 M and represented a significant increase compared to approx. $0.8 from the year-ago quarter. The better-than-expected adjusted EBITDA was due to better-than-expected revenue performance combined with lower operating expenses.
     
    Guidance
    For the second quarter, CTCT expects revenue in the range of $30.6-30.8 M. Adjusted EBITDA is expected to be in the range of $2.1-2.3 M and non-GAAP EPS to be in the range of $0.00-0.01 based on diluted shares outstanding of 29.5 million shares.
    For the full year 2009, the company has raised its lower end of revenue guidance by a million. It currently expects revenue in the range of $126-130 M and an adjusted EBITDA in the range $10.2-10.6 M.

    Disclosures: No positions

    Stocks: CTCT, DIA, QQQQ
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