Constant Contact, Inc.(CTCT)- NASDAQ
  • Tue, Feb. 9, 3:45 PM
    • Endurance International Group (EIGI -3.4%) has closed its acquisition of Constant Contact (CTCT +4.5%), it says.
    • CTCT shares quickly closed the gap to the $32/share acquisition price. They had closed at $30.62 yesterday.
    • As announced in November, the deal's in cash and amounts to $1.1B, including $200M of cash on Constant Contact's balance sheet; Endurance funded the deal with $735M in senior secured term loans and $350M in senior unsecured notes.
    • Constant Contact shares will stop trading on Nasdaq at the close.
    • Previously: Constant Contact shareholders approve buyout by Endurance International (Jan. 21 2016)
    • Previously: Roth: Competing bid unlikely for Constant Contact (Nov. 03 2015)
    | Tue, Feb. 9, 3:45 PM
  • Thu, Jan. 21, 11:07 AM
    | Thu, Jan. 21, 11:07 AM | 8 Comments
  • Nov. 23, 2015, 8:04 PM
    | Nov. 23, 2015, 8:04 PM
  • Nov. 6, 2015, 12:45 PM
    • Constant Contact (NASDAQ:CTCT) is holding firm today at $31.60 -- the same as yesterday's closing price, and hanging just under the $32/share acquisition price it's getting from Endurance International Group (EIGI +3%) -- despite the second downgrade in two days from Roth Capital.
    • On Tuesday, the firm downgraded CTCT to Neutral with "little likelihood of a competing bid." After its Q3 revenues missed Roth's expectations, though, analyst Richard Baldry suggests it might not be worth holding the shares to deal closure.
    • He downgraded the stock to Sell. on Tuesday, he had downgraded it to Neutral and cut his price target to the deal price of $32.
    • "We looked back and in the past ten years this was the smallest sequential increase in the company's history,” Baldry says of revenues.
    • The valuation won't change, he concedes, but the upside of holding the shares isn't worth the downside risk of the deal failing, with another offer unlikely to come in. Earlier this week, he pointed to his favorite names in the space: LivePerson, Interactive Intelligence, and Tangoe.
    • Endurance International has rebounded today but is down 7.5% since the deal was announced.
    | Nov. 6, 2015, 12:45 PM
  • Nov. 3, 2015, 11:31 AM
    • Constant Contact (NASDAQ:CTCT) is off 0.9%, but from the new price level it established yesterday up 22% after a $1.1B buyout bid from Endurance International Group (EIGI +3.2%). CTCT is at $31.53, down from $31.83, against EIGI's $32/share deal.
    • Roth Capital's Richard Baldry sees "little likelihood of a competing bid," and accordingly has downgraded CTCT to Neutral, and reduced his target price to the deal price of $32/share from a previous $38.
    • The offer is a "fair control premium, even though it is a valuation well discounted to CTCT’s broader SaaS peer group average of 4.6x," Baldry says.
    • "We expect deal to close as-announced ... We believe CTCT’s focus on the SMB space make it unsuitable as an acquisition target for most larger SaaS players, as they tend to focus on the Enterprise space, in our opinion."
    • He does think the deal could make other value-oriented names in the space more attractive, holding buy ratings on LivePerson (LPSN +2.3%), Interactive Intelligence (ININ -3.8%) and Tangoe (TNGO +2.3%).
    | Nov. 3, 2015, 11:31 AM
  • Nov. 2, 2015, 12:48 PM
    | Nov. 2, 2015, 12:48 PM | 23 Comments
  • Nov. 2, 2015, 9:14 AM
    | Nov. 2, 2015, 9:14 AM
  • Nov. 2, 2015, 8:57 AM
    • Constant Contact (NASDAQ:CTCT) is up 21.7% premarket on word it's getting bought for $1.1B by Endurance International Group Holdings (NASDAQ:EIGI) in a cash deal.
    • The offer price comes to $32/share, a 22.6% premium to Friday's close. Endurance, with a collection of Web-hosting products including BigRock, HostGator and FatCow.com, will add on Contant Contact's online marketing products.
    • The companies expect combined pro forma revenue for fiscal 2015 of about $1.1B and pro forma adjusted EBITDA of $350M, and then 10-12% revenue growth in 2016 with $400M in EBITDA.
    • Both boards have approved; the deal is expected to close in the first quarter.
    • Updated 10:41 a.m.: Endurance International stock is down 21.4% on the news.
    | Nov. 2, 2015, 8:57 AM
  • Jul. 24, 2015, 1:36 PM
    • Constant Contact (NASDAQ:CTCT) has taken a dive today, -17.9%, amid a pair of downgrades after the company posted a Q2 earnings beat yesterday.
    • Oppenheimer has downgraded shares to Market Perform, from Outperform, on a valuation basis.
    • Meanwhile, Robert W. Baird analysts downgraded to Neutral from Outperform and lowered the firm's price target to $35, from $40.
    • Shares closed yesterday at $29.53 and were flat in light postmarket action after the earnings. They're currently trading at $24.25, so Baird's new target implies 44% upside from here.
    | Jul. 24, 2015, 1:36 PM | 1 Comment
  • Jul. 24, 2015, 12:45 PM
    | Jul. 24, 2015, 12:45 PM | 1 Comment
  • Jul. 6, 2015, 5:49 PM
    • Jack in the Box (NASDAQ:JACK) will replace Advance Auto Parts (just got promoted to the S&P 500) in the S&P MidCap 400 after Wednesday's close. Northfield Bancorp (NASDAQ:NFBK) will take JACK's spot in the S&P SmallCap 600.
    • Simultaneously, West Pharma (NYSE:WST) will replace Advent Software (getting acquired) in the S&P 400. Constant Contact (NASDAQ:CTCT) will take West's spot in the S&P 600.
    • JACK +1.3% AH. NFBK +3.8%. WST +1.3%. CTCT +1.8%.
    | Jul. 6, 2015, 5:49 PM
  • May 1, 2015, 12:45 PM
    | May 1, 2015, 12:45 PM
  • May 1, 2015, 9:13 AM
    | May 1, 2015, 9:13 AM
  • Apr. 30, 2015, 5:40 PM
    | Apr. 30, 2015, 5:40 PM
  • Apr. 30, 2015, 5:18 PM
    • Constant Contact (NASDAQ:CTCT) sold off in postmarket trading, -9.9%, as it reduced guidance for the coming quarter and full year even as Q1 EPS beat expectations.
    • "In the quarter we didn't deliver an acceleration in customer additions as expected, which resulted in missing our revenue goal," said CEO Gail Goodman, saying the mixed results "disappointed."
    • Gross margin was 73%, up from a prior 72.5%. Adjusted EBITDA of $14.7M beat an expected $13M. Cash flow from operations was $20.2M, vs. a prior $11.1M. Capex of $5.3M, down from a prior $5.9M. Free cash flow of $15M.
    • Ended Q1 with 645K unique customers, up from 635K in Q4 and 605K a year ago. ARPU of $47.09, up from prior year's $43.82 and Q4's $46.59.
    • The company guided light for Q2, pointing to revenue of $91.5M-$92M (vs. expected $94.4M), and non-GAAP EPS of $0.21-$0.22 (vs. expected $0.23). For the full year, the company reduced revenue guidance to $371M-$377M from a prior $388M, and reduced EBITDA guidance to $73M-$75M from about $75.9M.
    • Constant Contact guided for non-GAAP EPS of $1.29-$1.38, down from prior expectation of about $1.38.
    | Apr. 30, 2015, 5:18 PM
  • Apr. 17, 2015, 1:46 PM
    • Cloud IT service management software leader ServiceNow is down 14.5% after providing soft guidance (thanks in part to forex) to go with a Q1 beat. Many high-beta enterprise tech names are off sharply amid a 1.5% drop for the Nasdaq.
    • In addition to Salesforce and Workday (previous), cloud software firms posting big losses include NetSuite (N -4.8%), Constant Contact (CTCT -3.3%), InContact (SAAS -3.9%), Paycom (PAYC -3.6%), Ultimate Software (ULTI -3.6%), and Textura (TXTR -3.7%). NetSuite reports on April 23, Ultimate Software on April 28, Constant Contact on April 30, and Paycom on May 6.
    • Big data/analytics software plays have also been hit hard. Tableau (DATA -6.3%), Splunk (SPLK -5.2%), Hortonworks (HDP -6%), and Varonis (VRNS -4.3%) are all off sharply. Though its growth rates and multiples are similar to those of many analytics software firms, ServiceNow generally isn't seen as an analytics play. This morning, D.A. Davidson launched coverage on Tableau and Splunk at Buy, and Hortonworks at Neutral.
    • Tableau, which surged yesterday following bullish Stifel and William Blair coverage launches, reports on May 7. Stifel praised Tableau's "superior product performance and simplified user experience," data discovery market lead, international growth potential (less than 25% of license revenue is from outside of North America), and ability to capitalize on "free demo downloads by front-line information workers evangelizing [Tableau's] product."  William Blair stated its survey work "indicates that the perceived value of Tableau exceeds that of other self-service [business intelligence] vendors."
    • Pac Crest hiked its Splunk target to $82 yesterday after attending a user conference. "[T]he economic value derived from expanding Splunk implementations ... into new areas like security intelligence, compliance and real-time capacity planning results in cost avoidance that can far overshadow the historical pricing objections to Splunk. This is a significant change in customer behavior and pricing perception ... It was clear that the appetite of existing Splunk users to find new use cases remains fierce..."
    | Apr. 17, 2015, 1:46 PM
Company Description
Constant Contact Inc provides online marketing tools that are designed for small organizations, including small businesses, associations and non-profits.
Sector: Services
Industry: Marketing Services
Country: United States