Google's Impact On Web.com Will Be Less Than Expected
David Hernandez • 15 Comments
David Hernandez • 15 Comments
Thu, Aug. 4, 4:16 PM
Wed, Aug. 3, 5:35 PM
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Tue, Jun. 14, 3:40 PM
- As part of a restructuring following the company's $342M acquisition of local ad services provider Yodle, Web.com (WEB -0.4%) COO Jason Teichman is leaving on July 5 to "pursue other opportunities."
- The company has also made five executive appointments. Yodle president Steve Power is now Web.com's EVP of brand networks; former CTO/online marketing chief Vikas Rijsinghani is now EVP of premium services; international SVP Faisal Chughtai is now EVP of retail, domains, and international; consumer/product marketing SVP Dafna Sarnoff is now SVP of corporate marketing; and program/performance management SVP Angela Dunham is now SVP of program management and & sales and service operations.
Thu, May 5, 4:36 PM
Wed, May 4, 5:35 PM
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Wed, Mar. 9, 6:01 PM
- Web.com's (NASDAQ:WEB) $342M purchase of local online ad/marketing service firm Yodle is now official. The company borrowed $310M to help pay for the deal, courtesy of an amended 5-year credit facility featuring a $390M term loan and a $150M revolver.
- With Yodle on the books, Web.com now expects Q1 revenue of $150.5M-$153.5M and EPS of $0.59-$0.63 vs. prior guidance of $138M-$140M and $0.61-$0.63. Full-year sales/EPS guidance has respectively been changed to $748M-$763M and $2.46-$2.66 from $570M-$580M and $2.62-$2.76. 2016 free cash flow guidance has been cut by $16M to $114M.
- Guidance for standalone Web.com is unchanged. In spite of the 2016 dilution, the company expects the Yodle deal to be "slightly accretive" over the first 12 months.
Fri, Feb. 12, 7:08 PM
- Web.com (WEB +10.6%) had a very good day after beating Q4 estimates and announcing it's acquiring local online ad services firm Yodle for $342M. SunTrust reacted to the news by upgrading to Buy.
- SMB online services rival Wix.com (WIX +9%) also rose sharply. Wix is now up 20% since beating Q4 estimates and issuing strong 2016 guidance on Wednesday morning.
- On its earnings call (transcript), Web.com guided for 2016 revenue of $570M-$580M and EPS of $2.62-$2.76, in-line with a consensus of $577M and $2.70. Q1 guidance is for revenue of $138M-$140M and EPS of $0.61-$0.63, below a consensus of $142M and $0.66. Full-year free cash flow guidance is at $130M.
- The guidance doesn't take the Yodle deal into account. Web.com plans to revise its guidance after the deal's closing (expected by the end of Q1).
- CEO David L. Brown talked up the cross-selling opportunities provided by Yodle. "Web.com has 3.4 million customers who are potential candidates for Yodle's high-end solutions. The reverse is also true as Web.com has solutions which can be offered to Yodle's customer base." He also observed Yodle brings with it ~$50M worth of net operating loss carry-forwards (NOLs) - as it is, Web.com expects its existing NOLs to allow its cash taxes to "remain in the low single-digit range through 2017 with a gradual increase after that."
Thu, Feb. 11, 5:28 PM
- Along with its Q4 results, Web.com (NASDAQ:WEB) has announced it's acquiring Yodle, a provider of local online ad/marketing services for 50K+ small businesses, for $300M in cash up-front + payments of $20M and $22M at the first and second anniversaries of the deal's closing date. For reference, Web.com closed today with an $826M market cap.
- The acquisition is expected to close by the end of Q1, and will be financed using a $200M term loan and $100M in credit facility borrowings. Both the loan and the borrowings will carry an interest rate of LIBOR + 300 bps, with step downs based on leverage ratios. Web.com plans to use free cash flow to pay down the debt over time.
- Web.com states the combined company would've had 2015 revenue of $767M - with Web.com having reported 2015 revenue of $543.5M, that implies Yodle had 2015 revenue of more than $223M, and that Web.com is paying 1.5x trailing sales.
- Web.com: "Value added digital marketing solutions are a large and fast growing portion of the market where Web.com has developed a differentiated set of offerings. This market segment has been a strategic focus for us for several years, and the purchase of Yodle will solidify our position as a leading national provider in this space." Over $30M/year in synergies are expected.
- Shares appear to be halted - the last recorded trade was at 4:03PM, before Q4 results and the Yodle deal were announced.
- Web.com's Q4 results, earnings release
Thu, Feb. 11, 4:19 PM
- Web.com (NASDAQ:WEB): Q4 EPS of $0.66 beats by $0.03.
- Revenue of $141.3M (+0.7% Y/Y) beats by $1.83M.
Nov. 9, 2015, 10:29 AM
- Web.com (WWWW -1.6%) will begin trading under the symbol WEB tomorrow. CEO David Brown: "This memorable ticker symbol clearly aligns with Web.com's role as a leading provider of online marketing solutions for small businesses."
- Shares are up 8% since Web.com delivered a Q3 beat and provided solid guidance on Oct. 29.
Oct. 29, 2015, 4:21 PM
- Web.com (NASDAQ:WWWW): Q3 EPS of $0.62 beats by $0.02.
- Revenue of $140.4M (-2.4% Y/Y) beats by $0.85M.
Oct. 28, 2015, 5:35 PM
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Aug. 19, 2015, 9:45 AM| Aug. 19, 2015, 9:45 AM
Aug. 18, 2015, 5:00 PM
- Web.com (NASDAQ:WWWW) has joined the steadily growing ranks of cyberattack victims: The SMB Web services provider says it recently detected an "unauthorized breach," and that the credit card info of 93K of its 3.3M+ customers "may have been compromised."
- Credit card processors and state/federal authorities have been notified. Web.com is giving impacted customers a year of free credit monitoring protection, and working with a "leading IT security firm" to probe the breach.
Jul. 31, 2015, 5:51 PM
- In addition to beating Q2 estimates, Web.com (NASDAQ:WWWW) used its earnings call (transcript) to guide for Q3 revenue of $138.5M-$140M and 2015 revenue of $554M-$558M, favorable at the midpoints to consensus estimates of $138.6M and $554.7M.
- Q3 and full-year EPS guidance is at $0.59-$0.61 and $2.36-$2.42 vs. consensus estimates of $0.61 and $2.38. 2015 free cash flow guidance has been hiked by $15M to $115M.
- Subscribers rose by 21K Q/Q to 3.32M, and ARPU by $0.16 to $13.91. For now, the company is sticking to a net subscriber add target range of 10K-15K.
- Shares rallied to $24.89 today, making new 52-week highs in the process.
- Q2 results, PR
Jul. 30, 2015, 4:14 PM
- Web.com (NASDAQ:WWWW): Q2 EPS of $0.60 beats by $0.03.
- Revenue of $139.97M (-3.2% Y/Y) beats by $1.89M.
Web.com Group, Inc. engages in the provision of Internet services and online marketing solutions for small to medium-sized businesses. Its solutions include domains, hosting, website design and management, search engine optimization, online marketing campaigns, local sales leads, social media,... More
Industry: Internet Information Providers
Country: United States