Endurance International Group Holdings, Inc. (EIGI), which owns Dotster.com, Domain.com and most recently acquired Direct, along with many hosting company’s, reported financial results for the fourth quarter and full year ended December 31, 2013.
Fourth Quarter Highlights
- Revenue increased 17% to $136.4 million compared to $117.0 million for the fourth quarter of 2012.
- Adjusted EBITDA increased 40% to $46.2 million compared to $33.1 million for the fourth quarter of 2012.
- Net loss attributable to Endurance International Group Holdings, Inc. was $67.5 million, or $(0.57) per diluted share, compared to a net loss of $72.6 million, or $(0.75) per diluted share, for the fourth quarter of 2012. The net loss included the impact of $33.6 million of IPO related charges.
- Unlevered free cash flow (UFCF) increased 37% to $37.5 million, compared to $27.4 million for the fourth quarter of 2012.
- Free cash flow (FCF) more than doubled in the fourth quarter of 2013 to $18.9 million, compared to $7.7 million for the fourth quarter of 2012.
- Total subscribers were approximately 3.502 million as of December 31, 2013, a sequential increase of approximately 62,000 from 3.440 million as of September 30, 2013, and a year-over-year increase of approximately 279,000 from 3.223 million as of December 31, 2012.
- ARPS was $13.15 for the fourth quarter of 2013, representing a sequential increase of $0.01 from $13.14 for the third quarter of 2013. Apart from acquisitions completed in 2012, ARPS grew 9%, or $0.96, to $11.54 for the fourth quarter of 2013 from $10.58 for the fourth quarter of 2012.
- Monthly recurring revenue (MRR) retention rate remained at 99%, consistent with our MRR retention rate for the third quarter of 2013 and the fourth quarter of 2012.
Full Year 2013 Highlights
- Revenue increased 78% to $520.3 million compared to $292.2 million for 2012. Adjusted revenue increased 11% to $528.1 million compared to $474.1 million for 2012. Apart from acquisitions completed in 2012, adjusted revenue grew 17%, from $272.9 million for 2012 to $318.2 million for 2013.
- Adjusted EBITDA increased 55% to $207.9 million compared to $133.7 million for 2012.
- Net loss attributable to Endurance International Group Holdings, Inc. was $159.2 million, or $(1.55) per basic and diluted share, compared to a net loss attributable to common shareholders of $139.3 million, or $(1.44) per basic and diluted share, for 2012.
- UFCF increased 64% to $166.5 million, compared to $101.7 million for 2012.
- FCF increased 69% to $83.4 million, compared to $49.4 million for 2012.
Recent Developments
On January 23, 2014, Endurance closed its acquisition of the web presence business of Directi Holdings, substantially expanding our footprint into emerging markets.
2014 Guidance
The company is providing fiscal year 2014 guidance as follows:
- Adjusted Revenue of approximately $630-635 million, including $145-147 million in the first quarter;
- Adjusted EBITDA of approximately $230-235 million, including $55-57 million in the first quarter; and
- UFCF of approximately $180-190 million, including $42-44 million in the first quarter.
