Endurance International (EIGI) reported its earnings last night after the market closed
In its earnings call, Endurance said that its acquisition of both Directi and BuyDomains.com were generating more revenue than expected.
“At the time of acquisition, we had expected Directi to add approximately $30 million to $35 million of adjusted revenue.
“We ended the year with Directi adjusted revenues of $48 million. We were particularly pleased with how quickly we were able derive synergies from these acquisitions.:
“While we don’t expect to continue to separately track the performance of BuyDomains, Arvixe and Webzai as they are rapidly integrated into our operations, we estimate their combined performance for the fourth quarter to have been ahead of our previously stated expectations of $4 million to $5 million in adjusted revenue.
Here are the highlights from the earnings:
For the fiscal year 2014, GAAP revenue was $629.8 million, an increase of 21 percent compared to $520.3 million in fiscal 2013. GAAP revenue for the fourth quarter was $171.9 million, an increase of 26 percent compared to $136.4 million in the fourth quarter of 2013.
For the fiscal year 2014, net loss attributable to Endurance International Group Holdings, Inc. was $42.8 million, or $(0.34) per diluted share compared to a net loss of $159.2 million, or $(1.55) per diluted share, for fiscal 2013. Net loss attributable to Endurance International Group Holdings, Inc. for the fourth quarter was $2.2 million, or $(0.02) per diluted share, compared to a net loss of $67.5 million, or $(0.57) per diluted share, for the fourth quarter of 2013.
Adjusted revenue for the fiscal year 2014 was $651.9 million, an increase of 23 percent compared to $528.1 million in fiscal year 2013. Adjusted revenue for the fourth quarter was $175.2 million, an increase of 28 percent compared to $136.9 million in the fourth quarter of 2013.
Adjusted revenue for the fiscal year 2014 excluding the impact of Directi, which contributed $48.5 million of adjusted revenue for the fiscal year, was $603.4 million, an increase of 14 percent over fiscal year 2013. Adjusted revenue excluding the impact of Directi, which contributed $13.2 million of adjusted revenue for the quarter, was $162.0 million, an increase of 18 percent over the fourth quarter of 2013.
Adjusted EBITDA for the fiscal year 2014 was $235.6 million, an increase of 13 percent compared to $207.9 million in fiscal 2013.
Adjusted EBITDA for the fourth quarter was $62.0 million, an increase of 34 percent compared to $46.2 million in the fourth quarter of 2013.
Unlevered free cash flow (“UFCF”) for the fiscal year 2014 was $193.4 million, an increase of 16 percent compared to $166.5 million in fiscal 2013. UFCF for the fourth quarter was $50.7 million, an increase of 35 percent compared to $37.5 million in the same period a year ago.
Free cash flow (“FCF”) for the fiscal year was $136.6 million, an increase of 64 percent compared to $83.4 million in fiscal 2013. FCF for the fourth quarter was $35.8 million, an increase of 90 percent compared to $18.9 million in the fourth quarter of 2013.
Full Year & Fourth Quarter Operating Highlights
Total subscribers increased by over 380,000 in fiscal 2014. Excluding the impact of Directi, total subscribers increased by 374,000 in fiscal 2014. Total subscribers increased by 91,000 for the fourth quarter. Excluding the impact of Directi, total subscribers increased by 88,000 in the fourth quarter.
Total subscribers were 4.087 million at the end of the fiscal year 2014, an increase of 17 percent compared to 3.502 million at the end of fiscal year 2013. The subscriber base increase consisted of the over 380,000 subscriber net adds, which were added through normal business operations, and approximately 200,000 subscribers on-boarded via acquisitions.
For the year, average revenue per subscriber (“ARPS”) was $14.48, an increase of 11 percent compared to $13.09 in fiscal 2013.
Excluding the impact of Directi, ARPS was $13.58, an increase of 4 percent compared to $13.09 in fiscal 2013.
ARPS was $14.78 for the fourth quarter, an increase of 12 percent compared to $13.15 for fourth quarter 2013.
Excluding the impact of Directi, ARPS was $13.86, an increase of 5 percent compared to $13.15 for fourth quarter 2013.
On December 31, 2014, the company made an equity investment of $15.2 million, representing an ownership position of 40 percent in AppMachine BV, a Dutch developer of mobile applications.
