Web Hosting Provider Web.com Second Quarter 2007 Financial Results
August 8, 2007 – (HOSTSEARCH.COM) – Web hosting provider Web.com (http://www.web.com) has posted its second quarter 2007 financial results. The report suggests total revenues for the quarter of $13.3 million, up from $12.1 million at the same time the previous year. Despite this increase, the company has a net loss of $2.9 million on the same period the previous year. Merger-costs were given as a key reason for the loss.
"Web.com had another solid quarter of subscriber growth," stated Jeff Stibel, President and CEO, Web.com. "Our marketing and partner strategy enabled us to deliver these results while reducing our subscriber acquisition cost (SAC) by 14% sequentially which led to improved adjusted net income from continuing operations,” continued Mr. Stibel. “Clearly, the biggest opportunity for the company in the coming months is the proposed merger with Website Pros. We continue to view this opportunity very positively for our customers, partners, employees and shareholders and are eager to close the transaction and begin to execute as a combined company."
"During the second quarter, in addition to growing the business, we continued to focus on streamlining operations and consolidating to our unified platform to realize approximately $5.0 million in savings," added the company’s Executive Vice President and Chief Financial Officer, Mr. Gonzalo Troncoso. "Our path to profitability is simple -- increase sales and decrease costs."
Web.com has a merger agreement with Website Pros, Inc. The union of the two organizations will create a market leader in the small- and medium-sized business web hosting market. The new company will be able to offer Do-It-For-Me (DIFM) and Do-It-Yourself (DIY) web services, adding cross-selling opportunities to “highly complementary” sales channels.
Established in 1995, Web.com, Inc. offers a range of web services including website building, website hosting, ecommerce, web marketing, professional website design and email. According to the company, more than 4 million websites have been built using its proprietary tools, services and patented technology.
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