March 14, 2007 (HOSTSEARCH.COM) Web hosting provider Web.com has reported its fourth quarter and 2006 financial results, it was announced yesterday. The results indicated a loss generated by bonuses and legal expenses.
The number of Web.com subscribers increased to 155,000 by the end of 2006, a 13% increase over the beginning of the year. The companys revenue for the period was $49.1 million, but this represented a loss of $13.8 million on the year. Operating as Interland Inc. in 2005, the company recently changed to providing financial reports on a calendar year basis, although no comparative figures were provided in its recent reporting.
"Web.com spent 2006 stabilizing the business, implementing cost controls and developing a highly-scalable growth engine," explained Web.coms President and CEO Jeff Stibel in the report. "This quarter represents another period of strong organic revenue and subscriber growth. I am particularly excited to announce that average revenue per user also grew this quarter and look forward to leveraging our business model further."
"Our net loss increased as a result of annual bonuses and higher legal expenses as we move toward closure of our legacy case load. The fundamental cost structure of the Company has not changed and it is expected to improve as we move forward with server consolidation and implement future operating efficiencies," added the companys Executive Vice President and Chief Financial Officer, Gonzalo Troncoso. "Organic revenue and subscriber growth are ramping and we believe the company is positioned to drive growth and increase shareholder value."