Endurance International Group Reports 2018 First Quarter Results

Endurance International Group Holdings (NASDAQ:EIGI), a leading provider of cloud-based platform solutions announced its first quarter results.

The company had a net loss of $7.1 million while its GAAP revenue was $291.4 million.

As quoted in the press release:

“We are pleased with our financial and operating progress in the first quarter,” commented Jeffrey H. Fox, president and chief executive officer of Endurance International Group.  “With a majority of the year still ahead of us, we remain focused on executing our integrated operating plan.  In 2018 we are investing to deliver increased customer value in our market-leading assets and simplify our operations to execute more effectively at scale.”

First Quarter 2018 Financial Highlights

• Revenue for the first quarter of 2018 was $291.4 million, a decrease of 1 percent compared to $295.1 million for the first quarter of 2017.
• Net loss for the first quarter of 2018 was $7.1 million compared to net loss of $31.6 million for the first quarter of 2017.
• Net loss attributable to Endurance International Group Holdings, Inc. for the first quarter of 2018 was $7.1 million, or $(0.05) per diluted share, compared to net loss of $35.4 million, or $(0.26) per diluted share, for the first quarter of 2017.
• Adjusted EBITDA for the first quarter of 2018 was $86.2 million, an increase of 8 percent compared to $80.1 million for the first quarter of 2017.  First quarter 2018 adjusted EBITDA excludes the impact of a total of $8.5 million of accrued expense reserved in connection with our ongoing efforts to resolve two shareholder lawsuits, each brought as a class action against either Endurance or Constant Contact.  Any final settlement agreement reached with the plaintiffs in each case would be subject to court approval.  Thus, we can make no assurance that any final agreement will be reached, or that any final settlement agreement will be approved by the court.
• Cash flow from operations for the first quarter of 2018 was $52.4 million, an increase of 55 percent compared to $33.7 million for the first quarter of 2017.
• Free cash flow, defined as cash flow from operations less capital expenditures and capital lease obligations, for the first quarter of 2018 was $44.9 million, an increase of 100 percent compared to $22.4 million for the first quarter of 2017.

First Quarter Operating Highlights

• Total subscribers on platform at March 31, 2018 were approximately 5.011 million, compared to approximately 5.304 million subscribers at March 31, 2017 and approximately 5.051 million subscribers at December 31, 2017.

• Average revenue per subscriber, or ARPS, for the first quarter of 2018 was $19.30, compared to $18.43 for the first quarter of 2017 and $19.28 for the fourth quarter of 2017.

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