Web.com Group (WEB) Reports Q1 Revenues Above Estimates

Web.com Group (NASDAQ: WEB) reported Q1 EPS of $. Revenue for the quarter came in at $186.7 million versus the consensus estimate of $185.5 million.

"Web.com delivered solid first quarter financial results with both revenue and profitability that exceeded the high end of our guidance ranges. We made progress against each of our key initiatives for the year and have a well-defined plan to drive additional improvements as we move through 2018. We are confident that successfully executing on these initiatives will enable us to deliver greater value for both customers and shareholders," said David L. Brown, chairman, chief executive officer and president of Web.com.

Brown added, "In addition, our recent debt refinancing strengthens our capital structure and enables us to optimize our capital deployment strategy with an expanded and flexible credit facility. Overall, we are off to a solid start to the year, and we believe we are well positioned to deliver against our long term goals."

Summary of First Quarter 2018 Financial Results:

• Total revenue, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $186.7 million for the first quarter of 2018, compared to $185.1 million for the first quarter of 2017. Non-GAAP revenue was $187.8 million for the first quarter of 2018, compared to $186.8 million in the comparable prior year period. Results exceeded the high end of both GAAP and non-GAAP revenue guidance of $183.0 to $186.0 million and $184.0 to $187.0 million, respectively.
• GAAP operating income was $15.5 million for the first quarter of 2018, representing a 8% GAAP operating margin, compared to $20.5 million, representing a 11% GAAP operating margin, for the first quarter of 2017. Non-GAAP operating income was $37.5 million for the first quarter of 2018, representing a 20% non-GAAP operating margin, compared to $41.6 million for the first quarter of 2017, representing a 22% non-GAAP operating margin.
• GAAP net income was $4.6 million, or $0.09 per diluted share, for the first quarter of 2018, representing a 2% GAAP net income margin. GAAP net income was $6.5 million, or $0.13 per diluted share, for the first quarter of 2017, representing a 4% GAAP net income margin.
• Adjusted EBITDA was $42.8 million for the first quarter of 2018, representing an adjusted EBITDA margin of 23%, surpassing the high end of the Company's adjusted EBITDA guidance of $40.5 to $42.5 million. The Company had adjusted EBITDA of $47.2 million for the first quarter of 2017, representing a 25% adjusted EBITDA margin.
• The Company generated cash from operations of $27.2 million for the first quarter of 2018, compared to $33.2 million of cash flow from operations for the first quarter of 2017.

For earnings history and earnings-related data on Web.com Group (WEB) click here.

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