Endurance Int'l (EIGI) Prelim. Q4, FY15 Revenue Misses Views

Endurance International Group Holdings, Inc. (NASDAQ: EIGI) announced certain preliminary, unaudited financial information for the fourth quarter and full year 2015 in connection with financing activities related to the pending acquisition of Constant Contact, Inc. Additionally, the Company announced the date and time of the release of its fourth quarter and full year 2015 financial results, and provided an update on certain of its performance metrics.

Preliminary Unaudited Fourth Quarter and Full Year 2015 Information

Based on the information and data currently available, the Company is releasing the following preliminary, unaudited financial information for the fourth quarter and full year ending December 31, 2015.

Full year 2015

• GAAP revenue of approximately $741 million. (The Street sees revenue of $747 million.)
• Adjusted revenue of approximately $747 million (prior guidance* of $745 million to $750 million)
• GAAP net loss of approximately $24 million
• Adjusted EBITDA of approximately $267 million (prior guidance* of $265 million to $270 million)
• Free cash flow of approximately $141 million
• Unlevered free cash flow (as reported) of approximately $222 million (prior guidance* of $220 million to $230 million)

Fourth quarter 2015

• GAAP revenue of approximately $193 million. (The Street sees revenue of $194.7 million.)
• Adjusted revenue of approximately $195 million
• GAAP net loss of approximately $7 million
• Adjusted EBITDA of approximately $72 million
• Free cash flow of approximately $33 million
• Unlevered free cash flow (as reported) of approximately $55 million

*prior guidance given at November 2, 2015

All information is preliminary and unaudited, and therefore inherently uncertain and subject to revision in connection with the finalization of financial statements for Endurance’s fourth quarter and full year ending December 31, 2015. As a result of the foregoing considerations and the other limitations on non-GAAP measures described in this press release, we caution you not to place undue reliance on this preliminary financial information. Complete financial results will be presented on the Company’s fourth quarter and full year 2015 results conference call on February 18, 2016.

Adjusted revenue, adjusted EBITDA, free cash flow, and unlevered free cash flow (as reported) are non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to their most comparable measure calculated in accordance with GAAP, on a preliminary basis, is provided in the tables included at the end of this press release. An explanation of these measures is also provided below under the heading “Use of Non-GAAP Financial Measures.”

Fourth Quarter and Full Year 2015 Results Conference Call

Additionally, the Company announced that it will release its 2015 fourth quarter and full year financial results on Thursday, February 18, 2016 at 7:00 a.m. Management will hold a conference call and webcast on that day at 8:00 a.m. EST to discuss the Company's financial results. A prepared presentation to accompany the conference call will be posted on the Company's investor relations web site prior to the call.

Performance Metrics

The Company did not report monthly recurring revenue, or MRR, retention rate figures in our Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2014 and 2015 because we had identified errors in our business intelligence system that impacted MRR as well as two of our other previously reported performance metrics, the number of products per subscriber and the number of subscribers paying us $500 or more per year. We undertook to recalculate and verify revised numbers for these metrics using an upgraded version of the business intelligence system that we believe has corrected these errors. We have completed our review and recalculation of MRR for all past periods beginning with the three and nine months ended September 30, 2013 and have determined that our previously reported MRR figures for those periods will remain at 99%. In addition, the Company has determined that MRR for the three and nine months ended September 30, 2014 and 2015 was approximately 99%. We continue to recalculate and verify revised numbers for the number of products per subscriber and the number of subscribers paying us $500 or more per year. These errors only affected these three performance metrics and did not impact our GAAP financial results, our adjusted EBITDA, free cash flow or unlevered free cash flow metrics, average revenue per subscriber, or total subscriber figures. We intend to provide updated information for the two remaining performance metrics on our next quarterly results conference call.

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