Posts for Ticker ‘Website Pros’

Website Pros Remains Top Developing Web Property

Website Pros (NASDAQ: WSPI) just posted what are actually very strong earnings when you consider the current climate right now.  The hosting, e-commerce, domain registrar (and more) posted earnings of $0.13 non-GAAP EPS on $31.3 million before exclusionary acquisition items and $30.9 million after.  First Call had estimates at $0.11 EPS on $31.26 million in in revenues.

The company put guidance for 2008 non-GAAP EPS at $0.78 to $0.82, above the $0.77 consensus estimate.  It also puts 2008 revenues at $133 to $137 million, while consensus estimates are $134.4 million.

The company’s customer metrics looked better quarter over quarter as well, with its churn rate down to 4% from 4.1% and its total subscribers were 263,000 from 255,000.  It also noted how its acquisition of Web.com will boost non-GAAP EPS during the first half of 2008.

We have featured this one positively for the last two weeks in "UNDER $10 STOCKS" subscriber letter.  Frankly, we do see some areas where the bulls can make their cheers and also where some of the nay-sayers could point to issues.  But all in all, this was a solid quarter and this remains one of our top small cap internet stocks with upside from current levels.

Shares closed up 2.4% at $9.88 today, and shares are up almost 4% at $10.26 in after-hours trading.  Its 52-week trading range is $7.92 to $12.00.  This one is thinly covered and has an average analyst target of roughly $14.00, although our fair value is a bit under those targets.

Jon C. Ogg
February 12, 2008

Posted on: February 12, 2008 – 4:55 pm in Earnings, Internet, , , ,

Website Pros Shows Why Web.com Was Worth The Acquisition (WSPI)

Website Pros (NASDAQ:WSPI) posted quarterly results.  The company posted $17.8 million in revenues, $0.15 EPS non-GAAP, and $0.02 EPS on GAAP basis.  First Call had estimates at $17.77 million revenues and $0.13 non-GAAP EPS.

This was a tough quarter to analyze because of the ongoing integration issues in the recent Web.com (formerly Interland).  We noted this as part of the 24/7 Wall St. "Small Cap Internet Takeover List" with the first of two parts of companies under $1 Billion tied to the web that could be takeover candidates under the proper set of circumstances.

If you want to see how potentially powerful this buyout of Web.com (even if it was two-years too late) can be, look no further: On a stand-alone basis, Website Pros’ total net subscribers were approximately 82,000 at the end of the third quarter, up from approximately 80,700 at the end of the second quarter.  But including the customer adds from Web.com, the combined net subscribers was almost 255,000 at the end of the third quarter. 

Churn was mixed with 5.2% rate, down from 6.2% in Q3 2006 and up from 4.8% in the prior quarter.  With the much larger number of customer since the Web.com, it is the opinion of 24/7 Wall St. that the churn rate will rise.  Even with a higher churn rate the opportunities for the company to grow rapidly just went into overdrive.

Web.com, according to the company, continued revenue and subscriber growth driven by both direct marketing and partnerships.  Interestingly enough, the company said it will continue to identify growth prospects from both inside and outside the combined company.

Jon C. Ogg
November 6, 2007

Jon Ogg produces the 24/7 Wall St. Special Situation Investing Newsletter; he does not own securities in the companies he covers.

Posted on: November 6, 2007 – 4:40 pm in Earnings, Internet, ,