GAAP revenue of $272.2 million
Net loss of $2.2 millionAdjusted EBITDA of $72.5 millionCash flow from operations of $34.9 millionFree cash flow of $23.7 millionTotal subscribers on platform were approximately 4.780 million at March 31, 2020BURLINGTON, Mass., April 30, 2020 (GLOBE NEWSWIRE) — Endurance International Group Holdings, Inc. (NASDAQ: EIGI), a leading provider of cloud-based platform solutions designed to help small and medium-sized businesses succeed online, today reported financial results for its first quarter ended March 31, 2020.“Our first quarter results reflect continued progress operationally and financially across our scale strategic platform.  Our focused investment in our strategic brands has resulted in positive subscriber growth for our third consecutive quarter, adjusted for the sale of SinglePlatform,” commented Jeffrey H. Fox, president and chief executive officer of Endurance International Group.  “Obviously, the COVID-19 pandemic has disrupted the global economy and it’s still too early to predict the extent of the pandemic’s effect on our business.  At this time, our execution remains consistent with our 2020 growth plan, but we believe it is prudent to suspend guidance while we continue to focus on the health and safety of our employees and on delivering value to our customers in this critical time of need.”First Quarter 2020 Financial HighlightsAs previously disclosed, the Company completed the sale of SinglePlatform on December 5, 2019.  For year over year comparative purposes, selected figures presented below do not adjust for the sale of SinglePlatform unless noted.Revenue for the first quarter of 2020 was $272.2 million, a decrease of 1 percent compared to revenue of $273.7 million in the first quarter of 2019, excluding SinglePlatform. Revenue in the first quarter of 2019 was $280.7 million, including the contribution of approximately $7.0 million from SinglePlatform.Net loss for the first quarter of 2020 was $2.2 million, or $(0.02) per diluted share, compared to net loss of $3.5 million, or $(0.02) per diluted share, for the first quarter of 2019.Adjusted EBITDA for the first quarter of 2020 was $72.5 million, a decrease of 6 percent compared to first quarter 2019 adjusted EBITDA of $76.9 million, excluding SinglePlatform.  Adjusted EBITDA in the first quarter of 2019 was $78.5 million, including the contribution of approximately $1.6 million from SinglePlatform.Cash flow from operations for the first quarter of 2020 was $34.9 million, an increase of 132 percent compared to $15.0 million for the first quarter of 2019.Free cash flow, defined as cash flow from operations less capital expenditures and financed equipment obligations, for the first quarter of 2020 was $23.7 million, an increase of 236 percent compared to $7.1 million for the first quarter of 2019.Under its previously announced authorization, during the quarter the Company repurchased 7,603,620 shares for a total of $12.3 million, at an average price per share of $1.62. Year to date the Company repurchased 8,708,720 shares for a total of $14.4 million, at an average price per share of $1.66.First Quarter 2020 Operating HighlightsTotal subscribers on platform at March 31, 2020 were approximately 4.780 million, compared to approximately 4.783 million subscribers at March 31, 2019 and approximately 4.766 million subscribers at December 31, 2019.  See “Total Subscribers” below.Average revenue per subscriber, or ARPS, for the first quarter of 2020 was $19.01, compared to $19.52 for the first quarter 2019 and $19.34 for the fourth quarter of 2019.  See “Average Revenue Per Subscriber” below.Update on OutlookGiven the uncertainty regarding the COVID-19 pandemic and the related economic impact, the Company is suspending the guidance previously issued on February 6, 2020.Conference Call and Webcast InformationEndurance International Group’s first quarter 2020 financial results teleconference and webcast is scheduled to begin at 8:00 a.m. EDT on Thursday, April 30, 2020. To participate on the live call, analysts and investors should dial (888) 734-0328 at least ten minutes prior to the call. Endurance International Group will also offer a live and archived webcast of the conference call, accessible from the Investor Relations section of the Company’s website at http://ir.endurance.com.Non-GAAP Financial MeasuresIn addition to our financial information presented in accordance with GAAP, we use adjusted EBITDA and free cash flow, which are non-GAAP financial measures, to evaluate the operating and financial performance of our business, identify trends affecting our business, develop projections and make strategic business decisions. In this press release, we are also presenting the following additional non-GAAP financial measures for the first quarter of 2019: revenue – excluding SinglePlatform and adjusted EBITDA – excluding SinglePlatform. A non-GAAP financial measure is a numerical measure of a company’s operating performance, financial position or cash flow that excludes amounts that are included in the most directly comparable measure calculated and presented in accordance with GAAP or includes amounts that are excluded from the most directly comparable measure calculated and presented in accordance with GAAP.Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP and exclude expenses that may have a material impact on our reported financial results. For example, adjusted EBITDA excludes interest expense, which has been and will continue to be for the foreseeable future a significant recurring expense in our business. The presentation of non-GAAP financial information is not meant to be considered in isolation from, or as a substitute for, the most directly comparable financial measures prepared in accordance with GAAP. We urge you to review the additional information about adjusted EBITDA and free cash flow shown below, including the reconciliations of these non-GAAP financial measures to their comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.Revenue – excluding SinglePlatform is a non-GAAP financial measure that we calculate as revenue excluding revenue contributed by our SinglePlatform business, which we sold on December 5, 2019. We believe that this measure helps investors evaluate and compare our past performance excluding the impact of a non-core business that we have sold.Adjusted EBITDA is a non-GAAP financial measure that we calculate as net (loss) income, excluding the impact of interest expense (net), income tax expense (benefit), depreciation, amortization of other intangible assets, stock-based compensation, restructuring expenses, transaction expenses and charges, gain on sale of business, (gain) loss of unconsolidated entities, impairment of goodwill and other longlived assets, and shareholder litigation reserve. We view adjusted EBITDA as a performance measure and believe it helps investors evaluate and compare our core operating performance from period to period.Adjusted EBITDA – excluding SinglePlatform is a non-GAAP financial measure that we calculate as adjusted EBITDA less adjusted EBITDA contributed by our SinglePlatform business, which we sold on December 5, 2019. Adjusted EBITDA contributed by our SinglePlatform business excludes the impact of corporate costs that we had allocated to SinglePlatform, since we are continuing to incur these costs following the sale. We believe that this measure helps investors evaluate and compare our past performance excluding the impact of a non-core business that we have sold.Free Cash Flow, or FCF, is a non-GAAP financial measure that we calculate as cash flow from operations less capital expenditures and financed equipment. We believe that FCF provides investors with an indicator of our ability to generate positive cash flows after meeting our obligations with regard to capital expenditures (including financed equipment).Key Operating MetricsTotal Subscribers – We define total subscribers as the approximate number of subscribers that, as of the end of a period, are identified as subscribing directly to our products on a paid basis, excluding accounts that access our solutions via resellers or that purchase only domain names from us. Subscribers of more than one brand, and subscribers with more than one distinct billing relationship or subscription with us, are counted as separate subscribers. Total subscribers for a period reflects adjustments to add or subtract subscribers as we integrate acquisitions and/or are otherwise able to identify subscribers that meet, or do not meet, this definition of total subscribers. In the first quarter of 2020, these adjustments had a negligible impact on total subscriber count.Average Revenue Per Subscriber (ARPS) – We calculate ARPS as the amount of revenue we recognize in a period, including marketing development funds and other revenue not received from subscribers, divided by the average of the number of total subscribers at the beginning of the period and at the end of the period, which we refer to as average subscribers for the period, divided by the number of months in the period. See definition of “Total Subscribers” above. ARPS does not represent an exact measure of the average amount a subscriber spends with us each month, since our calculation of ARPS is impacted by revenues generated by non-subscribers.Forward-Looking Statements
This press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements about the potential impact of the COVID-19 pandemic. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts, and statements identified by words such as “expects,” “believes,” “estimates,” “may,” “continue,” “positions,” “confident,” and variations of such words or words of similar meaning and the use of future dates. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that these plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: the possibility that the impact of the COVID-19 pandemic on the economy and our business will be different from or more extensive than we expect; the possibility that our planned investment initiatives will not result in the anticipated benefits to our business; the possibility that we will be unable to maintain subscriber growth; an adverse impact on our business from litigation or regulatory proceedings or commercial disputes; an adverse impact on our business from our substantial indebtedness and the cost of servicing our debt; the rate of growth of the Small and Medium Business (“SMB”) market for our solutions or the impact of COVID-19 on that market; our inability increase sales to our existing subscribers or retain our existing subscribers; system or Internet failures; our inability to maintain or improve our competitive position or market share; and other risks and uncertainties discussed in our filings with the SEC, including those set forth under the caption “Risk Factors” in our Annual Report on Form 10-K for the period ended December 31, 2019 filed with the SEC on February 14, 2020 and other reports we file with the SEC. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.About Endurance International Group
Endurance International Group Holdings, Inc. (NASDAQ:EIGI) helps millions of small businesses worldwide with products and technology to enhance their online web presence, email marketing, business solutions, and more. The Endurance family of brands includes: Constant Contact, Bluehost, HostGator and Domain.com, among others. Headquartered in Burlington, Massachusetts, Endurance employs approximately 3,600 people across the United States, Brazil, India and the Netherlands. For more information, visit: www.endurance.com.Endurance International Group and the compass logo are trademarks of The Endurance International Group, Inc.  Constant Contact, the Constant Contact logo and other brand names of Endurance International Group are trademarks of The Endurance International Group, Inc. or its subsidiaries.Investor Contact:
Angela White
Endurance International Group
(781) 852-3450
[email protected]Press Contact:
Kristen Andrews
Endurance International Group
(781) 418-6716
[email protected]

Endurance International Group Holdings, Inc.
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Endurance International Group Holdings, Inc.
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Endurance International Group Holdings, Inc.
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GAAP to Non-GAAP Reconciliation – Adjusted EBITDAThe following table presents a reconciliation of net (loss) income calculated in accordance with GAAP to adjusted EBITDA (all data in thousands):⁽¹⁾  Interest expense includes impact of amortization of deferred financing costs, original issuance discounts and interest income.
GAAP to Non-GAAP Reconciliation – Free Cash FlowThe following table reflects the reconciliation of cash flow from operations to free cash flow (“FCF”) (all data in thousands): 
⁽¹⁾  Capital expenditures during the three months ended March 31, 2019 and 2020 includes $2.6 million and $1.3 million, respectively, of principal payments under a three year agreement for equipment financing. The remaining balance on the equipment financing is $6.7 million as of March 31, 2020.

Average Revenue Per Subscriber – Calculation and Segment DetailFrom fiscal year 2017 through fiscal year 2019, we reported our financial results in three reportable segments. In the second half of 2019, we started the process of simplifying our organization to support our two key strategic platforms, web presence (including our web hosting and domain offerings) and email marketing. During the three months ended March 31, 2020, we modified our internal reporting structure to reflect these changes in our structure and leadership, and also changed the name of the email marketing segment to the “digital marketing” segment. This resulted in consolidation of the former domain segment into the web presence segment. We now report our financial results in two segments – web presence (including domains) and digital marketing.Web presence. The web presence segment consists of our web hosting brands, including Bluehost and HostGator, as well as our domain-focused brands such as Domain.com, ResellerClub and LogicBoxes. This segment includes web hosting, website security, website design tools and services, e-commerce products, domain names and domain privacy. It also includes the sale of domain management services to resellers and end users, as well as premium domain names, and generates advertising revenue from domain name parking. The results presented below for the web presence segment include the former domain segment.Digital marketing. The digital marketing segment consists of Constant Contact email marketing tools and related products. This segment also generates revenue from sales of our Constant Contact-branded website builder tool and our Ecomdash inventory management and marketplace listing solution. For most of 2019, the digital marketing segment also included the SinglePlatform digital storefront business, which was sold on December 5, 2019.The following table presents the calculation of ARPS, on a consolidated basis and by segment (all data in thousands, except ARPS data):
The following table presents revenue, gross profit, and a reconciliation by segment of net (loss) income calculated in accordance with GAAP to adjusted EBITDA (all data in thousands):
⁽¹⁾  Interest expense includes impact of amortization of deferred financing costs, original issuance discounts and interest income.* Excluding SinglePlatform, which contributed approximately $1.6 million in adjusted EBITDA (excluding the impact of corporate cost allocations) in the first quarter of 2019, adjusted EBITDA would have been approximately $76.9 million.
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