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Web.com's narrows 2Q loss; adjusted earnings beat

Web.com narrows its 2nd-quarter loss but adjusted earnings beat market expectations

Associated Press

JACKSONVILLE, Fla. (AP) -- Web.com Group Inc.'s shares jumped in after-hours trading Thursday after the online marketing company delivered a better-than-expected adjusted second-quarter profit.

The Jacksonville, Fla., company posted a loss of $9.7 million, or 20 cents per share, for the period that ended June 30. That is compared with a loss of $19.1 million, or 41 cents per share, in the second quarter last year. After adjusting for stock-based compensation, restructuring costs and other special items, it earned 51 cents per share versus 38 cents per share.

Web.com's total revenue increased to $120.4 million from $98.9 million. The company said it consistently and profitably added subscribers during the period, with more than 3 million subscribers by the end of the period. Its average revenue per user was $14.09, up from $13.89 in the first quarter.

Analysts polled by FactSet, on average, were anticipating adjusted earnings of 49 cents per share on revenue of $130.7 million.

Web.com provides Internet services to small businesses in order to help them compete online, including domain registration, website design, social media assistance and search engine optimization.

Shares of the company jumped $1.29, nearly 5 percent, to $28.70 in after-hours trading following the report. Its stock added $1.43 ahead of the report to close regular trading at $27.41.

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