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Constant: Waltham, Ma November 5, 2015 Constant Contact

The following excerpt is from the company's SEC filing.

, Inc.

(Nasdaq: CTCT), which helps more than 650,000 small organizations find new customers and grow relationships with their existing customers through its online marketing suite, today announced its financial results for the third quarter ended September 30, 2015.

In light of the agreement and plan of merger between Constant Contact and Endurance International Group Holdings, Inc. (Nasdaq: EIGI) previously announced on November 2, 2015, Constant Contact has cancelled its third quarter results conference call that had been scheduled for Thursday, November 5, 2015 at 5:00 pm ET.

This is an exciting time for our shareholders and for small businesses everywhere, said Gail Goodman, chief executive officer of Constant Contact. Combining with Endurance, we create a new leader in the small business marketplace with extraordinary reach and scale. With small business success as our common core, the combined company will have more than $1 billion in revenue, a portfolio of products including web hosting, domains, ecommerce, emarketing, and mobile business tools, and more than 5 million customers. Together we will serve small businesses from inception through growth, helping them harness the full power and potential of the web.

Third Quarter 2015 Financial Highlights

Revenue was $91.9 million, an increase of 10.0% compared to revenue of $83.5 million for the comparable period in 2014.

Adjusted EBITDA was $20.3 million, compared to adjusted EBITDA of $18.1 million for the comparable period in 2014.

Adjusted EBITDA margin was 22.1%, compared to 21.7% for the comparable period in 2014.

GAAP net income was $6.4 million, or $0.19 per diluted share, compared to GAAP net income of $5.2 million, or $0.16 per diluted share, for the comparable period in 2014.

Given the announcement made on November 2, 2015 regarding Constant Contacts entry into an agreement and plan of merger with Endurance, the company will no longer be providing operating metrics, nor will the company provide outlook for its fourth quarter 2015 financial results. The companys financial guidance for FY 2015 should no longer be relied upon.

Non-GAAP Financial Measures and Other Financial Information

This press release contains Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures. Adjusted EBITDA is defined as GAAP net income before income taxes, interest and other income (expense), net, depreciation and amortization, stock-based compensation, and litigation contingency accruals. Adjusted EBITDA margin is a non-GAAP financial measure that is calculated by dividing adjusted EBITDA by revenue.

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Constant Contact believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Constant Contacts financial condition and results of operations. The companys management uses these non-GAAP measures to compare the companys performance to that of prior periods for trend analyses, for purposes of determining certain components of executive and senior management incentive compensation, and for budgeting and planning purposes. These measures are used in monthly financial reports prepared for management and in monthly and quarterly financial reports presented to the companys board of directors. The company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the companys financial measures with other software-as-a-service companies, many of which present similar non-GAAP financial measures to investors.

Management of the company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of Adjusted EBITDA and Adjusted EBITDA margin is that these non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in the companys financial statements. In addition, these non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents these non-GAAP financial measures in connection with GAAP results. Constant Contact urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the companys business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.

About Constant Contact, Inc.

Constant Contact introduced the first email marketing tool for small businesses, nonprofits, and associations in 1998. Today, the company helps more than 650,000 customers worldwide find marketing success through the only all-in-one online marketing platform for small organizations. Anchored by our world-class email marketing tool, Constant Contact helps small businesses drive repeat business and find new customers. It features multi-channel marketing campaigns (newsletters/announcements, offers/promotions, online listings, events/registration, and...


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