CONSTANT CONTACT, INC. (CTCT, Financial) filed Annual Report for the period ended 2011-12-31.
Constant Contac has a market cap of $911 million; its shares were traded at around $31.31 with a P/E ratio of 92.8 and P/S ratio of 4.3.
Revenue increased by $40.2 million from 2010 to 2011. The increase resulted primarily from an approximately 19% increase in the number of average monthly customers and an approximately 4% increase in average revenue per customer. The increase in average revenue per customer was primarily due to an increase in average customer list size and additional revenue from add-ons to our email marketing product and from our event marketing product. The increase in revenue from our event marketing product was due to a price increase in the product implemented in the third quarter of 2011 as well as an increase in the number of event marketing customers in 2011. We expect our average revenue per customer to increase over time.
Revenue increased by $45.2 million from 2009 to 2010. The increase resulted primarily from an approximately 31% increase in the number of average monthly customers and an approximately 4% increase in average revenue per customer. The increase in average revenue per customer was due to an increase in average customer list size and additional revenue from add-ons to our email marketing product and from our event marketing and survey products.
Cost of revenue increased by $13.1 million from 2009 to 2010 and was 29% of revenue for both years. The increase in absolute dollars resulted primarily from higher depreciation, hosting and maintenance costs of $5.3 million as a result of scaling and adding capacity to our hosting infrastructure. Additionally, $4.9 million and $895,000 of the increase resulted from increased personnel related costs attributable to additional employees in our customer support group and operations group, respectively, as a result of increasing the number of employees to support our customer growth and manage our infrastructure. Approximately $748,000 of the increase related to higher credit card fees due to the higher volume of billing transactions.
Net cash used in investing activities was $34.0 million, $57.7 million and $36.5 million for the years ended December 31, 2011, 2010 and 2009, respectively. Net cash used in investing activities consisted primarily of net cash paid to purchase marketable securities and property and equipment as well as cash paid to acquire businesses and intangible assets. This was partially offset by the sales and maturities of marketable securities. Acquisition of property and equipment of $18.1 million, $17.2 million and $16.6 million in 2011, 2010 and 2009, respectively, consisted of the purchase of computer equipment for our operations and employees, equipment, furniture and leasehold improvements and the capitalization of certain software development costs. In 2011, we transitioned to a new third-party hosting facility in California. We made capital expenditures in both 2011 and 2010 for equipment to be used in the new facility. In 2009, we signed a new lease for our corporate headquarters that extended our occupancy through September 2015 and increased the square footage throughout the duration of the lease. We increased the amount of space we occupied in both 2010 and 2009 and acquired property and equipment to outfit the additional space. We made additional capital expenditures in 2011, 2010 and 2009 for equipment used in our hosting infrastructure. We opened a second sales and support office under a long-term lease in April 2009 and made capital expenditures in 2009 to outfit the space. During 2011, 2010 and 2009, we capitalized $4.8 million, $3.5 million and $3.3 million, respectively, of costs associated with the development of internal use software. In 2011, we completed the acquisition of substantially all of the assets of Bantam Networks for a cash payment of $15 million. We also used cash to purchase a small business and intangible assets. In 2010, we completed the acquisition of NutshellMail, which included a payment of $2.2 million, net of cash received.
Read the The complete Report
Constant Contac has a market cap of $911 million; its shares were traded at around $31.31 with a P/E ratio of 92.8 and P/S ratio of 4.3.
Highlight of Business Operations:
We derive our revenue principally from subscription fees from our customers. Our revenue is driven primarily by the number of paying customers and the subscription fees for our products and is not concentrated within any one customer or group of customers. In 2011, our top 100 customers accounted for less than 1% of our total revenue. We do not require our customers to commit to a contractual term; however, our customers are required to prepay for subscriptions on a monthly, semi-annual, or annual basis by providing a credit card or bank check. Fees are recorded initially as deferred revenue and then recognized as revenue on a daily basis over the prepaid subscription period.Revenue increased by $40.2 million from 2010 to 2011. The increase resulted primarily from an approximately 19% increase in the number of average monthly customers and an approximately 4% increase in average revenue per customer. The increase in average revenue per customer was primarily due to an increase in average customer list size and additional revenue from add-ons to our email marketing product and from our event marketing product. The increase in revenue from our event marketing product was due to a price increase in the product implemented in the third quarter of 2011 as well as an increase in the number of event marketing customers in 2011. We expect our average revenue per customer to increase over time.
Revenue increased by $45.2 million from 2009 to 2010. The increase resulted primarily from an approximately 31% increase in the number of average monthly customers and an approximately 4% increase in average revenue per customer. The increase in average revenue per customer was due to an increase in average customer list size and additional revenue from add-ons to our email marketing product and from our event marketing and survey products.
Cost of revenue increased by $13.1 million from 2009 to 2010 and was 29% of revenue for both years. The increase in absolute dollars resulted primarily from higher depreciation, hosting and maintenance costs of $5.3 million as a result of scaling and adding capacity to our hosting infrastructure. Additionally, $4.9 million and $895,000 of the increase resulted from increased personnel related costs attributable to additional employees in our customer support group and operations group, respectively, as a result of increasing the number of employees to support our customer growth and manage our infrastructure. Approximately $748,000 of the increase related to higher credit card fees due to the higher volume of billing transactions.
Net cash used in investing activities was $34.0 million, $57.7 million and $36.5 million for the years ended December 31, 2011, 2010 and 2009, respectively. Net cash used in investing activities consisted primarily of net cash paid to purchase marketable securities and property and equipment as well as cash paid to acquire businesses and intangible assets. This was partially offset by the sales and maturities of marketable securities. Acquisition of property and equipment of $18.1 million, $17.2 million and $16.6 million in 2011, 2010 and 2009, respectively, consisted of the purchase of computer equipment for our operations and employees, equipment, furniture and leasehold improvements and the capitalization of certain software development costs. In 2011, we transitioned to a new third-party hosting facility in California. We made capital expenditures in both 2011 and 2010 for equipment to be used in the new facility. In 2009, we signed a new lease for our corporate headquarters that extended our occupancy through September 2015 and increased the square footage throughout the duration of the lease. We increased the amount of space we occupied in both 2010 and 2009 and acquired property and equipment to outfit the additional space. We made additional capital expenditures in 2011, 2010 and 2009 for equipment used in our hosting infrastructure. We opened a second sales and support office under a long-term lease in April 2009 and made capital expenditures in 2009 to outfit the space. During 2011, 2010 and 2009, we capitalized $4.8 million, $3.5 million and $3.3 million, respectively, of costs associated with the development of internal use software. In 2011, we completed the acquisition of substantially all of the assets of Bantam Networks for a cash payment of $15 million. We also used cash to purchase a small business and intangible assets. In 2010, we completed the acquisition of NutshellMail, which included a payment of $2.2 million, net of cash received.
Read the The complete Report
