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Constant Contact (Constant Contact) Operating Income : $27.6 Mil (TTM As of Sep. 2015)


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What is Constant Contact Operating Income?

Constant Contact's Operating Income for the three months ended in Sep. 2015 was $9.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2015 was $27.6 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Constant Contact's Operating Income for the three months ended in Sep. 2015 was $9.7 Mil. Constant Contact's Revenue for the three months ended in Sep. 2015 was $91.9 Mil. Therefore, Constant Contact's Operating Margin % for the quarter that ended in Sep. 2015 was 10.51%.

Constant Contact's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Constant Contact's annualized ROC % for the quarter that ended in Sep. 2015 was 13.07%. Constant Contact's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2015 was 80.66%.


Constant Contact Operating Income Historical Data

The historical data trend for Constant Contact's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Constant Contact Operating Income Chart

Constant Contact Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.51 10.00 15.52 8.30 19.80

Constant Contact Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.08 7.56 4.30 6.05 9.66

Constant Contact Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $27.6 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Constant Contact  (NAS:CTCT) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Constant Contact's annualized ROC % for the quarter that ended in Sep. 2015 is calculated as:

ROC % (Q: Sep. 2015 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2015 ) + Invested Capital (Q: Sep. 2015 ))/ count )
=38.628 * ( 1 - 34.03% )/( (195.42 + 194.637)/ 2 )
=25.4828916/195.0285
=13.07 %

where

Invested Capital(Q: Jun. 2015 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=349.254 - 24.537 - ( 180.699 - max(0, 64.629 - 193.926+180.699))
=195.42

Invested Capital(Q: Sep. 2015 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=348.431 - 21.574 - ( 180.514 - max(0, 61.339 - 193.559+180.514))
=194.637

Note: The Operating Income data used here is four times the quarterly (Sep. 2015) data.

2. Joel Greenblatt's definition of Return on Capital:

Constant Contact's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2015 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2015 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2015  Q: Sep. 2015
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=38.628/( ( (48.44 + max(-51.402, 0)) + (47.337 + max(-48.294, 0)) )/ 2 )
=38.628/( ( 48.44 + 47.337 )/ 2 )
=38.628/47.8885
=80.66 %

where Working Capital is:

Working Capital(Q: Jun. 2015 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.358 + 0 + 12.869) - (24.537 + 40.092 + 1.4210854715202E-14)
=-51.402

Working Capital(Q: Sep. 2015 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.408 + 0 + 12.637) - (21.574 + 39.765 + 0)
=-48.294

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2015) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Constant Contact's Operating Margin % for the quarter that ended in Sep. 2015 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2015 )/Revenue (Q: Sep. 2015 )
=9.657/91.859
=10.51 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Constant Contact Operating Income Related Terms

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Constant Contact (Constant Contact) Business Description

Traded in Other Exchanges
N/A
Address
Constant Contact Inc was incorporated in Massachusetts in 1995 under the name Roving Software Incorporated. The Company provides online marketing tools that are designed for small organizations, including small businesses, associations and non-profits. Its suite of online marketing tools, which include Email Marketing, EventSpot, Social Campaigns, SaveLocal, SinglePlatform and Survey, enable its customers to launch and monitor marketing campaigns across multiple channels, including email, social media, events, local deals, online listings and surveys. Its customers include various types of small organizations including retailers, restaurants, law and accounting firms, consultants, non-profits, religious organizations and alumni associations. Its email marketing product allows customers to easily create, send and track professional-looking email campaigns. The product includes a campaign creation wizard that makes it easy to create and edit email campaigns with access to over 300 pre-designed email campaign templates that reflect a wide variety of themes and styles and over 15 million images through its relationship with Bigstock, a subsidiary of Shutterstock, Inc. The Company also offers market leading free tools and applications that allow customers to add and update contacts, including adding contacts directly from a computer or point of sale device. Its event marketing product allows its customers to promote and manage events, communicate with invitees and registrants, capture and track registrations and collect online payments. The Company's social media products include Social Campaigns, which empowers customers to reach and engage users on Facebook to grow their fans and create social word-of-mouth through easy-to-create offers and promotions. SaveLocal provides service to its customers to retain existing customers and attract new customers by creating, running and managing local deals, and provides them with end-to-end control over their deals at an affordable price. The Company's online survey product enables its customers to survey their customers or members and analyze responses. SinglePlatform provides its customers the power to manage all of their key online listings from one place by helping them to create a content rich digital storefront, which can include menus, photos, services, offers and featured products. As of December 31, 2013, the Company served a large and diverse group of approximately 595,000 unique paying customers. Its Social Campaigns product competes with offerings by Offerpop Corporation, Pagemodo, a subsidiary of VistaPrint N.V., Vocus Social Media LLC doing business as North Social and Wildfire Interactive, Inc. Its SaveLocal product competes with offerings by Groupon, Inc., LivingSocial, Inc., Amazon Local and Google Offers. Its SinglePlatform product competes with offerings by Yext, Inc. and Locu Inc., a subsidiary of GoDaddy.com, LLC. Its survey product competes with offerings by Surveymonkey.c
Executives
Harpreet Grewal officer: EVP, Chief Financial Officer C/O VISTAPRINT USA, INCORPORATED, 100 HAYDEN AVE., LEXINGTON MA 02050
Kenneth J Surdan officer: Senior VP, Product C/O ENDURANCE INTERNATIONAL GROUP 10 CORPORATE DRIVE, SUITE 300 BURLINGTON MA 01803
Robert P Nault officer: SVP & General Counsel C/O MIMECAST LIMITED, MIMECAST NA, INC. 191 SPRING STREET LEXINGTON MA 02421
Julie Mb Bradley director C/O TRIPADVISOR, INC., 141 NEEDHAM STREET, NEWTON MA 02464
Robert P Badavas director C/O HERCULES CAPITAL, INC., 400 HAMILTON AVENUE, SUITE 310, PALO ALTO IL 94301
Sharon T Rowlands director 195 BROADWAY, NEW YORK NY 10007
Rick W Jensen officer: SVP, Chief Sales & Mktg. Off. C/O CONSTANT CONTACT, RESERVOIR PLACE, 1601 TRAPELO RD., SUITE 246, WALTHAM MA 02451
Walsh John J Jr officer: SVP, Engineering & Operations 1601 TRAPELO ROAD, SUITE 329 C/O CONSTANT CONTACT, INC. WALTHAM MA 02451
Stanley Morgan 10 percent owner 1585 BROADWAY, NEW YORK NY 10036
Greylock Xii Gp Llc 10 percent owner 2550 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Greylock Xii Limited Partnership 10 percent owner 40 GROVE STREET, SUITE 430, WELLESLEY MA 02482

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