Endurance International Group Holdings reported financial results for its second quarter ended June 30, 2020 and announced the acquisition of Retention Science.
Endurance International Group Holdings, a provider of cloud-based platform solutions designed to help small and medium-sized businesses succeed online, announced its second quarter ended June 30, 2020, and the acquisition of Retention Science.
Investments for increasing the value
Revenue for the second quarter of 2020 was $274.0 million, an increase of 1 percent compared to revenue of $271.4 million in the second quarter of 2019, excluding SinglePlatform. Revenue in the second quarter of 2019 was $278.2 million, including the contribution of approximately $6.8 million from SinglePlatform.
Jeffrey H. Fox, president and chief executive officer of Endurance International Group said,
Jeffrey H. Fox, president and chief executive officer of Endurance International Group
“Against a backdrop of significant macro-economic disruption due to the COVID-19 pandemic, we are encouraged by the resilience of small businesses and their drive to adapt. As we noted in our preliminary update two weeks ago, we see secular demand for our products and services and are pleased with our subscriber additions and revenue growth. As we execute the second half of 2020, we remain focused on investments that we believe will increase the value we deliver to our customers, including an expanded solution set. As such, we are pleased to announce that we signed an agreement to acquire Retention Science, an AI-driven provider of e-commerce email marketing services.”
Meanwhile, Endurance International Group Holdings acquired Retention Science for approximately $35.0 million, consisting of $17.5 million to be paid in cash upon close. The closing of the transaction is subject to customary closing conditions and is expected to close on or before August 15, 2020.
The Retention Science platform allows the company to complement its e-commerce capabilities following the acquisition of Ecomdash last year and supports our strategic focus on investing to expand our total addressable market,” according to Mr. Fox.
Second Quarter 2020 Financial and Operating Highlights
Net income for the second quarter of 2020 was $4.6 million, or $0.03 per diluted share, compared to a net loss of $26.2 million, or $(0.18) per diluted share, for the second quarter of 2019.
Adjusted EBITDA for the second quarter of 2020 was $84.0 million, an increase of 12 percent compared to the second quarter 2019 adjusted EBITDA of $75.3 million, excluding SinglePlatform. Adjusted EBITDA in the second quarter of 2019 was $76.3 million, including the contribution of approximately $1.1 million from SinglePlatform.
Cash flow from operations for the second quarter of 2020 was $67.8 million, an increase of 14 percent compared to $59.7 million for the second quarter of 2019.
Free cash flow, defined as cash flow from operations less capital expenditures and financed equipment obligations, for the second quarter of 2020 was $55.9 million, an increase of 17 percent compared to $47.6 million for the second quarter of 2019.
Under its previously announced authorization, during the quarter, the Company repurchased 1,105,100 shares for a total of $2.1 million, at an average price per share of $1.90. 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.
