CTCT IR Presentation August 2010

Constant Contact, Inc.
(Nasdaq: CTCT)
Gail Goodman, CEO

Harpreet Grewal, CFO
August, 2010
Copyright © 2010 Constant Contact Inc.

Forward-Looking Statements & Non-GAAP
Financial Measures
This presentation contains forward-looking statements, including statements relating to our growth rates, market
opportunity, customer acquisition model, growth strategy, long-term target operating model and profitability. These
statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties,
and other factors that may cause our actual results or performance to be materially different from any future results or
performance expressed or implied by these forward-looking statements. You should not place undue reliance on forward-
looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases,
beyond our control and that could materially affect actual results or performance. Other factors that could materially affect
actual results or performance are described in our various filings with the Securities and Exchange Commission, including
the Risk Factors section of our most recently filed Quarterly Report on Form 10-Q and Annual Report on Form 10-K. If any
of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary
significantly from what we projected. Any forward-looking statement you see or hear during this presentation reflects our
current views as of the date of this presentation with respect to future events and is subject to these and other risks,
uncertainties and assumptions relating to our financial results and operations. We assume no obligation to publicly update
or revise these forward-looking statements for any reason, whether as a result of new information, future events, or
otherwise.
Information regarding the non-GAAP financial measure referenced in this presentation, including the reconciliation to the
nearest GAAP measure can be found in the press release reporting our second quarter 2010 financial results, which is
available on our web site: www.ConstantContact.com.
Copyright © 2010 Constant Contact, Inc.
Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 2
Introduction to Constant Contact
■ Constant Contact helps small organizations

grow their customer relationships
■ Suite of marketing solutions -
■ Email marketing
■ Social media marketing
■ Event marketing
■ Online surveys
■ Solutions are easy, effective and affordable
■ Focus on customer success through

education, coaching and support
Investment Highlights
■ Large underpenetrated multi-billion market opportunity
■ Expanding product suite of integrated marketing solutions
■ Clear market leadership position driving one of the fastest

growth rates among software companies
■ 66% CAGR between 2006 and 2009

■ Guided to 33% - 35% revenue growth in 2010*
■ Four consecutive years of 350 – 400 basis points of annual

adjusted EBITDA margin(1) expansion driven by sales and
marketing leverage
*Guidance as of Thursday, July 29, 2010

(1) Adjusted EBITDA is a non-GAAP financial measure calculated by adding stock-based compensation and depreciation and amortization back to income (loss) from operations.
Rapid, Consistent & Highly Visible Growth
Monthly Revenue (2004 – Q2 2010)
Note: monthly numbers unaudited

Large, Attractive Market Opportunity
More than
$10 billion
potential U.S.
market opportunity
Small
Businesses
Direct
Sellers
Non-Profits,
Associations,
Community Similar sized
Groups opportunity
outside the US

Suite of Small Business Marketing Solutions
Social Media
Marketing Event
Marketing
Authoring
Email &
Image &
Doc.
Marketing Contacts
Hosting
Online
Survey
Newsletter
Archive

Staying Connected to Customers
■ The value of Email Marketing

■ Drives repeat sales and customer referrals
■ Keeps you in front of your best audience –

people who know you
■ The value of Social Media Marketing

■ Leverage the power of your raving fans to
acquire new customers through their networks
■ Increased reach with endorsement
■ The value of Event Marketing

■ Drives increased event attendance
■ Saves time and money; simplify event hosting
■ The value of Survey

■ Understand your customers and members better
■ Makes communications more relevant and targeted

Customer Success Formula
Designed for Small Organizations:

• High ease of use
• Built in best practices
• Quick path to success
• Discoverable richness
Communications Coaches:
• Call trial customers
• Drive early engagement
• Provide best practices and
suggestions specific to their
business / organization
Support Resources: Customer Education:

• Phone / Email Support • Daily Product Tours
• Marketplace • Regional Seminars
• Chat, Twitter • Hints and Tips
• Community • Product Tutorials
Large and Diverse Customer Base
Number of Employees Customer Type

(Approximate) (Approximate)
20%
20%
35%
40%
8%
7%
15% 40%
15%
1 10 to 24
Business to Business
2 to 4 70% Business to Consumer
25 to 49
Nonprofits and Associations
5 to 9 50 and up
Copyright © 2010 Constant Contact, Inc. *Data is approximate, based on matching a percentage of our customers
Diversified and Efficient Go To Market Channels
Culture of continuous testing and rigorous return analysis by channel
■ Network Effects
■ Word of mouth referrals
■ Constant Contact link in over 2 Billion emails sent by customers each month
■ Advertising and Other Channels

■ Pay-per-click and banner advertising
■ Radio & T.V. ads aired on major networks reaching millions of people across the U.S.
■ Regional Engagement
■ Local educational seminars done by Regional Development Directors (RDDs)
■ Building relationships with small business organizations in the U.S. and Canada
■ Channel Partners
■ Website design, hosting companies, franchises and
small business applications providers
■ AppConnectTM web services developer program; Marketplace connecting customers and partners
Email Marketing - Per Customer Economics
Email Marketing
Average revenue per ~ $37 per 2009 GAAP S&M / Gross
~$350
$1,000 customer month Email Customer Adds
Implied customer life ~ 45 months Internal Rate of Return ~130%

$800 (1/monthly attrition rate)
Lifetime customer revenue ~ $1,650

$600
Lifetime gross margin > $1,150
$400
Gross Margin
payback
month ~13
$200
$0
-$200
-$400
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15
2009 GAAP S&M / Gross EM Customer Adds Cumulative Cash Flow

Competitive Landscape
Scale
(Expanding Suite
of Offerings)
Event Marketing Competition
(Email Marketing Vendors)
■ Eventville
■ Eventbrite
■ 123Signup
Online Survey Competition
■ Zoomerang
■ SurveyMonkeyTM
Quality of customer experience

Growth Strategy
Introduce
additional
products
Acquire Drive Expand

customers and Cross-sell and internationally
build brand Up-sell
Improve usage,
retention and
referrals

ARPU Trend Over Time
■ Meaningful, sustainable revenue growth driven by increases in ARPU
■ ARPU growth has increasing impact as customer base grows over time
ARPU ($)
+$1.85
37.5 (+5%)
$37.01
37.0
$36.64
36.5 $36.19
36.0 +$1.83 $35.59
(+5%)
35.5 $35.20
$35.15 $35.13 $35.16
$35.02
35.0
$34.57
34.5
$33.98
34.0
$33.59 $33.51
33.5 $33.32
0.0
Q1 ’07 Q2 ’07 Q3 ’07 Q4 ’07 Q1 ’08 Q2 ’08 Q3 ’08 Q4 ’08 Q1 ’09 Q2 ’09 Q3 ’09 Q4 ’09 Q1 ’10 Q2 ’10

Seasonal Trends
Seasonality inherent in business - Q3 typically highest quarter of adjusted EBITDA (1) profitability

Financial Highlights
($ in thousands) Long-term
Year Ended Dec 31 FY 2007 FY 2008 FY 2009 1H 2010
Target Model
Revenue $50,495 $87,268 $129,061 $81,936 100%
$37,464 $63,017 $91,369 $57,534

Gross Margin 74.2% 72.2% 70.8% 70.2%
72 - 74%
$10,341 $15,123 $18,367 $11,564

Research & Development 20.5% 17.3% 14.2% 14.1%
12 – 14%
$27,376 $42,851 $61,023 $38,921

Sales & Marketing 54.2% 49.1% 47.3% 47.5%
31- 33%
$5,445 $9,508 $13,749 $8,903

General & Administrative 10.8% 10.9% 10.7% 10.9%
9 – 11%
Income (Loss) from ($5,698) ($4,465) ($1,770) ($1,854) 17 – 19%

Operations (11.3%) (5.1%) (1.4%) (2.3%)
(1) ($2,422) $3,949 $11,886 $7,326

Adjusted EBITDA (4.8%) 4.5% 9.2% 8.9%
24 – 26%

Investment Highlights
■ Large underpenetrated multi-billion market opportunity
■ Expanding product suite of integrated marketing solutions
■ Clear market leadership position driving one of the fastest

growth rates among software companies
■ 66% CAGR between 2006 and 2009

■ Guided to 33% - 35% revenue growth in 2010*
■ Four consecutive years of 350 – 400 basis points of annual

adjusted EBITDA margin(1) expansion driven by sales and
marketing leverage
*Guidance as of Thursday, July 29, 2010


CTCT IR Presentation August 2010

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

CTCT IR Presentation August 2010

Hochgeladen von

Copyright:

Verfügbare Formate

Constant Contact, Inc.

Gail Goodman, CEO

Copyright © 2010 Constant Contact Inc.

■ Constant Contact helps small organizations

■ Suite of marketing solutions -

■ Social media marketing

■ Solutions are easy, effective and affordable

■ Focus on customer success through

■ Large underpenetrated multi-billion market opportunity

■ Expanding product suite of integrated marketing solutions

■ Clear market leadership position driving one of the fastest

■ 66% CAGR between 2006 and 2009

■ Four consecutive years of 350 – 400 basis points of annual

*Guidance as of Thursday, July 29, 2010

Monthly Revenue (2004 – Q2 2010)

Note: monthly numbers unaudited

Copyright © 2010 Constant Contact, Inc.

Copyright © 2010 Constant Contact, Inc.

■ The value of Email Marketing

■ Keeps you in front of your best audience –

■ The value of Social Media Marketing

■ Increased reach with endorsement

■ The value of Event Marketing

■ Saves time and money; simplify event hosting

■ The value of Survey

■ Makes communications more relevant and targeted

Copyright © 2010 Constant Contact, Inc.

Designed for Small Organizations:

Support Resources: Customer Education:

Number of Employees Customer Type

Culture of continuous testing and rigorous return analysis by channel

■ Advertising and Other Channels

Implied customer life ~ 45 months Internal Rate of Return ~130%

Lifetime customer revenue ~ $1,650

2009 GAAP S&M / Gross EM Customer Adds Cumulative Cash Flow

Online Survey Competition

Quality of customer experience

Acquire Drive Expand

Copyright © 2010 Constant Contact, Inc.

■ Meaningful, sustainable revenue growth driven by increases in ARPU

Copyright © 2010 Constant Contact, Inc.

Copyright © 2010 Constant Contact, Inc.

Revenue $50,495 $87,268 $129,061 $81,936 100%

$37,464 $63,017 $91,369 $57,534

$10,341 $15,123 $18,367 $11,564

$27,376 $42,851 $61,023 $38,921

$5,445 $9,508 $13,749 $8,903

Income (Loss) from ($5,698) ($4,465) ($1,770) ($1,854) 17 – 19%

(1) ($2,422) $3,949 $11,886 $7,326

Copyright © 2010 Constant Contact, Inc.

■ Large underpenetrated multi-billion market opportunity

■ Expanding product suite of integrated marketing solutions

■ Clear market leadership position driving one of the fastest

■ 66% CAGR between 2006 and 2009

■ Four consecutive years of 350 – 400 basis points of annual

*Guidance as of Thursday, July 29, 2010

Das könnte Ihnen auch gefallen