Why Web.com Skyrocketed
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Web.com (NAS: WWWW) have skyrocketed today by upwards of 28% after the company reported strong earnings results.
So what: Adjusted revenue in the first quarter more than doubled to $119.3 million, with earnings per share of $0.35. The Street was only asking for $117.2 million in sales and $0.31 per share in profit. The company added 1,600 net new subscribers, returning to positive net addition territory sooner than expected.
Now what: Those net customer additions were helped by Web.com maintaining record low attrition levels with customer churn at just 1%. CEO David Brown said the return to net additions was a major accomplishment since Register.com and Network Solutions were losing roughly 20,000 and 15,000 subscribers per quarter, respectively, before Web.com acquired them.
Interested in more info on Web.com? Add it to your watchlist byclicking here.
At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.