Filed under: Earnings reports, Intuit Inc (INTU), Small business
With the slowing economy, there’s much fear that businesses will cut back on marketing dollars. Well, so far, this doesn’t seem to be a problem for Constant Contact (NASDAQ: CTCT), which provides email marketing services to small businesses.
According to the company’s Q1 report, revenues shot up 87% to $18.2 million and GAAP net income came to $338,000. The total customer base now stands at 185,948, up 78% over the past year. In fact, the monthly customer retention is about 97.8%. In other words, customers seem to be happy with the web service.
To capitalize on things, Constant Contact is now expanding its offerings as the company is getting traction from its survey product. There’s also a new tool to integrate with Intuit (NASDAQ: INTU)’s QuickBooks.
While vigilant and cautious, Constant Contact doesn’t see any problems from the macroeconomic environment. Actually, the company boosted its full-year 2008 revenue guidance to $82.5-$84.5 million from $81-$83.5 million. The adjusted EBITDA is expected to range from $3.2-$3.6 million.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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