Amidst the COVID-19 pandemic, Endurance International Group’s 2nd quarter of 2020 was $274.0 million – an increase of 1 percent compared to revenue of $271.4 million in the 2nd quarter of 2019. Endurance’s global family of web hosting brands includes Bluehost, HostGator, iPage, ResellerClub and Domain.com.
At the same time, Endurance International Group has announced the acquisition of Retention Science – an AI-driven provider of e-commerce email marketing services.“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,” said Jeff Fox, president and CEO of Endurance International Group. “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.”
The acquired company, Retention Science, is located in Santa Monica, California. Under the terms of the definitive merger agreement, Endurance will acquire Retention Science for approximately $35.0 million, consisting of $17.5 million to be paid in cash upon close and the remaining $17.5 million to be paid in a combination of deferred consideration and earnouts over the next three years. The closing of the transaction is subject to customary closing conditions and is expected to close on or before August 15, 2020.
“We are excited to add the Retention Science team to Endurance and to our digital marketing business,” said Mr. Fox. “The Retention Science platform allows us to complement our e-commerce capabilities following the acquisition of Ecomdash last year, and supports our strategic focus on investing to expand our total addressable market.”
Total Subscribers, Average Revenue
Net income for the second quarter of 2020 was $4.6 million, compared to net loss of $26.2 million 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 second quarter 2019 adjusted EBITDA of $75.3 million.
Total subscribers on Endurance’s platform at June 30, 2020 were approximately 4.877 million, compared to approximately 4.769 million subscribers at June 30, 2019 and approximately 4.766 million subscribers at December 31, 2019. Average revenue per subscriber, or ARPS, for the second quarter of 2020 was $18.92, compared to $19.42 for the second quarter 2019 and $19.34 for the fourth quarter of 2019.