Under normal circumstances, HostJury does not delve into the murky waters of financial reports, preferring instead to focus on the day to day operatives of web hosting companies that are more likely to impact users directly. While that may be true, in this period of consolidated webhosting, there are a small number of parent companies maintaining the operations of notably recognizable major brands as separate entities which make them newsworthy if for no other reason than ensuring users of these services are aware of the close ties between seemingly separate competitors. Endurance International Group (EIG) is one such company with in excess of 50 webhosting brands including names like HostGator, BlueHost, HostMonter, and iPower.
While the year end report never uncovered any major surprises or shocking revelations, it was noteworthy that the company as a whole continues to bleed clients in its year to year operations. When EIG first began to restructure operations a couple or three years ago to focus on their core brands, it was assumed that the loss of clients could be attributed to shedding away the chaff or less profitable users to focus on maximizing returns from those that remained. While that appears to still be the path going forward, one can’t help but wonder when the company will turn the corner.
Jeffrey H. Fox, president and chief executive officer at Endurance International Group reporting on the financial results for its fourth quarter and fiscal year ended December 31, 2019 stated that:
"Our focus on our core strategic brands and investing to increase the value we deliver to our customers resulted in continued financial progress in the fourth quarter. After adjusting for the impact of the sale of our SinglePlatform business, we had positive net adds and our year over year revenue continued to progress toward inflection. The team is focused on returning the company to growth, and we believe our revenue and subscriber trends reflect the substantial progress we have made in 2019."
While sounding positive, revenue for the fourth quarter of 2019 was $277.2 million, a decrease of 2 percent compared to $282.4 million in the fourth quarter of 2018. Excluding the impact of SinglePlatform for both periods, revenue was $272.4 million compared to $275.1 million in the fourth quarter of 2018, a year over year decrease of 1 percent. Total revenue for fiscal year 2019 was $1.113 billion which is a decrease of 3 percent compared to $1.145 billion in fiscal year 2018.
Cash flow from operations for the fourth quarter of 2019 was $46.3 million, a decrease of 5 percent compared to $49.0 million for the fourth quarter of 2018. Cash flow from operations for fiscal year 2019 was $162.0 million, a decrease of 11 percent compared to $182.6 million for fiscal year 2018.
User numbers were also down with total subscribers on all their platforms on December 31, 2019 being approximately 4.766 million, compared to approximately 4.780 million subscribers at September 30, 2019 and 4.802 million subscribers on December 31, 2018.
The average revenue per subscriber was also lower for the fourth quarter of 2019 at $19.34, compared to $19.50 for the fourth quarter of 2018. The annual number for fiscal year 2019 was $19.35, compared to $19.37 for fiscal year 2018. Not major but not exactly heading in the right direction either.
On the bright side, clients have been spared many of the plights that plagued the company in prior years that were considered new worthy by HostJury, and caused slews of web hosting reviews to be posted by frustrated clients of the web hosting giant. So maybe Endurance International Group has turned the corner on it’s past performance.
Endurance International Group Holdings, Inc. (EIGI), a leading provider of cloud-based platform solutions designed to help small and medium-sized businesses succeed online.
Endurance's (EiG) web hosting brands include A Small Orange (ASO), Apollo Hosting, Arvixe, BigRock, BizLand, BlueDomino, Bluehost, Dollar2Host, Domain.com, DomainHost, Dotster, easyCGI, eHost, EntryHost, FastDomain, FatCow, FreeYellow, Globat, HostCentric, HostClear, HostGator, HostMonster, HostNine, HostYourSite, HyperMart, IMOutdoors, Intuit Websites, iPage, iPower, iPowerWeb, StartLogic, JustHost, MyDomain, MyResellerHome, NetFirms, Networks Web Hosting, Nexx, PowWeb, PureHost, ReadyHosting, Saba-Pro, SEO Hosting, Site5, Spry, SuperGreen. Hosting, USANetHosting, Verio, VirtualAvenue, VPSLink, WebHost4Life, Webstrike Solutions, and Xeran.