Q2 net loss narrows to $389,000, down from $2.9 million in Q2 2007, as the e-mail services provider ups guidance for the year.
E-mail services vendor Constant Contact reported revenue of $20.8 million for its second quarter ended June 30, an 82% increase over revenue of $11.4 million for the year-ago quarter. It posted a net loss of $389,000, down significantly from the $2.8 million operating loss in the second quarter of 2007.
For the first half, the company recorded revenue of $38.9 million, up from the $21.1 million it reported for the first half of 2007. The company reported a net loss of $51,000 in the first half, down significantly from the net loss of $5.5 million for the first half of 2007.
The company ended the second quarter with more than 207,100 e-mail marketing customers, an increase of more than 67% from the second quarter of last year. Its online survey services customers grew to more than 15,000, with the majority of this number also using the company’s e-mail marketing services.
“The second quarter of 2008 was another successful quarter for Constant Contact as we outperformed relative to our expectations and each of our key customer metrics remained within historical ranges,” says Steven R. Wasserman, vice president and chief financial officer. “Our customer retention rates remained steady during the second quarter and we continue to anticipate a typical seasonal pickup in customer additions as we move into the fourth quarter of the year.”
For the third quarter the company is projecting revenue in the range of $22.2 million to $22.4 million and a net loss of $400,000 to $600,000. For the year, it expects revenue to be from $85 million to $86 million, up from its previous forecast