GlobeNewswire Inc | Jul 30, 2020 07:05AM EDT

July 30, 2020



-- GAAP revenue of $274.0 million -- Net income of $4.6 million -- Adjusted EBITDA of $84.0 million -- Cash flow from operations of $67.8 million -- Free cash flow of $55.9 million -- Total subscribers on platform were approximately 4.877 million at June30, 2020

BURLINGTON, Mass., July 30, 2020 (GLOBE NEWSWIRE) -- Endurance International Group Holdings, Inc. (NASDAQ: EIGI), a leading provider of cloud-based platform solutions designed to help small and medium-sized businesses succeed online, today reported financial results for its second quarter ended June30, 2020.

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. 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, commented Jeffrey H. Fox, president and chief executive officer of Endurance International Group.

"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.

Retention Science Acquisition

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. 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, continued Mr. Fox.

Second Quarter 2020 Financial Highlights

As previously disclosed, the Company completed the sale of SinglePlatform on December 5, 2019. For year over year comparative purposes, selected figures presented below do not adjust for the sale of SinglePlatform unless noted.

-- Revenue for the second quarter of 2020 was $274.0 million, an increase of 1 percent compared to revenue of $271.4 million in the second quarter of 2019, excluding SinglePlatform. Revenue in the second quarter of 2019 was $278.2 million, including the contribution of approximately $6.8 million from SinglePlatform. -- Net income for the second quarter of 2020 was $4.6 million, or $0.03 per diluted share, compared to net loss of $26.2 million, or $(0.18) per diluted share, 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 $75.3million, excluding SinglePlatform. Adjusted EBITDA in the second quarter of 2019 was $76.3 million, including the contribution of approximately $1.1million from SinglePlatform. -- Cash flow from operations for the second quarter of 2020 was $67.8 million, an increase of 14 percent compared to $59.7 million for the second quarter of 2019. -- Free cash flow, defined as cash flow from operations less capital expenditures and financed equipment obligations, for the second quarter of 2020 was $55.9 million, an increase of 17 percent compared to $47.6 million for the second quarter of 2019. -- Under its previously announced authorization, during the quarter, the Company repurchased 1,105,100 shares for a total of $2.1 million, at an average price per share of $1.90. Year to date, the Company repurchased 8,708,720 shares for a total of $14.4 million, at an average price per share of $1.66.

Second Quarter 2020 Operating Highlights

-- Total subscribers on platform at June30, 2020 were approximately 4.877 million, compared to approximately 4.769 million subscribers at June30, 2019 and approximately 4.766 million subscribers at December 31, 2019. See Total Subscribers below. -- 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. See Average Revenue Per Subscriber below.

Fiscal 2020 Guidance

The Company is providing the following guidance as of the date of this release, July 30, 2020, which is consistent with guidance reintroduced in its release dated July 14, 2020. For the full year ending December 31, 2020, the Company expects:

2019 Actual 2019 Adjusted for 2020 Guidance As Reported SinglePlatform Sale* (as of July 30, 2020)GAAP Revenue $1.113 billion $1.088 billion ~$1.100 billionAdjusted EBITDA $314 million $310 million ~$300 million

In addition, for 2020 the Company expects cash flow from operations of $175 million and free cash flow of approximately $125 million.

Adjusted EBITDA and free cash flow are non-GAAP financial measures. The Company is unable to reconcile adjusted EBITDA guidance to GAAP without unreasonable efforts, as further discussed below in Non-GAAP Financial Measures.

*As previously disclosed, the Company sold its SinglePlatform business on December 5, 2019. These figures represent revenue and adjusted EBITDA for the periods shown as if the Company had sold this business prior to January 1, 2019. From January 1, 2019 until the sale date, the SinglePlatform business contributed approximately $25.4 million in GAAP revenue and $4.0 million in adjusted EBITDA (excluding the impact of corporate cost allocations).

Conference Call and Webcast Information

Endurance International Groups second quarter 2020 financial results teleconference and webcast is scheduled to begin at 8:00 a.m. EDT on Thursday, July30, 2020. To participate on the live call, analysts and investors should dial (888) 734-0328 at least ten minutes prior to the call. Endurance International Group will also offer a live and archived webcast of the conference call, accessible from the Investor Relations section of the Companys website at http://ir.endurance.com.

Forward-Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements about our guidance for fiscal year 2020, the closing, timing, and the anticipated benefits from the Retention Science acquisition, our belief that investments will increase the value delivered to our customers, and our expectations of future growth and financial and operational performance in general. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts, and statements identified by words such as expects, believes, estimates, may, continue, positions, confident, and variations of such words or words of similar meaning and the use of future dates. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that these plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: the possibility that the impact of the COVID-19 pandemic on the economy and our business will be different from or more extensive than we expect; the possibility that the Retention Science acquisition will not be completed; the possibility that the Retention Science acquisition or our other planned investment initiatives will not result in the anticipated benefits to our business; the possibility that we will be unable to maintain subscriber growth; an adverse impact on our business from litigation or regulatory proceedings or commercial disputes; an adverse impact on our business from our substantial indebtedness and the cost of servicing our debt; the rate of growth of the Small and Medium Business (SMB) market for our solutions or the impact of COVID-19 on that market; our inability increase sales to our existing subscribers or retain our existing subscribers; system or Internet failures; our inability to maintain or improve our competitive position or market share; and other risks and uncertainties discussed in our filings with the SEC, including those set forth under the caption Risk Factors in our Annual Report on Form 10-K for the period ended December 31, 2019 filed with the SEC on February 14, 2020 and in our Quarterly Report on Form 10-Q for the period ended March 31, 2020, filed with the SEC on May 6, 2020, and other reports we file with the SEC. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

About Endurance International Group

Endurance International Group Holdings, Inc. (NASDAQ:EIGI) helps millions of small businesses worldwide with products and technology to enhance their online web presence, email marketing, business solutions, and more. The Endurance family of brands includes: Constant Contact, Bluehost, HostGator and Domain.com, among others. Headquartered in Burlington, Massachusetts, Endurance employs approximately 3,600 people across the United States, Brazil, India and the Netherlands. For more information, visit: www.endurance.com.

Endurance International Group and the compass logo are trademarks of The Endurance International Group, Inc. Constant Contact, the Constant Contact logo and other brand names of Endurance International Group are trademarks of The Endurance International Group, Inc. or its subsidiaries.

Investor Contact:

Angela WhiteEndurance International Group(781) 852-3450ir@endurance.com

Press Contact:

Kristen AndrewsEndurance International Group(781) 418-6716press@endurance.com

Non-GAAP Financial Measures

In addition to our financial information presented in accordance with GAAP, we use adjusted EBITDA and free cash flow, which are non-GAAP financial measures, to evaluate the operating and financial performance of our business, identify trends affecting our business, develop projections and make strategic business decisions. In this press release, we are also presenting the following additional non-GAAP financial measures for certain periods: revenue - excluding SinglePlatform and adjusted EBITDA - excluding SinglePlatform. A non-GAAP financial measure is a numerical measure of a companys operating performance, financial position or cash flow that excludes amounts that are included in the most directly comparable measure calculated and presented in accordance with GAAP or includes amounts that are excluded from the most directly comparable measure calculated and presented in accordance with GAAP.

Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP and exclude expenses that may have a material impact on our reported financial results. For example, adjusted EBITDA excludes interest expense, which has been and will continue to be for the foreseeable future a significant recurring expense in our business. The presentation of non-GAAP financial information is not meant to be considered in isolation from, or as a substitute for, the most directly comparable financial measures prepared in accordance with GAAP. We urge you to review the additional information about our non-GAAP measures shown below, including the reconciliations of these non-GAAP financial measures to their comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

Revenue - excluding SinglePlatform is a non-GAAP financial measure that we calculate as revenue excluding revenue contributed by our SinglePlatform business, which we sold on December 5, 2019. We believe that this measure helps investors evaluate and compare our past performance excluding the impact of a non-core business that we have sold.

Adjusted EBITDA is a non-GAAP financial measure that we calculate as net (loss) income, excluding the impact of interest expense (net), income tax expense (benefit), depreciation, amortization of other intangible assets, stock-based compensation, restructuring expenses, transaction expenses and charges, gain on sale of business, (gain) loss of unconsolidated entities, impairment of goodwill and other long lived assets, and shareholder litigation reserve. We view adjusted EBITDA as a performance measure and believe it helps investors evaluate and compare our core operating performance from period to period.

Adjusted EBITDA - excluding SinglePlatform is a non-GAAP financial measure that we calculate as adjusted EBITDA less adjusted EBITDA contributed by our SinglePlatform business, which we sold on December 5, 2019. Adjusted EBITDA contributed by our SinglePlatform business excludes the impact of corporate costs that we had allocated to SinglePlatform. We believe that this measure helps investors evaluate and compare our past performance excluding the impact of a non-core business that we have sold.

Free Cash Flow, or FCF, is a non-GAAP financial measure that we calculate as cash flow from operations less capital expenditures and financed equipment. We believe that FCF provides investors with an indicator of our ability to generate positive cash flows after meeting our obligations with regard to capital expenditures (including financed equipment).

Fiscal 2020 guidance included in this press release includes forward-looking guidance for adjusted EBITDA and FCF. A reconciliation of FCF guidance to cash flow from operations is included below. We are unable to reconcile our adjusted EBITDA guidance to net (loss) income because certain information necessary for this reconciliation is not available without unreasonable efforts since it is difficult to predict and/or dependent on future events that are outside of our control. In particular, we are unable to provide reasonable predictions of the following reconciling items: income tax expense (benefit), transaction expenses and charges, and impairment of goodwill and other long-lived assets. These items are difficult to predict with a reasonable degree of accuracy because of unanticipated changes in our GAAP effective income tax rate, a primary contributor to net (loss) income; uncertain or unanticipated acquisition costs; and unanticipated charges related to asset impairments. The impact of these items, in the aggregate, could be significant. With respect to the other reconciling items, as of the date of this press release, we expect the following for 2020 (all amounts are estimated, approximate, and subject to change): interest expense (net) of $123 million, depreciation expense of $50 million, amortization expense for other intangible assets of $70 million, and stock-based compensation expense of $38 million, restructuring expense of $2 million and gain on sale of assets of $(2) million. At this time, we do not expect expenses in 2020 for the remaining reconciling items. These forward-looking estimates of reconciling items may differ materially from our actual results and should not be relied upon as statements of fact.

Key Operating Metrics

Total Subscribers - We define total subscribers as the approximate number of subscribers that, as of the end of a period, are identified as subscribing directly to our products on a paid basis, excluding accounts that access our solutions via resellers or that purchase only domain names from us. Subscribers of more than one brand, and subscribers with more than one distinct billing relationship or subscription with us, are counted as separate subscribers. Total subscribers for a period reflects adjustments to add or subtract subscribers as we integrate acquisitions and/or are otherwise able to identify subscribers that meet, or do not meet, this definition of total subscribers. In the second quarter of 2020, these adjustments had a negative impact on total subscriber count of approximately 12,000.

Average Revenue Per Subscriber (ARPS) - We calculate ARPS as the amount of revenue we recognize in a period, including marketing development funds and other revenue not received from subscribers, divided by the average of the number of total subscribers at the beginning of the period and at the end of the period, which we refer to as average subscribers for the period, divided by the number of months in the period. See definition of Total Subscribers above. ARPS does not represent an exact measure of the average amount a subscriber spends with us each month, since our calculation of ARPS is impacted by revenues generated by non-subscribers.



Endurance International Group Holdings, Inc. Consolidated Balance Sheets (in thousands, except share and per share amounts)

December 31, June 30, 2020 2019Assets (unaudited)Current assets: Cash and cash equivalents $ 111,265 $ 149,193 Restricted cash 1,732 1,632 Accounts receivable 10,224 10,734 Prepaid domain name registry fees 55,237 57,716 Prepaid commissions 38,435 39,879 Prepaid and refundable taxes 6,810 5,290 Prepaid expenses and other current assets 23,883 26,718 Total current assets 247,586 291,162 Property and equipment?net 85,925 91,024 Operating lease right-of-use assets 90,519 79,397 Goodwill 1,835,310 1,834,685 Other intangible assets?net 245,002 210,044 Deferred financing costs?net 1,778 1,340 Investments 15,000 15,000 Prepaid domain name registry fees, net of current 11,107 12,187 portionPrepaid commissions, net of current portion 48,780 58,267 Deferred tax asset 64 196 Other assets 3,015 2,900 Total assets $ 2,584,086 $ 2,596,202 Liabilities and stockholders? equity Current liabilities: Accounts payable $ 10,054 $ 15,134 Accrued expenses 64,560 67,297 Accrued taxes 251 1,230 Accrued interest 23,434 21,580 Deferred revenue 369,475 382,489 Operating lease liabilities?short term 21,193 18,775 Current portion of notes payable 31,606 31,606 Current portion of financed equipment 790 4,017 Deferred consideration?short term 2,201 746 Other current liabilities 2,165 2,757 Total current liabilities 525,729 545,631 Long-term deferred revenue 99,652 104,023 Operating lease liabilities?long term 78,151 69,746 Notes payable?long term, net of original issuediscounts of $16,859 and $14,356 and deferred 1,649,867 1,628,060 financing costs of $25,690 and $21,967,respectivelyFinanced equipment?long term ? 401 Deferred tax liability 27,097 32,916 Other liabilities 6,636 10,508 Total liabilities 2,387,132 2,391,285 Stockholders? equity: Preferred Stock?par value $0.0001; 5,000,000shares authorized; no shares issued or ? ? outstandingCommon Stock?par value $0.0001; 500,000,000shares authorized; 146,259,868 and 147,570,072shares issued at December 31, 2019 and June30, 15 16 2020, respectively; 146,259,868 and 140,433,255outstanding at December 31, 2019 and June30,2020, respectivelyAdditional paid-in capital 996,958 1,013,802 Treasury stock, at cost, 0 and 7,136,817 sharesat December 31, 2019 and June30, 2020, ? (11,828 )respectivelyAccumulated other comprehensive loss (4,088 ) (3,496 )Accumulated deficit (795,931 ) (793,577 )Total stockholders? equity 196,954 204,917 Total liabilities and stockholders? equity $ 2,584,086 $ 2,596,202

Endurance International Group Holdings, Inc. Consolidated Statements of Operations and Comprehensive Income (Loss)(unaudited) (in thousands, except share and per share amounts)

Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 2020Revenue $ 278,204 $ 273,987 $ 558,887 $ 546,181 Cost of revenue(includingimpairment of$17,892 for the 139,587 113,065 263,441 229,329 three and sixmonths ended June30, 2019)Gross profit 138,617 160,922 295,446 316,852 Operating expense:Sales and 65,490 63,062 132,078 130,253 marketingEngineering and 25,348 24,659 49,042 51,533 developmentGeneral and 31,124 28,901 62,517 59,777 administrativeGain on sale of ? (2,365 ) ? (2,365 )intangible assetsTotal operating 121,962 114,257 243,637 239,198 expenseIncome from 16,655 46,665 51,809 77,654 operationsOther income (expense):Interest income 314 162 605 332 Interest expense (37,037 ) (31,186 ) (74,251 ) (63,920 )Total other (36,723 ) (31,024 ) (73,646 ) (63,588 )expense?net(Loss) incomebefore incometaxes and equity (20,068 ) 15,641 (21,837 ) 14,066 earnings ofunconsolidatedentitiesIncome tax 6,160 11,043 7,879 11,712 expenseNet (loss) income $ (26,228 ) $ 4,598 (29,716 ) 2,354 Comprehensive (loss) income:Foreign currencytranslation 348 434 (53 ) (123 )adjustmentsUnrealized gain(loss) on cashflow hedge, netof tax benefit(expense) of $(35) and $269 forthe three and sixmonths ended June 110 343 (851 ) 715 30, 2019,respectively, and$(111) and $(231)for the three andsix months endedJune 30, 2020,respectivelyTotalcomprehensive $ (25,770 ) $ 5,375 $ (30,620 ) $ 2,946 (loss) incomeBasic net (loss) $ (0.18 ) $ 0.03 $ (0.21 ) $ 0.02 income per shareDiluted net(loss) income per $ (0.18 ) $ 0.03 $ (0.21 ) $ 0.02 shareWeighted-averagecommon sharesused in computing net (loss) incomeper share:Basic 145,308,823 141,380,644 144,414,929 143,703,943 Diluted 145,308,823 142,258,812 144,414,929 145,783,086

Endurance International Group Holdings, Inc.Consolidated Statements of Cash Flows (unaudited) (in thousands)

Three Months Ended June Six Months Ended June 30, 30, 2019 2020 2019 2020Cash flows from operating activities:Net (loss) income $ (26,228 ) $ 4,598 $ (29,716 ) $ 2,354 Adjustments to reconcilenet (loss) income to net cash provided byoperating activities:Depreciation of property 10,899 12,746 22,105 25,442 and equipmentAmortization of other 21,349 17,282 42,469 34,593 intangible assetsImpairment of long-lived 17,892 ? 17,892 ? assetsAmortization of deferred 1,776 1,939 3,509 3,792 financing costsAmortization of netpresent value of deferred 59 21 120 45 considerationAmortization of original 1,111 1,183 2,198 2,367 issue discountsStock-based compensation 9,354 9,595 18,370 19,431 Deferred tax expense 3,533 6,933 2,627 5,455 Loss on sale of assets 110 ? 136 ? Gain on sale of ? (2,365 ) ? (2,365 )intangible assetsLoss on early ? 94 ? 83 extinguishment of debtChanges in operatingassets and liabilities, net of acquisitions:Accounts receivable 590 (154 ) (793 ) (850 )Prepaid and refundable 1,316 153 725 1,512 taxesPrepaid expenses and 4,620 (5,093 ) 2,328 (18,090 )other current assetsLeases right-of-use 80 355 653 318 asset, netAccounts payable and 16,377 13,143 (15,135 ) 8,274 accrued expensesDeferred revenue (3,158 ) 7,323 7,241 20,302 Net cash provided by 59,680 67,753 74,729 102,663 operating activitiesCash flows from investing activities:Purchases of property and (10,741 ) (10,093 ) (16,164 ) (20,009 )equipmentProceeds from sale of ? 2,705 ? 2,705 intangible assetsNet cash used in (10,741 ) (7,388 ) (16,164 ) (17,304 )investing activitiesCash flows from financing activities:Repayments of term loans (25,000 ) (7,901 ) (50,000 ) (15,803 )Repayments of senior ? (8,971 ) ? (11,807 )notesPurchase of treasury ? (2,792 ) ? (14,428 )stockPrincipal payments on (1,291 ) (1,720 ) (3,861 ) (2,974 )financed equipmentPayment of deferred (2,500 ) (1,500 ) (2,500 ) (1,500 )considerationProceeds from exercise of 17 ? 22 13 stock optionsNet cash used in (28,774 ) (22,884 ) (56,339 ) (46,499 )financing activitiesNet effect of exchangerate on cash and cash 470 (195 ) (152 ) (1,032 )equivalents andrestricted cashNet increase in cash andcash equivalents and 20,635 37,286 2,074 37,828 restricted cashCash and cash equivalents and restricted cash:Beginning of period 72,015 113,539 90,576 112,997 End of period $ 92,650 $ 150,825 $ 92,650 $ 150,825 Supplemental cash flow information:Interest paid $ 24,094 $ 19,170 $ 68,353 $ 58,604 Income taxes paid $ (1,142 ) $ 3,226 $ 724 $ 3,205 Assets acquired under $ ? $ ? $ ? $ 7,704 equipment financing

GAAP to Non-GAAP Reconciliation - Adjusted EBITDA

The following table presents a reconciliation of net (loss) income calculated in accordance with GAAP to adjusted EBITDA (all data in thousands):

Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 2020Net (loss) $ (26,228 ) $ 4,598 $ (29,716 ) $ 2,354 incomeInterestexpense, net^ 36,723 31,024 73,646 63,588 (1)Income tax 6,160 11,043 7,879 11,712 expenseDepreciation 10,899 12,746 22,105 25,442 Amortization ofother 21,349 17,282 42,469 34,593 intangibleassetsStock-based 9,354 9,595 18,370 19,431 compensationRestructuring 183 34 2,198 1,716 expensesGain on sale ofintangible ? (2,365 ) ? (2,365 ) assetsGain on sale of ? ? ? ? businessTransactionexpenses and ? ? ? ? chargesImpairment ofgoodwill andother 17,892 ? 17,892 ? long-livedassetsShareholderlitigation ? ? ? ? reserveAdjusted EBITDA $ 76,332 $ 83,957 $ 154,843 $ 156,471

(1) Interest expense includes impact of amortization of deferred financing costs, original issuance discounts and interest income.

GAAP to Non-GAAP Reconciliation Free Cash Flow

The following table reflects the reconciliation of cash flow from operations to free cash flow (FCF) (all data in thousands):

Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 2020 Cash flows from $ 59,680 $ 67,753 $ 74,729 $ 102,663 operationsLess: Capitalexpenditures andfinanced (12,032 ) (11,813 ) (20,025 ) (22,983 )equipmentobligations^(1)Free cash flow $ 47,648 $ 55,940 $ 54,704 $ 79,680

(1) Capital expenditures during the three months ended June 30, 2019 and 2020 includes $1.3 million and $1.7 million, respectively, of principal payments under a three year agreement for equipment financing. Capital expenditures during the six months ended June 30, 2019 and 2020 includes $3.9 million and $3.0 million, respectively, of principal payments under a three year agreement for equipment financing. The remaining balance on the equipment financing is $4.4 million as of June30, 2020.

Average Revenue Per Subscriber - Calculation and Segment Detail We report our financial results in two segments - web presence and digital marketing.

-- Web presence. The web presence segment consists of our web hosting brands, including Bluehost and HostGator, as well as our domain-focused brands such as Domain.com, ResellerClub and LogicBoxes. This segment includes web hosting, website security, website design tools and services, e-commerce products, domain names and domain privacy. It also includes the sale of domain management services to resellers and end users, as well as premium domain names, and generates advertising revenue from domain name parking. The results presented below for the web presence segment include the former domain segment, which was consolidated into the web presence segment beginning with the first quarter of 2020. -- Digital marketing. The digital marketing segment consists of Constant Contact email marketing tools and related products. This segment also generates revenue from sales of our Constant Contact-branded website builder tool and our Ecomdash inventory management and marketplace listing solution. For most of 2019, the digital marketing segment also included the SinglePlatform digital storefront business, which was sold on December 5, 2019.

The following table presents the calculation of ARPS, on a consolidated basis and by segment (all data in thousands, except ARPS data):

Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 2020Consolidated $ 278,204 $ 273,987 $ 558,887 $ 546,181 revenueConsolidated total 4,769 4,877 4,769 4,877 subscribersConsolidatedaverage 4,776 4,828 4,786 4,821 subscribers forthe periodConsolidated ARPS $ 19.42 $ 18.92 $ 19.46 $ 18.88 Web presence $ 175,725 $ 176,360 $ 353,668 $ 350,650 revenueWeb presence 4,277 4,405 4,277 4,405 subscribersWeb presenceaverage 4,283 4,357 4,292 4,351 subscribers forthe periodWeb presence ARPS $ 13.68 $ 13.49 $ 13.73 $ 13.43 Digital marketing $ 102,479 $ 97,627 $ 205,219 $ 195,531 revenueDigital marketing 492 472 492 472 subscribersDigital marketingaverage 493 471 494 470 subscribers forthe periodDigital marketing $ 69.28 $ 69.00 $ 69.21 $ 69.29 ARPS

The following table presents revenue, gross profit, and a reconciliation by segment of net (loss) income calculated in accordance with GAAP to adjusted EBITDA (all data in thousands):

Three Months Ended June 30, 2019 Web Digital Total presence marketingRevenue $ 175,725 $ 102,479 $ 278,204 Gross profit $ 65,028 $ 73,589 $ 138,617 Net (loss) income $ (30,392 ) $ 4,164 $ (26,228 ) Interest expense, net^(1) 17,613 19,110 36,723 Income tax expense 3,891 2,269 6,160 Depreciation 8,670 2,229 10,899 Amortization of other intangible 9,941 11,408 21,349 assetsStock-based compensation 6,132 3,222 9,354 Restructuring expenses 160 23 183 Gain on sale of intangible assets ? ? ? Gain on sale of business ? ? ? Transaction expenses and charges ? ? ? Impairment of goodwill and other 17,892 ? 17,892 long-lived assetsShareholder litigation reserve ? ? ? Adjusted EBITDA $ 33,907 $ 42,425 $ 76,332

Three Months Ended June 30, 2020 Web Digital Total presence marketingRevenue $ 176,360 $ 97,627 $ 273,987 Gross profit $ 88,594 $ 72,328 $ 160,922 Net (loss) income $ (2,016 ) $ 6,614 $ 4,598 Interest expense, net^(1) 14,866 16,158 31,024 Income tax expense 7,108 3,935 11,043 Depreciation 10,364 2,382 12,746 Amortization of other intangible 7,561 9,721 17,282 assetsStock-based compensation 6,320 3,275 9,595 Restructuring expenses ? 34 34 Gain on sale of intangible assets (2,365 ) ? (2,365 ) Gain on sale of business ? ? ? Transaction expenses and charges ? ? ? Impairment of goodwill and other ? ? ? long-lived assetsShareholder litigation reserve ? ? ? Adjusted EBITDA $ 41,838 $ 42,119 $ 83,957

(1) Interest expense includes impact of amortization of deferred financing costs, original issuance discounts and interest income.

* Excluding SinglePlatform, which contributed approximately $1.1million in adjusted EBITDA (excluding the impact of corporate cost allocations) in the three months ended June 30, 2019, adjusted EBITDA would have been approximately $75.3million.

Six Months Ended June 30, 2019 Web Digital Total presence marketingRevenue $ 353,668 $ 205,219 $ 558,887 Gross profit $ 147,810 $ 147,636 $ 295,446 Net (loss) income $ (39,818 ) $ 10,102 $ (29,716 ) Interest expense, net(1) 37,142 36,504 73,646 Income tax expense 4,982 2,897 7,879 Depreciation 17,552 4,553 22,105 Amortization of other intangible 19,778 22,691 42,469 assetsStock-based compensation 12,065 6,305 18,370 Restructuring expenses 821 1,377 2,198 Gain on sale of intangible assets ? ? ? Gain on sale of business ? ? ? Transaction expenses and charges ? ? ? Impairment of goodwill and other 17,892 ? 17,892 long-lived assetsShareholder litigation reserve ? ? ? Adjusted EBITDA $ 70,414 $ 84,429 $ 154,843

Six Months Ended June 30, 2020 Web Digital Total presence marketingRevenue $ 350,650 $ 195,531 $ 546,181 Gross profit $ 172,736 $ 144,116 $ 316,852 Net (loss) income $ (9,250 ) $ 11,604 $ 2,354 Interest expense, net(1) 30,470 33,118 63,588 Income tax expense 7,536 4,176 11,712 Depreciation 20,787 4,655 25,442 Amortization of other intangible 15,151 19,442 34,593 assetsStock-based compensation 12,910 6,521 19,431 Restructuring expenses 1,032 684 1,716 Gain on sale of intangible assets (2,365 ) ? (2,365 ) Gain on sale of business ? ? ? Transaction expenses and charges ? ? ? Impairment of goodwill and other ? ? ? long-lived assetsShareholder litigation reserve ? ? ? Adjusted EBITDA $ 76,271 $ 80,200 $ 156,471

(1) Interest expense includes impact of amortization of deferred financing costs, original issuance discounts and interest income.

* Excluding SinglePlatform, which contributed approximately $2.6million in adjusted EBITDA (excluding the impact of corporate cost allocations) in the six months ended June 30, 2019, adjusted EBITDA would have been approximately $152.2 million.

GAAP to Non-GAAP Reconciliation of Fiscal Year 2020 Guidance (as of July 30, 2020) - Free Cash Flow

The following table reflects the reconciliation of fiscal year 2020 estimated cash flow from operations calculated in accordance with GAAP to fiscal year 2020 guidance for free cash flow. All figures shown are approximate.

($ in millions) Twelve Months Ending December 31, 2020Estimated cash flow from operations $ 175 Estimated capital expenditures and financed (50) equipment obligationsFree cash flow guidance $ 125