Constant Contact, Inc.

CIK:0001405277|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenue	$ 91,859	$ 83,494	$ 273,807	$ 243,624
Cost of revenue	24,600	23,223	73,493	67,050
Gross profit	67,259	60,271	200,314	176,574
Operating expenses
Research and development	14,633	13,417	42,587	39,341
Sales and marketing	31,474	28,406	102,982	94,319
General and administrative	11,495	10,365	34,740	30,671
Total operating expenses	57,602	52,188	180,309	164,331
Income from operations	9,657	8,083	20,005	12,243
Interest income and other income (expense), net	38	339	149	387
Income before income taxes	9,695	8,422	20,154	12,630
Income tax expense	(3,299)	(3,224)	(6,382)	(4,563)
Net income	$ 6,396	$ 5,198	$ 13,772	$ 8,067
Net income per share:
Basic	$ 0.20	$ 0.16	$ 0.43	$ 0.26
Diluted	$ 0.19	$ 0.16	$ 0.41	$ 0.25
Weighted average shares outstanding used in computing per share amounts:
Basic	32,019	31,893	32,080	31,557
Diluted	32,837	33,180	33,258	32,750

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net income	$ 13,772	$ 8,067
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	18,478	18,041
Amortization of premium on investments	354	187
Stock-based compensation expense	13,299	12,134
Provision for (recovery of) bad debts	48	(7)
Gain on sales of marketable securities		(1)
Deferred income taxes	(2,521)	(512)
Income tax benefit from the exercise of stock options	(5,335)	(1,666)
Taxes paid related to net share settlement of restricted stock units	(1,538)	(2,341)
Loss on sublease		259
Changes in operating assets and liabilities:
Accounts receivable	(191)	49
Prepaid expenses and other current assets	3,310	(527)
Other assets	(728)	54
Accounts payable	3,301	(250)
Accrued expenses	3,082	4,287
Deferred revenue	1,927	2,542
Other long-term liabilities	(147)	991
Net cash provided by operating activities	47,111	41,307
Cash flows from investing activities
Purchases of marketable securities	(34,402)	(27,276)
Proceeds from maturities of marketable securities	41,712	14,665
Proceeds from sales of marketable securities		633
Acquisition of property and equipment, including costs capitalized for development of internal-use software	(22,347)	(21,013)
Net cash used in investing activities	(15,037)	(32,991)
Cash flows from financing activities
Proceeds from issuance of common stock pursuant to the exercise of stock options	11,828	16,016
Income tax benefit from the exercise of stock options	5,335	1,666
Proceeds from issuance of common stock pursuant to employee stock purchase plan	1,063	831
Repurchase of common stock	(24,767)	(7,360)
Net cash provided by (used in) financing activities	(6,541)	11,153
Effects of exchange rates on cash and cash equivalents	(3)	(4)
Net increase in cash and cash equivalents	25,530	19,465
Cash and cash equivalents, beginning of period	104,301	82,478
Cash and cash equivalents, end of period	129,831	101,943
Supplemental disclosure of noncash investing and financing activities:
Capitalization of stock-based compensation	205	$ 148
Acquisition of property and equipment included in accounts payable and accrued expenses	$ 181

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 129,831	$ 104,301
Marketable securities	50,683	58,321
Accounts receivable, net of allowance for doubtful accounts	408	265
Prepaid expenses and other current assets	12,637	10,723
Total current assets	193,559	173,610
Property and equipment, net	47,337	43,739
Restricted cash	1,300	1,300
Goodwill	95,505	95,505
Acquired intangible assets, net	894	2,160
Deferred taxes	7,215	4,658
Other assets	2,621	1,893
Total assets	348,431	322,865
Current liabilities
Accounts payable	7,073	4,703
Accrued expenses	14,501	12,230
Deferred revenue	39,765	37,838
Total current liabilities	61,339	54,771
Other long-term liabilities	3,636	3,783
Total liabilities	$ 64,975	$ 58,554
Commitments and contingencies (Note 7)
Stockholders' equity
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued or outstanding at September 30, 2015 and December 31, 2014
Common stock; $0.01 par value; 100,000,000 shares authorized; 31,837,809 and 31,908,622 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 318	$ 319
Additional paid-in capital	254,962	249,599
Accumulated other comprehensive income (loss)	1	(10)
Retained earnings	28,175	14,403
Total stockholders' equity	283,456	264,311
Total liabilities and stockholders' equity	$ 348,431	$ 322,865