Domain name and hosting company lowers outlook for 2019.
Shares of Endurance International Group (NASDAQ: EIGI) fell nearly 12% in trading yesterday after the company lowered its 2019 forecast. Shares ended the day at $5.53.
- GAAP revenue guidance lowered from $1.14 billion – $1.16 billion to $1.12 billion – $1.14 billion
- Adjusted EBITDA forecast lowered from $310 million – $330 million to $300 million – $320 million
- Free Cash Flow guidance lowered from $115 million – $125 million to $110 million – $120 million
Even the high end of the guidance for each of these numbers is below last year’s results. The company has been going through a reckoning as it digests all the assets it has rolled up.
Still, it had hoped for some leveling out in its numbers this year.
Endurance CEO Jeffrey Fox explained the lower expectations:
Our view incorporates updates to the plan related to timing of advancements in one of our hosting brands and delayed monetization related to certain initiatives in our email marketing and domain segments.
Endurance’s domain brands include BuyDomains, Reseller Club and Domain.com. Its hosting brands include BlueHost and HostGator.