Constant Contact Earnings Preview: What We’re Watching
Constant Contact (NASDAQ:CTCT) is scheduled to announce its fiscal year 2011 Q2 earnings on July 28. We currently have a $30 price estimate for Constant Contact, which implies a 40% upside to the actual stock price. Constant Contact is primarily a provider of on demand email marketing, event marketing and online survey tools for its customers that competes with players like Eventbrite, iContact and Surveymonkey, as well as with Salesforce.com (NASDAQ:CRM) and Microsoft (NASDAQ:MSFT) in the customer relationship management market. It has also launched social media marketing services recently.
Content marketing is the main business of Constant Contact accounting for more than 85% of its Trefis price estimate.
User Growth Growth and Revenue per Customer
- Endurance Finalizes Constant Contact Acquisition, Lays Off 15% Of The Staff
- Constant Contact Earnings: Results Were Good Year-On-Year But Fell Short Of Guidance
- Constant Contact Pre-Earnings: Improved Marketing Strategies, Continued Alliances And ‘Galileo’ Could Drive Revenues
- Constant Contact: What Lies Ahead
- Constant Contact Performed Better Than The Previous Quarter, Though Customer Growth Yet To Recover
- Constant Contact Q2 Earnings Preview: Recovery Expected Post The Change In Brand Positioning
Its customer base increased from nearly 300,000 users in 2009 to more than 390,000 users in 2010. We expect this growth to slow down a bit going further and estimate its user base to reach around 450,000 users in 2011. Our Trefis price estimate for Constant Contact is predicated on the assumption that the customer base will see nearly 15% growth each year.
With the launch of the new social media marketing offering leading to increased cross-selling opportunities, we will keep an eye on both the increase in its customer base as well as the average revenue per customer that could also trend higher.