[Posted on November 27, 2007 - 1:45 PM]
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Shares of Constant Contact Inc. [CTCT] are up more than 13%, to $17.79, Tuesday after closing at a low of $15.70 on Monday. The provider of on-demand e-mail marketing services got off to a bang in going public Oct. 3 in a roughly $90 million IPO, with its stock soaring nearly 73%. What's up? The shares appear to be bedding in after topping $27 in their market debut, which valued Constant Contact at an inordinately high revenue multiple relative to software-as-a-service leader Salesforce.com Inc. Although the e-mail company has enjoyed steady growth, it's still losing money -- no surprise some air came out of the stock.
For the third quarter, Constant Contact reported a net loss of $1.7 million on revenues of $13.5 million, compared with a loss of $1.5 million on sales of $7.2 million for the year-ago period. The company attributed the revenue growth to an 88% increase in its number of average monthly customers. For the fourth quarter, Constant Contact projects sales of $15.3 million to $15.5 million. - Alain Sherter
See Oct. 3 story from TheDeal.com
See third-quarter results from Constant Contact
See Nov. 11 post from Seeking Alpha
