Web.com Group, Inc. – Worth Watching

Let’s take a look at Web.com, Inc., formerly Website Pros, Inc., incorporated on March 2, 1999, is a provider of do-it-for-me and do-it-yourself Website building tools, online marketing, lead generation and technology solutions that enable small and medium-sized businesses to build and maintain an online presence. The Company offers a range of online services, including online marketing and advertising, local search, search engine marketing, search engine optimization, lead generation, home contractor specific leads, Website design and publishing, logo and brand development and eCommerce solutions, meeting the needs of small businesses anywhere along their lifecycle. On June 18, 2008, the Company acquired certain assets from LogoYes.com and Design Logic, Inc (collectively LogoYes). In April 2009, the Company acquired Solid Cactus, an eCommerce site builder and solutions provider.

The Company‚Äôs primary service offerings, eWorks! XL and SmartClicks, are performance-based packages that include Website design and publishing, online marketing and advertising, search engine optimization, search engine submission, lead generation and Web analytics. As an application service provider (ASP), the Company offers its customers a range of Web services and products on a subscription basis. In addition to its primary service offerings, it provides a variety of services to customers, such as e-commerce solutions and other online marketing services and online lead generation. The Company’s technology automates many aspects of creating, maintaining, enhancing and marketing Websites on behalf of its customers. As of December 31, 2008, the Company had approximately 265,000 subscribers to its eWorks! XL, SmartClicks and subscription-based services.

Using its software and workflow enabled processes, the Company develops and supports subscription Web service packages that include a 5, 10, 20, or 40 page semi-custom Website and related services. These packages include the tools and functionality necessary for a business to create, maintain, enhance and market an online presence. It also provides tutorials and tools for customers to edit and manage their sites themselves. Alternatively, a customer can select from one of several levels of support programs for ongoing management and maintenance of its Website.

The Company’s primary subscription offering is eWorks! XL, a Website design and publishing package targeted at getting small and medium-sized businesses online when they have no online presence, or a limited one. The package includes a five-page, semi-custom Website built on the Company’s self-editing tool, which allows for maintenance by the customer. By using its performance-based package of services, customers eliminate the need to buy, install or maintain hardware or software to manage their online presence. This offering includes a set of configuration and customization options using a Web browser. The Company builds the initial Website for the customer using the content and design information the customer provides.