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WALTHAM, Mass. (AP) — Online marketing company Constant Contact Inc. said Thursday that its third-quarter profit rose 22 percent as revenue rose, although the rate at which trial users were converted into customers was below expectations.
The company raised its forecast of full-year adjusted profit to between 54 and 56 cents per share from a July forecast of 51 to 55 cents. Analysts were expecting 53 cents per share, according to FactSet.
The company slightly lowered its full-year revenue outlook to between $251.1 million and $251.4 million from an earlier range of $253 million to $254 million. Analysts expected $253.5 million.
In extended trading after the report, the company's stock fell $2.28, or 13 percent, to $14.75.
CEO Gail Goodman said the company was increasing revenue per user and retention rates although new customers were below expectations. Goodman said the transformation into a multi-product company "will take a bit longer than we had envisioned."
Third-quarter net income was $6.6 million, or 21 cents per share, compared with $5.4 million, or 18 cents per share, a year earlier. Excluding an acquisition-related gain, the company would have earned 20 cents per share.
Revenue rose 17 percent to $63.8 million.
Analysts expected the company to earn 15 cents per share on revenue of $64.3 million.