Web.com

Infobox_Company
company_name = Web.com, Inc.
company_
company_type = Public (nasdaq|WSPI)
foundation = flagicon|United States1999 as Website Pros
location_city = 12735 Gran Bay Parkway West, Building 200, Jacksonville, Florida
key_people = David L. Brown, Chairman and CEO
Jeff Stibel, President
industry = Internet, Software
products = Web site online services, web design applications
revenue = profit $82.5 million USD (2007)cite web | url = http://biz.yahoo.com/pz/080212/136211.html| title = Website Pros Reports Fourth Quarter and Full-Year 2007 Financial Results | publisher = Yahoo! | accessdate = 2008-02-16]
operating_income=profit $1.4 million USD (2007)cite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=293601 | title = Website Pros Reports Fourth Quarter and Full-Year 2007 Financial Results | publisher = Website Pros | accessdate = 2008-02-16]
num_employees = 637 (2006)cite web | url = http://finance.yahoo.com/q/pr?s=WSPI | title = WSPI: Profile for WEBSITE PROS, INC. | publisher = Yahoo! | accessdate = 2007-07-25]
homepage = [http://www.web.com Web.com] |

Web.com is a web services and software company founded as "Website Pros" in 1999. It offers web design and online marketing services and is also known for the NetObjects Fusion web design software bought from NetObjects, Inc. in 2001. Services and products are targeted at small and medium-sized businesses.

The company reached profitability in 2006 (GAAP, non-GAAP: 2004)cite web | url = http://files.shareholder.com/downloads/WSPI/88056325x0x109780/A645B4AF-A31C-4F64-89CC-71D71F7CA7B2/Website%20Pros%20Annual%20Report.pdf| title = Website Pros Annual Report 2006, pg. 25 | publisher = Website Pros | accessdate = 2007-07-29] cite web | url = http://www.secinfo.com/d14D5a.uM16.d.htm| title = SEC Info - Website Pros Inc - 8-K - For 2/7/07 - EX-99.1 | publisher = Securities and Exchange Commission, Washington, D.C. | accessdate = 2007-07-29] . The revenue growth that the company reports (from $23 million in 2004 over $38 million in 2005, $52 million USD in 2006 and $82.5 million USD in 2007) derives mainly from acquisitions. Website Pros made its biggest step in its strategy of mergers and acquisitions with the purchase of Web.com in 2007. This merger had high impact on revenue but also on related costs.cite web | url = http://www.bizjournals.com/jacksonville/stories/2008/02/11/daily16.html| title = Merger costs drag down earnings for Website Pros | publisher = Jacksonville Business Journal | accessdate = 2008-02-16]

On June 9th, 2008, Website Pros changed its name to Web.comcite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=294927| title = Website Pros Announces Intention to Change Name to Web.com | publisher = Website Pros | accessdate = 2008-02-20] cite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=315048| title = Website Pros, Inc. (WWWW) Chairman and President to Ring the NASDAQ Stock Market Closing Bell | publisher = Website Pros | accessdate = 2008-06-10] , a process which seemed to be more complicated than thought. The company reported that as of August, 2008, the name change has not "finalized" and the company is "officially incorporated in Delaware as Website Pros, Inc."cite web | url = http://biz.yahoo.com/e/080807/wwww10-q.html | title = August 7, 2008 Form 10-Q for WEBSITE PROS, INC. Quarterly Report| publisher = Yahoo! Inc. | accessdate = August 25 | accessyear = 2008] .

Company history from 1999 to 2005 (IPO)

Website Pros was founded in 1999 by Darin Brannan. From the foundation until 2004, venture capital partners invested $65 million USD into the companycite web | url = http://www.investornewsalerts.com/digital_post.html| title = Investor News Alerts | publisher = InvestorNewsAlerts.com | accessdate = 2007-07-25] , amongst others $10 million from [http://www.insightpartners.com Insight Venture Partners] in 2003cite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=175111| title = Website Pros Secures $10 Million in Funding from Insight Venture Partners | publisher = Website Pros | accessdate = 2007-07-25] and $7 million from Insight and Norwest Venture Partners in 2004cite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=175110| title = Website Pros Increases Series A Funding Round to $17 Million from Insight Venture Partners and Norwest Venture Partners | publisher = Website Pros | accessdate = 2007-07-25] .

As opposed to mere software vendors, the company sees its market not in selling web design applications, but hiring designers to build web sites for customers ("Do-It-For-Me" Web services). A year after the foundation, the first business model - just building web sites - was extended by implementing additional functionalities like online promoting and search engine optimizationcite web | url = http://www.websitepros.com/html/feb_06_2006.html| title = Serving the SMB community, one Web site at a time | publisher = The Florida Times Union | accessdate = 2007-07-25] cite web | url = http://files.shareholder.com/downloads/WSPI/88056325x0x109780/A645B4AF-A31C-4F64-89CC-71D71F7CA7B2/Website%20Pros%20Annual%20Report.pdf| title = Website Pros Annual Report 2006, pg. 9 | publisher = Website Pros | accessdate = 2007-07-25] . The basic business of the company is selling their online services with a monthly fee for small businesses.

In 2001, Website Pros acquired NetObjects Fusion, a web design application, along with other applications and assets from the defunct NetObjects, Inc. cite web | url = http://www.secinfo.com/dsvNq.4f8q2.htm | title = Netobjects Inc · PRE 14C · For 9/30/01 | publisher = Securities and Exchange Commission, Washington, D.C. | accessdate = 2006-10-01]

Building their projects with NetObjects products, it seemed suitable to Website Pros to buy the whole technology - if only to not have a competitor laying their hands on it. License revenue from the retail version of NetObjects Fusion stayed less than a tenth of the total revenue until 2006cite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=229060 | title = Website Pros Reports Fourth Quarter and Full Year 2006 Financial Results | publisher = Website Pros | accessdate = 2007-02-10] , and even less after the merger with Web.com in 2007.

In November 2005, Website Pros went public with Initial Public Offering on NASDAQ (nasdaq|WSPI), raising $68 millioncite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=178484| title = Website Pros Announces Initial Public Offering of Common Stock | publisher = Website Pros | accessdate = 2007-07-25] cite web | url = http://www.ipohome.com/common/ipoprofile.asp?ticker=WSPI| title = IPO Company Profile for Website Pros (WSPI) | publisher = Renaissance Capital | accessdate = 2007-07-25] .

Acquisitions

With the cash infusion from the Initial Public Offering, Website Pros expanded their acquisition strategy.

From 2005 to 2007 the company purchased LEADS.com, a provider of subscription based online advertising; eBoz, a provider of web marketingcite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=175103| title = Website Pros Acquires LEADS.com and eBoz, Inc. | publisher = Website Pros | accessdate = 2007-07-26] ; 1ShoppingCart.com, which offers an e-commerce-engine cite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=213107| title = Website Pros Acquires 1ShoppingCart.com | publisher = Website Pros | accessdate = 2007-07-26] ; Renovation Experts, a network of contractors for house renovationcite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=213109| title = Website Pros Acquires Renovation Experts.com | publisher = Website Pros | accessdate = 2007-07-26] ; and Submitawebsite, Inc., a search engine optimization companycite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=234377| title = Website Pros To Acquire Submitawebsite.com | publisher = Website Pros | accessdate = 2007-07-26] .

All these product lines target the small and medium-sized online enterprise market and all acquisitions were allowed to operate with their own brands. Website Pros' strategy is to strengthen the bottom line with other profitable business units and accomplish their own offerings with appropriate single buys. On the other hand the integration of so many bought companies as well as the achievement of synergy and cost effects can be a complex task.

As its largest deal to date Website Pros purchased Atlanta-based Web.com on October 1st, 2007cite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=266631 | title = Website Pros Completes Transaction With Web.com | publisher = Website Pros | accessdate = 2007-10-01] for a total of $129 million, consisting of $25 million in cash and the rest in stockcite web | url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=251134 | title = Website Pros and Web.com Sign Definitive Merger Agreement | publisher = Website Pros | accessdate = 2007-07-26] cite web | url = http://biz.yahoo.com/ap/070627/website_pros_web_com.html?.v=1 | title = Website Pros to Buy Web.com | publisher = AP | accessdate = 2007-07-02] . It is expected that the merged company will have "over 234,000 paying subscribers and over $117 million annualized revenue". Similar to Website Pros, Web.com offered a variety of web hosting and design services, which will continue to be marketed.

As part of the merger, Web.com representatives Jeff Stibel and Gonzalo Troncoso accomplished the board of Website Pros, Vikas Rijsinghani served as the new Chief Technology Officer.cite web | url = http://www.websitepros.com/html/leadership.html| title = Management Team | publisher = Website Pros | accessdate = 2008-02-16]

Main product lines and NetObjects MatrixBuilder

More than 90% of the revenue of Web.com are generated from subscription based services with monthly fees. The basic product line is "eWorks!XL"cite web | url = http://www.corpamerica.com/Website_Design.html;jsessionid=GTQDpj01xZ91QJJty0lpQ5KnhHcQCvDJYPLTK9fLdGRBMWWF8rMK!745940865!-1477209966| title = Business Website Design | publisher = CorpAmerica | accessdate = 2007-07-29] . This service offers the building of web sites by Website Pros' designers. A typical customer pays between $60 and $100 USD a monthcite web | url = http://files.shareholder.com/downloads/WSPI/88056325x0x109780/A645B4AF-A31C-4F64-89CC-71D71F7CA7B2/Website%20Pros%20Annual%20Report.pdf| title = Website Pros Annual Report 2006, pg. 2 | publisher = Website Pros | accessdate = 2007-07-25] . Website Pros has partnered with Microsoft to offer Office Live customers a $80 USD package for design and hosting services.cite web | url = http://news.com.com/8301-10784_3-9726122-7.html?tag=bl| title = Office Live partners for Web design service | publisher = CNET | accessdate = 2007-07-29] .

The basic services are extended by hosting, web directory submittingcite web | url = http://www.webpronews.com/blogtalk/2007/06/06/microsoft-office-live-teams-with-website-pros-to-offer-web-design-sem-services| title = Microsoft Office Live Teams with Website Pros | publisher = IEntry | accessdate = 2007-07-29] , search engine optimization, online promoting, pay-per-click-campaignscite web | url = http://files.shareholder.com/downloads/WSPI/88056325x0x109780/A645B4AF-A31C-4F64-89CC-71D71F7CA7B2/Website%20Pros%20Annual%20Report.pdf| title = Website Pros Annual Report 2006, pg. 5 | publisher = Website Pros | accessdate = 2007-07-25] and visitors tracking as well as e-commerce or local lead generation.

The Web.com services are sold through partner channels and directly over the web site. Some add-on services like lead generation can be booked separately over the business units mentioned in the list of the acquisitions.

From the 2001 acquisition, NetObjects Fusion is the only packaged software that the company offers. The latest version is release 11 from 2008. License revenue from direct sales of NetObjects Fusion to end-customers reached nearly $3.58 million USD in 2006

The NetObjects technology has yet another importance for Web.com. The production process of the web sites is based on a product called NetObjects MatrixBuilder once belonging to the assets of NetObjects, Inc.cite web | url = http://www.creativepro.com/story/news/10780.html | title = NetObjects Launches NetObjects Matrix, Next-Generation Online Services for Small Business | publisher = Creativepro.com | accessdate = 2007-07-26] cite web | url = http://www.netobjects.com/products/assets/applets/LearnMore.pdf | title = Learning More About NetObjects Matrix Builder | publisher = NetObjects, Inc.| accessdate = 2007-07-26] cite web | url = http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/06-04-2001/0001506536&EDATE= | title = Leading Companies Integrate Small Business Web Services Into NetObjects Matrix Platform | publisher = PR Newswire Association LLC.| accessdate = 2007-07-26] .

NetObjects MatrixBuilder is an environment that allows company staff to design customer web sites in a flexible, style- and browser-based process. Designers and end-customers can seamlessly integrate additional online services like e-commercecite web | url = http://files.shareholder.com/downloads/WSPI/88056325x0x109780/A645B4AF-A31C-4F64-89CC-71D71F7CA7B2/Website%20Pros%20Annual%20Report.pdf| title = Website Pros Annual Report 2006, pg. 9 | publisher = Website Pros | accessdate = 2007-07-25] cite web | url = http://files.shareholder.com/downloads/WSPI/351433097x0x189105/BED273D3-F558-48EF-9A1B-4248CFBEBEF8/Annual%20Report%20for%20Web.pdf| title = Website Pros Annual Report 2007, pgs. 15, 21 | publisher = Website Pros | accessdate = 2008-07-04] .

The Matrix platform is also marketed by Web.comcite web | url = http://partners.websitepros.com/| title = NetObjects MatrixBuilder Program | publisher = Website Pros | accessdate = 2007-07-27] .

History of the name "Web.com"

Web.com is a name that was held by several different companies since the 1990s.

Initially the domain name Web.com was used by Redondo Beach, California, based "Web Service Company", which is a laundry service providercite web
url = http://web.com/
title = Web Service Company Home Page
work = Web Service Company
publisher = Web Service Company
accessdate = 2008-07-07
archiveurl = http://web.archive.org/web/19961220040206/http://web.com/
archivedate = 1996-12-20] cite web
url = http://www.weblaundry.com/about.html
title = Smart Laundry Equipment Supplier & Common Area Laundry Room Management Company
work = Managed Laundry Services
publisher = Web Service Company
accessdate = 2008-07-07] .

Since 1998, Web Internet, LLC, founded in December 1997 and also with headquarters in Redondo Beach, California, used the domain web.com as a web directorycite web
url = http://web.com/
title = Web.com
work = Web.com
publisher = Web Internet, LLC
accessdate = 2008-07-07
archiveurl = http://web.archive.org/web/19980204093516/http://www.web.com/
archivedate = 1998-02-04] , followed by offering hosting, mail and other web servicescite web
url = http://findarticles.com/p/articles/mi_m0WUB/is_1999_August_16/ai_55465730
title = Web.com Offers the Easiest Domain Names And E-Mail Addresses on the 'Net for Free - Company Business and Marketing
work = BNET
publisher = CNET Networks, Inc.
accessdate = 2008-07-07] cite web
url = http://web.com/nm/abo/aboutweb.html
title = What is Web.com?
work = Web.com
publisher = Web Internet, LLC
accessdate = 2008-07-07
archiveurl = http://web.archive.org/web/19991012122531/web.com/nm/abo/aboutweb.html
archivedate = 1999-10-13] .

Web hosting company Interland acquired Web Internet, LLC, in December, 2005, for $4.8 million and out of branding purposes, changed its own name to Web.com in 2006cite web
url = http://www.ecommerce-guide.com/news/news/article.php/3574326
title = Interland to Become Web.com
work = Ecommerce-guide.com
publisher = Jupitermedia Corporation
date = December 30, 2005
accessdate = 2008-07-07] cite web
url = http://news.netcraft.com/archives/2005/12/29/interland_will_change_its_name_to_webcom.html
title = Interland Will Change Its Name to Web.com
work = Netcraft
publisher = Netcraft Ltd.
date = December 29, 2005
accessdate = 2008-07-07] .

In 2007, the new Web.com was acquired by Website Pros.

References

External links

* [http://www.web.com/ Web.com website]
* [http://www.websitepros.com/ Website Pros former website]