2009 Sidoti Conference
NYC
November 20, 2009
David Brown, Chairman and CEO
Kevin Carney, Chief Financial Officer
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Safe-Harbor Statement
This presentation includes certain "forward-looking statements" including, without limitation, statements regarding Web.com’s expectations
about its future financial performance and market position, that are subject to risks, uncertainties and other factors that could cause actual
results or outcomes to differ materially from those contemplated by the forward-looking statements. These forward-looking statements
include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this presentation that are not
historical facts. These statements are sometimes identified by words such as “believe”, “growing”, “emerge” or words of similar meaning.
These statements are based on our current beliefs or expectations, and there are a number of important factors that could cause the actual
results or outcomes to differ materially from those indicated by these forward-looking statements, including, without limitation, our ability to
integrate acquired businesses, our ability to maintain our sales efficiency, our ability to maintain our existing, and develop new, strategic
relationships, the number of our net subscriber additions and our monthly customer turnover. These and other risk factors are set forth
under the caption "Risk Factors" in Web.com’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009, as filed with the
Securities and Exchange Commission, which is available on a website maintained by the Securities and Exchange Commission
at www.sec.gov. Web.com expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-
looking statements contained herein as a result of new information, future events or otherwise.
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Company Overview
Leader in online marketing for small businesses
Over 272,000 paid subscribers (as of September 30,
2009 )
Solid financial profile:
~$109 million Last 12-Month (LTM) Revenue
~18% LTM non-GAAP operating margin
~$16 million LTM free cash flow
Founded in 1997 with headquarters in Jacksonville, FL
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Investment Highlights
Addressing a large, underserved market opportunity
Growing contribution from suite of online marketing solutions
Increasingly viewed as partner of choice by SMB-focused vendors
Strong franchise:
Significant critical mass
Large customer base
History of profitability and cash flow
Strong balance sheet
Improving business metrics and stabilizing overall financial
performance during 2009
Positioning company for enhanced, long-term growth
US Online Channel Continues to Expand;
Offline to Online Trend Expanding
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While online ad spending grows,
traditional media (magazines, YP,
newspapers, TV, radio and direct
marketing) spending is primarily down
Website development, SEM, SEO,
eCommerce, mobile and video
advertising are up
Local search is expected to eclipse top-
line search growth through 2013;
Indications point to more local
businesses building websites, buying
search, adding content and actively
managing their online presence (Kelsey,
March ‘09)
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Small Businesses Need Help Navigating the Online World
They’re focused on running their business; limited time;
lack of expertise
Require online marketing experts to help them succeed
Web.com offers complete solutions and customer
support to ensure success
SMBs willing to pay for value delivered; measure
success one lead, call or email at a time
Customer Value Proposition:
A Complete Online Marketing Solution
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Typical Website Company
Typical Website Company
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Evolution of Web.com
200x
2009
Web.com started in ‘97 with basic websites and hosting and has evolved into a full
service provider of online marketing solutions
Solutions are sold directly to SMB’s as well as through partnerships
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Growing Contribution of Online Marketing Solutions
OF TOTAL
REVENUE
%
Increasing SMB online marketing
offerings a significant driver of long-term
growth strategy
Over 30% of total revenue derived from
diverse suite of online marketing tools;
up from less than 1% in 2002
Solutions complementary to web
presence; increases value to customer;
SEM, SEO, eCommerce, etc
Solid Cactus acquisition adds further
critical mass within eCommerce
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Pursuing the SMB e-Commerce Market Opportunity
~$1 billion in e-commerce
transactions facilitated annually
eCommerce is a growing area of
interest for SMBs and Web.com
Web.com has built a complete
platform and service delivery
infrastructure to fullly serve
customers eCommerce needs
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Web.com: The Partner of Choice
90+%
50+%
50+ partners ensures stability and highly-diversified revenue generation
Supports multi-channel acquisition strategy: online marketing, affiliate
marketing, direct to brand, outbound/inbound sales, enterprise, cross/sell
and upsell to existing customer base
Within 10 years, Web.com’s partnership strategy has resulted in largest
partner accounting for negligible percentage of Web.com’s overall business
(down from 90%)
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Significant Accomplishments in a Difficult Environment
Integrated major acquisition
Delivering strong profitability and cash flow
Using strong financial position to enhance shareholder value
Executing company’s first share repurchase program
Acquiring complementary solutions
Maintaining and growing large subscriber base
Expanding distribution network and signing key partners
Advancing leadership position in online marketing for small
businesses
Positioning Web.com for Long-term Growth
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SMB Online Marketing Universe
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Annual Revenue
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Annual Non-GAAP Operating Margin
Non-GAAP operating margin excludes the effect of stock-based compensation, amortization of intangibles, non-recurring
restructuring charges and revenue eliminated in purchase accounting. During Q4’08, Web.com had a negative GAAP Operating
Margin of 346% due to a $103 million goodwill and asset impairment charge, and a non-GAAP 22% operating margin in Q4’08.
*2007 Non-GAAP Operating Margin impacted by merger-related expenses
*
Adjusted EBITDA
Adjusted EBITDA excludes depreciation expense, amortization of intangibles, income tax, interest expense, interest income,
and stock-based compensation, because management believes that excluding such items helps investors better understand
the Company's operating activities.
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Non-GAAP EPS
Non-GAAP Net Income and Non-GAAP Net Income Per Share. The Company excludes from non-GAAP net income and non-
GAAP net income per share amortization of intangibles, income tax expense, fair value adjustment to deferred revenue and
stock based compensation, and includes cash income tax expense, because management believes that excluding such
measures helps investors better understand the Company’s operating activities.
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Web.com Investment Highlights
Massive number of small businesses moving online
Web.com has a strong market position
Offers complete solution for any SMB online marketing
needs
Increasing stability and positioned for enhanced growth
when economy improves
Proven ability to generate significant cash flow and
profitability during healthy and challenging economic
environments
2009 Sidoti Conference
NYC
November 20, 2009
David Brown, Chairman and CEO
Kevin Carney, Chief Financial Officer
