A Wall Street Transcript Interview with Hari Ravichandran, Founder and CEO of Endurance International Group (EIGI)

Wall Street Transcript

67 WALL STREET, New York - February 20, 2014 - The Wall Street Transcript has just published its 2013 IPOs Report offering a timely review of companies new to the stock market. This special feature contains expert industry commentary through in-depth, detailed interviews with CEOs and senior executives of new public companies. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Initial Public Offerings - IPOs

Companies include: Endurance International Group (EIGI) and many others.

In the following excerpt from the 2013 IPOs Report, the Founder and CEO of Endurance International Group (EIGI) gives a detailed strategic plan for his company for investors:

TWST: Could you provide a brief overview of Endurance's business?

Mr. Ravichandran: Endurance provides a set of cloud-based services to small and medium-size businesses, SMB. We define an SMB typically as companies with fewer than 10 employees and don't have an IT staff. Most will start their relationship with us to establish a basic Web presence. A typical subscription would include tools to build a website, a place to host the website, business e-mail, domains, as well as a series of basic services to get started on the Web. Think of it as the operating system that people need to use the Web and all the tools available online.

Over time, they will typically buy additional products and services from us that let them use the Web to grow their business. That's the one area where there is a lot of demand for our products and services. As they consume more products and services from us, they tend to pay us more, which increases our revenue per subscriber. As a result, we end up having two great organic growth levers for the business. The first is to onboard a lot of high-quality subscribers that appreciate the value of our Web presence product. The second is our ability to expand our relationship with these subscribers and increase revenue on a per-sub basis. Those are the two levers that help compound growth over time.

TWST: What is the current number of subscribers you have?

Mr. Ravichandran: We have approximately 3.4 million subscribers on platform today. We describe a subscriber as somebody who has a paid service with us, including a basic Web presence bundle. 100% of them have a presence bundle with us. So it's about 3.4 million and growing.

TWST: Over the next 12 to 24 months, what is your agenda for the company?

Mr. Ravichandran: A lot of our mindshare and time goes into thinking about growth initiatives and how to organically grow the company across those levers, which is how do we bring more high-quality subscribers on board at very reasonable subscriber acquisition costs? Again in that small-business market, which is very fragmented, a key lever is how much you're paying and how you can entice this kind of fragmented group to come transact with you. So that's one key area.

The second one is then figuring out what the right mix of high-value products are for this group of customers, and how best to get it into the hands of customers over a period of time that drives value for them and can help increase the revenue per sub for us consistently. Almost all of our initiatives are focused around those two areas. Our go-to-market on that over time is going to expand, to focus a lot now on global outreach - how to get into emerging markets, how to go after subscribers beyond just North America. On the product side, we think a lot about higher-priced, higher-value products that we can target more towards the customers that have high demand for services like marketing or CRM solutions or more virtualized solutions, where price points can be as much as $200, $300, $400 a month per bundle and appeals to a segment of our customer base.

TWST: How do you market to your customers given that they are small companies? How do you reach them?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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