Website Pros Reports First Quarter 2008 Financial Results

May 12, 2008

JACKSONVILLE, Fla., May 12, 2008 (PrimeNewswire via COMTEX News Network) -- Website Pros, Inc. (Nasdaq:WSPI), a leading provider of Web and marketing services for small and medium-sized businesses, today announced results for the first quarter ended March 31, 2008.

Summary of First Quarter 2008 Results:


 * Total revenue for the first quarter of 2008 was $30.9 million, an
   increase of 88% compared to $16.4 million for the first quarter
   of 2007.

 * GAAP operating income for the first quarter of 2008 was $0.9
   million, an increase from GAAP operating income of $0.7 million
   for the first quarter of 2007.

 * GAAP net income for the first quarter of 2008 was $0.6 million,
   consistent with GAAP net income of $0.6 million for the first
   quarter of 2007. GAAP net income per diluted share was $0.02 per
   share for the first quarter of 2008 compared to GAAP net income
   per diluted share of $0.03 per share for the first quarter of
   2007.

 * Non-GAAP operating income for the first quarter of 2008 was a
   record $4.6 million, representing a non-GAAP operating margin of
   15% and an increase of 142% compared to $1.9 million for the
   first quarter of 2007.

 * Non-GAAP net income for the first quarter of 2008 was a record
   $4.8 million, an increase of 102% compared to $2.4 million for
   the first quarter of 2007.

 * Non-GAAP net income per diluted share for the first quarter of
   2008 was $0.16, an increase of 33% compared to $0.12 for the
   first quarter of 2007.

"The first quarter of 2008 was highlighted by continued momentum in subscriber growth, gross margin and operating margin expansion and strong earnings growth that was at the high-end of our expectations," stated David Brown, Chairman and CEO of Website Pros. "Web and online marketing services for small and medium-sized businesses represents a substantial market opportunity, and we believe Website Pros is well positioned based on our growing suite of solutions, diversified sales channels and large customer base. With the progress we have made with the integration of Web.com, growing profitability and expanding programs and partnerships, we continue to be optimistic looking ahead."

Other Highlights:


 * Website Pros' total net subscribers were approximately 270,000 at
   the end of the first quarter, up from approximately 263,000 at
   the end of the fourth quarter of 2007 on a combined pro forma
   basis.

 * Customer churn was 4.1%, compared to 4.0% in the previous quarter
   on a combined pro-forma basis.

Conference Call Information

Management will host a conference call to discuss Website Pros' results and other matters related to the Company's business today, May 12, 2008, at 5:00 p.m. (Eastern Time). To access this call, dial 888-215-6894 (domestic) or 913-312-1297 (international). A replay of this conference call will be available for a limited time at 888-203-1112 (domestic) or 719-457-0820 (international). The replay passcode is 4874885. A webcast of this conference call will also be available for a limited time on the "Investor Relations" page of the Company's Web site, www.websitepros.com.

All per share numbers for non-GAAP net income per share are expressed on a weighted-average diluted per share basis. Non-GAAP net income exclude stock-based compensation expense, amortization expense related to acquisitions, the deferred revenue adjustment due to purchase accounting, income tax expense, and includes an estimated cash tax rate to be paid during 2008. Non-GAAP operating income excludes stock-based compensation expense, amortization expense related to acquisitions and the deferred revenue adjustment related to purchase accounting. A reconciliation of GAAP financial measures to non-GAAP financial measures results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."

About Website Pros

Website Pros, Inc. (Nasdaq:WSPI) is a leading provider of Do-It-For-Me and Do-It-Yourself website building tools, Internet marketing, lead generation and technology solutions that enable small and medium-sized businesses to maintain an effective Internet presence. Website Pros offers a full range of Web services, including website design and publishing, Internet marketing and advertising, search engine optimization, lead generation, home contractor specific leads and shopping cart solutions, meeting the needs of these businesses anywhere along their lifecycles - from those just establishing a Web presence to those requiring more sophisticated online eCommerce sites. For more information on the company, please visit http://www.websitepros.com or http://www.web.com or call 1-800-GETSITE.

Note to Editors: Website Pros and Web.com are registered trademarks of Website Pros, Inc.

Use of Non-GAAP Financial Measures

Some of the measures in this press release are non-GAAP financial measures within the meaning of the SEC Regulation G. Website Pros believes presenting non-GAAP net income attributable to common stockholders and non-GAAP net income per share attributable to common stockholders and non-GAAP operating income is useful to investors, because it describes the operating performance of the company and helps investors gauge the company's ability to generate cash flow, excluding some recurring charges that are included in the most directly comparable measures calculated and presented in accordance with GAAP. Company management uses these non-GAAP measures as important indicators of the company's past performance and to plan and forecast performance in future periods. The non-GAAP financial information Website Pros presents may not be comparable to similarly-titled financial measures used by other companies, and investors should not consider non-GAAP financial measures in isolation fro m, or in substitution for, financial information presented in compliance with GAAP. You are encouraged to review the reconciliation of non-GAAP financial measures to GAAP financial measures included elsewhere in this press release.

Forward-Looking Statements

This press release includes certain "forward-looking statements" including, without limitation, statements regarding Website Pros' expectations about its future performance, 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 press release that are not historical facts. These statements are sometimes identified by words and phrases such as "believe," "continue to be," "see" or words of similar meaning. As a result of the ultimate outcome of such risks and uncertainties, Website Pros' actual results could differ materially from those anticipated in these forward-looking statements. These statements are based on our current beliefs or expectations, and there are a number of important factors that cou ld cause the actual results or outcomes to differ materially from those indicated by these forward-looking statements, including, without limitation, our ability to integrate the Website Pros and Web.com 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 Website Pros' Annual Report on Form 10-K for the year ended December 31, 2007, as filed with the Securities and Exchange Commission. This filing is available on a website maintained by the Securities and Exchange Commission at www.sec.gov. Website Pros 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.


                           Website Pros, Inc.
                 Consolidated Statements of Operations
                 (in thousands except per share data)
                                                   Three Months Ended
                                                       March 31,
                                                   2008         2007
                                               (unaudited)  (unaudited)
                                               ----------   ----------
 Revenue:
   Subscription                                $   29,731   $   15,138
   License                                            449        1,028
   Professional services                              681          258
                                               ----------   ----------
      Total revenue                                30,861       16,424
 Cost of revenue (excluding depreciation and
  amortization shown separately below):
   Subscription (a)                                10,903        6,815
   License                                             93          298
   Professional services                              375          301
                                               ----------   ----------
      Total cost of revenue                        11,371        7,414
                                               ----------   ----------
 Gross profit                                      19,490        9,010
 Operating expenses:
   Sales and marketing (a)                          7,463        3,947
   Research and development (a)                     2,638          778
   General and administrative (a)                   5,102        2,908
   Depreciation and amortization                    3,349          681
                                               ----------   ----------
      Total operating expenses                     18,552        8,314
                                               ----------   ----------
 Income from operations                               938          696
 Other income:
     Interest, net                                    256          502
                                               ----------   ----------
 Income before income taxes                         1,194        1,198
 Income tax expense                                  (644)        (566)
                                               ----------   ----------
 Net income                                    $      550   $      632
                                               ==========   ==========
 Net income per common share
 Basic                                         $     0.02   $     0.04
                                               ==========   ==========
 Diluted                                       $     0.02   $     0.03
                                               ==========   ==========
 Weighted-average number of shares
  used in per share amounts:
 Basic                                             27,549       17,339
                                               ==========   ==========
 Diluted                                           30,619       19,672
                                               ==========   ==========
 (a) Stock based compensation included above:
   Subscription (cost of revenue)              $       80   $       42
   Sales and marketing                                210          109
   Research and development                           103           59
   General and administration                         538          583
                                               ----------   ----------
 Total                                         $      931   $      793
                                               ==========   ==========
                          Website, Pros, Inc.
                      Consolidated Balance Sheets
                 (in thousands except per share data)
                                                March 31,    Dec. 31,
                                                  2008         2007
                                               (unaudited)   (audited)
                                               ----------   ----------
 Assets
 Current assets:
   Cash and cash equivalents                   $   33,554   $   29,746
   Restricted investments                             498        4,805
   Accounts receivable, net of
    allowance $715 and $791
    thousand, respectively                          6,560        6,204
   Inventories, net of reserves of
     $67 and $67, respectively                         23           26
   Prepaid expenses                                 1,499        4,248
   Prepaid marketing fees                             775          793
   Deferred taxes                                   1,137        1,723
   Other current assets                               737          759
                                               ----------   ----------
 Total current assets                              44,783       48,304
 Restricted investments                               305        1,675
 Property and equipment, net                        6,878        7,153
 Goodwill                                         108,448      107,933
 Intangible assets, net                            66,840       69,422
 Other assets                                         520          526
                                               ----------   ----------
 Total assets                                  $  227,774   $  235,013
                                               ==========   ==========
 Liabilities and stockholders' equity
 Current liabilities:
  Accounts payable                             $    2,196   $    2,445
  Accrued expenses                                  7,061        8,686
  Accrued restructuring costs and
   other reserves                                   4,358       10,484
  Deferred revenue                                  8,686        8,501
  Accrued marketing fees                              234          279
  Notes payable, current                              110        1,186
  Obligations under capital lease,
   current                                             --            1
  Other liabilities                                   131          197
                                               ----------   ----------
 Total current liabilities                         22,776       31,779
 Accrued rent expense                                  84          105
 Deferred revenue                                     149          147
 Notes payable, long term                              30           59
 Accrued restructuring costs and
  other reserves, long term                         2,656        3,116
 Deferred tax liabilites, long term                 3,351        3,351
 Other long term liabilities                           85           25
                                               ----------   ----------
 Total liabilities                                 29,131       38,582
 Stockholders' equity
 Common stock, $0.001 par value;
  150,000,000 shares authorized;
  27,625,200 shares and 27,472,686
  shares issued and outstanding at
  March 31, 2008 and December 31,
  2007, respectively                                   28           27
 Additional paid-in capital                       255,869      254,208
 Accumulated deficit                              (57,254)     (57,804)
                                               ----------   ----------
 Total stockholders' equity                       198,643      196,431
                                               ----------   ----------
 Total liabilities and stockholders'
   equity                                      $  227,774   $  235,013
                          Website, Pros, Inc.
              Reconciliation of GAAP to Pro Forma Results
                 (in thousands except per share data)
                              (unaudited)
                                                 Three Months Ended
                                                     March 31,
                                                   2008       2007
                                               ----------   ----------
 Reconciliation of GAAP revenue to
  non-GAAP revenue
 GAAP revenue                                  $   30,861   $   16,424
 Fair value adjustment to deferred
  revenue                                             140           --
                                               ----------   ----------
 Non-GAAP proforma revenue                     $   31,001   $   16,424
                                               ==========   ==========
 Reconciliation of GAAP net income
  (loss) attributable to common
  stockholders to non-GAAP pro
  forma net income
 GAAP Net income (loss)                        $      550   $      632
 Amortization of intangibles                        2,617          422
 Income tax expense                                   644          566
 Cash income tax expense                              (59)         (27)
 Fair value adjustment to deferred
  revenue                                             140           --
 Stock based compensation                             931          793
                                               ----------   ----------
 Non-GAAP proforma net income                  $    4,823   $    2,386
                                               ==========   ==========
 Reconciliation of GAAP basic net
  income (loss) per share to
  non-GAAP pro forma net income
  per share
 Basic                                         $     0.02   $     0.04
 Amortization of intangibles per
  share                                              0.10         0.02
 Income tax expense per share                        0.02         0.03
 Cash income tax expense per share                  (0.00)       (0.00)
 Fair value adjustment to deferred
  revenue per share                                  0.01           --
 Stock based compensation per share                  0.03         0.05
                                               ----------   ----------
 Non-GAAP pro-forma net income per
  share
 Basic                                         $     0.18   $     0.14
                                               ==========   ==========
 Reconciliation of GAAP diluted net
  income (loss) per share to
  non-GAAP pro forma net income
  per share
 Fully diluted shares:
 Common stock                                      27,549       17,339
 Diluted stock options                              2,730        1,864
 Warrants                                             201          192
 Escrow shares                                        139          277
                                               ----------   ----------
     Total                                        30,619        19,672
                                               ==========   ==========
 GAAP net income (loss) per share
 Diluted                                       $     0.02   $     0.03
 Amortization of intangibles per
  share                                              0.09         0.02
 Income tax expense per share                        0.02         0.03
 Cash income tax expense per share                  (0.00)       (0.00)
 Fair value adjustment to deferred
  revenue per share                                  0.00           --
 Stock based compensation per share                  0.03         0.04
                                               ----------   ----------
 Non-GAAP pro-forma net income per
  share
 Diluted                                       $     0.16   $     0.12
                                               ==========   ==========
 Reconciliation of GAAP operating
  income (loss) to non-GAAP pro
  forma operating income
 GAAP operating income (loss)                  $      938   $      696
 Amortization of intangibles                        2,617          422
 Fair value adjustment to deferred
  revenue                                             140           --
 Stock based compensation                             931          793
                                               ----------   ----------
 Non-GAAP proforma operating income            $    4,626   $    1,911
                                               ==========   ==========
 Reconciliation of GAAP operating
  margin to non-GAAP pro forma
  operating margin
 GAAP operating margin                                  3%           4%
 Amortization of intangibles                            8%           3%
 Fair value adjustment to deferred
  revenue                                               1%           0%
 Stock based compensation                               3%           5%
                                               ----------   ----------
 Non-GAAP proforma operating margin                    15%          12%
                                               ==========   ==========
                          Website, Pros, Inc.
                 Consolidated Statement of Cash Flows
                            (in thousands)
                                                 Three Months Ended
                                                      March 31,
                                                  2008         2007
                                               (unaudited)  (unaudited)
                                               ----------   ----------
 Cash flows from operating activities
 Net income                                    $      550   $      632
 Adjustments to reconcile net
  income to net cash (used in)
  provided by operating activities:
 Depreciation and amortization                      3,349          681
 Loss on disposal of assets                             3           --
 Stock-based compensation expense                     931          793
 Deferred income tax                                  586          539
 Changes in operating assets and
  liabilities:
  Accounts receivable                                (360)         226
  Inventories                                           3           35
  Prepaid expenses and other assets                 2,818           37
  Accounts payable, accrued
   expenses and other liabilities                  (9,084)      (1,071)
  Deferred revenue                                    185          313
                                               ----------   ----------
 Net cash (used in) provided by
  operating activities                             (1,019)       2,185
 Cash flows from investing
  activities
 Business acquisition, net of cash
  received                                             (8)      (2,374)
 Proceeds from sale of investment                   5,500           --
 Purchase of investment                              (996)          --
 Change in restricted investments                   1,228           --
 Purchase of property and equipment                  (522)        (415)
 Investment in intangible assets                       (1)        (100)
                                               ----------   ----------
 Net cash provided by (used in)
  investing activities                              5,201       (2,889)
 Cash flows from financing activities
 Stock issuance costs                                  (5)          --
 Payment of debt obligations                       (1,106)         (31)
 Proceeds from exercise of stock
  options                                             737           39
                                               ----------   ----------
 Net cash (used in) provided by
  financing activities                               (374)          8
                                               ----------   ----------
 Net increase (decrease) in cash
  and cash equivalents                              3,808         (696)
 Cash and cash equivalents,
  beginning of period                              29,746       42,155
                                               ----------   ----------
 Cash and cash equivalents, end of
  period                                       $   33,554   $   41,459
                                               ==========   ==========
 Supplemental cash flow information:
     Interest paid                             $       21   $        5
                                               ==========   ==========
     Income tax paid                           $       73   $       37
                                               ==========   ==========

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: Website Pros, Inc.

Website Pros, Inc.
          Peter Delgrosso
          904-680-6696
          pdelgrosso@corp.web.com

(C) Copyright 2008 PrimeNewswire, Inc. All rights reserved.

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