Constant Contact Reports Increasing Revenue, Steady Losses

Constant Contact last week reported $25.5 million in revenue for the fourth quarter of 2008. This is a 61% increase over the same period in 2007, when the small-business-focused e-mail software provider generated $15.9 million, according to Constant Contact.

The company reported it ended the fourth quarter of 2008 with 253,400 customers, an increase of 54% over the same period in 2007.

This figure makes Constant Contact by far the largest e-mail service provider to small businesses. No. 2 is VerticalResponse with 40,000 clients, according to a recent report in USA Today.

Constant Contact added 24,800 customers in the fourth quarter of 2008, according to its fourth-quarter report.

However, though the company is apparently growing like mad, it is not profitable and won’t be at least for the next 12 months.

Constant Contact reported a loss of $1.6 million in the fourth quarter of 2008 compared to a $1.1 million loss for the same period in 2007.

The company also reported it expects the losses to continue in 2009.

Constant Contact reported a full-year revenue increase of 73% to $87.3 million in 2008, compared to $50.5 million in 2007.

It reported a net loss of $2.1 million in 2008 compared to $9.1 million in 2007.

The firm reported it expects full year 2009 revenue to be from $125 million to $130 million and losses in 2009 to be between $2.9 million and $3.3 million.