• by Ben Frederick  @mp_benfred, July 24, 2015

Email marketer Constant Contact announced their Q2 financial results on Friday, predicting a slowdown in the third quarter. The company fell just short of the projected quarterly revenue of $91.8 million, reporting quarterly revenue of $91.5 million, an increase of 13% year-over-year.

Closing Thursday with share prices at $29.53, after the announcement the stocks’ value dropped sharply today to $24.80 at press time.

Constant Contact reported a GAAP net income of $3.8 million, or $0.11 per diluted share, compared to GAAP net income of $2.0 million, or $0.06 per diluted share, for the comparable period in 2014.

Non-GAAP net income increased from $0.22 to $0.29 per diluted share, ahead of analyst projections at $0.22.

They adjusted total revenue down from $377 million to $373 million

The mixed results come after a period of high investor expectations. Based on recent partnerships with Web.com and Endurance International Group, some analysts argue that the stabilizing effects of these partnerships haven’t become apparent yet.

Based on the company’s lower projections for the third quarter, Oppenheimer downgraded the company from an ‘outperform’ to a ‘perform’ and The Street’s ratings team gave them a C+, recommending investors hold.

The company has managed to increase their cash flow from operations this quarter reporting $12.6 million, compared to $11.9 million in Q2 of 2014. Capital expenditures also increased to $10.5 million from $8.1 million in 2014, which reduced their free cash flow from $3.7 in 2014 to $2.1 million.

Constant Contact added 50,000 new customers in the second quarter, ending with 650,000 unique customers, an increase from 645,000 unique customers at the end of the first quarter of 2015, and up from 615,000 this time last year. They expect those numbers to grow with help from their new partnerships.

The company also plans to fund a $50 million share repurchasing program from its cash and cash equivalents through July 2016.