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Constant Contact, Inc. William Blair Growth Stock Conference

Constant Contact, Inc. William Blair Growth Stock Conference Gail Goodman, Chairman, President & CEO Steve Wasserman, Vice President & CFO June 18, 2008. Forward-Looking Statements.

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Constant Contact, Inc. William Blair Growth Stock Conference

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  1. Constant Contact, Inc. William Blair Growth Stock Conference Gail Goodman, Chairman, President & CEO Steve Wasserman, Vice President & CFO June 18, 2008

  2. Forward-Looking Statements This presentation contains forward-looking statements, including statements relating to our growth rates, market opportunity, customer acquisition model, growth strategy, long-term target operating model and profitability. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results or performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results or performance. Other factors that could materially affect actual results or performance are described in our various filings with the Securities and Exchange Commission, including the Risk Factors section of our Quarterly Report on Form 10-Q for the period ended March 31, 2008. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement you see or hear during this presentation reflects our current views as of today with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our financial results and operations. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise. Information regarding the non-GAAP financial measure referenced in this presentation can be found in the press release reporting our first quarter 2008 earnings, which is available on our web site. 2

  3. Introduction to Constant Contact • Leading provider of on-demand email marketing solutions for small businesses and non-profits • Over 200,000 customers • Web-based, subscription solution • Starting at $15 per month • Average customer pays ~$34 per month (includes all sources of revenue) • Based in Waltham, MA • Founded in 1995, online solution first used in 2000 Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  4. Investment Highlights • Large, attractive target market • Clear leadership position • Proven on-demand solution with high value proposition • Loyal and diverse customer base • Rapid organic revenue growth with high degree of visibility • Attractive per-customer ROI will drive operating leverage Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  5. Rapid, Consistent & Highly Visible Growth Monthly Revenue (2002 – Q1 2008) 2002 2003 2004 2005 2006 2007 2008 Note: monthly numbers unaudited Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 5

  6. Large, Attractive Market 26.8 MillionSmall Businesses(1) 14.1 MillionU.S. Direct Sellers(2) More than $10 billion potential market opportunity = 4.0 MillionEBAY Sellers(3) 1.5 MillionNon Profits(4) Note: Assumes $34/ month Similar opportunities outside the US 1.3 millionRealtors(5) 1 SBA Office of Advocacy, 2 Direct Selling Association, 3 Washington Post article reference, 4 National Center for Charitable Statistics, 5 National Association of Realtors Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  7. Staying Connected to Customers • What is permission-based Email Marketing? • Communicating to existing customers and members • Sending newsletters, event announcements, promotions • The value of Email Marketing • Drives repeat sales and customer referrals • Keeps you in front of your best audience - people who know you • Easy, effective and affordable – and very measurable! Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  8. Email Marketing Features: Design Campaigns • Easy to use • No technical or design skills required • More than 300 templates to choose from • Professionally designed Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  9. List import from Outlook, Excel, QuickBooks, etc. Segment lists for targeting Add contact details for personalization Manage subscribe / unsubscribe function Features: Build and Manage Contact Lists Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  10. Features: Track Your Results • Know which articles, events or promotions get the most clicks • See who clicked on which links • Compare results to industry metrics and over time Email Campaign Reports Contact Reports Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  11. Customer Success Formula Communications Consultants: • Call trial customers • Assist them in sendingthe “first campaign” Support Resources: • Phone Support • Email • Chat • Knowledgebase Learning Center: • Daily Product Tours • Special Topics • Best Practices • Live and On-demand Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 11

  12. Large and Diverse Customer Base Over 200,000 Customers Number of Employees Customer Type 19% 21% 33% 41% 7% 7% 38% 17% 16% 1 Business to Business 69% 2 to 4 Business to Consumer 5 to 9 Nonprofits and Associations 10 to 24 25 to 49 Note: Based on Q4 2008 D&B Matching of 64,156 of 163,432 50 and up Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 12

  13. Diversified and Efficient Customer Acquisition Online and Channel (~ 47% of new customers) • Online Advertising • Pay-per-click and banner advertising • Channel Partners • Over 2,300 active partners • Partnership with website design and hosting companies Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 13

  14. Diversified and Efficient Customer Acquisition Referral, Regional & Brand (~ 53% of new customers) • Network Effects • Word of mouth referrals • Constant Contact link in over 700 million emails sent by customers each month • Brand / market awareness Email campaign footer • Regional Multimedia • Local seminars done by Regional Development Directors • Radio and online advertising • Local business publications – advertising and event listing • Other Initiatives • Press relations and thought leadership • User community with discussion boards, resource center, etc. • Industry marketing Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 14

  15. Compelling Per Customer Economics Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  16. 100% 80% 60% 40% 20% 0% $40 $30 $20 $10 $0 100% 80% 60% 40% 20% 0% Key Metrics Affordable Consistent Stable Monthly Percent of Customers in $15 & $30 Price Tiers 2006 – Q1 2008 80% of email marketing customers in $15 and $30 tiers Monthly Average Email Invoice 2006 – Q1 2008 Average email marketing invoice: $33 Monthly Average Retention 2006 – Q1 2008 Average email marketing retention: 97.8% Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 16

  17. On-Demand Software/Infrastructure for Scaling On Demand Model Enterprise Class Infrastructure Customer Compliance And Deliverability No hardware No software No IT staff Automatic upgrades Multi-tenant scale economies 100% on-demand Load balanced Redundant Reliable Scalable Secure 99.99% availability Strict permission standard Proprietary compliance system Customer screening ISP feedback loops 98%(1) U.S. inbox deliverability (1) Measured by Return Path for 2007 Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  18. Competitive Landscape (SMB Focus) Text-basedEmail Blasts Professional Email Marketing Service (200,000) Scale (40,000) (10,000) (23,000) (4,000) (15,000) Quality of customer experience Companies’ customer numbers from respective websites as of June 13, 2008. Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 18

  19. Growth Strategy Introduce additional products Build brandand acquire customers Increase revenue through add-on services Expand internationally Evaluate complementary acquisitions June 18, 2008 Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  20. Provide Additional Products - Online Survey Product Attributes Survey Made Easy • Launched in 2007 • Over 10,000 paying customers • Easy survey creation environment • Over 40 different preformatted and customizable survey templates • Real-time and comprehensive reporting Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  21. Experienced Management Team Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 21

  22. Financial Highlights Steve Wasserman, Vice President & CFO

  23. Financial Highlights • Subscription model provides visibility and recurring revenue streams • 24 consecutive quarters of organic customer and revenue growth • High gross margins • Attractive per customer ROI and on-demand delivery model will drive operating leverage Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  24. Proven Effectiveness in Customer Acquisition June 12, 2008 – Announced that we exceeded the 200,000 Customer Count in May Revenue ($000s) Customers 24 consecutive quarters of growth in revenue and customers Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 24

  25. High Quality Revenue Composition • Diversified sources • Paid via credit cards in advance (auto debit) • Revenue recognized ratably on a daily basis • Recurring and visible • Begin quarter with ~ 90% of target revenue from existing customers Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

  26. Compelling per Customer Economics $800 $600 $400 Gross Marginpayback month 12 $200 $0 -$200 -$400 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 2008 Target Cost of Customer Acquisition Cumulative Cash Flow Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 26

  27. Financial Highlights • Calculated by adding stock-based compensation and depreciation and amortization back to operating income or (loss). Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 27

  28. Balance Sheet Highlights Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions. 28

  29. Investment Highlights • Large, attractive target market • Clear leadership position • Proven on-demand solution with high value proposition • Loyal and diverse customer base • Rapid organic revenue growth with high degree of visibility • Attractive per-customer ROI will drive operating leverage Please review the discussion on Page 2 of this presentation regarding the risks associated with forward-looking statements. Do not rely on this presentation to make investment decisions.

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