GOTHAM CITY RESEARCH LLC

Endurance International Group:

Malicious Activities

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Table of Contents
I.
II.

Disclaimer
A Question Regarding Malicious Activities

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A Question Regarding Malicious Activities

Question:
Did your employees deliberately target customers within the internet underground community, despite
knowing that these accounts would be used for malicious activities, in violation of your own terms of
service? Were your employees instructed to do so?
Background:
Gotham City Research believes that the bulk of EIGIs reported growth, profits, & cash flow disappear as
soon as the companys suspect activities are exposed and decline.
Companies like Blinkx plc, Lumber Liquidators, and Home Capital Group, were all perceived by some
investors as good companies, with charismatic management, until they were not. Other investors were
aware of the red flags, yet shrugged off the concerns of whistleblowers and critics.
In all cases, the markets eventually cared about the whistleblowers and/or critics concerns, and each
companies shares subsequently declined -50% to -90%. We believe Endurance International Group is no
different from these companies.
Lets suppose there were whistleblowers who can prove that EIGI intentionally targeted customers
engaging in malicious activities? Or lets suppose that we or someone else can corroborate such claims.
Why would EIGI engage in such shady business practices?
For now, some market participants have played chicken with our and others concerns, just as they did in
the cases of Blinkx, Lumber Liquidators, and Home Capital Group. We recommend that you do not do so,
lest you be in for a surprise.

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