HostGator, one of Endurance International's best-known service brands. Image source: HostGator.

What: Shares of Endurance International Group (NASDAQ:EIGI) crashed on Tuesday, ending the day 11.7% below Monday's closing price. The provider of cloud computing tools for small and medium businesses reported second-quarter results in the early morning hours, and investors found the report wanting.

So what: The parent company of web services such as HostGator and TypePad reported an adjusted net loss of $0.02 per share on sales of $183 million. Analysts were looking for a $0.29 profit per share, but would have settled for marginally lower revenues. Looking ahead, management expects third-quarter sales of roughly $191 million, in line with analyst projections.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

Now what: You should know that Endurance doesn't seem overly concerned with net income or earnings per share. The company reports an avalanche of income-related metrics, such as adjusted EBITDA and two different forms of free cash flow, but you won't find a highlighted earnings figure anywhere. Going down the income statement in search of that figure is almost pointless.

The seven analyst firms who follow this stock are most likely familiar with this somewhat eccentric attitude, and probably aimed their per-share estimates at Endurance's favorite metric instead. That would be unlevered free cash flow, a cash metric that backs out interest payments. This figure worked out to $0.29 per share -- right in line with analyst estimates.

In other words, Endurance only missed Wall Street's targets if you weren't aware that they were painted on a totally different wall. From management's perspective, it was smooth sailing, steady as she goes, nothing to see here.

"The business continues to deliver strong top-and bottom-line performance in a steady predictable manner," said Endurance CFO Tiv Ellawala on a conference call with analysts. That just about sums it up.

Don't cry for Endurance shareholders, by the way. Despite several sharp drops along the way, including Tuesday's 12% haircut, the stock is up a market-beating 44% over the last 12 months.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.