Earnings: TheStreet Posts $100k Net Loss; Revs Fall 17 Percent
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While the recession has been great for financial news’ companies audience numbers, that traffic hasn’t translated into profits and revenues. TheStreet.com’s Q4 is a prime example, as the company posted a $100,000 net loss as revenues slid 17 percent to 16.5 million. Last year, the company had modest profits of $4.7 million ($0.16 per share). Analysts had been expecting $17.3 million in revenue, TheStreet itself reported. The company matched a Thomson Reuters (NSDQ: TRIN) consensus estimate on the net loss.
TheStreet (NSDQ: TSCM), which is known for its co-founder, the voluble stock picker Jim Cramer, had a impairment charge of $2.3 million and a non-cash income tax benefit of $100,000, both of which were excluded from the net loss. So while it waits for audience traffic to generate more profits, the company said it will focus on cutting costs. Thomas Clarke Jr., TheStreet’s CEO, noted that it reduced its staff by 11 percent last year and lowered operating expenses by 6 percent. More after the jump.
Release | Webcast (4:30 PM EDT) | Transcript (via Seeking Alpha)
Looking at the various revenue sources, TheStreet had practically nothing positive to report.
—Ad revs were $5.3 million, down 21 percent, while interactive marketing services revenue fell 52 percent to $1.3 million.
—Paid services revenue, which is made up of subscription, syndication, licensing and information services revenue, was $9.9 million, a 5 percent decline year-over-year. Subscription revenue dropped to $7.3 million, a 14 percent decline. A bright spot within the segment was syndication, licensing and information services revenue, which came in at $2.6 million, for a 37 percent increase. Marketing services and paid services revenue in Q4 accounted for 40 percent and 60 percent, respectively, of total revs, compared with 48 percent and 52 percent, respectively, last year.
—For the full year, revenue was up 10 percent to $71.9 million. TheStreet.com reported net income of $3.5 million ($0.11 per share) excluding an impairment charge and an income tax benefit, an 88.7 percent decrease from 2007’s $31.1 million ($1.06 per share).
@davidaKaplan
Feb 19, 2009 4:51 PM ET
Posted In: Companies, Adobe, Liberty Media, LinkedIn, TheStreet.com
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