Earnings: Hold The Confetti, TheKnot Swings To Net Loss; Full Year Profits Declined 65.5 Percent

This story was written by David Kaplan.
Wedding planning and newlywed lifestyle network TheKnot posted a net loss in Q4 to $981,000 ($0.03 per share), as the company incurred pre-tax impairment charge of $4 million. Last year, TheKnot had $2.6 million ($0.08) in Q4 profits. Revenue was up a slight 1 percent to $24.4 million, though national and local online ad revs gained a respectable 5 percent of Q407.

For the full year, profits fell 65.5 percent to to $4.1 million ($0.13 per share) from $11.9. million ($0.38 per share). The Company's net revenue rose to $103.9 million, an increase of 5% from $98.7 million in 2007. The results were led by gains of 15 percent and 8 percent, respectively, in national and local online advertising revenue. Merchandise revenue was up 6 percent while registry services revenue and publishing & other revenue dropped by 4 percent and 5 percent, respectively. Those sets of figures presage what looks to be a mixed year at best for the weddings lifestyle company. As TheKnot CEO David Liu said in a statement, the company has made some progress on the ad front, but the registry and publishing business will continue to be under pressure for the foreseeable future.

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By David Kaplan
  • CBSNews

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