Search engine company Local.com beat its guidance for its Q3 net loss, narrowing its shortfall to $1.7 million ($0.12 per share) from last year's $9.3 million. Revenue was $10.2 million, which was below guidance, but represented an 82 percent increase from Q307. The company's earnings come on the same day as a fairly pessimistic report by Borrell Associates was released. The report expects local online ad spend growth rates to begin leveling off next year.
-- Revenue per thousand visitors (RKV) was $278, up 65 percent in Q3. Sequentially, that figure represents a 9 percent gain from the $254 RKV in Q2. The Irvine, CA.-based company had 6,900 at the end of October, up from 5,000 in August. Local.com continues to believe it can attract 50,000 advertisers by the end of 2009. Local.com's search traffic reached 27 million monthly uniques on the main site and through its network, up from Q307's 3.7 million and 18 million in Q2.
-- Outlook: The company is calling for Q4 revenue to range from $9- and $10 million, roughly a 52 percent and 69 percent increase over Q407. As for the net loss, Local.com expects to see it fall between $2.3 and $2.1 million, or $0.16 to $0.15 per share.
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By David Kaplan