Earnings: Weak Q3 Forces Boardroom Shuffle At TheStreet.com
This story was written by Tameka Kee.
Wall Street's losses have turned partly into TheStreet.com's gains, as traffic surged to an all-time high over the course of Q3and ad revenue tracked upward accordingly. But the company wasn't completely immune to the market downturn, as it missed analysts' EPS and revenue expectations (via Tech Trader Daily), and posted a $1.1 million loss in net income. TheStreet.com (NSDQ: TSCM) shook up its boardroom as a result, making Jim Cramer Chairman so that former Chairman (and current CEO) Thomas Clarke can focus on navigating the even tougher times ahead.
Revenues increase from Q307, but not sequentially : Q3 revenues came in at $16.7 million, and while that's up 4 percent year-over-year, analysts were expecting $19.2 million. It's also down 15 percent from the previous quarter, when TheStreet.com posted a double-digit increase in revenue.
Finance crisis attracts readers, ad dollars : The company said average unique monthly visitors topped 8 million in Q3an all-time high and up 27 percent year-over-year. Ad revenues were also up 18 percent from last year, coming in at $5.4 million, though they were down 15 percent from the Q2 figure of $6.4 million. While TheStreet.com took steps to diversify its advertiser base beyond the financial sector in previous quarters, all eyes will definitely be on the company's Q4 numbers to see whether those tactics pay off.
No debt : TheStreet.com's coffers are still relatively full, as the company ended Q3 with $80 million in cash and no debt. Release.
By Tameka Kee