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Infospace stock (ticker: INSP) was down 26% in trading today after reporting results and guidance last night. Q1 was strong, but guidance for Q2 was weaker than expected. Details:


Q1 Results
(all percentage changes and comparisons are year on year, unless stated otherwise)

  • Revenues were $87.0 million, up 81%.
  • Net income was $93.9 million, but includes a gain from a legal settlement of $77.3 million.
  • Adjusted EBITDA was $21.9 million.
  • Income from continuing operations was $16.6 million, or $0.45 per diluted share. Consensus was $0.37.
  • Cash, cash equivalents, and marketable investments at end-quarter were $384 million; no debt. Elkware GmbH, a German mobile games company, was acquired for $26 million during the quarter.

Segment composition

  • Search & Directory revenues were $48.0 million, up 44%, driven by 20% growth in paid searches plus 13% rise in revenue per search. Search & Directory segment income was $21.7 million; income margin was 45%.
  • Mobile revenues were $39.1 million, up 163%, driven by the media download business plus a full quarter of European mobile games results. Mobile segment income was $10.2 million, margin was 26%.

Q2 Guidance

  • Revenue of $83 million to $85 million.
  • Adjusted EBITDA of $17.5 million to $19.0 million.
  • Net income of $13.5 million to $15.0 million.
  • EPS of $0.36 to $0.39 (based on 38 million fully diluted shares). Consensus was $0.42.

Full Year 2005 Guidance

  • Revenue of $375 million to $395 million, versus consensus of $387.5 million.
  • Breakdown: Search & Directory revenue $200 million to $210 million, Mobile revenue of $175 million to $185 million.
  • Adjusted EBITDA of $92 to $100 million.
  • Net income of $67 million to $75 million.
  • EPS of $1.75 to $1.95, versus consensus of $1.85.

Full press release.

3 month INSP chart below.
Big_4

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Source: Infospace stock slammed on guidance (1Q05 earnings results)