The Street.com (ticker: TSCM) missed revenue and EPS estimates for Q1, and reported no revenue growth in its core subscription business. Details and a quick comment:
(all percentage changes and comparisons are year on year, unless stated otherwise)
- Revenue up 13% to $8.9 million. Consensus was $9.65 million.
- Revenue composition: Advertising revenue was $2.1 million, up 48% and 3% sequentially; subscription revenue was $5.4 million, flat yr/yr and down 3% sequentially; Independent Research Group revenue was $1.1 million, up 46% but down 21% sequentially.
- Deferred revenue down 3% to $7.9 million, but up 8% sequentially.
- Subscription bookings of $6.0 million was down 10% but up 21% sequentially.
- Total expenses of $10.0 million were up 4% (and 12% sequentially).
- Net loss was ($854,000).
- EPS was ($0.03) versus consensus of ($0.02).
- Net income from Electronic Publishing was $981,000.
- Total cash burn was $3.6 million.
- Cash and equivalents fell 5% (and 11% sequentially) to $28.5 million.
- Still hard to see why this would make an attractive acquisition candidate. 61% of revenue comes from subscriptions and only 24% from advertising, so this isn't an online advertising play. The subscription business isn't growing, the company isn't profitable, and it just missed analyst estimates.
- Full press release here.
- For comparison: TSCM's 4Q04 earnings results.
Full disclosure: at the time of writing I'm short TSCM.