CNET beats consensus, stock rises (CNET 2Q05 earnings)

CNET Networks (ticker: CNET) beat the consensus EPS estimate of $0.03 by 2 pennies. The stock rose by just over 3% in late trading after falling by 1.8% in regular hours. Summary of key data points from the quarter and guidance:

Q2 Results
(all comparisons are year over year unless stated otherwise)

• EPS of $0.05 beat consensus of $0.03.
• Revenue was $84.5 million, up 24%, and ahead of consensus of $83.6 million.
• Revenue breakdown: Interactive revenue up 30% to $76.8 million (up 23% organically); magazine publishing of $7.7 million down from $8.8 million.
• Operating income was $7.6 million versus a loss of $261,000; operating income before depreciation and amortization was  $14.2 million, up 159%, and 17% of revenue versus 8%.
• Net cash provided by operating activities was $13.0 million, up from $2.4 million.
• Free cash flow (defined as cash  flow from operating activities less capex) was $6.5 million.
• Net income was $7.7 million, or  $0.05 per diluted share, versus a net loss of $1.5 million, or $0.01.
• Balance sheet: cash down $2.8 million sequentially to $94.1 million.
• Average unique monthly users were 115 million, up 55%.
• Average daily page views were 98 million, up 134%.
• User and page view organic growth (excludes acquisitions, particularly Webshots) was "above 20%".

Q3 Guidance

• Revenue of $85.5-87.5 million. Mid-point $86.5 million above current consensus of $85.5 million.
• Revenue breakdown: interactive revenue of $78.0-79.5 million, publishing revenue $7.5-8.0 million.
• Operating income of $5.5-8.0 million.
• Operating income before depreciation and amortization of $13.0-15.5 million.
• EPS of $0.03 to $0.04 versus current consensus of $0.04.

Full Year Guidance

• Revenue of $347-355 million (up from prior guidance of $345-355 million). Mid-point of $351 million below current consensus of $352 million.
• Revenue breakdown: interactive revenue $317-323 million (up from $317-323 million), publishing revenue of $30-32 million.
• Operating income of $36.5-41.5 million.
• Operating income before depreciation and amortization of $65-70 million.
• EPS of $0.21 to $0.24 versus consensus of $0.22.

Full press release here.

Full disclosure: at the time of writing I'm short CNET.

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