TheStreet.com (ticker: TSCM) reported Q2 earnings that gave a glimpse of how it will look after the closure of its IRG unit. Key stats:
(all percentage changes and comparisons are year on year, unless stated otherwise)
- Revenue down 2% to $7.8 million (down 1% sequentially). Consensus of $10.3 million included IRG which was shut down.
- Revenue breakdown: Advertising revenue up 10% to $2.1 million (flat sequentially); subscription revenue down 6% to $5.3 million (down 2% sequentially). Independent Research Group closed down.
- Operating expenses down 7% to $6.3 million (down 10% sequentially).
- Net loss for the quarter was ($2.3) million, including a one-time charge of $2.4 million for the closure of IRG.
- EPS was ($0.09), would have slightly exceeded consensus estimate of breakeven without the one-time charge for the closure of IRG.
- Net income from continuing operations (ie. without IRG) was $1.7 million, or $0.07 per share, up 30%.
- Cash flow was $1.1 million, up from $0.9 million.
- Deferred revenue up 6% to $9.1 million (up 16% sequentially).
- Subscription bookings up 7% to $6.6 million.
- Subscribers to premium services up 4.3%.
- Page views up 10%, unique visitors up 27%.
- Cash and investments at end-quarter were down 4% to $29.6 million (up 4% sequentially).
- 24.75 million diluted shares.
Full disclosure: at the time of writing I'm short TSCM.
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