's revenue shrinks but booking rise (TSCM 2Q05 earnings results)

| About: TheStreet, Inc. (TST) (ticker: TSCM) reported Q2 earnings that gave a glimpse of how it will look after the closure of its IRG unit. Key stats:

Q2 Results:
(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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