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Looksmart (ticker: LOOK) reported Q2 2005 earnings results that missed consensus revenue and EPS estimates. Key stats:


Q2 Results
(all percentage changes and comparisons are year on year, unless stated otherwise)

  • Revenue fell 46.6% to $10.2 million, versus consensus estimate of $12.0 million.
  • Gross margin was 35.3% versus 42.5%.
  • Operating expenses fell 9.5% to $9.5 million.
  • Sales and marketing expenses fell 4.5% to $1.7 million.
  • Product development expenses fell 27.7% to $4.3 million.
  • G&A expenses fell 31.7% to $1.5 million.
  • Operating loss of $5.9 million versus a loss of $2.3 million.
  • Net loss of $5.4 million versus a loss of $1.2 million.
  • Diluted EPS loss of $0.05 versus a loss of $0.01, and versus consensus loss of $0.04.
  • Note: Operating expenses include a $1.9 million non-cash restructuring charge in Q2 2005, and a $420,000 non-cash restructuring charge in Q2 2004.

Q3 Guidance

  • Revenue of $7.0 - $8.0 million versus consensus of $12.7 million.
  • Traffic acquisition costs expected in the range of 56% - 59%.
  • Operating expenses of $8.0 - $9.0 million.
  • GAAP net loss of $5.5 - $6.5 million or a loss of $0.05 per share, versus consensus loss of $0.04.

Notes

  • Total paid clicks were 80 million versus 83 million in Q1.
  • Average revenue per click excluding the company's Run Of Site (ROS) product was $0.15, an increase of 7% compared to $0.14 in Q1.
  • CFO Lonergan announced his resignation.

LOOK chart.

Look729

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Source: Looksmart misses, offers weak guidance, CFO resigns, stock down 17% (LOOK 2Q05 earnings results)