Mediabistro Inc. (NASDAQ:MBIS)
Q2 2013 Results Earnings Call
July 31, 2013 5:00 PM ET
Alan Meckler - Chairman and CEO
Don O'Neill - Chief Financial Officer
Good day. And welcome to the Mediabistro Quarterly Update Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. Alan Meckler. Please go ahead, sir.
Thank you very much. And welcome to those who have called in to hear our quarterly call on our financial results for the second quarter. I’m here in New York with Don O'Neill, our Chief Financial Officer. And before moving ahead, Don is going to read the Safe Harbor statement.
Thank you, Alan. Before we begin formal comments, I would like to inform everyone that statements in today’s earnings release which are not historical facts are forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For more detailed discussion of such risks and uncertainties, refer to Mediabistro’s reports filed with the Securities and Exchange Commission, which can be obtained at the SEC website or Mediabistro’s Investor Relations website.
I will now turn the call back to Alan.
Thank you, Don. So I wanted to discuss the highlights since our last quarterly call. I think from what we are seeing and I think after I get through this call, those listening in will understand how things has started to look much brighter and more positive for Mediabistro, and of course, this is the first call where we are now officially Mediabistro Inc. from the previous WebMediaBrands.
So some of the highlights, our job board, which is by far in away at this point the largest segment of the company revenue wise, essentially has been a business that has been going sideways or slightly down since August of 2011. And I can now report based on trends that we have seen over the last 60 days that it definitely appears job board has turnaround. We are getting more job postings than we’ve had in many, many months and revenues are looking much more positive.
And the job board is fascinating business. It of course depends on traffic to the site, but basically we were certainly in a position with the job board that every time job board ask more postings, essentially 90% or more of any growth in job postings goes right to the bottom line.
So we are at that position, in that position now and we are looking forward to with our recent design change to the whole site, look and feel Mediabistro, the job board, the homepage, plus better economy. We are looking forward to very exciting upward trajectory for the job board.
One of our other very important legs to the stool in terms of the future Mediabistro is AppData. This is part of the InsideNetwork acquisition made about 18 to 20 months ago. And we definitely were affected by the fall off the interest in social gaming and particularly Facebook. While Facebook’s good numbers recently are bullish for AppData and bullish for Mediabistro for number of reasons.
As Facebook gets better, more people are looking for facts and information about Facebook. And I think it's fair to say that there is no company in the world that has more information about Facebook than Mediabistro. We have, what I believe is, two largest blogs that follow Facebook, InsideFacebook.com and AllFacebook.com.
Our AppData product was originally based and built on providing information about apps on Facebook. Now when Facebook lost favor on Wall Street, we started to loose interest in AppData and the only good thing that came out of that is we decided we have to revamp AppData which has been -- something has been evolving now for about 12 to 15 months. So that AppData which only had one subscription service to it, which was Facebook apps.
Over the last few months, we now have four different options on how one can get AppData including the fastest growing part of the business, which is data about mobile apps. And this is our fastest growing portion of AppData but recently with this, I said the interest in Facebook again and on the increased traffic inside Facebook and all Facebook when we promote these services aggressively, we’re starting to see a significant pickup again in organizations, who want to follow information about Facebook apps.
So this is all very positive for us. And again, after about 10 or 11 months of decline in AppData subscribers, over the last two months, we’ve started to see an acceleration in a number of subscriptions and obviously subscribers for AppData. We’re very positive about that along with the job board.
The other major highlight which we have been emphasizing to those who follow our stock in our company has been or moved into the 3D printing arena as many of you know or for those who are on the call for the first time, we appear to be the first company in the world to create a B2B or business to business trade show for 3D printing industry.
Heretofore, there had been association shows in additive manufacturing in other areas but no one had done an independent tradeshow that would be classified as business to business. We launched our first show in April with only three months of lead time and the show was extraordinarily successful over 3,000 attendees and very profitable.
We just held the second version of the show in Chicago at McCormick Place, a few weeks ago in July. And that show was very successful. We are now heavily promoting the San Jose California version of the show which will be know as Fall Inside 3D Printing.
And right now the exhibit hall looks like it will be significantly larger than what we had in New York or Chicago and it looks we will sell out all of our space at the San Jose show. In addition, registrations at this point, well I can’t guarantee they will continue at the pace they are coming in, is giving us the feeling that the San Jose show will be larger than the New York show overall.
So this bodes well. And because of the success we’re having with the Inside 3D Printing trade shows and support, we’re getting in the industry, particularly from the larger 3D printing companies. We have announced our planning shows in Singapore for the Asia Pacific region, which will be taking place on October 1st and 2nd.
We will have formal dates, it looks December 3rd and 4th in Sao Paulo, Brazil this year. And we will have our first show in Europe, in Germany in Berlin on March 10th and 11th and then will be back in New York to finish the cycle of the first year in the 3D printing trade show business in April.
But before that all takes place, I’m fairly confident again but no guarantee that we will be able to announce at least two other countries where we will launch from what we can tell the first business-to-business 3D printing trade shows. So this franchise, I might say at this point, to me it looks like the most exciting new trade show in the world today. And certainly, I would say in the last year or two years or three years, it might be very well, the most exciting new trade show that’s been launched.
In an industry, which McKenzie has estimated, we’ll be doing $250 billion to $300 billion by 2023. So it’s nice to know that this company at this point has a leading business-to-business trade show in what might very well be the most exciting new industry segment that the world has seen since the launch of the internet and/or the worldwide web and the internet growth in the early 1990s.
In addition, what is extremely exciting is just yesterday, this company was able to get off the ground again in a very short time with having no background business in a field and launch in New York City, the first Bitcoins conference on -- and coverage of Virtual currencies.
We had almost 200 paid people. We had several exhibitors. By chance you search on – for information about our show inside Bitcoins, I think you will find nothing but rave reviews for the show. So not only was it critically successful, it was very successful financial.
And we are so pumped up by the success of the show yesterday that we have taken space in Las Vegan in December. We initially were going to another one day show in Las Vegas on December 11th, but now we are going to make it a two-day show.
We think Bitcoins and Virtual currency arena is another very, very exciting growth area and we will be launching our first editorial product covering Bitcoins and Virtual currencies in about 10 days.
So we are very excited that the company is seems to be poised and has already proven, I think, in 3D Printing that we are the number one company in tradeshow business and I think shortly we’ll improve the same with the Bitcoins show. We shortly also be announcing shows from London, England, and Berlin, Germany for Bitcoins shows and perhaps moving into other countries over the next six months.
Again, trying to be cutting edge and proving that we are cutting edge, we are going to have a show in self-drive vehicles in February. And again, we -- there is one other show out there. But we believe that we will have the most exciting show and well, I can't guarantee financial success, I know it will be critically successful, we look forward to our self-drive vehicle show and if that one works in San Francisco in February, we will announce the growth of that property to other cities and countries as well.
So, overall, what we are seeing at Mediabistro after a slump for several months is revenues growing again, declining G&A, which is always good sign. And one thing which I pointed out last call was the deferred revenues and while of course that is liability, in our case that’s an asset, because if you know anything about tradeshow business, if you have deferred revenues growing, it’s usually a sign that you are getting significant pre-conference registrations, as well as a exhibit booth and sponsorship sales, and that is what is happening to Mediabistro, particularly in the 3D Printing shows.
My last note, before turning things over to Don and then after Don speaks, we will take questions, should there be any, is the interest that seems to be surrounding Mediabistro the stock since around the 20th of June volume has increased significantly, in fact two or three days at the end of June, we traded at almost 2 million shares over two or three days. Of course we are not exactly sure who the buyer was and who the seller was.
But very exciting to see the interest because since those days we are not trading at the level of 500,000 or 1 million shares a day. Our average trading volume has expanded significantly. And again, I can't definitely make a prediction what that means to the price of the stock. However, it does show greater interest and again, I’m not a 100% sure, why there is greater interest but I do believe that investors see that we have moved into some very exciting industry areas.
And with our experience in trade shows, I believe people are seeing that we have with our past experience have the ability to create great trade shows and that maybe we’re doing that again. Again I want to say not sound like a broken record that I can’t definitely or guaranteed any of this to be fact but that is my guestimate of what is happening.
With that, I’m going to turn the call over to Don and then after Don has finish, should there be any question, we’ll be happy to take those questions.
Thank you, Alan. For the second quarter of 2013, we reported revenues of $4 million which represents decrease of less than 2% compared to our results for Q2 of 2012. We ran eight trade shows during the second quarter of 2013 compared to five for the same period of 2012.
Most notably we held a launch event of our newest trade show, Inside 3D Printing Conference & Expo in New York City this past April. As a reminder, it should be noted that our results maybe impacted by the number and type of education courses we hold and by the number and size of trade shows we hold in each quarter. In addition, advertisers generally place fewer advertisements during the first and third calendar quarters of each year.
On a sequential quarterly basis, our revenues increased by $1.4 million or 57% which is due primarily to the trade shows and advertising. Our net loss excluding interest, factors, deprecation, amortization and stock based compensation or EBITDA was $108,000 during the second quarter of 2013 compared to an EBITDA loss of $596,000 during the first quarter of 2013.
Our non-cash stock based compensation expense was $78,000 during the second quarter of 2013, compared to $137,000 for the same period last year. As we look at our balance sheet, we have $1.7 million in cash at June 30, 2013 compared to $1.6 million at the end of March and $2.2 million at December 31, 2012.
And with that, I’ll give back to Alan.
Thank you, Don. If our hostess on this call would be kind enough to see if anyone has questions for us.
(Operator Instructions) And no one has signaled for question at this time.
Well, thank you very much for listening in. We look forward to speaking with you after the completion of the third quarter. Thank you.
Thank you. That does conclude our conference. You may now disconnect.
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