Ad Revenue Fuels TheStreet.com Earnings as Subscriptions Fall

Financial website TheStreet.com posted earnings that beat Street estimates by $0.01, while coming up short on revenue. Q3 adjusted net income was $3.8 million ($0.13/share), up 22% from $3.1M ($0.11/share) a year ago, and better than the $0.12/share analysts polled by Reuters were expecting. Record revenue of $16.1 million was up 24% from 2006's $12.9 million, but short of $16.3 million Street estimates. TheStreet said subscription-based revenue to its pay website was $8.3 million, down 3% from $8.6M a year ago. Advertising revenue, conversely, jumped 23% to $4.6 million from $3.7M. Non-financial ad revenue was up 97% year-over year. In August, the company acquired Corsis, a provider of custom solutions for advertisers, marketers and content publishers, for approximately $20.7 million in cash and shares. "With our recent acquisitions and the many other initiatives we have undertaken, TheStreet.com has dramatically altered and broadened the landscape of opportunities for the Company," CEO Thomas J. Clarke Jr. said (full earnings call transcript later today). Shares are up 1.2% to $13.25 in pre-market trading.

Sources: Press release
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Earnings call transcript: TheStreet.com Q2 2007

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