The misses revenue and EPS estimates, no growth in core business (1Q05 earnings results)

| About: TheStreet, Inc. (TST)
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The (ticker: TSCM) missed revenue and EPS estimates for Q1, and reported no revenue growth in its core subscription business. Details and a quick comment:

Q1 Results
(all percentage changes and comparisons are year on year, unless stated otherwise)

  • Revenue up 13% to $8.9 million. Consensus was $9.65 million.
  • Revenue composition: Advertising revenue was $2.1 million, up 48% and 3% sequentially; subscription revenue was $5.4 million, flat yr/yr and down 3% sequentially; Independent Research Group revenue was $1.1 million, up 46% but down 21% sequentially.
  • Deferred revenue down 3% to $7.9 million, but up 8% sequentially.
  • Subscription bookings of $6.0 million was down 10% but up 21% sequentially.
  • Total expenses of $10.0 million were up 4% (and 12% sequentially).
  • Net loss was ($854,000).
  • EPS was ($0.03) versus consensus of ($0.02).
  • Net income from Electronic Publishing was $981,000.
  • Total cash burn was $3.6 million.
  • Cash and equivalents fell 5% (and 11% sequentially) to $28.5 million.
Quick Comments:

  • Still hard to see why this would make an attractive acquisition candidate. 61% of revenue comes from subscriptions and only 24% from advertising, so this isn't an online advertising play. The subscription business isn't growing, the company isn't profitable, and it just missed analyst estimates.
  • Full press release here.
  • For comparison: TSCM's 4Q04 earnings results.

Full disclosure: at the time of writing I'm short TSCM.

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