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Hurray! reports in-line on adjusted basis; IVR shows strong sequential growth; SMS weak (HRAY 2Q05 earnings results)

Aug. 15, 2005 8:15 PM ETHurray! Holding Co. Ltd. (HRAY)
Ezra Marbach profile picture
Ezra Marbach

Hurray! (ticker: HRAY) reported Q2 2005 earnings results that met diluted earnings per ADS estimates on an adjusted basis. Keys stats from the quarter:

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

  • Total revenue rose 25.1% to $15.0 million vs consensus estimate of $15.66 million.
  • Total revenue rose 0.5% sequentially.
  • 2G service revenue rose 28.7% to $4.6 million, and rose 29.9% sequentially.
  • 2.5G service revenue rose 21.8% to $8.8 million, but fell 6.5% sequentially.
  • SMS revenue fell 38.4% to $2.1 million, and fell 8.8% sequentially.
  • IVR revenue rose 97.8% sequentially to $2.5 million.
  • Software and systems integration services revenue rose 34.0% to $1.6 million, but fell 18.6% sequentially.
  • Gross margin was 59.7% vs 60.0%.
  • Operating expenses rose 58.2% to $4.4 million, and rose 45.0% sequentially.
  • Product development expenses rose 4.2% to $638,000.
  • Sales and marketing expenses 49.3% to $2.6 million.
  • G&A expenses rose 160.5% to $1.2 million.
  • Operating income rose 2.8% to $4.5 million.
  • Operating margin was 30.1% vs 36.6%.
  • Net income rose 16.0% to $5.0 million but fell 10.2% sequentially.
  • Net margin was 33.4% vs 36.0%.
  • Diluted earnings per ADS of $0.22 vs $0.26.
  • Adjusted diluted earnings per ADS of $0.25 in-line with consensus.

Balance Sheet

  • Cash and equivalents of $77.3 million as of June 30, 2005.

HRAY chart.


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This article was written by

Ezra Marbach profile picture
Ezra Marbach is a former investment banker who lived in Beijing in 2002-03 where he studied Mandarin Chinese and worked for a venture capitalist. Ezra previously worked for Internet-based venture capital firm UniversityAngels.com. Prior to that, he worked in the corporate finance department of Gerard Klauer Mattison, a NY-based boutique investment bank. Ezra graduated from Cornell University.

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