TheStreet.com’s Q3 net income nearly doubled on increased revenue in all segments, due in part to an acquisition of Weiss Ratings earlier in the quarter. Earnings increased to $3.1 million compared to $1.6 million during the same period last year. Quarterly revenue gained 59 percent to $12.9 million versus $8.2 million in the prior year on growth in all segments. Advertising revenue improved 76 percent to $3.7 million from $2.1 million, making it the largest quarterly total since Q4 of 2000, the company said. Subscription revenue climbed 48 percent to $8.6 million from $5.8 million, but it declined sequentially, which is leading to some worry from observers.
David Jackson analyzes the numbers here: “TheStreet.com’s subscription revenue fell 1% sequentially in Q3 (excluding its acquisition of Weiss Ratings), versus growth of 10% in Q2 and 17% in Q1. And year-over-year, subscription revenue rose 43% in Q3, versus 57% in Q2 and 43% in Q1. More important, new subscription orders rose only 15% year-over-year, as did page views. In other words: the Cramer Mad Money effect that has benefited TSCM’s stock seems to be waning.”