Earnings: TheStreet.com Q3 Profit Nearly Doubles


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.”

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