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10-Q Watch: Jupitermedia: Mediabistro Annual Revs in $8 Million Range; 3x Revenue Multiple

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Jupitermedia (NSDQ: JUPM) isn’t explicitly breaking out numbers for media jobs and resource site Mediabistro, which it acquired for $23 million this summer, but the size of the company can be roughly worked out from JUPM’s latest 10-Q filed on Friday. In Q306, Jupiter did revenues of $33.7 million, but a separate chart giving pro-forma results “as if the acquisition of Mediabistro had occurred” says the company did $35.2 million in the quarter, leaving a contribution of $1.46 million for the acquired company. For the latest quarter, Q307, it’s a tad trickier since the acquisition closed mid-quarter, July 18th. This time the gap between regular revenue and the pro-forma revenues are $321,000, which represents Mediabistro’s revenue from July 1 through July 17. The company has confirmed that these calculations are correct. From this, you could crudely guess that Mediabistro’s Q307 revenues then are north of $1.6 million by multiplying this period by five and assuming some intra-quarter growth (i.e. latter weeks in the quarter bigger than earlier ones).

Looking at trailing nine month data gives a few more clues about the company’s growth rate. For the nine months ended Sept. 30 ’06, we can put Mediabistro’s revenues at $4.23 million. Subtracting Q306 revenue of $1.46 million, we get FH06 revenues of $2.77 million. FH07 revenues, using the same method, comes to $3.85 million, for a solid growth rate of 38.9 percent. If they had maintained this growth rate in the latest quarter (a big if), the company may have done $2.03 million in Q307.

So depending on the seasonality of the business (we don’t have any Q4 data for 06) and the current rate of growth, Mediabistro may be on track to do $8 million in annual revenues in ’07, though it could be more or less. If so, this would work out to about a 3x revenue multiple that Jupiter was willing to pay.