Ads Drive TheStreet.com Profit

Earnings per basic and diluted share for 2006 were 48 cents a share and 47 cents a share, respectively, compared to a penny per share for 2005. Earnings per basic and diluted share from continuing operations in 2006 were 48 cents a share and 47 cents a share, respectively, compared to 23 cents a share and 22 cents a share for 2005.

For the full year 2006, net revenue grew 51%, driven by advertising, subscription and syndication, or other revenue, which grew 62%, 45% and 67%, respectively. The company said it had 880 million page views in 2006, an increase of 80% from 2005. Average monthly unique visitors grew to 4.4 million for the year, a 46% increase from last year.

Excluding the cash impact of the acquisition of Weiss Ratings in the third quarter of 2006, TheStreet.com generated $15.7 million in cash flow vs. $1.9 million in 2005.

Operating margin increased from 14.5% in 2005 to 21.7% in 2006, while gross margin increased from 62.3% in 2005 to 63.7% in 2006.

On a conference call with analysts, Clarke said TheStreet.com is focused on growing its advertising business, which enjoys higher profit margins than its subscription side. Last year, the company added to its ad sales staff, as well as its editorial staff, in areas like video production and personal finance.

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