The Knot Posts 1Q Loss On Advertising Drop

NEW YORK (AP) — The Knot Inc. on Thursday posted a loss for its first quarter as advertising revenue slumped on its wedding-related Web sites.

For the quarter ended March 31, the company reported a loss of $1.3 million, or 4 cents per share, compared with year-ago profit of $579,000, or 2 cents per share.

Revenue fell slightly to $23.7 million from $23.8 million, on slumps in national online advertising.

Analysts polled by Thomson Reuters, on average, had expected the company to break even on a per-share basis on revenue of $23.5 million.

Operating expenses rose 8 percent to $21.2 million, which the company said it expected because of hiring that occurred last year and expenses related to acquisitions.

The company said membership on its sites, The Knot.com and WeddingChannel.com, grew 10 percent in the quarter.

Overall, revenue from online advertising was flat from the same period last year. Local online advertising revenue grew 4 percent, but national online advertising revenue dropped 9 percent.

Merchandise revenue from the sale of wedding supplies grew 12 percent, as registry services revenue fell 3 percent. The company said publishing and other revenue dropped 11 percent year-over-year.

Chief Financial Officer John Mueller said the company is trying to control its discretionary spending and remain efficient.

Shares of The Knot fell 45 cents, or 4.8 percent, to close at $8.91 on Thursday before the results were released.