The Knot, Inc. (NASDAQ: KNOT, www.theknot.com), the premier media company devoted to weddings, nesting and babies, today reported financial results for the first quarter ended March 31, 2011.
First Quarter Summary Results
Total revenue for the quarter was $27.5 million, flat compared to the first quarter of 2010. The results were again led by online advertising as national online advertising grew 18% and local online advertising was up 15% compared to the first quarter last year. The increase in both national and local online advertising was boosted by 15% growth in publishing as both national and local print publications saw solid gains in advertising. These gains were mostly offset by the anticipated declines in registry services and merchandise revenue, which were primarily the result of the change in the Macy’s relationship announced last January. Revenue in the first quarter of 2010 included a one-time $1 million termination fee paid to the Company by Macy’s. Despite flat revenue year over year, gross profit for the quarter was $22.3 million, up 3% year over year due to the shift in revenue mix to higher margin online advertising.
For the quarter ended March 31, 2011, the Company’s operating loss was $1.1 million compared with an operating loss of $0.2 million in the first quarter of 2010. The net loss for the quarter was $0.7 million or a net loss of $0.02 per share, compared to a net loss of $0.1 million and $0.00 per share last year in the first quarter.The Company’s balance sheet reflects cash and cash equivalents of $101.0 million, down $38.6 million from $139.6 million at December 31, 2010, primarily due to the repurchase of 3.7 million shares of common stock from Macy’s on February 25, 2011. “Our multi-platform strategy is yielding strong results in our profitable national and local advertising businesses as our brands continue to deliver a targeted audience to our advertisers’ services and products, “said Chief Executive Officer David Liu. “With a strong start to the year, these businesses are leading the way as we continue to execute on the long-term opportunities to serve our advertisers, brides, newlyweds, and first-time parents.”