TheStreet ( NASDAQ: TST), a leading digital financial media company, today reported financial results for the third quarter of 2011. The Company reported revenue of $14.3 million, a net loss of $(1.5) million and Adjusted EBITDA (1) of $0.5 million for the quarter.
"We made solid progress on our key strategic initiatives during the third quarter. Notable proof points include robust audience growth, continued subscription bookings growth under suboptimal market conditions, important new product launches and improved subscription churn statistics. While performance in the marketing services business reflected sentiments in the financial markets, the overall results benefited from our diversified revenue streams, the stability of subscription revenue and careful cost and cash flow management," said Daryl Otte, the Company’s Chief Executive Officer.
Financial Highlights of Third Quarter 2011
The Company’s revenue of $14.3 million in the third quarter of 2011 was flat compared to the third quarter of 2010.
- Premium Services revenue was $10.0 million in the third quarter of 2011, an increase of 4% compared to the prior year period.
- Premium Services bookings increased 5% in the third quarter of 2011 as compared to the prior year period. As the overwhelming majority of the Company’s Premium Services products are sold on an annual subscription basis, Premium Services bookings over the trailing twelve months are a key determinate of revenue in a given period.
- The average number of paid subscriptions reached 91,539 in the third quarter of 2011, compared to an average of 90,685 in the third quarter of 2010, an increase of 1%.
- Average monthly churn (2) declined to 2.7% in the third quarter of 2011, an improvement of 110 basis points as compared to 3.8% in the third quarter of 2010.
- Marketing Services revenue was $4.3 million in the third quarter of 2011, a decrease of 7% compared to the prior year period.
- Average monthly unique visitors to the Company’s network of sites for the third quarter of 2011, as measured internally, increased more than 40% as compared to the prior year period.