This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ReachLocal Reports Third Quarter 2012 Results

ReachLocal, Inc. (NASDAQ:RLOC), a leader in local online marketing solutions for small- and medium-sized businesses (SMBs), today reported financial results for the third quarter ended September 30, 2012.

  • Revenue growth of 21% over the third quarter of 2011, highlighted by 47% growth in international markets and 22% growth in the direct local channel
  • International revenue expanded to 29% of revenue from 24% for the prior year period
  • Adjusted EBITDA grew 59% to $7.2 million, compared to $4.5 million for the prior year period
  • Active Advertisers grew 18% to 22,100 and Active Campaigns grew 22% to 32,900 from the prior year period
  • Repurchased $1.4 million or 114,000 shares of stock ($13.1 million or 1,600,000 shares to date) under the company’s $20 million buy-back authorization

Management Commentary

“We had another great quarter driven by strong demand for our online marketing solutions for SMBs highlighted by continued robust growth in our international markets,” said Zorik Gordon, CEO. “We are also excited to announce that we are launching in Brazil, one of the most dynamic internet markets and economies in the world. With the addition of Brazil, ReachLocal’s global footprint will span eleven countries.”

Quarterly Results at a Glance

(Table amounts in 000’s except key metrics and per share amounts)

  Q3 2012   Q3 2011   % Change
Revenue $118,891 $98,629 21%
Net Income (Loss) from Continuing Operations $836 $(1,329) 163%
Net Income (Loss) from Continuing Operations per Diluted Share $0.03 $(0.05) 163%
Net Income (Loss) $836 $(4,601) 118%
Net Income (Loss) per Diluted Share $0.03 $(0.16) 118%
Non-GAAP Net Income $4,458 $2,757 62%
Non-GAAP Net Income per Diluted Share $0.15 $0.09 70%
Adjusted EBITDA $7,221 $4,530 59%
Underclassmen Expense $11,441 $11,591 (1)%
Cash Flow from Continuing Operations $9,027 $6,187 46%
Cash Flow from Operating Activities $9,023 $5,723 58%

 

Revenue by Channel and Geography:

Direct Local Revenue $93,537 $76,814 22%
National Brands, Agencies and Resellers (NBAR) Revenue $25,354 $21,815 16%
International Revenue (included above) $34,679 $23,561 47%
 

Key Metrics (at period end):

Active Advertisers 22,100 18,700 18%
Active Campaigns 32,900 27,000 22%
Total Upperclassmen 407 344 18%
Total Underclassmen 450 464 (3)%
Total IMCs 857 808 6%
 

Business Outlook

“We are raising our fourth quarter and 2012 guidance based on strong results in the first nine months of the year. Our guidance reflects our typical fourth quarter seasonality, in particular spending reductions by our NBAR channel clients, the required new investment to launch our operations in Brazil and a continuing uncertain economic environment,” said Ross Landsbaum, Chief Financial Officer.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs