Ventro's Numbers Just Don't Add Up

Don't be fooled by the $25.2 million in "total" revenue that B2B electronic marketplace Ventro (VNTR Quote) reported for the second quarter on Thursday. While the headline number seems impressive, it doesn't compare to the revenue reported by sector leaders Ariba (ARBA Quote), Commerce One(CMRC Quote) and PurchasePro.com (PPRO Quote).

While the company's 74-cent per-share loss was six cents better than the 80-cent consensus loss forecast by First Call/Thomson Financial, it missed on the crucial transaction fees analysts were eyeing. That performance calls into question how quickly B2B transactions, hailed as the frictionless way to do business just months ago, will grow at the thousands of marketplaces cropping up in industries from construction to cattle.

"The company clearly has stumbled pretty badly," says Ian Toll, an analyst with Credit Suisse First Boston." The market is likely to see this as a major setback." ...