Tech product review site
beat analysts' expectations with a solid second quarter.
The San Francisco-based company, which runs a network of sites such as ZDNet, GameSpot and MP3.com, swung to a profit of $7.7 million, or a nickel a share, from a year-ago loss of $1.5 million, or a penny a share. Revenue rose 24% from a year ago to $84.5 million.
Analysts had expected earnings of 3 cents per share on $83.6 million in revenue.
"Our second-quarter results illustrate our ability to deliver consistent top-line growth and significantly expand our profit margins and free cash flow generation, while continuing to aggressively build out our product offerings," said Chairman Shelby Bonnie. "We are pleased with our continued strong audience and usage growth, which enables us to increase our revenue capacity and enhance our exposure to the significant growth opportunity we see in online advertising."
To wit, interactive revenue at the company was up 30% to $76.8 million, according to the company. It also said that monthly unique users were up 55% and average daily page views were up 134%.
CNet also reaffirmed third-quarter and full-year guidance, projecting third-quarter earnings of 3 cents to 4 cents a share on revenue of $86.5 million and 2005 earnings of 21-24 cents on revenue of $352 million.
In after-hours action, CNet shares rose 54 cents to $12.02.