reported a loss late today that was 5 cents smaller than Wall Street's expectations, improving its performance through membership increases and gains in e-commerce.
In after-hours trading, theglobe.com's stock fell 1/16 to 10 11/16. Shares for the company -- which set an IPO record with an opening day gain of 606% in 1998 -- had risen 5/16 before the normal close. The company has created an online community of 2.7 million members who publish their own content and interact with others with similar interests.
Theglobe.com said its pro forma net loss, excluding amortization of the acquisitions of an online department store and on-line game store, totaled $7.8 million, or 29 cents a diluted share, compared with a $4.3 million loss, or $1.80 a share, in the comparable 1998 quarter.
There was no amortization in the 1998 quarter, although the loss excludes a non-recurring stock-based compensation charge of $1.4 million. A consensus of analysts polled by
First Call/Thomson Financial
called for theglobe.com to lose 34 cents a share. Revenues more than tripled to $4.9 million from $1.6 million in the year-earlier quarter.
New members in the third quarter rose 23% to 342,000 from 278,000 in the second quarter, bringing total membership to 2.7 million.
Theglobe.com said 22% of its revenues came from e-commerce and other sources besides advertising, whereas only 12% came from those sources in the second quarter.
"We're very excited about this," said Todd Krizelman, a co-chief executive for the company based in New York City. "We think we are very well position for the fourth quarter."
Two new products introduced in the third quarter were globelists.com, a network of e-mail clubs based on interests, and uPublish, a Web site builder. To better market the innovations, the company is planning a $27 million ad blitz in early November in New York and some other markets