Updated from 7:40 a.m. EST
, the publisher of this Web site, reported third-quarter revenue of $16.1 million Tuesday, a 24% increase over revenue of $12.9 million in the third quarter of 2006.
Excluding a noncash income tax benefit, net income for the third quarter of 2007 was $3.8 million, or 13 cents a share, an increase of 22% over the net income of $3.1 million, or 11 cents per share, in the same period in 2006. Net income, inclusive of the income tax benefit related to the recognition of a deferred tax asset on a portion of the company's net operating loss benefits, was $19.8 million, or 67 cents per fully diluted share.
"We had a record quarter where our total revenue grew 24% from the same period last year," said Thomas J. Clarke Jr., chairman and CEO of TheStreet.com. "With our recent acquisitions and the many other initiatives we have undertaken, TheStreet.com has dramatically altered and broadened the landscape of opportunities for the company."
On Nov. 2, the company announced the
acquisition of Bankers Financial Products, including BankingMyWay and RateWatch, a provider of pricing solutions for banks and credit unions. In August, TheStreet.com
acquired Corsis in a deal that included Promotions.com, an online promotions agency that implements interactive promotions for some of the largest brands in the world.
The recent acquisition is a perfect complement to the upcoming launch of mainstreet.com in the first quarter of '08," said Clarke.
Marketing services revenue, which comprises advertising and interactive marketing services revenue, totaled $6.9 million for the third quarter of 2007. Advertising revenue totaled $4.6 million for the current quarter, and interactive marketing services revenue, derived from Promotions.com subsequent to the Aug. 2 acquisition, totaled $2.3 million.
In response to an analyst question during a conference call, Clarke said he expects advertising revenue to accelerate during the fourth quarter, with the firm aiming to eventually grow its ad-sales staff to about 20 from around 14 currently.
The company reported a 97% year-over-year increase in non-financial advertising revenue in the quarter. Marketing services and paid services revenue in the quarter accounted for 43% and 57% of total revenue, respectively.
Third-quarter page views grew 65% from a year earlier to 321 million.