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NEW YORK (TheStreet) -- Shares of LiveDeal (LIVE) - Get Live Ventures Inc Report are soaring, up 20.37% to $3.96, after the company reported Fiscal 2014 financial results and the largest revenue increase in company history.

The Las Vegas-based firm, which operates livedeal.com, a geo-location based mobile marketing platform that enables restaurants to publish "real-time" and "instant offers" to nearby consumers, reported that net revenues increased by 209% compared to the same time period in 2013, to approximately $7.2 million. Analysts estimated about $6.72 million.

Additionally, LiveDeal reported a net loss of 35 cents versus a net loss of 61 cents a year ago, citing operating losses associated with administrative and marketing expenses resulting from the recent acquisition of three businesses, namely DA Stores, DealTicker and Modern Everyday.

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"In 2014 LiveDeal began to make its mark on the industry, demonstrating that both partners and customers truly want their deals 'real time,' and we anticipate continued growth in 2015, including expanding beyond our restaurant base, and evolving into a fully-fledged e-commerce site," CEO Jon Isaac said.

Separately, TheStreet Ratings team rates LIVEDEAL INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate LIVEDEAL INC (LIVE) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow and feeble growth in its earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 202.3% when compared to the same quarter one year ago, falling from -$0.51 million to -$1.54 million.
  • The gross profit margin for LIVEDEAL INC is currently extremely low, coming in at 11.07%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -57.64% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$2.53 million or 778.12% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • LIVEDEAL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, LIVEDEAL INC reported poor results of -$0.66 versus -$0.26 in the prior year. This year, the market expects an improvement in earnings (-$0.34 versus -$0.66).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, LIVEDEAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: LIVE Ratings Report

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