NEW YORK (TheStreet) -- Shares of Internet-based entertainment marketing platform Viggle  (VGGL) fell 3.52% to $3.63 in morning trading Tuesday as investors took profits following Monday's surge. 

The New York City-based company reported third-quarter earnings before the market open Monday that propelled the stock higher by more than 50%.

Revenue increased 52% year-over-year to $5 million, due in large part to the registration of almost one million new users during the quarter. The company said that net registered users increased to 8.95 million, more than double the 4.14 million from the same period one year earlier.

The company also reported an EBITDA loss of $8.74 million, which missed analysts' expectations of a $7.35 million loss. Viggle attributed this to a rise in marketing costs.

"As we celebrate our three-year milestone of operations this quarter, the Viggle experience has become more rewarding for our users and advertising partners. During this quarter, we spent a lot of time and energy preparing for our upgrade of Wetpaint, which took place this past week with celebrity enthusiasm and support," said COO Greg Consiglio in a statement.

"Now fully optimized for mobile, Wetpaint delivers timely celebrity news and entertainment and the best part is that it's now fully integrated with the Viggle platform," he continued.

TheStreet Recommends

More than 7 million shares had changed hands as of 10:55 a.m., compared to the daily average volume of 1,681,590.

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

"We rate VIGGLE INC (VGGL) a SELL. This is based on the dominance of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, weak operating cash flow and generally disappointing historical performance in the stock itself."

You can view the full analysis from the report here: VGGL Ratings Report

VGGL data by YCharts

Image placeholder title