RetailMeNot (SALE) surged more than 20% last week after the online coupon company beat Wall Street's earnings and sales estimates. Its CFO Scott Di Valerio said the company's mobile strategy, gift cards and pizza discounts were the big drivers in the quarter.
"It's really about not only shopping online in front of your computer, but being able to use RetailMeNot in the stores and malls and anywhere you want to shop," said DiValerio.
Tuesday the Austin, Texas-based company reported a loss of $471,000 in its second quarter, off 1 cent per share. Earnings, adjusted for one-time gains and costs, were 10 cents per share, topping Wall Street expectations of 3 cents per share. RetailMeNot posted revenue of $64.3 million in the period, which also topped Street forecasts of $62.5 million.
Mobile online transaction net revenue was up 18%, or 11%, of total core net revenue in RetailMeNot's second quarter. And desktop online transaction net revenue declined 11% and represented 65% of total core net revenue.
Total visits to the company's websites in the second quarter were 152 million, down 7%, with mobile website visits representing 45% of total visits in the quarter. And mobile unique visitors for the quarter were 18.8 million, representing growth of 2%.
RetailMeNot purchased a discounted gift card business earlier this year and Di Valerio said this business continues to attract retailers that generally don't use coupons and only have sporadic sales. And pizza sales have helped propel the company's food and dining business.
"You may shop once or twice a month but you go out to dinner two or three times a week and so the frequency in bringing you back to the site we think is real important," said Di Valerio.