Acknowledging that the transition of TheStreet.com Inc.'s (TSCM) flagship site to a subscription-free model has been rockier than expected, CEO Tom Clarke said Tuesday evening that the financial-news operation is considering various combinations with other unnamed businesses.
TheStreet.com Inc. Likely to Miss Third-Quarter Revenue Estimates
"We are currently evaluating several business combinations which are available to us now," said Clarke on a conference call following the company's
disclosure that it won't meet revenue estimates for the third quarter of the year.
Among other problems that the company is facing, Clarke told analysts that viewership of the free
site, which was converted from a subscribers-only site to a free one in June, hasn't grown as quickly as originally expected. On the other hand, he said, as measured by the revenue that the company gains per page view, and revenue per unique visitor, "We've really learned how to monetize what we have." He also said, without mentioning specific numbers, that he was optimistic about the outlook for advertising revenue in the fourth quarter.
On the call, Clarke reiterated that the company, which he said has about $88 million in cash on hand, was trying to cut expenses and adjust them to keep in line with any revenue shortfalls. "Our burn rate, quarter-over-quarter, is going down and will continue to go down," he said.
TheStreet.com is scheduled to report its third-quarter financial results Oct. 26.