Local Corporation Reports First Quarter 2014 Financial Results Local Corporation
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IRVINE, Calif.--(BUSINESS WIRE)--
Local Corporation (LOCM), a leading local advertising technology company, reported its financial results for the first quarter 2014.
“We entered 2014 focused on three avenues to drive long-term shareholder value: growing our core business, leveraging our Krillion® data technology and monetizing our intellectual property,” said Fred Thiel, Local Corporation, CEO and chairman of the board. “I am excited about my expanded role in the company and look forward to working with our talented team to deliver on our vision and take the company to the next level. In the last six months, we have expanded our Network; increased the number of impressions, clicks and calls in our Extended Ad Network; and launched new products, including two ad technology products and one app powered by Krillion. Overall, we believe our first quarter results demonstrate our ability to invest in our business while fostering growth.”
“Additionally, we are in the process of transferring the majority of our patents from Local Corporation to a dedicated IP holding subsidiary, while the Krillion patent will be consolidated with our other Krillion assets into our Krillion subsidiary. We believe this organizational structure will create flexibility to monetize our IP through licensing and/or other strategic alternatives. We believe these efforts will facilitate revenue growth in 2015 and beyond,” added Thiel.
Grew total revenue 22% year-over-year to $26.2 million.
Increased Network revenue 78% year-over-year to $14.8 million.
Reduced net loss 16% year-over-year, reporting net loss of $2.8 million.
Delivered Adjusted EBITDA* of $712,000 while investing in growth.
Reported $189 revenue per thousand visitors (RKVs), up from $178 in fourth quarter 2013.
A lot better than my estimate:
“First quarter 2014 revenue of $26.2 million grew 22% year-over-year based on strong contributions from our Extended Ad Network,” said Ken Cragun, Local Corporation chief financial officer. “Total Network revenue grew 78% year-over-year, as we added both new Network partners and ad products for publishers. The growth in Network revenue combined with operating efficiencies realized in 2013 enabled the company to continue to invest in new initiatives and deliver Adjusted EBITDA of $712,000 in the first quarter of 2014.”
Growth - Financials - Mobile
The Growth of Local Corp
• Q1 revenue of $26.2M up 22 percent from prior year period
• Q1 Network revenue up 78 percent from the prior year period
• Q1 O&O revenue up 7 percent from Q4 2013
• RKV of $189 up 6% from Q4 2013
Financials: We now expect performance to be at the high end of the guidance range
• Ended Q1 with $3.7M in total cash
• Reached Q1 revenue of $26.2M and Adjusted EBITDA of $712,000
• 2014 guidance: Revenue between $103M and $107M, and Adjusted EBITDA between $3M and $4M
• We now expect performance to be at the high end of the guidance range
• Launched nFuseTM and nStoreTM
• Launched Mobile Display Ad Network
• Released version 1.5 of the HavvitTM app for iOS 7-enabled devices Less
Guidance of Yelp of reveneus of 365 million for 2014 are by the market-cap of 3.89 billion on Friday 10.66-times-revenues - the 28-fold valuation of every $ revenues of the idiotic low 0.38-times-revenues of Local Corp. Such a divergence will never lasting.
Revenue for the first quarter of 2014 was $26.2 million, a decrease of 2% compared to fourth quarter 2013 revenue of $26.8 million, an increase of 22% over first quarter 2013 revenue of $21.5 million.
Owned & Operated (O&O) Revenue for the first quarter of 2014 was $11.4 million. Compared to the fourth quarter of 2013, O&O revenue increased 7% from $10.7 million, the second straight quarter of sequential revenue growth for O&O based on improvements in monetization. However, it decreased 13% from $13.2 million in the first quarter 2013, due to a year-over-year reduction in revenue per click from a major partner and a change in the traffic mix that was more heavily weighted toward mobile, which monetizes at a lower rate.
Network Revenue for the first quarter of 2014 was $14.8 million. Network revenue was down 8% compared to $16.1 million in the seasonally strong fourth quarter of 2013. However, compared to the first quarter of 2013, Network revenue increased 78% from $8.3 million, mainly due to the increase in revenue from the company’s Extended Ad Network and partially offset by a decrease in organic traffic to certain Managed Network partner sites. The Extended Ad Network is comprised of select online and mobile publishers who have available advertising inventory and are looking for access to relevant advertisers to generate additional revenue to their sites and apps. The Managed Network consists of online publishers that implement the company’s white-labeled hosted local search solutions.