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Tuesday, August 5, 2014

RetailMeNot (SALE) reported earnings Monday 4 August 2014

  

** daily and weekly **

** daily **


** after earnings **


RetailMeNot (SALE) said its second-quarter profit fell 16% as the online-coupon company reported a 49% rise in expenses that masked revenue growth.

The company attributed the profit decline to its increased investment in product development and sales and marketing, along with higher stock-based compensation expense.

Shares fell 21% to $20.10 in recent after-hours trading.

The company aggregates digital coupons from retailers and makes them available on its website and smartphone application, collecting a commission from the retailer after a shopper makes a purchase with one of the digital coupons.

Unlike companies that offer daily deals such as Groupon Inc. (GRPN), RetailMeNot's coupons can only be used online.

RetailMeNot went public a year ago and surged on its first day of trading. The stock peaked in February at $48.73 but has declined since then on concerns about its search-engine optimization visibility. When Google began rolling out the latest update to its algorithm in May, initial reports suggested RetailMeNot was among the biggest losers. Its stock closed Monday at $25.30.

For the latest period, RetailMeNot reported a profit of $4.3 million, down from $5.1 million a year earlier. On a per-share basis, which reflects preferred dividend impacts in the year-earlier period, the company reported a profit of eight cents, compared with a loss of 68 cents a year earlier.

Revenue rose 37% to $59.5 million, while mobile revenue more than doubled to $10.7 million.

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