WebMediaBrands Inc. Reports Results
For Its Second Quarter Ended June 30, 2011;
Revenues Increase 55%
New York, NY - August 10, 2011 - WebMediaBrands Inc., (Nasdaq: WEBM) today reported results for the quarter ended June 30, 2011.
Highlights for the second quarter of 2011 include:
- Revenues for the second quarter of 2011 were $3.8 million compared to revenues of $2.5 million for the same period in 2010, an increase of 55%, and included $319,000 from Inside Network, which we acquired in May 2011. Revenues from online job board postings, education and advertising, excluding the impact of the Inside Network acquisition, were up 21%, 19% and 16%, respectively, compared to the same period last year. In addition, trade show revenues increased by 142% compared to the second quarter of 2010.
- Net loss for the second quarter of 2011 was $1.0 million and included one-time acquisition related charges of $474,000 and stock-based compensation of $114,000, compared to net loss of $968,000 for the same period last year. Net loss, excluding interest, taxes, depreciation, amortization, stock-based compensation and one-time acquisition related charges was $62,000, compared to $769,000 for the same period last year. We track this metric and present it here because we believe it helps in the analysis of the performance of our core operations. One-time charges of $474,000 consisted of professional fees paid in connection with the acquisition of Inside Network and for contingent acquisition consideration related to the final earn-out payments made in connection with the December 2009 acquisitions of Social Times Inc. and 3rd Power LLC. Stock-based compensation expense was $114,000 during the second quarter of 2011 compared to $36,000 during the second quarter of 2010.
"Our second quarter demonstrated continued progress toward profitability with significant year-over-year and sequential quarterly revenue growth," stated Alan M. Meckler, Chairman and CEO of WebMediaBrands, Inc. "All of our business units, including our online job board, trade show, advertising sales and education operations had positive results during the second quarter. Integration of the recently acquired Inside Network was smooth and revenues from Inside Network's research business have continued to grow. We anticipate continued growth this year and into 2012 led by our strength in covering social media and the Semantic Web and this growth should lead to a profitable 2012 on an EBITDA basis", added Meckler.
WebMediaBrands Inc. 2nd Quarter 2011 Financial Results Conference Call Alert
WebMediaBrands Inc. invites you to participate in its conference call reviewing 2011 second quarter results on Thursday, August 11, 2011 at 11:00 am EDT.
The conference call number is 888-211-4495 for domestic participants and 913-981-5535 for international participants; confirmation code "3455287". Please call five minutes in advance to ensure that you are connected prior to the presentation. The conference call replay will be available until Tuesday, August 16, 2011. Replay call numbers are 888-203-1112 for domestic participants and 719-457-0820 for international participants; confirmation code "3455287".
In May 2011, WebMediaBrands acquired Inside Network, Inc. for an aggregate purchase price comprised of $7.5 million in cash plus an aggregate of 4,183,130 newly issued shares of our common stock. Inside Network is the industry's leading research and media organization dedicated to providing original market research, critical analysis, data services and news on the Facebook platform, social gaming, and mobile applications ecosystems.
Based in Palo Alto, California, Inside Network produces expert-level information for analysts, investors, and entrepreneurs.
About WebMediaBrands Inc.
WebMediaBrands Inc. (Nasdaq: WEBM) (http://www.webmediabrands.com), headquartered in New York, NY, is a leading Internet media company that provides content, education, and career services to media and creative professionals through a portfolio of vertical online properties, communities, and trade shows. The Company's online business includes: (i) mediabistro.com, a leading blog network providing content, education, community, and career resources (including the industry's leading online job board) about major media industry verticals including new media, social media, Facebook, TV news, sports news, advertising, public relations, publishing, design, mobile, and the Semantic Web; (ii) InsideNetwork.com, a leading network of online properties dedicated to providing original market research, data services, news, events, and job listings on the Facebook platform, social gaming, and mobile applications ecosystems; and (iii) AllCreativeWorld.com, a leading network of online properties providing content, education, community, career, and other resources for creative and design professionals. The Company's online business also includes community, membership and e-commerce offerings including a freelance listing service, a marketplace for designing and purchasing logos and premium membership services. The Company's trade show and educational offerings include conferences, online and in-person courses, and video subscription libraries on topics covered by the Company's online business.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release that are not historical facts are "forward-looking statements" under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example: risks associated with acquisitions, including integration of operations; general economic conditions; the competitive environment in which WebMediaBrands competes; and the unpredictability of WebMediaBrands's future revenues, expenses, cash flows and stock prices. For a more detailed discussion of such risks and uncertainties, refer to WebMediaBrands's reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and WebMediaBrands assumes no obligation to update the forward-looking statements after the date hereof, except as required by law.
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