Financial news company TheStreet.com reported fourth-quarter earnings that beat Wall Street expectations due to lower costs, but it also reported revenue that was shy of analyst estimates.
The New York-based company reported net income of $3.2 million, or 58 cents per share, in the fourth quarter, compared to a loss of $11.6 million, or 33 cents per share in the fourth quarter of 2016. The results were 8 cents per share above expectations.
Revenue was just below $16 million for the quarter, up slightly from $15.9 million in the fourth quarter of 2016. The company was expected to report revenue of $16.16 million.
“This is the first full year of net income since before the financial crisis,” said CEO David Callaway in a statement. “Combined with the retirement of our preferred stock in November and the support of new and existing shareholders, we now have the flexibility to extend the turnaround momentum into 2018.”
TheStreet’s shares rose 8 cents to $1.41 in Monday trading.
Callaway has revamped the company’s operation, overhauling the editorial staff and shifting to a paid-content model.
Operating expenses for the fourth quarter of 2017 were $15.1 million as compared to $28.2 million for the fourth quarter of 2016. Operating expense for the fourth quarter of 2017 included $300,000 of severance charges.
Business-to-business revenue rose in the fourth quarter by $900,000, but business-to-consumer revenue fell by $800,000. Business-to-consumer subscription revenue for the fourth quarter of 2017 was $4.9 million, a decrease of $500,000 from the same quarter in 2016.
