Financial news company TheStreet.com Inc. reported second quarter earnings and revenue that fell below analyst expectations as the company continues an overhaul of its business strategy.
The New York-based company reported a net loss from continuing operations $900,000, or 2 cents per share, compared to a net loss of $400,000, or 1 cent per share, from continuing operations in the second quarter a year ago. Analysts were expecting the company to break even for the quarter.
Revenue for the quarter was $13.6 million, down 5 percent from the same quarter a year ago. Analysts were projecting revenue of $15.6 million.
“Our strategic shift from advertising, while resulting in a short-term decline in results, has begun to pay off in almost all the underlying metrics of our subscription businesses, especially deferred revenue, which will benefit us in quarters to come,” said Chief Executive Officer David Callaway in a statement.
TheStreet’s stock closed Tuesday at $2.22, down 2 cents.
The larger loss for the quarter was primarily due to lower advertising revenue and higher operating costs, the company said.
Operating expenses for the second quarter of 2018 were $14.9 million as compared to $14.2 million for the second quarter of 2017.
Business-to-consumer revenue for the second quarter of 2018 was $6.9 million, a decrease of $1.2 million, or 15 percent, from $8.1 million in the second quarter of 2017, primarily due to lower advertising revenue.
The company sold its RateWatch business on June 20 for $33.5 million. The results exclude the RateWatch business. Including the RateWatch business, second quarter net income was $27.5 million, or 54 cents per share.