ReachLocal Narrowly Misses Market Expectations
Tuesday, February 12, 2013ReachLocal announced quarterly and full-year financial results Tuesday that narrowly missed analyst expectations.
The Woodland Hills company, which helps small businesses market online, reported a fourth-quarter net loss of $394,000 (-1 cent a share) compared to a loss of $1.3 million (-5 cents) for the same quarter last year. Revenue increased 20 percent to $120 million.
On average, analysts expected the company to break even, according to a survey by Thomson Financial Network.
For the full year, the company reported a net loss of $232,000 (less a cent a share), compared to a loss of $10.3 million (-36 cents) for the previous year. Annual revenue increased 21 percent to $455 million. For the year, analysts also expected a breakeven performance, according to Thomson Financial Network.
“We are pleased to have delivered strong revenue and profitability growth during 2012,” Ross Landsbaum, chief financial officer, said in a statement. “As we look ahead, we intend to continue to invest in the long-term expansion and optimization of our distribution organization as well as in product expansion.”
Results were released after markets closed on Tuesday. For the day, shares of ReachLocal closed at $13.11, up 67 cents or 5.4 percent.
