This story has been corrected from the original version.
ReachLocal Inc. reported fourth-quarter and full-year results that underwhelmed on Tuesday – including widening losses that missed analyst expectations.
The Woodland Hills company, which sells Internet marketing services to small businesses, reported a net loss of $17.5 million (-61 cents a share) in the quarter ended Dec. 31, compared to a loss of $585,000 (-2 cents) for the same quarter a year earlier. Revenue fell 17 percent to $109 million.
Analysts on average expected a net loss of 57 cents on revenue of $110 million, according to Thomson Financial Network.
For the full year, ReachLocal had a net loss of $45 million (-$1.60 a share) compared to a loss of $2.5 million (-9 cents) for the previous year. Revenue fell 7.6 percent to $475 million. Analysts on average expected a net loss of $1.53 a share on revenue of $476 million, according to Thomson Financial Network.
The company didn't explain the lower revenue and losses, but said it is working to reduce costs.
“We expect that our financial results will begin to improve as we move through 2015 due to our focus on driving sales to the right audiences and delivering operational efficiencies that will enhance stockholder value,” Chief Executive Sharon Rowlands said in a statement.
Shares closed down 13 cents, or 4.3 percent, to $2.93 on the Nasdaq.