Digital “savings destination” company RetailMeNot Inc. delivered results ahead of its own estimates and vowed that it would continue to make investments in mobile.
The push into mobile is amid an overall consumer shift in using mobile devices such as smartphones for online shopping.
For the fourth quarter, the company’s total revenues fell 4.9 percent to $83.1 million in the period ended Dec. 31 from $87.4 million in the same period last year as net income dropped to $9 million, or 17 cents a share, from $14 million, or 26 cents.
By way of outlook, the company said first quarter 2016 total net revenues are expected to range between $49 million and $54 million, “or a decline of 15 percent at the mid-point” while adjusted earnings before interest, taxes, depreciation and amortization are pegged to come in between $8 million to $12 million.
Related Articles
At the midday session, shares of the company were down 17.3 percent to $6.63.
You May Also Like
For the fourth quarter, adjusted EBITDA came in at $30.8 million, which compares to $36.1 million in the prior year. Product development costs rose to $12.2 million in the fourth quarter, which compares to $11.9 million in the previous period.
Cotter Cunningham, chief executive officer and founder of the company, said 2015 ended “on a positive note with total revenue and adjusted EBITDA coming in ahead of the high end of our guidance for the fourth quarter with the overall performance driven in part by continued strength in our in-store and ads businesses, which grew a combined 57 percent year-over-year.”
The ceo said for this year, the company is “committed to making focused investments in our mobile product, expanding our offer content and leveraging data to make our personalization experience better for shoppers and retailers alike, which we believe will return the company to long-term, sustainable growth.”
The company said in its earnings report that mobile online transaction net revenues for the quarter increased 19 percent to $9.0 million, which represent 11 percent of total net revenues. Desktop online transactions, meanwhile, fell 21 percent to $54.4 million — or 63 percent of total net revenue.
The company also said its board of directors authorized a $50 million increase in the firm’s stock repurchase program, which is an extension of its $100 million program. The total program is now $150 million, and runs until February 2017.