The results were at the high-end of its guidance, and for the second quarter the recent acquisition of GiftCard Zen is expected to help boost the top line by 16 percent. For the quarter ended March 31, net revenues came in at $54.6 million, which compares to $60.3 million in the prior year. The net loss totaled $36,000, or zero cents per share, which compares to 7 cents in the prior year.
On an adjusted basis, net income fell 42 percent to $6.3 million, or 13 cents per share, from $10.8 million, or 20 cents, last year.
The company said its in-store and advertising net revenues rose 36 percent in the quarter to $10.5 million, which represents 19 percent of total revenues, while mobile online transaction sales rose 7 percent to $5.9 million, which is 11 percent of total net revenues. On the desktop online transaction line sales fell 19 percent to $38.2 million, which is 70 percent of total net sales.
Cotter Cunningham, chief executive officer and founder, said the first quarter of the year “is off to a solid start, with total net revenues and adjusted [earnings before interest, tax, depreciation and amortization] coming in above the high end of guidance. Expanding the ways consumers can save utilizing the RetailMeNot App and global Web sites, remains a top priority for the business. The GiftCard Zen acquisition, coupled with enhancements to our food and dining experience on mobile are just two of the ways we believe will help drive the business forward.”
The company said due to the GiftCard Zen deal it would separate its results between its core business and the gift card business. Looking forward, the core business in the second quarter is expected to have net sales in the range of $47 million to $52 million with adjusted operating income coming in between $3.5 million and $7.5 million.
For the gift-card business, total net revenues are pegged to be between $11.5 million to $12.5 million. With gross profit ranging between $575,000 to $625,000.
On a consolidated basis, total net sales are expected to be between $58.5 million and $64.5 million, “or growth of 16 percent at the midpoint,” the company said adding that adjusted EBITDA, “inclusive of the impact of the GiftCard Zen acquisition” is expected to range between $3 million and $7 million.