GoTo.com (Nasdaq: GOTO) topped analyst estimates in the second quarter.
After market close Monday, the provider of Internet search services reported a second quarter net loss of $11.2 million, or 23 cents per share, excluding one-time events. First Call's survey of four analysts predicted a loss of 31 cents per share for the quarter ended June 30.
Shares of GoTo fell to 19 1/4 in afterhours activity on the Island electronic communications network, following the quarterly report. GoTo stock closed Monday's regular trading at 20 1/8, up 2 15/16 for the session.
Including a $21.5 million settlement from GoTo.com's trademark infringement lawsuit against The Walt Disney Co. (NYSE: DIS) and almost $31 million in goodwill writedowns, GoTo.com lost $20.3 million, or 42 cents per share.
Second quarter revenue increased to $21 million, up 478 percent year-over-year and up 22 percent sequentially. "I'm very pleased to report these results," CEO Ted Meisel said, adding the second quarter saw a "very difficult business environment."
Paid clicks rose to 93 million in the second quarter, up 5.7 percent from the first quarter and triple from the comparable period a year earlier. Advertisers pay for each visit to their websites through GoTo.com's search engine.
Average price per click rose to 21 cents, compared to 19 cents in the first quarter and 11 cents a year earlier. The company had 29,000 active advertisers at the end of June, from 25,000 in March.
GoTo.com claims an audience reach of 24 million users.
Other companies reporting quarterly results:
The online music provider reported a second quarter net loss of $5.2 million, or 8 cents per share, excluding non-operating losses. First Call's survey of seven analysts predicted a loss of 13 cents per share for the quarter ended June 30.
Including losses from MP3.com's stake in MP3radio.com, reserves taken against MP3.com's strategic investment portfolio and costs related to a lawsuit filed by recording companies, MP3.com lost $177.1 million, or $2.71 per share.
Second quarter revenue increased to $20.2 million, up 15.4 percent from the first quarter and up 963.2 percent year-over-year. Gross margin rose to 81.1 percent from 57.6 percent in the year ago period.
"Notwithstanding the difficult challenges during the last quarter, as well as adverse Internet market conditions, we achieved solid top-line growth,"said Michael Robertson, chairman and CEO. "In addition, we achieved better-than-expected gross margins."
Also Monday, MP3.com announced the resignation of David E. Easterly as a director. Easterly, president and chief operating officer of Cox Enterprises (NYSE: COX), joined MP3.com's board last year after the company and Cox Interactive Media began the MP3radio.com joint venture. MP3.com in April bought the majority position in MP3radio.com from Cox.
The provider of e-business services reported second quarter earnings of $2.4 million, or 7 cents per share. First Call consensus predicted a profit of 6 cents per share for the quarter ended June 30.
Revenue in the second quarter increased to $51.2 million, a 14 percent sequential gain and 104 percent improvement year-over-year. Gross margin rose to 46.9 percent.
Last month, AppNet agreed to be acquired by Commerce One (Nasdaq: CMRC). At the time, the companies said they expected the deal to close in 75 to 90 days.
• GoTo jumps on Netscape, Russell news
• Goto tops Go in more ways than one
• 'Net Earnings Roundup: Gadzoox tops estimates
• Goto.com hurdles Q4 expectations>