Infospace.com Inc. (Nasdaq: INSP) broke into the black six months faster than analysts anticipated.
In second quarter results released after market close Tuesday, the provider of web content and services posted pro forma net income of $409,000, or a penny share, excluding acquisition-related and one-time charges. First Call's survey of five analysts had predicted a loss of 4 cents a share for the second quarter, and a loss of 3 cents a share for the third.
"This demonstrates that growth and profitability are not mutually exclusive," said Naveen Jain, chairman and CEO, InfoSpace.com. "Achieving profitability two quarters ahead of Wall Street's expectations demonstrates the strength of our business model. We have been investing heavily in our future by continuing to build our infrastructure, enhance our technology, make strategic acquisitions and promote our brand to ensure we have a sustainable advantage."
Second quarter revenue increased to $6.73 million, a 266 percent increase year-over-year and a 31 percent rise sequentially. Infospace.com, which provides content and services for websites, recorded 1.4 billion page views for its network. The company various offerings combined to average more than 24 page views per visit in June, or more than quadruple the industry average, Infospace.com said.
Infospace signed 47 new advertising contracts and added 108 websites to its network, bringing the total to more than 1,800, including four of the five most visited websites, reaching 85 percent of Internet users. "There is an increased demand for outsourcing solutions and the Internet is turning to InfoSpace.com to provide these services," Jain said. "As we continue to launch new services, we expect to attract new affiliates and expand existing relationships."
At the end of the quarter, Infospace.com bought communications technology and related assets from Active Voice for $18 million. Including acquisition-related costs and non-recurring events, Infospace lost $5 million, or 11 cents a share, in the second quarter.
Shares of Infospace retreated 1 11/16 to 55 3/16 in regular trading prior to the earnings announcement. Of four analysts surveyed by Zack's Investment Research, three recommend Infospace as a "strong buy", and one maintains the equivalent of a "moderate buy" rating on the stock.>