RetailMeNot Profit Misses Estimate; Stock Plunges 22% - Update

(RTTNews) - RetailMeNot Inc (SALE) Monday reported a profit for the second quarter compared to a loss last year, when results included dividend payment on preferred stock. Revenue for the quarter jumped 37 percent, but was largely offset by operating expenses, with both earnings and revenue falling short of Wall Street estimates.

RetailMeNot shares dropped 22 percent in after-hours trade on the Nasdaq, following the results.

RetailMeNot operates a digital coupon marketplace, connecting consumers with retailers and brands. Its digital coupon websites include RetailMeNot.coms and VoucherCodes.co.uk.

The Austin, Texas-based company posted quarterly net earnings to common stockholders of $4.3 million or $0.08 per share. This compares with a loss of $1 million or $0.68 per share last year, including preferred stock dividend payments of more than $6 million.

On average, six analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the second quarter were $59.5 million, an increase of 37 percent compared to $43.4 million last year. Analysts expected revenues of $60.23 million for the quarter.

Mobile net revenues saw strong growth, including from websites and applications in-store product, the company said.

Total expenses for the quarter climbed to $1.4 million from $34.4 million a year ago.

The company's stock closed Monday at $25.30, up $0.27 or 1.08%, on a volume of 1.8 million shares. In after hours, the stock dropped $19.80, down $5.50 or 21.74%.