ReachLocal Signs Yelp DealTuesday, August 6, 2013
ReachLocal Inc. announced on Tuesday better-then-expected results in the second quarter, but the online advertising company still lost money.
The Woodland Hills company, which serves medium-size and small businesses, reported a net loss of $141,000 (-1 cent a share) for the quarter ended June 30, compared to net income of $332,000 (1 cent) for the same quarter a year earlier. Revenue grew 13 percent to $127 million.
Analysts on average had expected a loss of 3 cents a share on revenue of $125 million, according to Thomson Financial Network.
“We had a solid second quarter driven by improvement in our North American operations and strong international growth of 41 percent on a constant currency basis,” said Chief Executive Zorik Gordon, in a statement.
ReachLocal also announced a partnership with review site Yelp Inc. Starting in the fourth quarter, visitors to Yelp will be able to book appointments with home-service companies such as cleaners or remodeling firms on the site. The function will use ReachCommerce, ReachLocal’s new online booking and buying system.
Shares closed up 9 cents, or less than 1 percent, to $14.15 on the Nasdaq.