J2 Global's growing portfolio of media properties boosted the Hollywood company's revenue during the third quarter.
The firm, which has its roots in the e-fax business, reported third quarter net income of 59 cents per diluted share, down from 69 cents per diluted share for the same period last year. Earnings came in significantly under Wall Street's estimated 71 cents per share, according to Thompson Reuters.
J2 explained that profit declined year-over-year because the company last year reported an income tax benefit that it did not receive this year. The company's IP licensing revenue was also down for the quarter.
Revenue for the quarter was up 37 percent to $128 million. J2's new digital media business brought in $33.5 million in the third quarter. Meanwhile, the company’s cloud service revenue was up 4 percent to $93.4 million for the quarter.
J2 began as a provider of e-fax technology but has expanded recently to cloud services and digital media. In the last year the company has acquired a number of media properties, including IGN Entertainment and Ziff Davis Inc.
J2 reaffirmed its outlook for the full fiscal year, estimating non-GAAP earnings per diluted share between $2.78 and $2.98 and revenue between $510 million and $535 million.
The company will issue a cash dividend of about 26 cents per share, a 3 percent increase from the previous quarter.
Shares closed up 19 cents, or less than 1 percent, to $55.12 on the Nasdaq before earnings were reported.