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Thursday, Jun 8, 2023

ReachLocal Misses Earnings Estimates

ReachLocal Inc. lost twice as much money in the third quarter as Wall Street analysts expected, and the company also missed on top-line revenue.

The Woodland Hills company, which handles online marketing for small businesses, reported a net loss of $35.6 million (-$1.22 a share) for the quarter ended Sept. 30, compared to a loss of $11.3 million (-40 cents) for the same quarter a year ago. Revenue fell 19 percent to $95.3 million.

Excluding one-time events, the company had an adjusted net loss of 55 cents a share. Analysts on average expected a loss of 26 cents on revenue of $95.8 million, according to Thomson Financial Network.

The company said its ReachEdge lead conversion software program grew its revenue 64 percent during the year, and that drove subscriptions to the company other services.

“ReachLocal’s third quarter was highlighted by improved bottom-line performance, and another solid quarter of uptake for ReachEdge,” Sharon Rowlands, chief executive officer, said in a statement. “Looking ahead, we are excited to build on our initial work with our Web Partner Program, which we believe will increase ReachEdge deployment.”

Results were announced after market close. Shares of ReachLocal closed up 6 cents or 3.7 percent to $1.56 on the Nasdaq.

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