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Tag: q4 2011

  • Groupon Posts Q4 Net Loss Of $37M

    Groupon released their Q4 2011 report today, revealing a year-to-year 194% increase in revenue from $172.2 million in 2010 to $506.5 million this year. However, the online purveyors of collectively bargained daily deals had a net loss of $37 million in the 2011 fourth quarter – also it’s first quarterly results since becoming a public company this past November.

    The company also stated it had a net less of $275 million for 2011, compared to $413 million last year.

    One explanation for the financial results of Groupon’s 2011 is its effort to expand into other areas of commercse as well as other regions of the world. These efforts were evinced with their sales, which increased %500 to $1.6 billion.

    The financial impact of the report sent Groupon shares up as high as $25.70 earlier today before falling back down to $24.58 by the end of the day. Still, despite the tumble after initially rising, shares are still up $0.39 for the day.

    The full statement of Groupon’s 2010 fiscal earnings as well as their first quarterly results can be accessed on their website.

  • AOL Releases Q4 2011 Earnings

    AOL Releases Q4 2011 Earnings

    AOL released their financial earnings for the fourth quarter of the 2011 financial year this morning and initial reviews seem to be more positive than negative for the media company. It announced that their shares are up $0.23 and revenue exceeded Wall Street’s expectations at $571.9 million; Wall Street had anticipated the shares would be $0.17 revenue to be slightly lower at $571.9 million.

    In an accompanying statement, AOL Chairman and CEO Tim Armstrong expressed satisfaction with the company’s performance and said they “took a large step forward in Q4.” He added, “I am very pleased with the way we ended the year. Our Q4 results highlight AOL’s ability to methodically improve our consumer offering and financial performance.”

    Despite besting Wall Street’s expectations, AOL’s subscription revenue was down 18% from where it was last year: $194.6 million in Q4 2011 versus $235.9 million in Q4 2010. Additionally, subscription revenue was down 22% for the overall year, as well, with $803.2 million in FY 2011 versus $1,023.6 million in FY 2010.

    While it AOL’s operating income was down considerably since last year at $124.6 million, the figure wasn’t as low as Wall Street’s prediction of $101.3 million.

    Some other highlights from the release:

  • Advertising revenue grew 10% for the 3 consecutive year.
  • AOL’s total revenue growth is at the lowest rate of decline in 5 years.
  • Search revenue declines are at the lowest rate in almost 3 years.
  • AOL grew it’s videos, video views, & video ad impressions and revenue at double-digit rates.
  • Project Devil advertisers, impressiona and revenue grew at double-digit rates.
  • Patch grew traffic, advertisers, and ad impressions over 100%.
  • AOL repurchased 3.3 million shares of common stock.

    • Armstrong and AOL CFO Arte Minson are scheduled to take questions from reporters later today during a press call to discuss the implications of the release.

  • Netflix Rebounds With Q4 Earnings, Exceeds Expectations

    2011 was not a good year for Netflix. For the most part, Netflix spent most of the year trying to avoid admitting that it had no idea what it was doing. First it raised prises, then it split into two separate businesses (Qwikster!), then it didn’t split into two businesses, and then – well, they managed to not throw in the towel, but they were certainly saved by the bell.

    Ahead of releasing their fourth quarter earnings yesterday afternoon, though, Netflix had given investors plenty of reason to expect unpleasant results. Surprisingly, Netflix announced that they actually exceeded Wall Street’s expectations by nearly $20 million by posting an earning of $875.5 million for the 2011 fiscal year. Netflix shares on the stock market were up to $0.73, higher than the original projection of $0.54.

    Tracing back across the four financial quarters of 2011, Netflix never really took a substantial hit after their abysmal public relations adventure from the summer of last year. Incredibly, subscribers were apparently not terribly put off by being charged higher prices for subscribing to both streaming and DVD services because the amount of domestic describers actually increased from the Q3 to Q4.

    Netflix also managed to contain the fallout of the price hike over the summer and subsequent snafu regarding Qwikster, or so it appears, because they actually collected 24.3 million subscribers, which is up from 24.3 in Q3 2011 and nearly 25% more subscribers than they had in Q4 2010 when they had 19.5 million subscribers.

    Netflix’s net income, however, was substantially lower in the fourth quarter, down from $62.4 million in Q3 to $40.7 million in Q4.

    In a Q&A following the release of the financial results, Netflix CEO Reed Hastings and Netflix CFO David Welles took some questions regarding the implications of their company’s financial performance in 2011. They discussed their plans to branch out into Latin America, where they launched services in September 2011.

    A notable comment from Hastings during the Q&A pertained to the possible addition of video games to Netflix catalog. Addressing whether Netflix would begin to offer a video game subscription service, Hastings was brief in saying, “We have no plans to enter video games.”

    So far today, Netflix shares appear to be experiencing quite a bounce this morning following yesterday’s financial release, as shares are now up nearly 20% and valued at approximately $114.