TheStreet, Inc. (TST) Misses Q2 EPS by 2c, Revenues Miss

TheStreet, Inc. (NASDAQ: TST) reported Q2 EPS of ($0.02), $0.02 worse than the analyst estimate of $0.00. Revenue for the quarter came in at $13.5 million versus the consensus estimate of $15.6 million.

• RateWatch business sold June 20, 2018 for $33.5 million.
• Cash, cash equivalents, restricted cash and marketable securities totaled $44.9 million, an increase of $31.0 million from December 31, 2017, including a $5.6 million increase in cash from operations.
• Net income for the second quarter 2018 including discontinued operations totaled $27.5 million, or $0.54 per diluted share, compared to $0.3 million, or $0.01 per diluted share for the same quarter last year. The second quarter of 2018 includes the gain on sale of RateWatch of $27.6 million partially offset by eight fewer business days of operating activity in the RateWatch business (Discontinued operations).
• Net loss from continuing operations totaled $0.9 million, or ($0.02) per share, as compared to $0.4 million, or ($0.01) per share in the second quarter of 2017.
• Total Revenue from continuing operations for the second quarter of 2018 totaled $13.6 million, down $0.5 million, or 3%, as compared to the same quarter in the prior year.
  • Business-to-Business (B2B) revenue of $6.7 million, up 12% year-over-year.
  • Business-to-Consumer (B2C) revenue of $6.9 million, down 15% year-over-year, primarily due to a strategic shift as it relates to advertising.
• Deferred subscription revenue from continuing operations totaled $23.2 million, up $1.8 million, or 8%, year-over-year.
  • B2B deferred subscription revenue increased $0.9 million, or 8%, as compared to the second quarter of 2017.
  • B2C premium deferred subscription revenue grew $0.9 million, or 9%, as compared to the second quarter 2017.
• Adjusted EBITDA of $0.4 million for the second quarter of 2018 decreased $0.9 million as compared to the same quarter last year.

"With the successful RateWatch divestiture behind us, we are now focused squarely on continuing our growth momentum in our paid subscription products," said David Callaway, President and CEO. "Our strategic shift from advertising, while resulting in a short-term decline in results, has begun to pay off in almost all the underlying metrics of our subscription businesses, especially deferred revenue, which will benefit us in quarters to come."

For earnings history and earnings-related data on TheStreet, Inc. (TST) click here.

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