Remark Media (MARK) Reports Q4 Miss on Revenues

Note: EPS may not be comparable

Remark Media (NASDAQ: MARK) reported Q4 EPS of ($3.47), versus ($0.25) reported last year. Revenue for the quarter came in at $18.6 million versus the consensus estimate of $19.48 million.

Three Months Ended December 31st: 2017 Compared to 2016

• Net revenue was $18.6 million, compared to $15.0 million.
• Total cost and expense was $40.0 million, compared to $24.7 million.
• Operating loss was $21.4 million, compared to $9.7 million.
• Net loss was $89.2 million, or $3.47 per diluted share, compared to $8.6 million, or $0.40 per diluted share. Net loss for the fourth quarter of 2017 included a $66.5 million non-cash charge related to a change in the fair value of the company's warrant liability, which occurred as a result of the significant increase in the company's stock price during the period. For the fourth quarter of 2016, the company recorded a $3.1 million gain related to the change in the fair value of the company's warrant liability during the period.
• At December 31, 2017, the cash and cash equivalents balance was $22.6 million, and total restricted cash was $11.7 million, bringing the total combined cash position to $34.3 million, compared to a total combined cash position of $18.5 million at December 31, 2016.

2018 Financial Outlook

The company increased its limited guidance regarding certain revenue and EBITDA expectations.

For 2018, company management expects to generate consolidated net revenue in excess of $120 million. KanKan\'s Artificial Intelligence Platform will be the primary driver of the growth as its revenue rapidly increases. For the year ending December 31, 2018, management expects KanKan to generate more than $50 million in net revenue.

Remark Holdings management also indicated it expects its travel & entertainment segment to generate gross revenue of more than $375 million and net revenue between approximately $70 million to $80 million, with an EBITDA margin approximating 12% to 15% of net revenue, during 2018.

For earnings history and earnings-related data on Remark Media (MARK) click here.

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