Austin's RetailMeNot reports revenue up 23 percent in 3rd quarter as mobile business grows

Posted November 1st, 2016

Austin-based Online coupon company RetailMeNot said revenue grew 23 percent in the third quarter from a year earlier, as its mobile business continued to accelerate.

RetailMeNot posted revenue of $64.6 million in the period. That was below Wall Street expectations of $66.3 million, based on a survey by Zacks Investment Research.

The company reported net income of $114,000 for the quarter ended Sept. 30.

RetailMeNot said it had a profit of less than 1 cent on a per-share basis. Earnings, adjusted for one-time gains and costs, came to 10 cents per share.

The results exceeded Wall Street expectations, as the average estimate of six analysts surveyed by Zacks was for adjusted earnings of 5 cents per share.

Founded in 2009, RetailMeNot operates the largest online marketplace for coupons and consumer deals. Its sites and mobile apps provide coupon codes, free trials and other retail offers from more than 70,000 merchants including Macy's, Nordstrom, Wal-Mart and Target.

In recent years, RetailMeNot has invested in a strategy to move beyond its traditional niche - desktop computer transactions - to focus on its fast-growing mobile business.

Now, the investments in its mobile platform are starting to pay off. In the third quarter, mobile online transaction net revenue grew 13 percent, representing 11 percent of total revenue.

Meanwhile, desktop online transaction net revenue fell 17 percent, while  representing 59 percent of total revenue.

"In the third quarter, we made progress in executing on our strategy to deliver stable and profitable long-term growth," CEO Cotter Cunningham said in a written statement. "We continue to educate the market and our consumers, while expanding on our promotional savings content, which over time we believe will drive increased traffice to our websites and mobile application."

The company said it expects full-year revenue in the range of $273.6 million to $281.5 million.

In early afternoon trading, RetailMeNot's shares were up more than 3 percent at $9.40.