LiveDeal Inc (NASDAQ:LIVE), which connects the consumers to restaurants through instant and real-time instant offers kick-start the day with releasing its first quarterly results for the fiscal year 2014. Although the company posted improved revenue numbers, but the broader concerns attached to it built pressure on it today.
Q1 Key Achievements And Q2 Outlook
LiveDeal Inc (NASDAQ:LIVE) functioning on geo-location based mobile marketing model saw its revenues rise by 4% in the reported quarter as compared to its previous year’s revenue. Moreover, the company has been able to effectively scale down its net loss in the quarter by as much as 62%. The company published that the traffic on its livedeal.com increased by 153% in January’2014 as against in December’2013. It has also been able to successfully launch LiveDeal in San Francisco and New York in January and February respectively. In an effort to excel more in its services, the company introduced DealCentral, which is an online deal portal to enable restaurants to generate and publish their offers within seconds. Additionally, it has been able to raise capital totalling $9.70 million through a common stock offering.
The management has put forth its plans for the second quarter, which includes, the expansion of livedeal.com services to most metropolitan locations. It is also eyeing to release the LiveDeal apps on iOS and Android platforms by the end of March this year.
Hit The Spotlight But Is It Enough?
During the last week, LiveDeal Inc (NASDAQ:LIVE) caught attention after the small and micro cap research firm, Goldman Small Cap Research noted its initiation of coverage on the company. The analyst appeared to be strongly optimistic about the business model of the company as they project the price target of the company to $12 for this year and $24 for the next year. The analyst believes that the company’s strategy is the only effective solution to connect customers with that of the restaurant.
But, if the other side of the theory is to be seen than LiveDeal probably has equal weaknesses as its strengths, Its financials raises concerns on account of weaknesses in its net income, return on equity as well as poor operating cash flows. Moreover, LiveDeal Inc (NASDAQ:LIVE) has been able to expand only to two major cities, leaving it with an equally important task to spread to the whole of U.S., which is indeed difficult.
