Boston, MA 05/23/2014 (wallstreetpr) – RetailMeNot Inc (NASDAQ:SALE) drove a meaningful upside in its first quarter performance as a result of strong growth in traffic and continued increase in monetization.
Strong Driving Factor
During first quarter 2014, total visits grew by 26% to 155.2 million versus 122.9 million a year’s ego due to higher mobile engagement which involves web visits, app sessions and app downloads.
As of March 31, 2014, RetailMeNot has 49 million mobile web visits (+73%) and 20.4 million global subscribers for email and alerts (+107%) with cumulative downloads of more than 16.3 million apps (+171%) and 125.3 million mobile app sessions (+520%).
As a result of high traffic, the net revenue per visit increased to $0.39 from $0.33 in the same period 2013. Therefore, mobile net revenues increased by 127% to $9.3 million (1Q2013: $4.1 million), which accounted for 15% of the total revenue. Consequently, it increased the consolidated net revenues by 51% to $61.3 million (1Q2013: $40.6 million), but, organic net revenues increased by 47%.
The significant growth was due to increasing revenue from both national and international markets. The international market represented 22% of total revenue and grew by 55% to $13.7 million (1Q2013: $8.8 billion), but, the domestic market grew by 50% to $47.6 million (1Q2013: $31.8 million).
Revenue Growth Improves Margins
Gross margin improved to 93% with increasing revenues over it services. Despite increasing operating expenses related to product development and SG& A costs, the Company reported an upside of 17% year over year in adjusted EBITDA to $21.4 million that increased the adjusted EBITDA to 35%.
Conclusion
RetailMeNot Inc (NASDAQ:SALE) continues to demonstrate positive results with more customer additions and mobile apps for their smartphones. The Company generated $18.3 million of cash inflows from its operation during the quarter and ended up with the cash balance of $196.5 million. In addition, the Company has total debts of $39.6 million and $101.4 million available borrowings under credit facility as of March 31, 2014 to support its operation.
