Long or Short Capital Reports Q2’07 Results
by Mr JugglesLong or Short Capital’s fiscal 2nd Quarter ended on 1/31/07, and the company reported its results in a press release:
Mr Juggles: “Good afternoon everyone, let me first state:
‘WOW we really killed it’.
Second, let me welcome everyone on the line to hear me talk about our 2nd consecutive best quarter ever. In the Q1 call, I let you know that we had been internally focused on the so-called “sequential same store traffic figure” and we delivered a “Googlesque” 146%; this quarter we delivered a 50% increase in SSST on top of that that elevated level. I’d like to reiterate the fact that we really killed it and you should say things like “Great quarter guys” and “Thanks for letting me talk in this Q&A, I promise to ask ticky tacky irrelevant questions to perfect my model and not any questions about your sketchy use of SAAP”.
But this quarter was not all about traffic. Our new primary internal focus was on a metric known as the “Eyeball Monetization Conversion” ratio. It’s a proxy for Long or Short’s efficiency at turning our readers into dollars. Last quarter our EMC ratio was $8.43 per thousand readers — note this is not based on page views; this quarter we launched initiatives and improved our mix to drive our EMC to $18.39. None of our competitors can say the same thing, proving that we have maintained our best in class performance.
We generated earnings per subscriberholder of $2.12 compared to $0.60 in Q1’07 and $0.38 in Q4’06. We generated $1,150 in revenue for the quarter, a 489% increase YOY, and 228% sequentially. We re-experimented with Adsense starting in October, and while we eked out decent performance through December, revenue per a click fell off a cliff in January forcing us to switch our ad sourcing back to the Yahoo! Publisher platform. Our timing turned out to be perfect as our revenue per click increased by 3-4x while our CTR increased reasonably, the latter more unexpected than the former. Text link advertising became the stalwart of our topline, although a smaller % contribution than expected. We sold all our inventory for the first time to date and are positioned for a round of price increases. We also exceeded expectations in some of our one-off initiatives including “Operation Sell Our Christmas Spirit Through Amazon.com” and our late in the month experimentation with CPA ads for Valentine’s Day.
Our subscribership increased from 381 to 508.
Our free cash flow took a big hit from working capital, which was unavoidable due to our topline growth. At 81.5% of sales, this is an area we know we need to improve and I’m confident we have the people in place to get it done and effect the necessary changes. Three weeks into February, we have already made headway towards this goal. We want to be at 30-35% of sales maximum.
We had our best quarter ever in terms of revenue, free cash flow and qualifying traffic. This may sound familiar because I said the same exact thing last quarter. Let me tell you something, I really hope to be on this call with you guys and gals three months from now saying the same exact thing for the third time in a row. Thanks for your time, and have a great afternoon.”
Note that the financials below are unaudited and may contain non-GAAP measures. All numbers comply with Seldom Accepted Accounting Principles (SAAP).
Unaudited Financial Results for Q2’07
Income Statement
Contextual CPC Revenue $239.24
CPA Revenue $120.32
Static Ad Revenue $783.41
Other Revenue $8
Total Revenue $1,150.97Cost of Sales $19.55
One Time Charge $45.00
Marketing Expense $7.55
Operating Income $1,078.87
Balance Sheet
Cash $557.55
Accounts Receivable $787.43
Inventory $0.00
Prepaid Marketing/Hosting/Reg $150.95
Accounts Payable $0
Cash Flow Statement
Operating Cash Flow $470.70
Capex $0.00
Dividends $X.00
Performance Metrics
Visits 62,570
Pageviews 134,555
Clicks on ads 313
Subscribers by Email 109
Subscribers by XML 399
Inbound Links per Technorati 461 from 132 Sites
Technorati Rank 25,370
Inbound Links per Google ~367 sites
Google PageRank 5
Past Results (due to our reliance on SAAP, previous unaudited financial results are not reliable)
Long or Short Capital Q1’06 Results
Long or Short Capital Q2’06 Results
Long or Short Capital Q3’06 Results
Long or Short Capital Q4’06 Results
Long or Short Capital Q1’07 Results
this is huge
Good afternoon, and I must say great quarter guys. We were pleased to see that initiatives you executed drove your EMC much higher. Without transparent metrics like EMC, it’ll be difficult to do comps when you are no longer the sole player in your space. Any seed plays out there you are looking at for a consolidation move to head off future competition?
RC-
Let me make sure I got your question right. Head off future competition? Yes, well as you may know, we compete with ourselves mainly. It doesn’t make me fully comfortable to say this, but we are essentially the abstract financial recommendation humor market, so when you say head off future competition, it’s a little unclear what you mean.
We have explored possible acquisitions, and although multiples are still somewhat elevated, we really feel strong about the pet industry, so you may see something there. Or in lawncare. The demographics are just too powerful to ignore. Not sure if I answered your question.
I forgot to ask. What day did you get the most amount of hits this quarter, and what was the article?
2200 visits on 12/21, and the articles that week were Make Emissions Delicious and how to get an A on your 13-D among others. Most effective overall content was LoS presents Dice AKA Stragetic Craps.