LookSmart Beats Street, But Lowers 2004 Guidance

  |  February 6, 2004   |  Comments

The struggling search listings provider said it will have a yearly loss worse than expected in 2004.

Paid search listings provider LookSmart exceeded Wall Street estimates for the fourth quarter, but the struggling company Thursday predicted a net loss for 2004 at the low end of analysts' expectations.

LookSmart outdid the Wall Street consensus of $40.1 million in revenue and net income of two cents per share for the quarter, pulling in $44.1 million, with net income of one cent per share. However, the company predicted a loss for the year 2004 of $28 million on total sales of between $45 million and $50 million.

The company has been reeling since Microsoft's MSN opted not to renew its contract with LookSmart in October. Plans for drastic layoffs were announced in December. LookSmart also launched a paid search product to complement its core paid inclusion business in hopes of building more business.

LookSmart's challenge is to find a way to replace the approximately 70 percent of its income formerly derived from MSN.

"Our priorities are to continue to grow our paid listings, reduce our cost base and implement growth strategies based on profitable segments of the search market," said Damian Smith, LookSmart's interim CEO since the January resignation of its former chief executive, Jason Kellerman.

"Over this year LookSmart will introduce a number of new rapidly monetized search products in addition to our core listing business," said Smith. He did not specify what the new products would be, though he said the company would "draw upon our history of successfully developing early stage search opportunities to deliver innovative solutions within underserved sectors of the market."

"This is a company in transition," said Safa Rashtchy, senior analyst with Piper Jaffray. "For a company to go through this kind of change is traumatic. They still have challenging growth ahead of them before they can get to profitability."

ClickZ Live San Francisco August 10-12: Revolutionize your digital marketing campaigns at ClickZ Live San Francisco! Educating marketers for over 15 years, our action-packed, educationally-focused agenda covers every aspect of digital marketing. Early Bird rates available through Friday, July 17 - save up to $300! Register today.

ABOUT THE AUTHOR

Janis Mara

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

US Consumer Device Preference Report

US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.

E-Commerce Customer Lifecycle

E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.

WEBINARS

Jobs

  • Sr. Marketing Specialist, PPC
    Sr. Marketing Specialist, PPC (Charter Communications) - StamfordSr. Marketing Specialist, PPC– Digital Marketing Charter Communications...
  • Online Marketing Analyst
    Online Marketing Analyst (FULLBEAUTY Brands ) - New YorkINTRODUCTION: Are you interested in a unique career opportunity where you can represent...
  • Copy Editor
    Copy Editor (ClickZ / Search Engine Watch) - New YorkROLE OVERVIEW The role of the copy editor for ClickZ has many demands. Ultimately, the copy...