LookSmart Warns, Shuffles Execs

  |  January 13, 2005   |  Comments

The struggling search play named two new senior VPs and lowered Q4 guidance.

LookSmart lowered its financial guidance for last quarter and announced a shake-up of senior management today.

"The company did not sufficiently deploy sales resources against new advertisers to achieve the projections issued in late October," said CEO David Hills, who joined the company from 24/7 Real Media in late October.

Despite its optimistic expectations prior to the quarter, the company has revised its guidance for revenue from continuing operations for the fourth quarter of 2004 to $16.5 to $17 million from the previously issued guidance of $18 to 20 million. It has also revised guidance for fourth quarter adjusted net loss to approximately $1.4 to $1.7 million from the original figure of less than $1 million.

In hopes of turning around its business, the company has reorganized its products into two divisions, down from three, and tapped new executives to lead those divisions. Deborah Richman, SVP consumer products, will head up the consumer products division that includes the Net Nanny, Furl.net, and FindArticles. Bryan Everett, SVP sales, will lead the paid listings and syndicated technologies division, which include the company's LookListings paid listings product, and its syndicated technologies, which are designed to help publishers generate search audiences and revenue.

Richman comes to LookSmart from Web hosting provider About Web Services, where she served as general manager and vice president. Prior to that, she served as vice president of Overstock.com. Most recently, Everett was VP sales for messaging service provider Twelve Horses. He has also held executive sales positions with 24/7 Real Media.

LookSmart has struggled since it lost a critical distribution deal with MSN in October 2003. In 2004, the company slimmed down its work force, and introduced a paid listings product. It acquired Furl.net, a Web archiving service, in September 2004 and named Hills as CEO in October.

For the full year, the Company now expects to report revenue from continuing operations of $77 to $77.5 million, revised from its prior guidance of $78.5 to $80.5 million, both excluding $6 million for discontinued international operations. Adjusted net loss guidance for 2004 has been revised to $9.8 to $10.1 million from less than $9.4 million, both including restructuring charges of approximately $4.2 million.

ClickZ Live New York What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!

ABOUT THE AUTHOR

Kevin Newcomb

Kevin Newcomb joined ClickZ in August 2004, covering search marketing and other online marketing topics. He has been reporting on web-based businesses since 2000.

Before the bubble burst, Kevin was a marketing manager for an online computer reseller, handling copywriting, e-mail marketing, search marketing and running the affiliate program.

With a combination of real-world marketing experience and years of business journalism, Kevin brings to ClickZ a unique ability to deliver news and training materials that help online marketers do their jobs better.

COMMENTSCommenting policy

comments powered by Disqus

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

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

Resources

Jobs

    • Customer Service Consultant
      Customer Service Consultant (Bonner and Partners) - Delray BeachBonner & Partners: Full-time Customer Service Consultant Position Who we are...
    • Financial Editor
      Financial Editor (Confidential) - DurhamSIX FIGURE EDITORS WANTED: To enforce lofty NEW editing standards. Easy Conditions Unlikely. Promotion and...
    • Information Processing Specialist
      Information Processing Specialist (Agora Inc. ) - BaltimoreInformation Processing Specialist – The IP specialist position ensures the successful...