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.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!
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.
IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.
September 17, 2014
September 23, 2014
September 30, 2014
1:00pm ET/10:00am PT