Netcentives Says It Will Beat Street Revenue Estimates
In a break from the trend of weak online marketing revenues, the company says it will report sales doubled from last quarter's.
Online promotional marketer Netcentives Thursday said that it expects its third-quarter revenues will beat analyst estimates.
The San Francisco-based company gave guidance that its revenues will be in the range of $11.0 to $11.5 million for the quarter, eight to 13 percent higher than the $10.2 million to $16.3 million expected by Wall Street.
The company also said its gross cash sales were up 50 percent from last quarter to $20.0 million — 23 percent higher than the Street’s estimates of $16.3 million.
Without providing more information about losses, Netcentives said operating expenses are expected to be lower than analysts’ estimates.
Analyst consensus puts Netcentives’ lost at 53 cents per share for the third quarter. Last quarter, the company reported per-share losses of 38 cents.
The company said the results are due to offline marketers’ online promotions, and a shift in online ad spending away from ads to promotional marketing.
“Our third quarter performance should help differentiate us from many companies in the e-marketing sector who are reliant on advertising-based models,” said chairman and chief executive officer West Shell.
“Many of our customers view our programs as ‘core’ strategies for which they are prepared to make long-term, large-scale financial commitments. We are very enthusiastic about our results for the quarter and look forward to providing more details in our upcoming earnings announcement.”
