OVW Stock Ticker Added - Not Great for Roo
Ah, how Web 2.0 of us. Thinking about what we could do to add even more video usefulness (ok, timesuck) to the site, I decided to add a stock ticker widget into the sidebar that would list stocks from our industry. If there’s others you think that should be added, please leave a comment and we’ll get ‘em right in there.
Actually, the idea was inspired by Roo’s earnings (or lack thereof) announcement yesterday. I’m no analyst, but it looks like they are continuing to lose money and moving in the wrong direction in ad sales. As we get closer to the end of the year, at least I can take my lumps on that one and offset some of my other gains in the market. It really looked like they were poised for a breakout year.
ROO incurred a net operating loss of approximately $8.5 million in the third quarter of 2007, including $1.2 million of non-cash compensation. This compares to a net operating loss of $3.7 million for three months ended September 30, 2006, including $0.6 million of non-cash related items. During the third quarter, revenues in the Online Digital Media segment were $2.4 million, an increase of 123% compared to revenues of $1.1 million for the third quarter ended September 30, 2006. Revenues in the Advertising Agency segment were $1.0 million for the third quarter, a decrease of 11% compared to revenues of $1.1 million for the third quarter of 2006.
November 20th, 2007 at 1:32 pm
I don’t understand the comment about going the wrong way with sales.
According to the press release you quoted from were details of the revenue growth they have experienced Q3 07 over Q3 06. Double gains from this time last year.
They say they have 1,000 sites on board and another 500+ in the pipeline.
I agree the cash burn is alarming but as CEO Petty explained recently in an investor group presentation, “the heavy lifting has been done”.
As for Petty and his management group, they should step up and buy some shares on the open market to prove they have confidence in the future of the company.
November 20th, 2007 at 1:38 pm
Revenues in the Advertising Agency segment were $1.0 million for the third quarter, a decrease of 11% compared to revenues of $1.1 million for the third quarter of 2006.
That, in my book, is the wrong way. In this incredibly hot online advertising market, and even hotter video market, it is borderline inexcusable to only sell $1 mil in a quarter. There are other small time video ad networks that nobody here has ever heard of with more revenue. And the fact that it is a decrease from a year ago is, by definition, heading in the wrong direction.