RetailMeNot Earnings: Hot on Mobile

SALE leverages mobile to continue its hot growth ramp

   

RetailMeNot (SALE), which operates a marketplace for digital coupons, was up a few percentage points after the bell thanks to a better-than-expected Q3 report, at least on the top line. RetailMeNot earnings of 15 cents met the consensus, and revenues jumped 39% to $47.4 million to tackle Wall Street expectations of $45.93 million.

SALE stock came public on the Nasdaq back in mid-July with a first-day return of 32%. Since then, RetailMeNot has gone on to generate a total return of 56% — an encouraging performance in light of Groupon’s (GRPN) horrible IPO.

The priority at the company is, of course, a focus on mobile — and results have been strong. In the RetailMeNot earnings report, mobile net revenues for Q3 were $5.8 million, up a sizzling 190% over the past year. As of the end of September, SALE clocked over 8.8 million app downloads across its main properties, which include RetailMeNot.com, VoucherCodes.co.uk and Bons-de-Reduction.com; a year ago, the count was about 2.3 million.

Version 3.0 of its app — available for both Apple’s (AAPL) iPhone and on devices running Google’s (GOOG) Android operating system — allows for easy bookmarking of favorite stores and more geo-targeting features.

The aggressive development efforts will certainly be important, as SALE will need to deal with potential competition from Facebook (FB), Yahoo (YHOO) and Microsoft’s (MSFT) Bing. Although, Google Offers might be the biggest threat, as the company can leverage its massive mobile platform.

However, for now, SALE is finding ways to keep up the robust growth, and there’s plenty of runway left. After all, the company believes its global market opportunity is about $28 billion.

So following RetailMeNot earnings, there’s little reason to worry — even in a world of Google Offers and Groupon deals.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/retailmenot-earnings-sale-stock/.

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