RetailMeNot Profit Falls; Stock Up - Update

(RTTNews) - Digital coupon marketplace operator RetailMeNot Inc (SALE), Monday reported a 13 percent decline in first-quarter profit, hurt mainly by stock-based compensation expense and other costs that offset a surge in revenues.

Moving forward, the company said prospects appear bright as consumer preference for the company's sites and mobile apps gain momentum.

Following the announcement, RetailMeNot shares gained 4.7 percent in after-hours trade on the Nasdaq, on the back of a near 4 percent climb at the day's close.

RetailMeNot's digital coupon marketplace connects consumers with retailers and brands.

The Austin, Texas-based company posted first-quarter net income of $6.1 million, compared with $7 million last year. On a per share basis, earnings were $0.11, compared with $0.02 a year ago.

On average, eight analysts polled by Thomson Reuters expected earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.

After payment to preferred stockholders, net income for the prior year was $20 thousand, the company said.

Meanwhile revenues for the quarter surged 51 percent to $61.3 million from $40.6 million in the prior year. Analysts expected sales of $55.6 million for the quarter.

Revenues from international markets jumped 55 percent from last year, and mobile revenues more than doubled.

Results were mainly impacted by operating expenses that were higher at $50.4 million, compared with $28.4 million a year ago.

RetailMeNot stock closed Monday at $32.71, up $1.24 or 3.94%, on a volume of over 2 million shares on the Nasdaq. In after hours, the stock gained $1.54 or 4.71%, to trade at $34.25.